@macssharesforfun, to be fair this cycle in small caps is unprecedented. The global hikes were faster and longer than anytime in the last 40 years.
When liquidity is removed the companies the small cap speccies are the first to fail. Remember that Amazon lost money for 11 years in a row, but did it at the right time.
Having said that, companies like BLG that have survived the liquidity squeeze, will likely lead the charge higher now that inflation appears under control and bond yields have peaked.
FWIW, 2024 should see a return to the speccie end of the market. Crypto has bounced back and next will be the "stronger " pre revenue companies. I expect that the startup market will still struggle for a while longer until rates are being cut.
BLG management in the last 12-18 months have steered the ship to almost perfection. The Fab bought for almost nothing was brilliance. Delivering unique products at the right time and now in sitting along side billion dollar companies working for the department of defense is an unbelieveable achievement in this environment.
I suspect that there will be plenty of funds begging BLG to CR in the future so they can get on the ride. A few more boxes to be ticked in the next few months with customer qualification and DoD assignment and funds will be climbing over themselves to give them money to accelerate commercialization.
Holdtight
reminder James is presenting at Atomic on the 5th Dec. Hopefully he can explain more about the Claws arrangement.
(20min delay)