We have positive breadth of about two gainers for each decliner Thursday, and there is some rotational action out of FATMAAN and growth names and back into the DJIA stocks. Small-caps and speculative names are holding up, but the Nasdaq 100 (QQQ) is the laggard today, and ARK Innovation ETF (ARKK) is seeing some profit-taking.
We still only have less than 300 names hitting new 12-month highs, although that is primarily due to recent rotational action, which primarily affected the value names that were hitting new highs. Most growth and small-cap stocks are still far from testing highs hit back in February.
I have mixed action on my screens, but it is mostly due to some stocks becoming extended due to recent runs.
One name I've mentioned quite often that is looking better today is Ammo, Inc. (POWW) . It has now closed its deal to acquire GunBroker.com and even announced a Nascar sponsorship. The company will see revenue in the June 2021 quarter go to around $41 million, which is a nice bump from $16.6 million in the fourth quarter ending Dec 31, 2020.
The company has closed a preferred stock offering and now looks ready to rapidly build revenue. It has a very large level of backorders and would realize some substantial synergies from the GunBroker.com deal.
The sporting goods sector has been on fire lately as Dick's Sporting Goods (DKS) posted great earnings. In addition, Vista Outdoors (VSTO) , which makes Remington rifles, among other products, is jumping higher Thursday. Ammo is not a pure play on shooting sports, but it definitely will benefit from them.
I've been aggressively trading POWW and adding shares today.