Core Viewpoint - The article discusses the recent interest in small-cap stocks in the U.S. market, particularly in light of the Federal Reserve's fifth interest rate cut since September 2024, which is expected to benefit small-cap companies due to lower financing costs and improved market liquidity [1][2]. Group 1: Market Context - The Russell 2000 index, representing small-cap stocks, has been rising since April 2023, driven by expectations of interest rate cuts [2]. - Historically, the restart of the Federal Reserve's rate-cutting cycle tends to favor small-cap stocks, as they can improve profitability through lower borrowing costs [2]. - Since 2022, small-cap stocks have been under pressure, leading to many companies with positive earnings expectations being undervalued [3]. Group 2: Company Analysis - 第壹仁汇 (NIVF) - Zacks initiated coverage on 第壹仁汇 with a target price of $15 per share, while the stock was trading at $1.81 at the time of the report [4]. - The company is currently undervalued, with a market capitalization of approximately $134,000, which is less than its cash assets totaling about $703,670 [7][8]. - 第壹仁汇 has been operating at a loss since 2023, but its losses have been narrowing, and it has diversified its business into real estate and blockchain [9]. Group 3: Business Developments - The company announced a potential reverse acquisition of SAXA's mining assets for $5 billion, which could allow it to enter the U.S. rare earth and precious metals mining industry [11]. - Zacks predicts that 第壹仁汇 could turn profitable by 2026, with significant net profit growth in the following years due to its real estate ventures [11][23]. - The company is developing a high-end residential complex in Ras Al Khaimah, with projected total sales exceeding $450 million and net profits around $200 million [22][23]. Group 4: Future Growth Potential - 第壹仁汇 plans to expand its real estate business as a core segment, focusing on high-end products and mixed sales strategies [24][27]. - The company is also exploring the tokenization of real estate assets, which could enhance liquidity and transform its business model into a "development + digital finance" ecosystem [30]. - The management aims to replicate successful projects across the Middle East, leveraging its early investments in digital asset management [28][39].