Month: August 2019

Research – 1-800-Flowers.com (FLWS) – The Latest Acquisition Is The Berries

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Tuesday, August 6, 2019

1-800-Flowers.com (FLWS)

The Latest Acquisition Is The Berries

1-800 Flowers.com Inc is a United-States-based provider of gourmet food & gift baskets, consumer floral, and BloomNet wire service. Gourmet food & gift baskets and consumer floral jointly account for the majority of the company’s total revenue. The company provides a broad range of merchandise, including fresh flowers, premium, fruits, popcorn, specialty treats, cookies and baked gifts, premium chocolates, confectionery, gift baskets, premium English muffins, steaks and chops, and others.

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

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

  • A sweet deal. The company announced that it plans to purchase Shari’s Berries out of the FTD bankruptcy for $20.5 million. The deal is expected to close by the end of August 2019. We view the tuck-in acquisition favorably given the strong brand, its leadership position in the category, and as a complement to the company’s gourmet product offerings.
  • The price is right. Shari’s Berries is estimated to generate roughly $100 million in revenue, but has been largely unprofitable. In our view, the purchase price of $20.5 million is attractive given that the company will….



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This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst
certification and important disclosures included in full report. 
NOTE: investment decisions should not be based upon the content of
this research summary.  Proper due diligence is required before
making any investment decision. 

Research – Gannett Company (GCI) – Did Gannett Get The Most It Could?

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Tuesday, August 6, 2019

Gannett Company (GCI)

Did Gannett Get The Most It Could?

Gannett Co., Inc. operates as a news and information company. It operates in three segments: Publishing, Digital, and Broadcasting.

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

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

  • Two of the largest publishers to merge. New Media Investment Group (NEWM: not covered) plans to buy Gannett for roughly $1.4 billion in a cash and stock transaction. Upon shareholder approval, Gannett shareholders will receive $6.25 per share in cash and 0.5427 shares of New Media for each GCI share, for a total consideration of $11.62 based on the closing price of NEWM shares on August 5th.
  • Approval appears likely.  We do not foresee regulatory issues or problems with shareholder approval by each company. As such, we anticipate….



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*Analyst
certification and important disclosures included in full report. 
NOTE: investment decisions should not be based upon the content of
this research summary.  Proper due diligence is required before
making any investment decision. 

Research – Genie Energy (GNE) – Earnings Miss Causes Decline in Stock

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Tuesday, August 6, 2019

Genie Energy (GNE)

Earnings Miss Causes 30% Decline In Stock

Genie Energy Ltd through its subsidiaries operates as a retail energy provider; and an oil and gas exploration company. It operates through three segments: Genie Retail Energy; Afek Oil and Gas, Ltd.; and Genie Oil and Gas. The company resells electricity and natural gas to residential and small business customers primarily in the Eastern and Midwestern United States and offers energy brokerage and advisory services.

Michael Heim, CFA, Senior Research Analyst, Noble Capital Markets, Inc.

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

  • What went wrong? Genie reported $(0.29) vs $(0.09) and our $0.09 est. Adjusted EBITDA was $(9.1) million vs $(1.6) million. Shortfall can be attributed to Retail Energy top line which reported Gross Profit of $8.2 million vs $15.8 million.
  • Why were Energy Service results down? Mild weather meant lower usage and a charge for hedging more supply than needed. Customers switching to….



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This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst
certification and important disclosures included in full report. 
NOTE: investment decisions should not be based upon the content of
this research summary.  Proper due diligence is required before
making any investment decision. 

Research – Ducommun (DCO) – Can Momentum in Commercial Aerospace Outlast 737 MAX Headwinds?

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Tuesday, August 6, 2019

Ducommun (DCO)

Can Momentum in Commercial Aerospace Outlast 737 MAX Headwinds?

Ducommun Inc is a leading global provider of engineering & manufacturing services for high-performance products & high-cost-of failure applications used primarily in the aerospace and defense, industrial, medical & other industries.

Christian Herbosa, Research Analyst, Noble Capital Markets, Inc.

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

  • Q2 Top and Bottom Line Beat. Revenues of $180.5 million reflected a year-over-year increase of 16.6% and meaningfully exceeded consensus expectations of $167.9 million. Higher than expected sales and strong company performance drove DCO’s Q2 earnings per share of $0.66 to beat analyst consensus estimates of $0.57. 
  • Commercial Aerospace Drives Growth. DCO’s additional content and higher build rates on platforms like…



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*Analyst
certification and important disclosures included in full report. 
NOTE: investment decisions should not be based upon the content of
this research summary.  Proper due diligence is required before
making any investment decision. 

What’s the deal with CBD?

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What is CBD, and why am I seeing it everywhere?

(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 widespread appeal of cannabidiol (CBD) in both consumer and medical markets is perhaps one of the most exciting developments to arise from the international trend toward cannabis legalization. The rapid rise in the popularity of CBD has encouraged companies across disparate industries to add it to their products. From cupcakes to beer to sunscreen to pet food, it seems that shoppers can now find CBD in almost anything. CBD has primarily been marketed as a treatment for anxiety relief and inflammation reduction, but there are claims that the supplement can treat many other disorders. The jury remains out on what CBD can actually do, but given CBD’s recent success it seems consumers are eager to experiment and find out.

Is Solar Energy the Way of the Future?

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Is Solar Energy the Way of the Future?

(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 race to find an alternative renewable energy source has been ongoing for decades. The most popular and sustainable option available at the moment is solar power. Solar energy comes from each particle of sunlight called a photon. Every single one that reaches the Earth contains energy inside that fuels our planet. Solar power is responsible for all of our weather systems and theoretically, enough solar radiation hits the surface of the planet each hour to fill our needs for nearly an entire year. It could be converted to useable energy using photovoltaics and could play an important role in global energy in the future. We will have access to solar energy as long as the sun is alive, which according to NASA is about 6.5 billion years.

How far will plant-based foods go?

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How far will plant-based foods go?

(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)

Veganism has been an increasing trend within the past few years. Plant based food alternatives had over 3 billion in sales in 2018, with even higher sales projected in 2019. Plant-based met alternatives, like Beyond Meat, is one of the fastest growing food companies in the United States. With its first trade at $46, the company is now trading at nearly $200 per share. However, is plant-based really just a trend, or is it here to stay?  

What Are the Dangers of the Capital One Data Breach?

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What Are the Dangers of the Capital One Data Breach?

(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)

Capital One, on Monday, reported a data breach of customer’s personal information affecting over 100 million Americans. The Capital One costumer user data had been stored with Amazon.com Inc., on a remote data cloud server where companies will incorporate their web applications using Amazon Web Services (AWS). The AWS cloud data was not compromised the former employee who breached the Capital One web application. An Amazon spokesperson stated, “The perpetrator gained access through a misconfiguration of the web application and not the underlying cloud-based infrastructure.” Multiple other data breaches have occurred over the last couple years and many American’s private information could have been stolen. Federal prosecutors have stated that the Capital One data breach is one of the largest bank data thefts and customers should be prepare extra measures of security to prevent identity theft.

Research – Kratos Defense & Security (KTOS) – Will the Outperformance Continue?

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Thursday, August 1, 2019

Kratos Defense & Security (KTOS)

Will the Outperformance Continue?

Kratos Defense & Security Solutions, Inc. provides engineering, information technology (IT) services, and warfighter solutions primarily in the United States. It operates in two segments, Kratos Government Solutions (KGS) and Public Safety and Security (PSS).

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

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

  • Excellent 2Q19 Operating Results. Kratos posted strong 2Q revenue of $187.9 million and adjusted EBITDA of $19.2 million, above management’s guidance of $175-$185 million and $16-$18 million. We had projected revenue of $175 million and adjusted EBITDA of $15 million. Excluding Florida Turbine revenues, revenue grew organically 12.9%.
  • Hitting on All Cylinders. In 2Q, every Kratos business unit generated sequential organic revenue growth. Unmanned Systems revenue of $42.5 million was up…



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*Analyst
certification and important disclosures included in full report. 
NOTE: investment decisions should not be based upon the content of
this research summary.  Proper due diligence is required before
making any investment decision. 

Research – Orion Group Holdings (ORN) – Rebound Appears Underway Sooner Than Expected

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Thursday, August 1, 2019

Orion Group Holdings (ORN)

Rebound Appears Underway Sooner Than Expected

Orion Group Holdings Inc is a US-based company which provides solutions in marine construction, design and specialty services both on and off the water in the continental US, Alaska, Canada, and the Caribbean Basin.

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

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

  • Transition quarter was surprisingly strong. 2Q2019 revenue of $166.0 million and adjusted EBITDA of $9.0 million were well ahead of expectations. 2Q2019 EBITDA margin of 5.4% was well ahead of our forecast of 2.9% and up from 1.7% in 1Q2019.
  • Call with management today (August 1st) at 10:00 am ET. The number is 201-493-6739 and code is Orion. Looking for color in three key areas:…



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This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst
certification and important disclosures included in full report. 
NOTE: investment decisions should not be based upon the content of
this research summary.  Proper due diligence is required before
making any investment decision. 

Research – Great Lakes Dredge & Dock (GLDD) – Fourth Strong Quarter In A Row. Backlog Rebound Ahead.

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Thursday, August 1, 2019

Great Lakes Dredge & Dock (GLDD)

Fourth Strong Quarter In A Row. Backlog Rebound Ahead.

Great Lakes Dredge & Dock Corp is a provider of dredging services in the United States. The Company operates in two operating segments namely Dredging and Environmental, and Infrastructure.

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

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

  • The streak of four strong quarters stays intact. 2Q2019 revenue of $184.8 million and EBITDA of $32.0 million were ahead of our estimates of $180.0 million and $27.5 million, respectively. Execution remained solid with gross margins of 20.3% and EBITDA margin of 15.3%. 
    Sale of Environmental & Industrial (E&I) completed for $17.5 million. Now a pure play dredging company.
  • Flatter than normal 2H2019 outlook due to equipment downtime. To reflect the positive quarterly variance, our 2019 EBITDA estimate moves to…



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This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst
certification and important disclosures included in full report. 
NOTE: investment decisions should not be based upon the content of
this research summary.  Proper due diligence is required before
making any investment decision. 

Research – Albany International Corp. (AIN) – Woah… Why were aerospace margins so strong this quarter?

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Thursday, August 1, 2019

Albany International Corp. (AIN)

Woah… Why were aerospace margins so strong this quarter?

Albany International Corp. is a textiles and materials processing company. The Company operates through two segments: Machine Clothing (MC) and Albany Engineered Composites (AEC). Its MC segment supplies permeable and impermeable belts used in the manufacture of paper, paperboard, nonwovens, fiber cement and various other industrial applications.

Christian Herbosa, Research Analyst, Noble Capital Markets, Inc.

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

  • Q2 Earnings Beat. Second quarter sales of $273.9 million came in slightly higher than our estimate of $270 million and was a 7.3% increase over the same period last year. Consolidated earnings of $34.1 million, however, delivered a substantial beat to our estimate of $26.8 million.
  • AEC Drives Margin Enhancement. The earnings beat this quarter was primarily driven by the AEC Segment. AEC adjusted EBITDA margins of 24% were meaningfully higher than past performance, our estimates, and company guidance. These results, however, may…



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*Analyst
certification and important disclosures included in full report. 
NOTE: investment decisions should not be based upon the content of
this research summary.  Proper due diligence is required before
making any investment decision. 

Research – ACCO Brands (ACCO) – A Deeper Dive Into Record 2Q19 Results

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Thursday, August 1, 2019

ACCO Brands (ACCO)

A Deeper Dive Into Record 2Q19 Results

ACCO Brands Corporation designs, manufactures, sources, markets, and sells office products, academic supplies, and calendar products primarily in the United States, Canada, Northern Europe, Brazil, Australia, and Mexico. It operates through three segments: ACCO Brands North America, ACCO Brands EMEA, and ACCO Brands International.

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

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

  • Upbeat on North America. Management expects the North America segment to now be closer to flat y-o-y on a revenue basis, compared to a prior negative up to 2%. Combined with cost savings initiatives and pricing increases, North America should be the growth engine for the remainder of the year.
  • EMEA Should Rebound, International Mixed. The EMEA segment should show improvement from the challenged 2Q over the rest of the year, although…



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This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst
certification and important disclosures included in full report. 
NOTE: investment decisions should not be based upon the content of
this research summary.  Proper due diligence is required before
making any investment decision.