Small Cap Stocks Traders Are Watching: May 2, 2017

The markets are relatively flat ahead of the bell. Now, there’s one stock traders will be focused on after the bell, and that’s Apple’s earnings release. Traders will be focused on iPhone sales data, but with all eyes on the world’s largest company, by market cap, there should be a lot of noise. Moving on, the FOMC is starting its two-day meeting, and traders are looking for any clues that could indicate the future path of interest rates. Its a busy day for the markets, and there are some small cap stocks traders are watch today.

Small Cap Stocks to Watch

Angie’s List Inc. (NASDAQ: ANGI) shares are up over 50% during the pre-market, after IAC (NASDAQ: IAC) and Angie’s List announced that the companies entered into a definitive agreement to combine Angie’s List and IAC’s subsidiary company, HomeAdvisor, into a new publicly-traded company on Monday. This new company would be called ANGI Homeservices Inc.

According to the jointly issued press release,

“Under the terms of the agreement, Angie’s List stockholders will have the right to elect to receive either one share of Class A common stock of ANGI Homeservices Inc. or $8.50 per share in cash, for each share of Angie’s List stock that they own, with the total amount of cash available in the transaction capped at $130 million. Depending upon the number of Angie’s List stockholders electing to receive cash, upon completion of the transaction, IAC will own between approximately 87 percent and approximately 90 percent of the equity value of the combined company.”

Here’s a look at ANGI during the pre-market:

Source: TradingView

Sunesis Pharmaceuticals Inc. (NASDAQ: SNSS) shares are down over 15% during the pre-market, after announcing its withdrawal of its European Marketing Authorization Application for vosaroxin as a treatment for relapsed/refractory acute myeloid leukemia in patients over 60 years old, last night.

Daniel Swisher, President and Chief Executive Officer of Sunesis, stated, “We are disappointed to not achieve approval for vosaroxin’s MAA given its reported efficacy in a patient population with such poor outcomes. Although we did not receive a definitive CHMP opinion, we believed that a positive opinion was unlikely.”

Here’s a look at SNSS on the daily chart:

Source: Finviz

BioDelivery Sciences International Inc (NASDAQ: BDSI) is trading higher by over 10% during the pre-market following gaining U.S. Food and Drug Administration (FDA) approval of a Supplemental New Drug Application (sNDA) for BUNVAVAIL. The FDA is expected to revise the indication of BUNAVAIL, and would now include the use of the drug for the initiation of buprenorphine treatment for opioid dependence.

Here’s a look at BDSI on the daily chart:

Source: Finviz

Chegg Inc (NYSE: CHGG) shares are up over 10% during the pre-market, following its earnings and revenue beat. Chegg reported a non-GAAP net income per share of 6 cents, topping the Zacks Investment Research consensus estimate of 3 cents per share. Additionally, Chegg reported revenue of $62.6M for the quarter, beating the Zacks consensus estimate of $58.4M.

Following its 1Q 2017 financial results, Chegg raised its outlook for the year. For the 2017 fiscal year, the company now expects to report total revenue between a range of $235M and $240M; adjusted EBITDA between $38M and $40M, nearly double from its figure in 2016; and gross margin over 65%.

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