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Small Cap Momentum Stories to Watch (BLNK, MMEDF, CLKA, CRIS)

The market has been red hot, and momentum investors have been lined up to take advantage. But, with two fresh vaccine solutions already in the mix and the Fed and Treasury cutting checks for the economy at an all-time record pace, the real upward potential for speculative stocks in this market is difficult to gauge.

So far, this year, there have been 88 IPO’s for net negative income new issues, at a ratio that’s twice the pace we saw in the mid to late 1990’s. After that point, two decades ago, we saw small and mid-cap stocks double, triple, and more. While contrarians will tell you these are “red flags”, the reality is this: the biggest upside in any bull market is after the red flags are in place and the retail public gets fully engaged.

As we head out of the pandemic era and into a brand new stage of the bull, investors may benefit from earmarking some of their capital for speculative small caps with promising momentum and stories.

With that in mind, we take a look a few stocks that could be set for more juice or coming breakouts ahead, including: Blink Charging Co (NASDAQ:BLNK), Mind Medicine (MindMed) Inc (OTCMKTS:MMEDF), Clikia Corp (OTCMKTS:CLKA), and Curis Inc (NASDAQ:CRIS).

 

Blink Charging Co (NASDAQ:BLNK) promulgates itself as a leader in electric vehicle (EV) charging equipment and has deployed over 23,000 charging stations, many of which are networked EV charging stations, enabling EV drivers to easily charge at any of the Company’s charging locations worldwide. Blink Charging’s principal line of products and services include its Blink EV charging network, EV charging equipment, and EV charging services.

The Blink Network uses proprietary, cloud-based software that operates, maintains, and tracks the EV charging stations connected to the network and the associated charging data. With global EV purchases forecasted to rise to 10 million by 2025 from approximately 2 million in 2019, the Company has established key strategic partnerships for rolling out adoption across numerous location types, including parking facilities, multifamily residences and condos, workplace locations, health care/medical facilities, schools and universities, airports, auto dealers, hotels, mixed-use municipal locations, parks and recreation areas, religious institutions, restaurants, retailers, stadiums, supermarkets, and transportation hubs.

Blink Charging Co (NASDAQ:BLNK) most recently announced that it has signed an exclusive 5-year contract with two 5-year renewal options for the deployment of 20 Blink-owned IQ 200 units at four Blessing Health System locations in Quincy, Illinois.

“People from communities throughout the Tri-state area come to Quincy daily to access Blessing Health System providers and services, and to see hospitalized loved ones,” said Maureen Kahn, RN, MHA, MSN, president/chief executive officer, Blessing Health System and Blessing Hospital. “With vehicle charging stations not yet as common in our region as they are in larger cities, this new service will add an important level of convenience for patients and other customers.

Even in light of this news, BLNK has had a rough past week of trading action, with shares sinking something like -6% in that time. That said, chart support is nearby and we may be in the process of constructing a nice setup for some movement back the other way. Shares of the stock have powered higher over the past month, rallying roughly 128% in that time on strong overall action.

Blink Charging Co (NASDAQ:BLNK) pulled in sales of $905K in its last reported quarterly financials, representing top line growth of 18.4%. In addition, the company has a strong balance sheet, with cash levels far exceeding current liabilities ($14.9M against $6.2M).

 

Mind Medicine (MindMed) Inc (OTCMKTS:MMEDF) promulgates itself as a leading psychedelic medicine biotech company that discovers, develops and deploys psychedelic inspired medicines and experiential therapies to address addiction and mental illness.

The Company is assembling a compelling drug development pipeline of innovative treatments based on psychedelic substances including Psilocybin, LSD, MDMA, DMT and an Ibogaine derivative, 18-MC. The MindMed executive team brings extensive biopharmaceutical experience to the Company’s groundbreaking approach to developing the next generation of psychedelic inspired medicines and therapies.

Mind Medicine (MindMed) Inc (OTCMKTS:MMEDF) most recently announced that it has agreed to increase the size of its previously announced bought deal financing led by Canaccord Genuity Corp.

According to the release, the Lead Underwriter has agreed, on behalf of a syndicate of underwriters, to purchase, on a bought deal basis pursuant to the filing of a short form prospectus, an aggregate of 18,200,000 units of the Company at a price of C$4.40 per Unit for aggregate gross proceeds to the Company of C$80,080,000.

The context for this announcement is a bit of a bid, with shares acting well over the past five days, up about 48% in that timeframe. Shares of the stock have powered higher over the past month, rallying roughly 227% in that time on strong overall action.

Mind Medicine (MindMed) Inc (OTCMKTS:MMEDF) had no reported sales in its last quarterly financial data. However, the company has a strong balance sheet, with cash levels far outweighing current liabilities ($18M against $4M, respectively).

 

Clikia Corp (OTCMKTS:CLKA) could be the most interesting name on this list. The company is now mostly all about its Maison Luxe subsidiary, which sells ultra-high-end luxury goods, with a focus right now on watches and jewelry.

Indications at present suggest skyrocketing growth. While the stock hasn’t broken out in recent action (as other names on this list have), it did rally 800-1000% a few months ago, and looks poised to potentially break out above recent range resistance in coming action, so market participants may want to have it on the radar.

Clikia Corp (OTCMKTS:CLKA) just announced that the Company’s wholly owned subsidiary, Maison Luxe, updated its shareholders on sales activity related to the recent partnership between the Company’s wholly owned subsidiary, Maison Luxe, and Signet International Group, a leading player in marketing and distributing luxury branded products.

According to the release, the Company recently completed and shipped a fresh order related to this partnership for hundreds of luxury timepieces, bringing total sales from this partnership to in excess of $450K over recent months. The Company anticipates continued and expanding demand through the channel of its partnership with Signet, and considers the luxury retail market to be a promising core long-term facet of its overall strategy.

“The sales volume we can achieve through this partnership is not limited by demand factors, and we anticipate many additional orders of a similar scale in the future,” commented Anil Idnani, CEO of Clikia and Founder of Maison Luxe. “As we broaden our capital base, we will be able to continue to dramatically scale up through this and other partners as part of a multi-pronged approach to accessing a strong and growing end market in the luxury goods space.”

Clikia Corp (OTCMKTS:CLKA) is already publicly talking about being on pace for over $2M in revenues in 2020 with its new business now firing apparently on all cylinders. That represents a dramatic growth rate in a rapidly growing marketplace.

 

Curis Inc (NASDAQ:CRIS) bills itself as a biotechnology company focused on the development of innovative therapeutics for the treatment of cancer. In 2015, Curis entered into a collaboration with Aurigene in the areas of immuno-oncology and precision oncology.

As part of this collaboration, Curis has exclusive licenses to oral small molecule antagonists of immune checkpoints including the VISTA/PDL1 antagonist CA-170, and the TIM3/PDL1 antagonist CA-327, as well as the IRAK4 kinase inhibitor, CA-4948. CA-4948 is currently undergoing testing in a Phase 1 trial in patients with non-Hodgkin’s lymphoma and in a Phase 1 trial in patients with acute myeloid leukemia and myelodysplastic syndromes. In addition, Curis is engaged in a collaboration with ImmuNext for development of CI-8993, a monoclonal anti-VISTA antibody, which is currently undergoing testing in a Phase 1a/1b trial in patients with solid tumors.

Curis Inc (NASDAQ:CRIS) most recently hit the wires with news of the closing of its underwritten public offering of 29,500,000 shares of its common stock, including the exercise in full by the underwriters of their option to purchase up to an additional 3,847,826 shares, at the public offering price of $5.75 per share (the Offering). Curis expects the net proceeds from the Offering to be approximately $159.1 million, after deducting underwriting discounts and commissions and estimated offering expenses.

According to the release, Curis intends to use the net proceeds from the Offering, together with its existing cash and cash equivalents, to continue development of CA-4948, in collaboration with Aurigene, and CI-8893, in collaboration with ImmuNext, and for general working capital and capital expenditures. Curis estimates that the net proceeds from the Offering, together with its existing cash and cash equivalents, will enable it to fund its operating expenses and capital expenditure requirements into 2023.

If you’re long this stock, then you’re liking how the stock has responded to the announcement. CRIS shares have been moving higher over the past week overall, pushing about 21% to the upside on above average trading volume. Shares of the stock have powered higher over the past month, rallying roughly 540% in that time on strong overall action.

Curis Inc (NASDAQ:CRIS) managed to rope in revenues totaling $2.7M in overall sales during the company’s most recently reported quarterly financial data — a figure that represents a rate of top line growth of -4%, as compared to year-ago data in comparable terms. In addition, the company has a strong balance sheet, with cash levels far exceeding current liabilities ($23.6M against $9.1M).

Published by Steve Hackney

Steve Hackney is a corporate finance professional with over 14 years of experience in cash management and investing. He earned a Bachelor of Science in Finance from Florida State University and holds a Certified Treasury Professional certification. Steve lives in Orlando, Florida with his family.

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