The Dips I'm Targeting in This Directionless Market
Why I am adding to these two small-cap positions.
You're reading 0 of 1 free page.
Register to read more or Unlock Pro — 50% Off Ends Soon
Markets remain resilient if largely directionless here in the first month of 2026.
Greenland and Minneapolis have been two unexpected sources of headlines and turmoil in the early stages of the new year. Early results from fourth quarter earnings season have mostly been solid to this point. Investors will start to digest the all-important fourth quarter data from the Magnificent Seven this week.
GDP growth in Q1 is likely to slow significantly from the robust levels of the past three quarters. The impacts from winter storm Fern should knock at least one half of one percent from growth this quarter. A new large storm system is scheduled to hit a good chunk of the U.S. this weekend with temperatures here in south Florida projected to drop into the mid-30s on Saturday and Sunday currently.
Given the current listless environment for the overall market, I have been targeting recent dips in some of the names within my portfolio to incrementally add exposure to over the past week, mostly via covered call orders. Here are a couple of small-cap concerns I have added shares to recently, following pullbacks in their shares.
Let’s start with Nuvation Bio (NUVB) , a name I highlighted last year when the stock was trading in the mid-$2s in the back half of 2025. The shares of this small-cap biotech name soared past nine bucks a share in late 2025 on a spate of good results, news flow and a bit of a short squeeze. Not surprisingly, the stock has seen a good deal of profit taking in early 2026 and move backed down into the mid-$5s. Nuvation’s recently launched Ibtrozi continues to show good early strength and the company ended FY2025 with over $500 million worth of cash and marketable securities on its balance sheet. I have boosted my holdings in Nuvation this week via covered call orders.
Byrna Technologies Inc. (BYRN) is another name that has fallen significantly from its recent highs last summer. The stock of this manufacturer of non-lethal weapons and ammo had probably gotten over its skies after a previous big rally in the shares. This has brought the equity back down to the $15 level, a floor it bounced hard back up off of in April. The company is executing well and should deliver over 35% sales growth when management closes the books on fiscal 2025. Byrna should become increasingly profitable as sales advance roughly 20% annually in the years ahead.
Given the increasing political division within and continued worries about crime in this country, I like the outlook for non-lethal weapon sales. I also think Byrna could eventually be acquired by a larger traditional gun maker looking to broaden their product portfolio. The stock provides a good entry point here.
In addition to Nuvation and Byrna, I picked up initial stakes in a couple of fallen large-cap healthcare names this week as I target company specific dips in this market. More on those opportunities in my Friday column.
At the time of publication, Jensen was long BYRN and NUVB.
