Must Not Give Up
By Tue, Mar 2, 2021
Hey Scoopers,
The concerns about the rising 10-year Treasury rate have subsided, at least for now. — More on that in the “Overall Market” section.
Beyond the overall market, a healthcare company lost half its market value within just a few hours, while another company’s shares skyrocketed after a new massive order. — More on that in the “What’s Up?” and “What’s Down?” sections.
By the way, Workhouse is putting up a good fight and not giving up after losing more than $2 billion in market cap in less than a week. — More on that in the “Water Cooler” section.
But, first, here is a recap of what happened in the market yesterday:
Market Recap
- U.S. markets: Indices finished Monday with green indicators. Scroll down to the “Overall Market” section to read more.
- Cryptocurrency: Bitcoin has rebounded close to $50K per coin.
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Starting March on High Notes
The stock market ended Monday in the green zone. After a gloomy week, the stock market started to show signs of recovery, with the S&P 500 index registering its best day since June.
The markets’ direction reversal began after the 10-Year Treasury Yield returned to 1.42%, which investors believe to be the beginning of a rate decline. The bullish sentiment helped to boost the stock market. Accompanying the excitement about the bonds’ yield plunge, the news from Sunday that the FDA gave emergency use authorization for Johnson & Johnson (Ticker: JNJ) COVID-19 vaccine also helped enhance the indices’ performance.
A Large Order
So, what happened?
Shares of Canaan Inc (Ticker: CAN) were up by almost 46% on Monday. Canaan Inc is a developer of supercomputing chips and the manufacturer of blockchain computing equipment. As Bitcoin started a turnaround on Monday, so did shares of companies related to cryptocurrencies. As the second-largest BTC mining unit manufacturer, Canaan reported a new order for more than 100,000 of its mining machines.
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Losing The Largest Customer
So what happened?
Shares of Ontrak Inc (Ticker: OTRK) were down by almost 47%. Ontrak is a telehealth company. Despite beating the analysts’ consensus and reporting a solid Q4 with 149% revenue growth, the plunge in its shares’ price came after the company announced that it would lose its biggest customer later in 2021. This customer represents more than one-third of Ontrak’s revenue guidance of $165 million for the current year. The CEO and founder of Ontrak, Terren Peizer, blamed this important customer’s departure on using different performance-evaluation metrics than Ontrak’s other customers use.
Not Giving Up
So what happened?
Recently, Workhorse Group (Ticker: WKHS) was in the headlines for the wrong reason. It abruptly lost the all-important potential contract with USPS to Oshkosh Defense (Ticker: OSK). It pushed the company’s market cap down by more than $2 Billion in value within one week. But, Workhorse is not giving up.
Workhorse CEO Duane Hughes shared that the company has a meeting with the U.S Postal Service on Wednesday to request additional information about the bid process. And, there is another thing that is helping to make investors’ sentiment bullish towards the company. Workhorse shared its fourth-quarter and full-year 2020 results on Monday, and they seem promising. The big surprise came with an increase in its net income from $655 thousand last year to up to $280.5 million. Despite the consensus for a net loss of $15.1 million, Workhorse made analysts wrong by a net income that hit $69.8 million. It could represent a comeback for the company and its long-time investors. Is the company going to reverse all the setbacks from last week?
One thing for sure is that you’d want the companies you invest in to never give up fighting, just like Workhouse hasn’t yet.
If you have any questions, or suggestions let us know by emailing us at members@tradestocks.com. We look forward to hearing from you.
About the Author
The authors of this Scoop are the editorial team at Stock Card, led by Hoda Mehr. Hoda Mehr is CEO and Co-founder of Stock Card and the host of Renegade Investors podcast. She runs a community of 40,000 stock market investors and manages Stock Card's successful flagship portfolio, Roll with Our CEO, on Stock Card Portfolio Store. Hoda is an Economist with an MBA from Concordia, John Molson School of Business. She applies behavioral economics, data journalism, and storytelling to all aspects of her work. Before starting Stock Card, Hoda worked as a strategy and insights lead at technology companies including Symantec, Aimia and Sony. Create a free account to do your stock market research easily and mistake-free: Stock Card Stock Card
