The LD Micro Index topped 2000 in early June, capping a marathon run that began in March. With that spectacular climb, the index has regained the perch it held before the first coronavirus cases in the United States were reported. This is welcome news for small-cap investors, many of whom might have been losing faith in the sector. But, turning the old adage upside down — what goes down must go up — the bull run shows that small business is still the engine of America’s economic growth.
America is going to need that engine in the coming months. This week, the National Bureau of Economic Research (“NBER”), the organization that calls a recession, did just that. On June 8, the institution declared that economic activity in the U.S. had peaked in February 2020 (http://nnw.fm/T42Rz).
Since then, estimates of gross domestic product (“GDP”), a measure of economic activity, have been falling, according to data provided by the Atlanta Fed (http://nnw.fm/GWlx7). However, there is a silver lining to the dark recessionary cloud. The unemployment rate, which plummeted to 14.7% in April, ticked up slightly to 13.2% in May, the last month for which data is available (http://nnw.fm/9NlHd).
The contraction in economic activity that began in March means that stock indices around the nation have been down. Still, some have been doing better than others. Notably the LD Micro Index has performed better than the iShares Russell 2000 (NYSE: IWM), which also tracks small-cap stocks. While the IWM is down 9.18%, the LD is lower by 8.8%. Given the challenging times, losing less than peers is tantamount to winning.
This year, June is not just for brides and weddings. There is a flurry of activity as the general populace and small business community try to regain their footing. This first week was extraordinary with Monday, June 8, in particular, producing some startling results. That was the day the top 10 stocks all rose by triple-digit percentages.
There was also one buyout in the first week of June. Finjan Holdings Inc. (NASDAQ: FNJN) is be acquired by affiliates of Fortress Investment Group LLC in a deal valued at approximately $43.9 million. Finjan is a recognized pioneer in the development of cybersecurity technologies. The company will maintain its brand and business model going forward, licensing and enforcing a substantial patent portfolio that has been consistently upheld by courts and patent offices.
For disclosure purposes, employees of LD Micro own shares in Finjan, and Finjan has paid to present at LD Micro conferences over the years.
The week was unusual in other ways. The LD Index mirrored the DJIA, or perhaps it was the other way round.
Regardless, here are the biggest movers and shakers for the week of June 1–8:
- SunHydrogen, Inc. (formerly Hypersolar Inc.) 408.20%
- IZEA Worldwide Inc. 186.71%
- Celldex Therapeutics Inc. 153.25%
- Byrna Technologies Inc. 146.43%
- Ideanomics Inc. 142.50%
- Allied Esports Entertainment Inc. -32.97%
- Ascena Retail Group Inc. -35.39%
- Protara Therapeutics Inc. -38.52%
- Soleno Therapeutics Inc. -42.02%
- MMTec Inc. -53.45%
For more information on LD Micro, visit www.LDMicro.com.
About NetworkNewsWire
NetworkNewsWire (NNW) is a financial news and content distribution company that provides (1) access to a network of wire services via NetworkWire to reach all target markets, industries and demographics in the most effective manner possible, (2) article and editorial syndication to 5,000+ news outlets (3), enhanced press release services to ensure maximum impact, (4) social media distribution via the Investor Brand Network (IBN) to nearly 2 million followers, (5) a full array of corporate communications solutions, and (6) a total news coverage solution with NNW Prime. As a multifaceted organization with an extensive team of contributing journalists and writers, NNW is uniquely positioned to best serve private and public companies that desire to reach a wide audience of investors, consumers, journalists and the general public. By cutting through the overload of information in today’s market, NNW brings its clients unparalleled visibility, recognition and brand awareness. NNW is where news, content and information converge.
To receive SMS text alerts from NetworkNewsWire, text “STOCKS” to 888-902-4192 (U.S. Mobile Phones Only)
For more information, please visit https://www.networknewswire.com
Please see full terms of use and disclaimers on the NetworkNewsWire website applicable to all content provided by NNW, wherever published or re-published: http://NNW.fm/Disclaimer
NetworkNewsWire (NNW)
New York, New York
www.networknewswire.com
212.418.1217 Office
[email protected]
NetworkNewsWire is part of the InvestorBrandNetwork.
