With stocks seemingly off their recent lows, Real Money Columnist James 'Rev Shark' Deporre is revisiting some of the small-cap stocks he first identified an interest in at the beginning of the year.
One of the best things about the recent bounce, according to Deporre, is that it has helped very clear technical levels to develop.
“I’ve raised some cash in this recent rally, and now I am looking to put it back to work as charts develop,” Deporre wrote recently on Real Money.
In the last week of 2021, Deporre wrote about ten stocks that he plans on actively following in 2021.
With cash in hand, Rev Shark said now is a good time to review each of these stocks and develop a game plan for trading them as they develop. Here’s a capsule look at each stock, along with a quick outlook from Rev Shark.
--- Urban-Gro (UGRO) has earnings due on March 29. “This stock still looks like a tremendous value, but it trades very thinly and is in the cannabis sector, which has been out of favor,” he said. “I'll be looking for opportunities to add after earnings.”
--- Xeris (XERS) posted a solid report, and the chart is developing well. The key for this company is some contract news with big pharma. There is no way to time if and when that may occur. “I'll add on weakness as the chart develops,” Deporre noted.
--- Alito Ingredients (ALTO) had a fantastic earnings report and continues to transition its business; however, the recent surge in commodity prices has added an element of uncertainty. “Here, I'm holding and waiting for some clarity as to the impact of corn and natural gas on the company,” he said.
--- IonQ (IONQ) is an early-stage play and has been acting well on promising developments in the quantum computing area. There is an unlock of shares coming up, and that may create short term pressure.
--- Humacyte (HUMA) is another early-stage play that continues to roll out positive news, but it is a longer-term play that is not likely to move much in the short term.
--- AirSculpt AIRS is a cosmetic surgery play that is seeing good growth but doesn't look like it is going to move much in the near term.
--- Trio-Tech (TRT) is a play on semiconductor testing related to EVs. ‘Supply chain issues are a problem here, and a plant in China has been restricted due to COVID issues,” Rev Shark said. “It’s promising but too thin and uncertain currently.”
--- Elys Game Technology (ELYS) is a gambling play and is doing everything right and has good news flow, but the stocks are unable to gain price momentum.” I am holding and will buy on weakness, but it may take a while for it to perform,” he added.
--- Ondas Holdings (ONDS) posted a very good earnings report and moved sharply, but this is a long-term play on railroads and drones and trades thinly. “I expect to see some opportunities to reload this position on pullbacks,” he said.
--- Li-Cycle Holdings (LICY) is a play on battery recycling. It came under pressure for valuation reasons but has positive news flow and is holding support around $8. “I am watching for further news developments to move the stock,” Deporre added.
Of the 10 names, Rev Shark favorites right now are ONDS, UGRO, and XERS.
“Yet all of them have the potential for positive news developments to drive them higher,” he wrote.
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Factors including low market capitalization and/or insufficient public float affect small-cap stocks in particular. You should be aware that such stocks are subject to more risk than stocks of larger companies, including greater volatility, lower liquidity and less publicly available information.
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