5i Research Weekly Rockets and Duds
Here are last week's big stock movers and losers from 5i Research Inc. It's another week of ROCKETS AND DUDS.
Blue Gold Ltd. BGL 
Let's see.....if we combine gold, crypto and a SPAC, then surely we are going to have a hot stock. A SPAC is a special purpose acquisition company. Essentially, it is a company with a bunch of cash that gets two years to make an acquisition. In this case, last month, Perception Capital Corp. IV found a target and merged with Blue Gold Ltd., a mining company based in Ghana. Then, last week, Blue Gold announced it was exploring the possibility of a blockchain-based digital asset backed by gold futures. Investors went gaga and shares rose 72% for the week, and are now up more than 800% since the merger. But keep in mind 'explore' and 'possibility' are not exact words implying a guarantee. We would remind investors that more than 90% of SPACs lose money for investors.
Let's see.....if we combine gold, crypto and a SPAC, then surely we are going to have a hot stock. A SPAC is a special purpose acquisition company. Essentially, it is a company with a bunch of cash that gets two years to make an acquisition. In this case, last month, Perception Capital Corp. IV found a target and merged with Blue Gold Ltd., a mining company based in Ghana. Then, last week, Blue Gold announced it was exploring the possibility of a blockchain-based digital asset backed by gold futures. Investors went gaga and shares rose 72% for the week, and are now up more than 800% since the merger. But keep in mind 'explore' and 'possibility' are not exact words implying a guarantee. We would remind investors that more than 90% of SPACs lose money for investors.
Cipher Mining Inc. CIFR In the old days, if you were looking at a 'mining' company you could be fairly sure the company was searching for gold, copper, zinc or some other metals. These days, though, 'mining' is just as likely to mean the company is involved in crypto currencies. That's the case with Cipher, whose shares rose 42% last week as it announced that hashrate growth at its Black Pearl site is exceeding expectations. Phase I is now delivering 3.4 exahashes per second of self-mining capacity. That is good. We think.
In the old days, if you were looking at a 'mining' company you could be fairly sure the company was searching for gold, copper, zinc or some other metals. These days, though, 'mining' is just as likely to mean the company is involved in crypto currencies. That's the case with Cipher, whose shares rose 42% last week as it announced that hashrate growth at its Black Pearl site is exceeding expectations. Phase I is now delivering 3.4 exahashes per second of self-mining capacity. That is good. We think.
Trip Advisor TRIP TRIP shares rose 32% last week as activist investor Starboard Value LP disclosed a 9% position in the company. While the company had a solid first quarter, its core business remains under pressure from factors including increased competition and weaker travel demand. In February last year the company formed a special committee to evaluate potential takeover proposals but nothing came of it. Shares are down a fraction in the past year, and trade at a cheap 11 times' earnings.
TRIP shares rose 32% last week as activist investor Starboard Value LP disclosed a 9% position in the company. While the company had a solid first quarter, its core business remains under pressure from factors including increased competition and weaker travel demand. In February last year the company formed a special committee to evaluate potential takeover proposals but nothing came of it. Shares are down a fraction in the past year, and trade at a cheap 11 times' earnings.
Centene Corporation CNC 
Another week, another disaster in the healthcare/insurance space, with CNC shares down 38% last week as the company withdrew its guidance, due to rising risks from Affordable Care Act plans. The company appears to have been caught off-guard by government actions, which is surprising since other large insurers reported issues last month. Investors were shocked nonetheless. Shares are now down 50% in the past year and the usual number of class-action lawsuits have emerged following the stock's plunge.
Another week, another disaster in the healthcare/insurance space, with CNC shares down 38% last week as the company withdrew its guidance, due to rising risks from Affordable Care Act plans. The company appears to have been caught off-guard by government actions, which is surprising since other large insurers reported issues last month. Investors were shocked nonetheless. Shares are now down 50% in the past year and the usual number of class-action lawsuits have emerged following the stock's plunge.
Karman Holdings Inc. KRMN It was a tough week for Karman, whose shares fell 11% last week. But don't feel too bad for shareholders, as shares are still more than double their February 2025 IPO price. The company makes mission-critical systems for existing and emerging missile and defense and space programs. Obviously, with multiple wars still going on in the world, interest in new defense companies is high. There was no news to account for last week's decline. Shares went public at $22 in February, and are now $45, and peaked near $52 last Monday.
It was a tough week for Karman, whose shares fell 11% last week. But don't feel too bad for shareholders, as shares are still more than double their February 2025 IPO price. The company makes mission-critical systems for existing and emerging missile and defense and space programs. Obviously, with multiple wars still going on in the world, interest in new defense companies is high. There was no news to account for last week's decline. Shares went public at $22 in February, and are now $45, and peaked near $52 last Monday.
Take Care,
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Analysts of 5i Research responsible for this report do not have a financial or other interest in securities mentioned. The i2i Fund does not have a financial or other interest in securities mentioned.
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