As one would expect energy producer and energy service stocks were stronger with a number breaking out to new multi-year highs. We continue to be bullish on the sector and especially the smaller energy service stocks

This past week we saw another microcap on our watchlist get an all-cash take-over offer. Aviat Networks Inc. and Redline Communications Group Inc. (RDL.V) have entered into an arrangement agreement under which Aviat will acquire all outstanding shares of Redline for 90 cents per common share, in an all-cash transaction valued at approximately $16.2 million. This is a 43% premium to the previous day's closing price.

We continue to believe that the current environment is very conducive to more of these types of transactions and is a bullish signal for microcap investors. This type of transaction along with considerable amount of buying from normal course issuer bids (NCIB) and insider buying continues to shrink the pool of shares available of quality profitable microcaps.

Elon wants it all..... I said the Twitter saga would get interesting and it certainly did this past week as Elon Musk has declined a seat on the board of the company and has instead launched a hostile takeover of Twitter for $54.20 per share. In response to Musk's moves the Twitter board hired Goldman Saks as advisors to which Goldman "advised" the board that Elon's offer was too low. Only one little problem: Goldman has a sell rating and a $30 price target on TWTR....... Oops!