Research – Energy Fuels (UUUU) – Section 232 Petition Prompts Working Group for More Study

Monday, July 15, 2019

Energy Fuels (UUUU)

Section 232 Petition Prompts Working Group for More Study

Energy Fuels Inc together with its subsidiary is engaged in the extraction and recovery of uranium properties in the United States. The company operates in two segments, ISR Uranium and Conventional Uranium. It conducts its ISR activities through its Nichols Ranch Project, located in northeast Wyoming.

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

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  • No immediate remedies. On July 12, President Trump announced that he did not concur with the Department of Commerce that uranium imports threaten the national security of the United States as defined under Section 232 of the Trade Expansion Act of 1962 and did not act on any proposals, including import quotas. However, the President believes that more analysis of national security considerations with respect to the entire nuclear fuel supply chain is needed.
  • Working group formed. The President appointed a working group to review the entire domestic nuclear supply chain and develop recommendations, within….



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Research – Aurania Resources (ARU.V) – Employing Big Data in the Rainforests of Ecuador

Monday, July 15, 2019

Aurania Resources (ARU.V)

Employing Big Data in the Rainforests of Ecuador

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.

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  • Employing Big Data. Aurania recently engaged Metron, Incorporated to provide data analytic and statistical analysis services to aid the company’s search for two historic gold mining centers, Logrono de los Caballeros and Sevilla del Oro, both believed to be within the Lost Cities project area. While the process likely works best for narrowly defined search criteria, we believe Metron’s services may go beyond facilitating the search for the two lost cities and could be helpful when prioritizing areas of interest and making decisions regarding concession renewal.
  • Practical application of Bayesian theory. Metron’s process uses a Bayesian framework to integrate data collected by…



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The Controversial Question: Would You Answer It?

(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)

Every 10 years the Census Bureau sends out a survey, the decennial census, to every listed household in America in efforts to count every person and collect accompanying information on them. Required by the Constitution, the population numbers determine the amount of representatives and federal funding states will receive for their citizens. The Census Bureau accounts for every person, regardless of citizenship or immigration status. Recently, President Trump proposed to add in a citizenship question to the 2020 census which has posed much controversy.

Can These Tech Unicorn Companies Prove Their Worth?

(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)

The Initial Public Offerings of privately held unicorn tech companies with valuations over $1 billion from the last decade are going to be available to markets in 2019. Big name tech companies such as ride-hailing companies Uber and Lyft, hospitality service Airbnb, and cloud-based messaging service Slack will, or already are, trading publicly. Last April, the social media site Pinterest was welcomed to the markets. The IPO rush of tech unicorns to market has shown a battle between the listing venues, New York Stock Exchange and NASDAQ, for an important segment of the U.S. economy.

Research – Endeavour Silver (EXK) – A Work In Progress

Wednesday, July 11, 2019

Endeavour Silver (EXK)

A Work In Progress

Endeavour Silver Corp is a precious metal mining company. The company is primarily engaged in silver mining and owns three high-grade, underground, silver-gold mines in Mexico. Its other business activities include acquisition, exploration, development, extraction, processing, refining and reclamation.

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

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  • EXK reports second quarter production results. Compared to the prior year period, second quarter silver and gold production declined 22% and 30% to 1,059,322 ounces and 9,558 ounces, respectively. Although partially offset by higher production at the Guanacevi mine and initial commercial production from the El Compas mine, the declines were attributed to lower planned production at the El Cubo mine and lower throughput and grades from Bolanitos. Compared to the first quarter of 2019, second quarter silver and gold production declined 1% and 5%, respectively.
  • Updating Estimates While our 2019 loss per share estimate remains unchanged at ($0.17), we are increasing our 2020 EPS estimate to…



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Research – QuoteMedia Inc. – Initiation Report

Friday, July 12, 2019

QuoteMedia, Inc. (QMCI)

A David Versus Goliath Story

QuoteMedia, based in Fountain Hills, Arizona, provides cloud-based financial data, market news feeds, and financial software solutions. Its customers include financial service companies, online brokerages, clearing firms, banks, media portals, public corporations and individual investors. The company provides a single source solution providing products such as streaming quotes, charting, historical data, technical analysis, news and research. Information can customized and provided to multiple platforms including terminals and mobile devices.

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

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  • Initiating coverage. We are initiating with an Outperform rating based on the company’s favorable revenue and cash flow growth prospects and compelling stock valuation. The company is closely held and could be subject to Penny Stock rules. As such, the shares are considered to be suitable for speculative investors.
  • Why QuoteMedia? The company plays in a large market, has a scalable business model, favorable pricing ability, and is flexible to compete for…..



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Research – Great Panther Mining Limited (GPL) – When Will the Valuation Reflect an Improving Growth Outlook?

Thursday, July 11, 2019

Great Panther Mining Limited (GPL)

When Will the Valuation Reflect an Improving Growth Outlook?

Great Panther Silver Ltd is a precious metals mining and exploration company. It owns two mines Topia and Guanajuato Mine Complex (GMC). The Topia operations produce silver, gold, lead, and zinc whereas the GMC operation produces silver and gold.

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

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  • GPL reports second quarter production results. In aggregate, second quarter production increased 195% to 39,922 gold equivalent ounces versus the prior year period and increased 197% compared to the first quarter of 2019. The significant increase in gold production reflects the acquisition of the Tucano Gold Mine in March 2019.
  • Adjusting estimates.  Based on higher production and commodity price expectations, we have increased our full year 2019 earnings and EBITDA estimates to… 


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Research – DLH Holdings (DLHC) – An Early Look at the Combined DLH and Social & Scientific Systems

Wednesday, July 10, 2019

DLH Holdings Corp. (DLHC)

An Early Look at the Combined DLH and Social & Scientific Systems

DLH Holdings Corp is a provider of technology-enabled business process outsourcing and program management solutions in the United States. The company offer services to several government agencies which include the Department of veteran affairs, Department of health and human services, Department of defense and other government agencies.    

Joe Gomes, Senior Research Analyst, Noble Capital Markets, Inc.

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  • Management Call. DLH management recently held a conference call to provide additional detail of the June 10th announcement of the Social & Scientific Systems (SSS) acquisition. The $70 million purchase, $63 million net of tax benefits, valued SSS at roughly 1x sales and 11x EBITDA. These multiples are in-line with industry metrics.
  • Acquisition Begins VA COMP De-Risking.. SSS significantly de-risks the potential loss of the VA-COMP business, in our view. SSS provides diversification for DLH, both on a revenue and end customer basis, and will broaden and… 


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News – Are Driverless Vehicles Being Over-Hyped?

(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)

Along with electric vehicles, the concept of autonomous vehicles is garnering significant media attention as technology leaders, including Apple (AAPL), Google (GOOG), Amazon (AMZN), and Uber (UBER) seek to establish market leading positions in the nascent technology. While concepts include driverless taxis and/or delivery trucks, the technology has already advanced from driver assistance to an ability to pilot automated vehicles in a controlled environment. While still too early for practical application and mass adoption, technology advancements in this area could have profound implications for not just urban planning, jobs and convenience, but for social and political policies as well. Are there parallels to be drawn from President Trump’s statement following the tragic Boeing 737 Max incident when he tweeted “I see it all the time in many products. Always seeking to go one unnecessary step further, when often old and simpler is better”? Below we scratch the surface on each side of the argument.

Research – Trovagene (TROV) – What does Colorectal Cancer Trial Add?

Wednesday, July 10, 2019

Trovagene Inc. (TROV)

What does Colorectal Cancer Trial Add?

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.

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  • Colorectal cancer is the third active clinical trial assessing Onvansertib.. Trovagene initiated patient enrollment in a Phase 1b/2 clinical trial for the treatment of KRAS-mutated metastatic colorectal cancer (mCRC) on July 9, 2019. In addition to this trial, Trovagene is currently evaluating Onvansertib in a Phase 1b/2 study of acute myeloid leukemia (AML), and in a Phase 2 trial of metastatic castration-resistant prostate cancer (mCRPC).
  • Unfulfilled need in colorectal cancer treatment.. Among the three cancer types targeted by Onvansertib, colorectal cancer represents the largest… 


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Research – Vectrus (VEC) – What does Advantor Systems add to Vectrus?

Tuesday, July 9, 2019

Vectrus (VEC)

What does Advantor Systems add to Vectrus?

Vectrus Inc is a U.S.-based company that provides services to the U.S. government. The company generates nearly all its revenue from the United States Department of Defense. The company offerings are categorized into three types; infrastructure asset management services, logistics and supply-chain management services, and information technology and network communication services.

Joe Gomes, Senior Research Analyst, Noble Capital Markets, Inc.

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  • Advantor Systems Acquisition. Yesterday, Vectrus announced the acquisition of Advantor Systems Corporation, a leading provider of integrated electronic security systems to the federal government. Vectrus acquired the $35 million revenue company for $44 million, using cash on hand and the Company’s credit facility.
  • Market Leader. Deployed at over 2,000 client sites worldwide, Advantor is the only vertically integrated and accredited C3 networked security technology platform. Advantor clients include…


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News – Mission (Im)possible: (Un)druggable RAS?

Drugging
the Undruggable: The War Against RAS Oncoproteins

(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)  
The RAS pathway is one of the most frequently dysregulated pathways in cancer. Approximately 30% of tumors harbor activating RAS gene mutations. There are three main isoforms of oncogenic RAS: KRAS, HRAS and NRAS.  Among these genes, KRAS is the most frequently mutated (~90% of pancreatic cancers, ?35% of colon cancers). In comparison, NRAS and HRAS are mutated in a lesser number of cancer patients (15% of melanomas and 4% of head and neck cancer patients).
The RAS protein family consists of low molecular weight guanosine 5?-triphosphate (GTP), a building block of protein synthesis. GTP-binding proteins orchestrate a variety of cellular signaling networks, which are essential to regulate a variety of cellular functions including cell proliferation, differentiation, and cell survival. The three RAS proteins (N-RAS, H-RAS and K-RAS) oscillate between an active (GTP-bound) and an inactive (GDP-bound) state. When RAS genes are mutated (typically at codon 12, 13 or 61), RAS proteins are constitutively activated (i.e. continuously binding to GTP), which induces a pro-tumorigenic state characterized by unregulated cell proliferation and resistance to apoptosis (i.e. evading death signals). Constitutively activated RAS proteins trigger downstream signaling responsible for phenotypic traits known as hallmark of cancer including:

  • aberrant cell proliferation
  • resistance to apoptosis
  • increase in migration, cell invasion and metastasis to different tissues
  • escaping the anti-tumoral immune response

The phenotype of many cancer cells is determined by RAS-dependent aberrant signal transduction pathways involving various oncogenic proteins acting downstream of RAS (Exhibit 1).
The high mutational rate of RAS genes in cancer patients, combined with the fundamental role of RAS proteins in cancer biology, makes the RAS family of oncoproteins a primary therapeutic target. Since its discovery in 1982, both academia and industry have made significant efforts to develop an anti-cancer medicine targeting RAS. Despite these intensive efforts, there are no FDA approved anti-RAS drugs at present. For this reason, RAS is perceived as “undruggable”.
In 2013, the National Cancer Institute launched the “RAS
initiative
” to expand efforts toward the discovery and development of novel medicines for the treatment of RAS-caused cancers. Since then, the initiative has focused on answering the key questions:

  1. Can it be targeted directly or indirectly?
  2. Which effector pathway of RAS is most crucial for cancer initiation and progression?
  3. Are specific mutants or isoforms required to be specifically targeted for effective inhibition?

The enthusiasm generated by the “RAS initiative” has sparked renewed interest by the biotech and pharma industries, which has restarted their own RAS programs.
Exhibit
1.
RAS signaling pathways involved in human cancer


Source:
Seminars in Cancer Biology 54 (2019) 138–148

Research – One Stop Systems (OSS) – What Impact Will the $60 Million OEM Agreement Have?

Tuesday, July 9, 2019

One Stop Systems (OSS)

What Impact Will the $60 Million OEM Agreement Have?

One Stop Systems Inc is US-based company which is principally engaged in designing, manufacturing, marketing high-end systems for high performance computing (HPC) applications. The company offers custom servers, compute accelerators, solid-state storage arrays and system expansion systems.

Joe Gomes, Senior Research Analyst, Noble Capital Markets, Inc.

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

  • OEM Agreement. OSS signed an exclusive five-year OEM and supply agreement with major customer Disguise Systems for media and entertainment servers. The agreement solidifies the relationship between the firms, in our view.
  • $60 Million Minimum Level. The agreement calls for a minimum $60 million of purchases over the five-year term, with the minimums rising from $10 million to…


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