📊 Mining and Energy Small Caps Buck the Trend—But Trade Turmoil Looms

Good Morning Investors,

Small-cap stocks had a split day. The Russell 2000 slipped 0.2%, but Canada's TSX Venture eked out a 0.6% gain. The real action? Mining and energy names, which rallied on the back of stronger commodity sentiment—up 2.4% and 1.0% in their respective sectors.

Still, investors are bracing for turbulence as the White House teases new U.S.-China trade deal details. Inflation may be cooling, but small businesses are still grappling with tax headaches and labor shortages. With global economic data and tariff talk swirling, the next market move may not be about earnings—but geopolitics.

Matthias Schneider
Editor at Analytica Investor

↑ ↓ 1-day change
Market data: Yesterday’s market close

Friday's small-cap markets showed mixed movements with the Russell 2000 slightly down by 0.2% and the S&P/TSX Venture Composite Index up by 0.6%. Mining and commodities indexes gained traction, indicating a trend towards materials and resources. In macro news, trade talks between U.S. and China remained in focus influencing small-cap market sentiments due to potential tariff impacts. Analysts noted that high tariffs could lead to a 'extinction level event' for small businesses.

Footwear companies Crocs and Skechers managed to rally despite tariff pressures. The U.S. trade negotiations have triggered a volatile environment with several reports emphasizing the uncertainty around the effects of the proposed tariffs. In related developments, the global equities market has seen a pullback amid the ongoing U.S.- China trade issues.

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📈 Biggest Gainers 

- The Beauty Health Company ($SKIN NASDAQ) - 51%:

Market Cap: 235,601,300

Specializes in designing, marketing and selling aesthetic technologies and products enhancing skin health and personalizing skincare treatments globally.

- Hongli Group Inc. ($HLP NASDAQ) - 25%:

Market Cap: 121,908,330

Operates through subsidiaries to design and manufacture customized steel profiles for various industries primarily in Asia and the US.

📉 Biggest Losers

- Iovance Biotherapeutics, Inc. ($IOVA NASDAQ) - 111,074,046 shares traded with an average volume of 10,068,486 (-45%):

Market Cap: 584,384,500

This clinical-stage biotechnology company develops and commercializes cancer immunotherapy products to eradicate cancer cells, with six ongoing phase 2 clinical studies.

The recent drop in price was directly influenced by a combination of announcements regarding a securities fraud investigation into the firm, and an annual maintenance report revealing unfavorable disclosure, causing the share value to plummet 44%. 1, 2, 3

- Protalix BioTherapeutics, Inc. ($PLX AMEX) - -40%:

Market Cap: 136,769,412

This biopharmaceutical firm develops and markets plant cell-based recombinant therapeutic proteins for various diseases globally.

The unfavorable financial and business results disclosed in the first quarter 2025 PR release played a significant role in triggering a 40% decrease in the stock's recent price. 1

- DocGo Inc. ($DCGO NASDAQ) - -40%:

Market Cap: 139,918,380

Offers mobile health and medical transportation services in the US and UK, including emergency and non-emergency transport, and COVID-19 testing.

Negative fallout from the announcement of the first quarter 2025 results directly led to a 40% plunge in the stock's value. 1

- Opendoor Technologies Inc. ($OPEN NASDAQ) - 171,239,579 shares traded with an average volume of 49,315,232 (-23%):

Market Cap: 488,944,108

This digital platform allows U.S. consumers to buy, sell residential real estate online and offers title insurance and escrow services.

The announcement of the first quarter financial results for 2025 incited considerable trading activity, contributing to a 23% decrease in the average trading volume of its shares. 1

- Cytek Biosciences, Inc. ($CTKB NASDAQ) - -23%:

Market Cap: 373,227,075

Offers cell analysis tools, reagents, kits, and support for biomedical research and clinical applications to global clients in pharmaceutical and academia.

The stock's recent 23% slump directly resulted from the unveiling of Cytek Biosciences' disappointing first quarter 2025 financial results. (1)

- Krispy Kreme, Inc. ($DNUT NASDAQ) - -16%:

Market Cap: 465,896,340

Operates doughnut shops and produces doughnuts, cookies, brownies, and related equipment globally through various channels and business models.

The initiation and continuation of securities fraud investigations by multiple law firms, indicated by the PR releases, have led to a significant 16% downturn in the stock's recent prices. 1, 2, 3, 4, 5, 6, 7, 8

🚀 Biggest Movers

- Plug Power Inc. ($PLUG NASDAQ) - 78,387,762 shares traded with an average volume of 73,631,057 (1%):

Market Cap: 880,214,055

Specializing in clean hydrogen and zero-emission fuel cell solutions, this company offers services in production, storage, delivery, and energy generation worldwide.

- i-80 Gold Corp. ($IAUX AMEX) - 50,612,298 shares traded with an average volume of 4,353,883 (-10%):

Market Cap: 239,458,196

Engages in the exploration, development, and production of gold and silver mineral deposits in Northern Nevada, USA.

The surge in stock trading volume is directly linked to an uplift of the previously announced public offering of units, concurrent with a significant US$135 million public offering of units, alongside the release of favorable first quarter 2025 operating and financial results. 1, 2, 3

- Wolfspeed, Inc. ($WOLF NYSE) - 50,022,169 shares traded with an average volume of 26,894,049 (-26%):

Market Cap: 510,272,880

Specializes in providing silicon carbide and gallium nitride materials, power and RF devices for various industrial, technological and defense applications worldwide.

The recent addition of two experienced directors to the board led to increased trading activity, ultimately contributing to a decrease in the average volume of the stock. 1

Post Of The Day

💵 Recent Earnings

GDI Integrated Facility and Docebo stumbled slightly with revenues falling a bit short of estimates, yet both boosted their report cards with EPS surprises.

Meanwhile, GungHo Online delivered a plot twist with an unexpected dip in both metric categories. Magellan soared above expectations, ensuring a smooth take-off in the earnings space, and Gyre Therapeutics left investors feeling queasy after generating no earnings per share.

Announced May 8th, 2025:

-GDI Integrated Facility Services Inc. $GDI.TSX ( ▼ 1.58% ) - Provides janitorial, technical, and mechanical maintenance services through franchises in Canada and the United States.

• Revenue: 616,000,000 vs est. 649,150,000 (-5%), EPS: 0.26 vs est. 0.19 (37%)

• Market Cap: 771,368,083

• Sector, Industry: Industrials, Specialty Business Services

- Docebo Inc. $DCBO ( ▼ 1.17% ) - Offers a cloud-based learning management system to train internal and external workforces, partners, and customers worldwide.

• Revenue: 57,296,000 vs est. 59,147,720 (-3%), EPS: 0.27 vs est. 0.21 (29%)

• Market Cap: 804,809,600

• Sector, Industry: Technology, Software - Application

- Magellan Aerospace Corporation $MAL.TSX ( ▲ 0.92% ) - Magellan Aerospace Corporation designs, manufactures, and sells aero engine and structure components for the global aerospace market.

• Revenue: 260,898,000 vs est. 240,250,000 (9%), EPS: 0.19 vs est. 0.18 (6%)

• Market Cap: 885,076,914

• Sector, Industry: Industrials, Aerospace & Defense

- GungHo Online Entertainment, Inc. $GUNGF - Based in Tokyo, develops, operates, and distributes online computer games, smartphone applications, and console games.

• Revenue: 158,484,150 vs est. 184,831,932 (-14%), EPS: 0.1928 vs est. 0.3593 (-46%)

• Market Cap: 939,501,453

• Sector, Industry: Technology, Electronic Gaming & Multimedia

- Gyre Therapeutics, Inc. $GYRE ( ▼ 3.12% ) - Develops and commercializes anti-inflammatory and anti-fibrotic drugs targeting organ fibrosis, with a variety of compounds in clinical and preclinical stages.

• Revenue: 22,058,000 vs est. 28,700,000 (-23%), EPS: null vs est. 0.03 (-100%)

• Market Cap: 893,366,978

• Sector, Industry: Healthcare, Biotechnology

👀 Stocks To Add To Your Watchlist

$PHLTF ( 0.0% ) · NASDAQ Global Market — Performant Healthcare, Inc.

Technology/Information Technology Services · YTD: -67.105%

PHLT exhibits resilience amid market volatility, with a recent surge of 10.66% in one day and trading around $2.49, near its low end of the 52-week range ($2.22-$4.35).

Specializing in technology-enabled payment recovery for healthcare payers, shows promise with significant insider purchases by CEO and CFO, signaling strong leadership confidence. Despite its low beta (0.151), indicating lower market risk, investors should monitor its performance in the evolving healthcare and tech sectors.

$FLWS ( ▼ 0.78% ) · NASDAQ Global Select — 1-800-FLOWERS.COM, Inc.

Consumer Cyclical/Specialty Retail · YTD: -87.864%

Amidst market fluctuations, 1-800-FLOWERS.COM presents an intriguing opportunity. A leading provider in the gifting sector with a diverse portfolio of brands, has shown resilience. Despite a significant drop in its price to $4.86, down over 16% in a single day, and trading near its 52-week low, its active insider transactions and consistent volume suggest potential undercurrents of strength.

With a Beta of 1.586, FLWS is more volatile than the market, yet might offer robust returns as market conditions stabilize. Investors seeking short-term opportunities in the Consumer Cyclical sector might find FLWS's current valuation appealing, especially considering its broad online presence and specialty retail focus.

$NSSC ( ▼ 3.66% ) · NASDAQ Global Select — Napco Security Technologies, Inc.

Industrials/Security & Protection Services · YTD: -97.207%

Despite facing recent legal challenges and regulatory scrutiny, NSSC has shown resilience in its stock performance. With a notable increase of 4.51% on 2025-05-08, closing at $26.37, Napco outpaces the general downtrend in the Industrials sector.

This growth, amidst a flurry of class-action lawsuits, highlights investor confidence in Napco's long-term value. Consider leveraging this potential by keeping an eye on future developments and legal outcomes.

$QURE ( ▼ 5.89% ) · NASDAQ Global Select — uniQure N.V.

Healthcare/Biotechnology · YTD: -94.398%

In the tumultuous biotech sector, QURE shines with its innovative gene therapies, targeting devastating genetic disorders. The stock, while volatile, surged 19.98% on significant volume following a recent dip, closing at $12.79.

With its product AMT-130 receiving the FDA's Breakthrough Therapy designation for Huntington's disease, uniQure's forward momentum is underscored by a healthy cash reserve, projected to extend operations into the second half of 2027. Seasoned investors might find QURE's pioneering status and recent upswing an attractive proposition in the high-risk, high-reward biotech arena.

$TRVG ( ▼ 0.26% ) · NASDAQ Global Select — trivago N.V.

Communication Services/Internet Content & Information · YTD: -54.338%

An operator of a global hotel search platform, has recently been spotlighted by Zacks Investment Research as an intriguing buy in the internet services market. Despite market volatility, TRVG shows resilience with a noticeable 20.09% increase in its stock price on May 1, closing at $5.2.

Additionally, the appointment of Dr. Wolf Schmuhl as CFO positions the company for potential financial optimization. With a current price of $4.9 and a market cap of $345M, TRVG presents a unique investment opportunity in the Communication Services sector.

That’s it for this episode!

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