Month: May 2019

Research – electroCore (ECOR) – Plans to Remove Headwinds

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Friday, May 31, 2019

electroCore (ECOR)

Can the Reduced Cash Burn Calm Ragged Nerves?

Electrocore Inc is a commercial-stage bioelectronic medicine company with a platform for non-invasive vagus nerve stimulation therapy initially focused on neurology and rheumatology. Its product gammaCore is FDA-cleared for the acute treatment of pain associated with migraine and episodic cluster headache in adults.  

Ahu Demir, Ph.D., Biotechnology Research Analyst, Noble Capital Markets, Inc.

Refer to full report for price target, fundamental analysis and rating.

  • Concern around the high cash burn is lowered. electroCore implemented a cost reduction and deployment plan reducing the cash burn to $2.3 million from $4 million per month, effective by June 2019. We view extension of the cash runaway as a positive road map for the company, but we believe the stock will remain under pressure until the company shows a solid revenue ramp-up.
  • Basis of the cost reduction plan. The cost reduction was endowed by i) reducing work force to 55 positions from 91 – eliminating sales, medical affairs personnel, ii) abolishing cash compensation of board servicing by independent directors, iii) voluntary acceptance of stock compensation in lieu of cash compensation by Chief Executive Officer Francis Amato and iv) postponing current clinical operations – to be determined following the company’s board meeting on June.



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Research – Aurania Resources (ARU.V) – Copper Exploration Yields Encouraging Results

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Friday, May 31, 2019

Aurania Resources Ltd. (ARU:CA)

Adding To The Narrative …Above and Beyond The Lost Cities

Aurania Resources Ltd. is a Canada-based junior mining exploration company engaged in the identification, evaluation, acquisition, and exploration of mineral property interests, with a focus on precious metals and copper. Its flagship asset, The Lost Cities-Cutucu Project, is in southeastern Ecuador in the Province of Morona-Santiago. The company also has several minor projects in Switzerland.

Mark Reichman, Senior Research Analyst, Noble Capital Markets, Inc.

Refer to full report for price target, fundamental analysis and rating.

New copper-silver exploration concept.  To date, Aurania’s copper exploration efforts have yielded encouraging results.  While exploration has provided evidence of mineralized porphyries, management has been pleasantly surprised by evidence of sediment-hosted copper-silver deposits, traced over 22 kilometers.  In our view, these findings could generate interest among major copper-oriented mining companies. 

Updating estimates.  Aurania recently filed its first quarter 2019 financial results.  We are increasing our full year 2019 and 2020 loss per share estimates to ($0.39) and ($0.44) from ($0.36) and ($0.42), respectively.  Our revisions reflect modestly higher operating costs.  As an early-stage exploration company, Aurania does not generate revenues.   





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News – The Great Debate: Active or Passive Management?

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Active vs Passive Investing: Is there Still a Place for Stock Pickers?

(Note: companies that could be impacted by the content of this article are listed at the base of the story (desktop version). This article uses third-party references to provide a bullish, bearish and balanced point of view; sources listed in the “Balanced” section)

At some point in 2019, the market share of passive funds will top 50%, marking an inflection point in the active versus passive debate. Since the end of 2006, investors have withdrawn approximately $1.2 trillion from actively managed U.S. equity mutual funds and have allocated some $1.4 trillion to U.S. equity index funds and exchange traded funds (ETFs). At the end of 2018, mutual funds and ETFs that passively track indexes held 48% of market assets. By definition, active portfolio management focuses on outperforming the market compared to a specific benchmark, while passive portfolio management aims to mimic the investment holdings of a particular index. But, as we shall see, the line between passive and active investing is not black and white.

Research – Euroseas (ESEA) – Price Target Revision

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Thursday, May 30, 2019

Euroseas Ltd. (ESEA)

Heading for a Rebound?

Euroseas Ltd. provides ocean-going transportation services worldwide. The company owns and operates containerships that transport dry and refrigerated containerized cargoes, including manufactured products and perishables; and drybulk carriers that transport iron ore, coal, grains, bauxite, phosphate, and fertilizers. 

Poe Fratt, Senior Research Analyst, Noble Capital Markets, Inc.

Refer to full report for price target, fundamental analysis and rating.

  • Quarterly results up sequentially due to stabilizing container market. Excluding drydock expenses, adjusted EBITDA was $2.0 million was line with our estimate of $2.1 million and sequentially above 4Q2018 adjusted EBITDA of $1.6 million, mainly due to slightly higher time equivalent (TCE) rates.
  • Fine-tuning 2019 EBITDA estimate to reflect quarterly results and market improvement later this year. We estimate adjusted EBITDA of $9.4 mill…




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Research – EuroDry (EDRY) – Increasing EBITDA Estimate

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Tuesday, May 28, 2019

EuroDry (EDRY)

Navigating Dry Bulk Market Weakness Well

EuroDry Ltd. was formed on January 8, 2018 under the laws of the Republic of the Marshall Islands and trades on the NASDAQ Capital Market under the ticker EDRY. EDRY is the product of a spin-off of the dry bulk fleet by Euroseas (ESEA) completed in May 2018.

Poe Fratt, Senior Research Analyst, Noble Capital Markets, Inc.

Refer to full report for price target, fundamental analysis and rating. 

  • Another solid quarter as pure dry bulk play. Adjusted 1Q2019 EBITDA of $2.5 million was above our estimate of $2.2 million and modestly below $3.5 million in 4Q2018 due to hedging activity that offset lower TCE rates.
  • Increasing 2019 EBITDA estimate to reflect reported operating results, forward contract cover and current dry bulk market conditions. Our adjusted 2019 EBITDA estimate increases to $10.4 million from $10.2 million to incorporate the positive var…

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News – Will electric cars stall the demand for oil?

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Does a green light for electric cars mean a red light for oil?

(Note: companies that could be impacted by the content of this article are listed at the base of the story (desktop version). This article uses third-party references to provide a bullish, bearish and balanced point of view; sources listed in the “Balanced” section)

Electric cars are no longer a novelty.  There were more than 5.4 million electric vehicles (EVs) as of January 1, 2019, including hybrids.  China represents more than half of the market followed by the US, Norway, Germany and the UK.  The number of electric vehicles grows by more than 50% each year and the growth rate has shown no signs of slowing down.  Every electric vehicle purchased means less demand for gasoline and thus oil.  While it is true that oil is used to generate electricity, oil’s market share of generation is small and decreasing.  It is reasonable to ask then, “will electric vehicle growth dampen the demand for oil and cause downward pressure on oil prices?”

Research – Pyxis Tankers (PXS) – Still Looking for a Recovery

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Friday, May 24, 2019

Pyxis Tankers (PXS)

Slight Improvement, But Still Tough. Looking for 2H2019 Recovery

Pyxis Tankers Inc is a US-based international maritime transportation company which focuses on the product tanker sector. It owns a fleet which comprises of six double hull product tankers, which are employed under a mix of short- and medium-term time charters and spot charters. 

Poe Fratt, Senior Research Analyst, Noble Capital Markets, Inc.

Refer to full report for price target, fundamental analysis and rating. 

  • A Slight Improvement Over 4Q2018, But Still Another Tough Quarter. Adjusted 1Q2019 EBITDA of $0.5 million was below our
    estimate of $0.7 million. A shortfall in TCE revenue (-$0.1 million) and higher
    opex ($0.2 million) more than offset slightly lower G&A expenses ($0.2 million).
  • Adjusting 2019 Estimate to reflect quarterly
    results and expected 2H2019 recovery.     Due to weaker operating results, we are lowering our 2019 EBITDA
    estimate to $6.5 mill…



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Research – Trovagene (TROV) – Agreement with Nektar Therapeutics

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Friday, May 24, 2019

Trovagene Inc. (TROV)

What a Preclinical Agreement Means

TrovaGene Inc is a US-based life science company which focuses on the development and commercialization of a proprietary molecular genetic detection technology for use in pharmaceutical development, clinical research and medical testing across a variety of clinical disciplines, including oncology and virology. 

Ahu Demir, Ph.D., Biotechnology Research Analyst, Noble Capital Markets, Inc.

Refer to full report for price target, fundamental analysis and rating. 

  • Early Stage Development Agreement with Nektar Therapeutics. Trovagene announced a research and development agreement
    with Nektar Therapeutics (NKTR, Not Covered) to assess Onvansertib in
    combination with Onzeald (etirinotecan pegol) in preclinical colorectal cancer
    model.
  • The basis of the agreement. The preclinical work includes two different colorectal cancer
    models; BRAF-mutant and KRAS-mutant. Management stated that Nektar is
    re…



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Research – McClatchy (MNI) – Raising Our Rating

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Thursday, May 23, 2019

The McClatchy Company (MNI)

Is The Slide Over?

The McClatchy Co is the third-largest newspaper publisher in the United States, operating 30 dailies and approximately 50 nondaily publications in 29 markets nationwide. 

Michael Kupinski, DOR, Senior Research Analyst, Noble Capital Markets, Inc.

Refer to full report for price target, fundamental analysis and rating. 

  • Option value. We are raising our rating on the MNI shares to
    Outperform for speculative investors based on the prospect of an acceleration
    in debt pare down, stabilizing cash flow and improving debt leverage ratio. 
  • Q1 review. Q1 results were below our expectations on both revenues and
    cash flow. The results reflected strategic decisions to increase paywalls for
    its Digital businesses and restructurings. Notably, there were signs of…





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News – Videogames: The Next Professional Sport

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Can we really call videogamers professional athletes?

(Note: companies that could be impacted by the content of this article are listed at the base of the story (desktop version). This article uses third-party references to provide a bullish, bearish and balanced point of view; sources listed in the “Balanced” section)

He’s making about $300,000 a month, he has a fan base numbered in the millions, and he spends at least 12 hours a day playing on his computer. Tyler Blevins, better known by his Fortnite handle “Ninja”, is a superstar in the world of organized, competitive videogaming or eSports. eSports fans tune in via online streaming services to watch professional gamers like Ninja play their favorite videogames in real time. Certain tournaments can attract audiences in the tens of millions attending via live-streaming platforms like YouTube or Amazon’s Twitch to watch gamers compete for cash prizes of up to $25 million. The global appeal of this new form of entertainment has put eSports well on its way to becoming a billion-dollar industry this year. But can videogames really take market share away from traditional sports?

Research – Pangea Logistics (PANL) – New Dividend

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Tuesday, May 21, 2019

Pangaea Logistics (PANL)

New Dividend Reinforces View of Consistent Business Model

Pangaea Logistics Solutions Ltd and its subsidiaries provide seaborne drybulk transportation services. It transports drybulk cargos including grains, coal, iron, ore, pig, iron, hot briquetted iron, bauxite, alumina, cement clinker, dolomite and limestone. The firm’s services include cargo loading, cargo discharge, vessel chartering, voyage planning and technical vessel management.   

Poe Fratt, Senior Research Analyst, Noble Capital Markets, Inc.

Refer to full report for price target, fundamental analysis and rating.

  • Initiating A Dividend. The dividend of $0.035/share per quarter (paid on June 11th to record holders as of June 3rd) equates to an annual yield of 4.0%. Not only is the yield attractive, the dividend is a very positive signal that highlights the confidence in the consistency of the business model. It also should help broaden the shareholder base.
  • Dividend Very Manageable. Cash flow has been consistently positive and there should be no problem sustaining an annual dividend of $5.1 million. Even adding the dividend to the $14 mil…



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Research – Pangaea Logistics (PANL) – Another Solid Quarter; Consistent Business Model

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Friday, May 17, 2019

Pangaea Logistics (PANL)

Consistent Business Model Shines in Weak Market.

Pangaea Logistics Solutions Ltd and its subsidiaries provide seaborne drybulk transportation services. It transports drybulk cargos including grains, coal, iron, ore, pig, iron, hot briquetted iron, bauxite, alumina, cement clinker, dolomite and limestone. The firm’s services include cargo loading, cargo discharge, vessel chartering, voyage planning and technical vessel management.  

Poe Fratt, Senior Research Analyst, Noble Capital Markets, Inc.

Refer to full report for price target, fundamental analysis and rating.

  • Chalk Up Another Solid Quarter to
    the Consistent Business Model.     Pangaea’s business model continues to deliver strong results amid severe market weakness. 1Q2019 EBITDA of $8.6 million was short of our $11.1 million estimate, but PANL generated a premium of $4,869/day to the BPI/BSI market indices, which was well above $2,801/day in 4Q2018.
  • Updating 2019 EBITDA estimate. As a result of the 1Q2019 shortfall, our EBITDA estimate moves to $60.9 milli…




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Research – electroCore (ECOR) – Stock price doesn’t reflect the value of gammaCore

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Friday, May 17, 2019

electroCore (ECOR)

Has the stock overreacted?

Electrocore Inc is a commercial-stage bioelectronic medicine company with a platform for non-invasive vagus nerve stimulation therapy initially focused on neurology and rheumatology. Its product gammaCore is FDA-cleared for the acute treatment of pain associated with migraine and episodic cluster headache in adults.  

Ahu Demir, Ph.D., Biotechnology Research Analyst, Noble Capital Markets, Inc.

Refer to full report for price target, fundamental analysis and rating.

  • Current stock price doesn’t reflect the value of
    gammaCore.     Following and investor call on May 14th, ECOR stock lost over 40% of its value. While we recognize the slower than anticipated revenue ramp and prolonged timelines for additional payer agreements, we would like to emphasize gammaCore’s potential in the multi-billion-dollar migraine market.
  • Revenues should ramp up. The company currently has agreements established with three large payers (CVS Caremark, Highmark and Federal Supply Schedule). As the managem… 

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