As Q3 earnings unfurl, companies which rely heavily upon China for product sourcing are taking their tariff lumps, mostly on the Gross Margin line. In my universe of micro-cap stocks it’s common to see 50-700 bps degradation in Gross Margin resulting from tariffs. Consequently, the share prices of these stocks have taken a hit. However, all is not lost. Here we highlight 2 microcaps which have proactively adjusted to tariffs with cost restructurings and sourcing diversification. Both companies count Walmart ...