5i Research Weekly Rockets and Duds
It's time for another 5I Research Rockets and Duds...
CECO Environmental Corp. (CECO) 
Ahhhh, fresh clean air. Who doesn't like it? CECO, an air purification company, rose 30% last week on strong results and a record backlog. One of the basic tenets of investing is to buy things that are 'necessary'. Surely, air is one of those things? See? Investing really can be that easy. CECO shares are up 400% over the past decade.
Reddit Inc. RDDT Reddit was supposed to be the poster child of how AI was going to negatively impact some companies. Everyone was wondering why anyone would go to the Reddit user app when Google and other AI services simply provided Reddit summaries already. But 'everybody' was wrong as the company announced strong earnings and guidance, and noted that its own investments in AI are starting to pay off. The stock rose 26%. So there!
Reddit was supposed to be the poster child of how AI was going to negatively impact some companies. Everyone was wondering why anyone would go to the Reddit user app when Google and other AI services simply provided Reddit summaries already. But 'everybody' was wrong as the company announced strong earnings and guidance, and noted that its own investments in AI are starting to pay off. The stock rose 26%. So there!
Rush Street Interactive Inc. RSI Another noted tenet of investing is that gambling stocks usually 'pay off' and can be recession-proof. Well, we are not quite in a recession, yet, but Rush Street, an online gambling company, certainly paid off for investors last week with a 30% gain. Revenue soared, guidance was raised, and the stock has now nearly doubled in the past year. And they say the stock market is a gamble. What do they know?
Another noted tenet of investing is that gambling stocks usually 'pay off' and can be recession-proof. Well, we are not quite in a recession, yet, but Rush Street, an online gambling company, certainly paid off for investors last week with a 30% gain. Revenue soared, guidance was raised, and the stock has now nearly doubled in the past year. And they say the stock market is a gamble. What do they know?
Align Technology Inc. ALGN 
Align was a pandemic darling, as consumers flocked to the dentist as they were tired of seeing their crooked teeth on all those Zoom calls. Well, as it turns out, post-Covid no one seems to care about straight teeth anymore. Align, known for its Invisilign braces, reported horrible results last week and the stock fell 34%. We guess people are choosing to spend the $6,000 that braces might cost at some online gambling site rather than getting their teeth fixed. Or, maybe they are buying air purifiers.
Align was a pandemic darling, as consumers flocked to the dentist as they were tired of seeing their crooked teeth on all those Zoom calls. Well, as it turns out, post-Covid no one seems to care about straight teeth anymore. Align, known for its Invisilign braces, reported horrible results last week and the stock fell 34%. We guess people are choosing to spend the $6,000 that braces might cost at some online gambling site rather than getting their teeth fixed. Or, maybe they are buying air purifiers. 
Fluor Corp. FLR Fluor, an oil and gas infrastructure company, fell 27% last week. As it turns out, Mr. Trump, tariffs are actually bad for business, not good. Fluor noted that its declining backlog reflected uncertainty on tariffs, and that many planned projects were being cancelled by customers who have no clue what their final tariff bill is going to be. Clients are taking a 'wait and see' approach, but it looks like investors are taking a 'sell now' approach.
Fluor, an oil and gas infrastructure company, fell 27% last week. As it turns out, Mr. Trump, tariffs are actually bad for business, not good. Fluor noted that its declining backlog reflected uncertainty on tariffs, and that many planned projects were being cancelled by customers who have no clue what their final tariff bill is going to be. Clients are taking a 'wait and see' approach, but it looks like investors are taking a 'sell now' approach. 
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 has a financial or other interest in CECO.
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