5i Research Weekly Rockets and Duds
Welcome to a summer week version of 5i Research Stock Market Rockets and Duds.
KIndly MD Inc. NAKA 
Kindly Inc. a healthcare data company, did not treat shareholders too KINDLY last week, with a 26% decline for the week. But we think shareholders will get over the rough treatment considering the stock's huge gains this year. Why the excitement? Well, no one cares about the healthcare part of the business anymore, considering the closing of the merger with Nakamoto Holdings Inc. NAKA is now on the way to becoming yet another bitcoin treasury company. We are starting to get dejavu here, when every week a new company converts itself into a bitcoin or ether treasury company. For the elderly amongst us, this is very similar to the dotcom days, where any company could simply convert to a tech company by adding '.com' to its name. We think bitcoin has a future, but simply raising money and buying it and hoping to get a valuation premium is not really what we might look for in a company right now.
Kindly Inc. a healthcare data company, did not treat shareholders too KINDLY last week, with a 26% decline for the week. But we think shareholders will get over the rough treatment considering the stock's huge gains this year. Why the excitement? Well, no one cares about the healthcare part of the business anymore, considering the closing of the merger with Nakamoto Holdings Inc. NAKA is now on the way to becoming yet another bitcoin treasury company. We are starting to get dejavu here, when every week a new company converts itself into a bitcoin or ether treasury company. For the elderly amongst us, this is very similar to the dotcom days, where any company could simply convert to a tech company by adding '.com' to its name. We think bitcoin has a future, but simply raising money and buying it and hoping to get a valuation premium is not really what we might look for in a company right now. 
Viking Therapeutics Inc. VKTX In the crowded weight-loss drug field, something got much skinnier last week, but unfortunately it was not the patients in a drug trial. Viking's shareholders instead took a 35% slim-down to their wallets, as trial results came out. Some analysts noted that VKTX's drug is 'clearly inferior' to Eli Lily's drugs, but others noted that the big sell-off in the stock is 'extreme and unwarranted.' 20% of patients dropped out of the trial, compared to a 5% drop out rate for a placebo. This raised questions about the drug's 'real world' viability. All this info just makes me want to open a box of donuts.
In the crowded weight-loss drug field, something got much skinnier last week, but unfortunately it was not the patients in a drug trial. Viking's shareholders instead took a 35% slim-down to their wallets, as trial results came out. Some analysts noted that VKTX's drug is 'clearly inferior' to Eli Lily's drugs, but others noted that the big sell-off in the stock is 'extreme and unwarranted.' 20% of patients dropped out of the trial, compared to a 5% drop out rate for a placebo. This raised questions about the drug's 'real world' viability. All this info just makes me want to open a box of donuts. 
Opendoor Technologies Inc. OPEN 
OPEN makes its second-consecutive appearance as a Rocket with a 58% gain last week. With multiple hedge funds touting its '100x' potential, the company also last week said it is throwing its weight behind its artificial intelligence initiatives. Analysts are questioning exactly how AI helps people buy homes, but investors don't care about such details. Short sellers (24%) are panicking and shares are up 213% this year.
OPEN makes its second-consecutive appearance as a Rocket with a 58% gain last week. With multiple hedge funds touting its '100x' potential, the company also last week said it is throwing its weight behind its artificial intelligence initiatives. Analysts are questioning exactly how AI helps people buy homes, but investors don't care about such details. Short sellers (24%) are panicking and shares are up 213% this year. 
NIO Inc. NIO NIO, a Tesla rival from China, soared 32% last week as it introduced a new model ES8, selling for about $58,000. NIO says the model has lower production costs, yet still achieves a positive growth profit margin at the lower selling price. Everyone loves Tesla, but NIO shares are up 45% this year and Tesla shares are down 16%.
NIO, a Tesla rival from China, soared 32% last week as it introduced a new model ES8, selling for about $58,000. NIO says the model has lower production costs, yet still achieves a positive growth profit margin at the lower selling price. Everyone loves Tesla, but NIO shares are up 45% this year and Tesla shares are down 16%. 
Dayforce Inc. DAY Shareholders had quite a DAY last Monday, with the stock up 26% on news that Thomas Bravo is going to buy the company for US$ 70 per share. The $12 billion deal continues Thomas Bravo's 2025 acquisition spree (it announced another potential buy of Verint Systems this morning). A takeover at a premium is always fun for shareholders, but if we look closer we see that DAY shares are still down 5% this year. But if we look even longer term then everyone is happy: The takeover price is 318% more than DAY"s 2018 IPO price.
Shareholders had quite a DAY last Monday, with the stock up 26% on news that Thomas Bravo is going to buy the company for US$ 70 per share. The $12 billion deal continues Thomas Bravo's 2025 acquisition spree (it announced another potential buy of Verint Systems this morning). A takeover at a premium is always fun for shareholders, but if we look closer we see that DAY shares are still down 5% this year. But if we look even longer term then everyone is happy: The takeover price is 318% more than DAY"s 2018 IPO price. 
Take Care,
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