Singular Research Director’s Letter : June 2018

Steady in June despite trade war rumblings and another rate hike

Despite headwinds from the specter of a looming trade War with China, a hike in interest rates and domestic political fervor over immigration policies, US markets, in what is historically a flat month, managed to eke out a slight gain in June, +48 basis points for the S & P 500. Many of these elements are negatives for large caps but could serve to benefit the performance of domestic small caps. The Singular Research coverage list performed in line with major domestic equity indices for the month of June.

Our top performers for June were: 1) Salem Media +35.5% bolstered from The District Court ruling clearing the humungous At&t- Time Warner merger. 2) Harvard Biosciences (HBIO) drawing renewed investor interest with analyst’s increased estimates for 2019, and 3) NV 5 Inc. (NVEE) benefiting from and improving outlook for domestic engineering & construction activity in 2018.

Our worst performers for June were: 1) Anika Therapeutics (ANIK) which received a setback from results in clinical tests on its Cingal product, 2) Wisdom Tree Investments ( WETF) suffering from market perceptions possible continuing outflows from its currency sensitive funds that are negatively correlated with the dollar, since this is a short call it is actually a positive refund for investors and : 3) Huttig Building Products ( HBP) disappointing investors hoping for a quicker resolution to its search for a new CFO.

In June we dropped coverage on : 1) Gray TV ( GTN) as its acquisition announcement of Raycom created a huge move up in price that nearly equally our 12-month target and : 2) Stamps.com (STMP) which reached out price target of $275 . Thus it has appreciated over 300% since we incepted coverage nearly 3 years ago.

Finally, we want to thank our loyal clients for their strong support and confidence over the last twelve years.

Sincerely,

Singular Research Staff

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