Small-cap stocks continue to outperform their larger-cap peers.
The Russell 2000 has rallied more than 11% in 2019, finishing up for its third consecutive week last Friday. In comparison, the S&P 500 has rallied just 8% in the same period.
Kevin O’Leary, co-founder of O’Leary Funds and co-host of “Shark Tank,” told CNBC recently that several tailwinds should continue to benefit small caps over large caps this year.
“Tax reforms haven’t had their full effect yet and because the tax code has just been re-written for these all domestic companies. Remember the majority of the sales for the Russell 2000 are all domestic,” O’Leary said on CNBC’s “ETF Edge” on Monday. “The market here still has the benefits of deregulation and tax reform in a way that no other geography has.”
Level Brands’ (NYSE American: LEVB) Chairman Emeritus and Chief Brand Strategist, Kathy Ireland, was recently appointed to the board of NFL Players, Inc., the licensing and marketing arm of the NFL Players Association (NFLPA).
Why It Matters: In December 2018, Level Brands acquired cbdMD, a nationally recognized e-commerce CBD brand with products also available in over 1,000 retail locations nationwide. cbdMD manufactures its premium line of CBD oil products at a North Carolina facility, using all-natural CBD extracted from organic, non-GMO, vegan, and gluten-free industrial hemp grown in the USA.
Key Quote: "With Congress passing the 2018 Farm Bill, and as professional sports leagues continue to evaluate the benefits of hemp-derived CBD for their athletes, cbdMD presents a unique alternative to habit-forming medications, such as opioids. We're looking forward to collaborating with the NFL Players, Inc. to promote the many benefits CBD has on human health. Whether you're a professional athlete or a casual fan, we want everyone to have the opportunity to maintain a healthy lifestyle through the power of CBD.” – Caryn Dunayer, co-founder and President of cbdMD
Disclosure
Level Brands (NYSE American: LEVB) is a client of RedChip Companies. LEVB agreed to pay RedChip a monthly cash fee and 5,000 shares of Rule 144 stock for four months of RedChip investor awareness services.
GSRX Industries (OTCQB: GSRX) announced healthy sales during the first two weeks of operation of its new CBD e-commerce site GetPureandNatural.com. The site is dedicated to the online sale of pure, full-spectrum hemp-based (non-THC) CBD products that are naturally certified organic.
Why It Matters: Consumers are already finding the site, placing orders, and accepting delivery of the Company's exclusive Pure and Natural products. Next, the Company is backing the launch with a marketing/advertising campaign aimed at creating awareness and driving sales throughout the U.S. Using pharmaceutical grade, full spectrum, and naturally certified organic Hemp CBD oil to formulate all products allows the site to offer the very best CBD available today, available for shipping worldwide (except where prohibited by law).
What’s Next: Pure and Natural products are brought to market following a seven-step process, beginning with organic farming in Colorado, through proprietary extraction and solids separation, distillation and refining, then rigorous in-house laboratory testing and certification in order to deliver what GSRX considers to be the purest and most natural CBD products on the market today. The Company’s CBD products are manufactured in an FDA-certified GMP facility, and they contain only full-spectrum oils, extracted using either supercritical CO2 or food grade ethanol, and are made using proprietary nano-emulsion technology, which gives Pure and Natural CBD products a higher bioavailability than that of standard products. In launching the site, GSRX has expanded its presence in the fast-growing hemp industry which, according to Hemp Business Journal, logged sales of $190 million in hemp-derived CBD products during 2017. The publication projects hemp-derived CBD consumer sales of $646 million annually by 2022.
Disclosure
GSRX Industries (OTCQB: GSRX) is a client of RedChip Companies. RedChip Companies, Inc. received 1,000,000 registered shares of GSRX for consulting services and 50,000 shares for investor awareness services. Be advised RedChip intends to sell some or all of its shares at any time, including when you are buying.
Santa Fe Gold (OTC: SFEG), a U.S.-based mining company and owner of multiple mining claims, announced progress towards the startup of mining operations, including pre-production clean up and completion of construction of a new filtration pond.
Key Quote: “We are very pleased to announce operations are underway at our Jim Crow mine site and will keep you appraised of developments as progress continues. We look forward to the completion of all of our SEC filings, paving the way for full compliance as soon as practicable.” – Brian Adair, Chairman
Disclosure
Santa Fe Gold Corp. (OTC: SFEG) is a client of RedChip Companies, Inc. SFEG agreed to pay RedChip Companies, Inc. 1,000,000 shares of Rule 144 stock for 12 months of RedChip investor awareness services and consulting services.
Immuron Ltd. (NASDAQ: IMRN), an Australian biopharmaceutical company focused on developing and commercializing oral immunotherapeutics for the treatment of gut mediated diseases, announced sales results for its commercially available, over-the-counter gastrointestinal and digestive health supplement Travelan® for the fiscal year first half, ending on December 31, 2018 (i.e., first half of FY19).
Key Quote: “We are pleased to see continued global sales growth for our flagship product Travelan®.” Dr. Gary S. Jacob, CEO of Immuron
Immuron experienced steady gross sales growth in both Australian and U.S. markets throughout the first half of 2019, with global unaudited sales reaching AU$1.083 million during the 6-month period. In the U.S., Travelan® sales grew by 10% to AU$369,000 in FY19 1H, as the brand continued to prosper via USA’s largest travel medicine provider, Passport Health. Growth of online sales on Amazon USA also contributed to this increase following a successful promotional campaign in December.
In Australia, Immuron sales reached AU$714,000 for 1H FY2019, with a 6% YoY growth rate. Travelan® continues to experience strong sales within Australia’s pharmacy network.
The Backstory: Immuron Ltd. is an Australian microbiome biopharmaceutical company focused on developing and commercializing orally delivered targeted polyclonal antibodies for the treatment of inflammatory mediated and infectious diseases. Immuron has a unique and safe technology platform that enables a shorter development therapeutic cycle. The Company currently markets Travelan® in Australia for the prevention of Travelers’ Diarrhea, and markets Travelan® in the U.S. and Canada as a dietary supplement for digestive tract protection. Immuron’s lead clinical candidate, IMM-124E, recently completed a Phase II clinical trial in patients with Non-Alcoholic Steatohepatitis (NASH), and is presently in Phase II trials in Severe Alcoholic Hepatitis (SAH) and Pediatric Nonalcoholic Fatty Liver Disease (NAFLD). Immuron’s second clinical-stage asset, IMM-529, targets Clostridium difficile Infections (CDI), and is presently in a clinical trial in CDI patients. These products together with the Company’s other preclinical immunotherapy pipeline products targeting immune-related diseases currently under development are anticipated to meet pressing needs in the global immunotherapy market.
Disclosure
Immuron Ltd. (NASDAQ: IMRN) is a client of RedChip Companies, Inc. IMRN agreed to pay RedChip Companies, Inc. a monthly cash fee for (3) months of investor awareness services.
The pretrial order sets forth the parties’ theories and damages requests to be presented to a jury. As noted in the pretrial order, Digital is asserting that Axon (NASDAQ: AAXN) has infringed, and is infringing, claims 10, 14, 15, 16, and 20 of the ’452 Patent by making cameras (both the Axon Body body-worn cameras and the Axon Fleet in-car cameras) that are compatible with the auto-activation technology in the Axon Signal Unit (“ASU”). The Pretrial Order also notes that Digital Ally believes Axon will be unable to meet its high burden of establishing invalidity and inequitable conduct, not least because Axon failed in its previous attempts with the U.S. Patent Office to invalidate the ‘452 Patent.
Key Quote: “We are confident the jury will see Axon’s conduct for what it is—an attempt to capture the marketplace and drive us out through the willful infringement of our patented auto-activation technology,” said Digital Ally’s CEO, Stanton E. Ross
The Backstory: Digital Ally, Inc., headquartered in Lenexa, KS, specializes in the design and manufacturing of the highest quality video recording equipment and video analytic software. Digital Ally pushes the boundaries of technology in industries such as law enforcement, emergency management, commercial fleets, and consumer use. Digital Ally’s complete product solutions include in-car and body cameras, cloud and local management software, and automatic recording technology. These products work seamlessly together and are simple to install and operate. Digital Ally products are sold by domestic direct sales representatives and international distributors worldwide.
Disclosure
Digital Ally, Inc. (NASDAQ: DGLY) is a client of RedChip Companies, Inc. DGLY agreed to pay RedChip Companies, Inc., a monthly cash fee for four (4) months of RedChip investor awareness services.
Meso Numismatics (OTC: MSSV) announced that it has obtained new, rare, First Release coins—the only such coins in existence—and that it is planning a major technology overhaul and upgrade to its Meso App.
As a numismatic Company, the achievement of Meso Numismatics in obtaining First Release coins is significant, considering the limited time-frame available in transporting the coins from the country of origin, to one of the offices of the Numismatic Guaranty Corporation (NGC). Meso Numismatics is, in addition, a technology company, adding a new dimension of significance to First Release coins. With its soon-to-be upgraded Meso App, and with rare items such as the Kazakhstan First Release coins, Meso Numismatics will offer not only a marketplace, but also many of the key items to be traded in that marketplace.
Key Quote: “Although these sound like two completely different things, they are actually very much related,” stated Melvin Pereira, President of Meso Numismatics
The Backstory: Meso Numismatics is a numismatic company specializing in the Meso Region, including Central America and the Caribbean. The Company has become the central hub for rare, exquisite, and valuable inventory, not only from the Meso Region but also from around the world. Meso is the only Company in the Central American-Caribbean region that is an on-the-ground registered dealer with the Numismatic Guaranty Company (NGC) and the Paper Money Guaranty (PMG).
Disclosure
Meso Numismatics (OTC: MSSV) is a client of RedChip Companies, Inc. MSSV agreed to pay RedChip Companies, Inc. a monthly cash fee for RedChip investor awareness services and consulting services.
Quote of the Week
"You've got to make a decision to devote a decade of your life to something. It takes 10 years of your life to accomplish anything."
- Manny Villafana, CEO Kips Bay Medical
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