From Chris Lahiji comes a new summary of the LD Micro newsletter covering microcap activity during the second week of August (August 5-12). In the newsletter, Lahiji addresses the question of why the LD Micro Index is down 2.41 percent year to date, in contrast to the Russell 2000 Index, which is up 8.62 percent.
While analysis of the numbers is still ongoing, the newsletter points out that stocks from a few companies in certain sectors have gone up in value, but most have not moved much, and a few have dipped slightly. Market fatigue may be a factor, and the newsletter advises caution as the Labor Day holiday weekend approaches.
The newsletter puts the spotlight on International Money Express Inc. (IMXI), a company that facilitates cross border money transfers from the U.S. to 17 countries in South America and the Caribbean. Earlier this month, International Money Express reported its second quarter results, the chief news from which was that revenues, at $70.4 million, were up 31 percent compared to the previous year. The company is now the second biggest facilitator of money transfers to Mexico and the biggest to Guatemala.
The newsletter again features a dedicated section put together by researcher Christian Galatti of Phase IV Research and highlighting the most notable anomalies among the biggest gainers and volume leaders.
- EKSO +47%, The Robot/Bionic Theme Continues (EKSO) – Validation Overcomes Another Miss
Galatti outlines the extraordinary turnaround in fortunes for Ekso Bionics, a company that creates bionic technology to augment the endurance, strength and mobility of the human body.
The company’s stock had been on a downward trend for the past four years, with its value shrinking 14.5 percent in the first four months of this year, according to a company press release announcing Q2 results.
Things took a dramatic turn, however, when Ford Motor Company ($F) announced that it will be rolling out Ekso’s technology to the carmaker’s factory workers across the globe, so as to reduce the strain and toll on their bodies caused by their physically demanding jobs. As a result, Ekso’s stocks surged 47 percent.
- Carver Bancorp Does It Again +49% (CARV) – The Second Monumental Move in 3 Months
Galatti also writes of another extraordinary stock performer, Carver Bancorp Inc., “the rare microcap that frequently rockets for no apparent reason.” Carver Bancorp’s shares shot up in value for the second time in three months.
Back in May, the company’s shares suddenly and for no ostensible cause went up 190 percent. The surge was so dramatic that the company released a press statement to underline that they did not know why this was happening. The press statement said that Carver “has not taken any corporate action that would explain the trading activity and is not in possession of any material, non-public information that would prompt the trading activity.” It went on to say that “to the company’s knowledge, no insiders have sold or acquired any of the company’s shares recently.”
Once again during the second week of August, for the second time in three months, Carver’s stock shot up unaccountably, this time by 49 percent. As with the first time this happened, the reasons are still a mystery to financial experts.
Carver Bancorp is the holding company for Carver Federal Savings Bank, which was founded in 1948 to extend financial services to minority communities that lacked access to banking services. “They made money in FY18 by selling a building (link). But, outside of that, nothing. Nothing unusual, not even a buyout rumor would make sense of these gains. Gains that always disappeared; hundreds of percent gone every time. A true stock market mystery that just repeated,” Galatti concludes.
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