Month: December 2019

Does Santa’s Early Arrival Mean Retailers will have a Merry Christmas?

Posted on by Admin

Does Santa’s Early Arrival Mean Retailers will have a Merry Christmas?

(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 are listed after the
Balanced section.)

The National Retail Federation said that a record number of U.S. consumers spent more online and in stores over the five days between Thanksgiving and Cyber Monday than last year.  An NRF survey found 190 million people (up 14%) made purchases spending an average of $361.90 (up 16%).  Eighty-six percent of consumers had begun their shopping versus 77% last year at this time.  The increase in spending is well ahead of early NRF estimates for a 3.8-4.2% increase for the holiday season.  Does the strong start to holiday shopping mean a merry Christmas for the retail sector?  Or can the strong start be explained by other factors?

Research – Salem Media (SALM) – Why The Dividend Cut Should Help The Stock

Posted on by Admin

Wednesday, December 11, 2019

Salem Media (SALM)

Why The Dividend Cut Should Help The Stock

Salem Media Group is America’s leading radio broadcaster, Internet content provider, and magazine and book publisher targeting audiences interested in Christian and family-themed content and conservative values. In addition to its radio properties, Salem owns Salem Radio Network, which syndicates talk, news and music programming to approximately 2700 affiliates; Salem Radio Representatives, a national radio advertising sales force; Salem Web Network, a leading Internet provider of Christian content and online streaming; and Salem Publishing, a leading publisher of Christian themed magazines. Salem owns and operates 115 radio stations, with 73 stations in the nation’s top 25 top markets – and 25 in the top 10. Each of our radio properties has a full portfolio of broadcast and digital marketing opportunities.

Michael Kupinski, Director of Research, Noble Capital Markets, Inc.

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

Declares $0.025 dividend.  In a move that was anticipated, the board announced that it cut the dividend by over 60% from $0.065 to $0.025. On an annualized basis, the dividend would be $0.10 and offer an attractive current yield of 6.7%.

The market anticipated a cut. The shares have slid 50% from March 2019 highs to near current levels and offered a 17% annualized dividend yield based on…


Get the full report on Channelchek desktop.

This 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 the 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 – Energy Services of America (ESOA) – Launching Coverage. Looking for Solid Finish to Fiscal Year.

Posted on by Admin

Wednesday, December 11, 2019

Energy Services of America (ESOA)

Launching Coverage. Looking for Solid Finish to Fiscal Year.

Energy Services of America Corporation is engaged in providing contracting services for energy-related companies. The company is primarily engaged in the construction, replacement, and repair of natural gas pipelines and storage facilities for utility companies and private natural gas companies. It services the gas, petroleum, power, chemical and automotive industries, and does incidental work such as water and sewer projects. Energy Service’s other services include liquid pipeline construction, pump station construction, production facility construction, water and sewer pipeline installations, various maintenance and repair services and other services related to pipeline construction.

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

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

Launching coverage on Energy Services of America (ESOA),  a small cap idea in the construction services industry with an energy focus. ESOA helps energy and utility companies build out and maintain distribution networks.

End to FY2019 should be solid.  After two uneven years and delays on a large project, we expect FY2019 to finish on a solid note. Our EBITDA estimate of $6.6 million compares to $8.1 million in FY2018 and $3.6 million in FY 2017. FY2020 operating results poised to rebound. While the outlook for overall infrastructure activity is more muted versus the past five years due to lower energy prices, the risk profile has improved with less large projects. Assuming there are no weather and/or…



Get the full report on Channelchek desktop.

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 the 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 – Coeur Mining (CDE): Increasing 2020 Estimates; Maintaining Outperform Rating

Posted on by Admin

Tuesday, December 10, 2019

Coeur Mining (CDE)

Increasing 2020 Estimates; Maintaining Outperform Rating

Coeur Mining Inc is a metals producer focused on mining precious minerals in the Americas. It is involved in the discovery and mining of gold and silver and generates the vast majority of revenue from the sale of these precious metals. The operating mines of the company are Palmarejo, Rochester, Wharf, and Kensington. Its projects are located in the United States, Canada and Mexico, and North America.

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

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

Increasing 2020 estimates. We are increasing our 2020 EPS and EBITDA estimates to $0.13 and $265.8 million from $0.10 and $256.2 million, respectively. The drivers are modestly higher production and lower operating costs. We expect additional gains in productivity at Silvertip and cost improvement at Rochester due to the deployment of the high-pressure grinding roll technology.

Well-positioned going into 2020. Third-quarter performance was much improved relative to the prior-year period and second quarter of 2019 due to higher average gold and silver prices and strong mine operating performance from Rochester and Wharf, along with continued improvement at Silvertip. Additionally, the company has significantly reduced debt, increased its cash position and…



Get full report on Channelchek desktop.

This 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 – Akazoo (SONG): Music To Our Ears

Posted on by Admin

Tuesday December 10, 2019

Akazoo (SONG)

Music To Our Ears

Akazoo is a global, on-demand music and audio streaming and media and AI technology company, founded 2010, with a focus on emerging markets and a presence in 25 countries. Akazoo’s premium service provides subscribers with unlimited online and offline high-quality music streaming access to a catalogue of over 45 million songs on an ad-free basis. Akazoo uses patented AI for music recommendations and offers online and offline listening. Akazoo’s free, ad-supported radio service consists of over 80,000 stations and exists as a separate services and application. As consumers across the globe continue to shift their media consumption to mobile devices, Akazoo is equipped with a world-class mobile application and user experience which works seamlessly across a multitude of mobile devices and provides a high-quality user experience across a range of mobile networks from 2g to 4g LTE and soon 5g.

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

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

Q3 better than expected. Revenues increased 24.4% to €34.9 million versus our €34.3 million estimate. Adjusted EBITDA of €2.95 million was better than our €2.63 million estimate.

Subscriber growth, better than expected. Premium subscribers of 5.5 million, up 28% year over year, were better than our 5.3 million estimate, with solid growth in Eastern Europe and some Latin countries. Last quarter, Asian countries drove results, which illustrates the company’s dynamic and…


Get full report on Channelchek desktop.

This 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 – 1-800-Flowers.com (FLWS): Flowers At A Discount

Posted on by Admin

Tuesday, December 10, 2019

1-800-Flowers.com (FLWS)

Flowers At A Discount

1-800-FLOWERS.COM, Inc. is the leading provider of gourmet and floral gifts for all occasions. For nearly 40 years, 1-800-FLOWERS® has been helping deliver smiles for customers with gifts for every occasion, including fresh flowers, premium, gift-quality fruits and other gourmet items from Harry & David®, popcorn and specialty treats from The Popcorn Factory®; cookies and baked gifts from Cheryl’s®; premium chocolates and confections from Fannie May®; gift baskets and towers from 1-800-Baskets.com®; premium English muffins and other breakfast treats from Wolferman’s; carved fresh fruit arrangements from FruitBouquets.com; and top quality steaks and chops from Stock Yards®. The Company’s BloomNet® international floral wire service provides a broad range of quality products and value-added services designed to help professional florists grow their businesses profitably.

Michael Kupinski, Director of Research, Noble Capital Markets, Inc.

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

Notes from a recent Midwest marketing trip. This report highlights notes from investor meetings in the Midwest with William Shea, Treasurer and CFO, and Joe Pititto, Sr. VP of Investor Relations and Corporate Communications.

Giving some gains back? Investors seem to try to grapple with the recent 39% pullback in the shares from an April high. The pullback follows an 86% increase in the shares from December 2018 to…



Get full report on Channelchek desktop.

This Company Sponored 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): Renewed Confidence in Dredging Market Outlook

Posted on by Admin

Tuesday, December 10, 2019

Great Lakes Dredge & Dock (GLDD)

Renewed Confidence in Dredging Market Outlook

Great Lakes Dredge & Dock is a marine and environmental infrastructure contractor, and the largest dredging company in the United States. Headquartered in suburban Chicago, the company provides port expansion and maintenance, coastal restoration, river dredging and environmental restoration for public and private entities worldwide. In June 2019, the Environmental & industrial (E&I) business was sold for $17.5 million in cash and the company is now pure play on the dredging market.

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

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

Confidence renewed after investor meetings with the CEO and CFO. 1) Favorable dredging outlook due to funding expansion more than offsets below average win rate and added competition; 2) LNG and wind projects are positives and potential for new awards, including Corpus Christi on/about December 16th, is high; 3) Restructuring impact is durable. Sale of Environmental & Industrial business removed an underperformer; 4) Capital allocation is growth oriented and free cash flow should fund new build(s) in 2020-1; and 5) Improved financials accelerates refinancing of existing debt at first call date in May 2020.

Is insider buying last week a good signal? We think so. Privet Fund, controlled by board member Ryan Levenson, bought a total of 100k shares last week at an average price of $10.61/share and shares owned by Privet increased by more than 50% to 290k shares. While it is always difficult to pinpoint the exact reasons, we interpret the…



Get the full report on Channelchek desktop.

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 the 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. 

Should Online Retailers Open Neighborhood Shops?

Posted on by Admin

Should Online Retailers Open Neighborhood Shops?

(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 are listed after the
Balanced section.)

E-commerce shopping has experienced a steady increase in customer count and online sales each year since before the turn of the millennium. All U.S. Retail sales now add to $5.4 trillion in economic activity. Currently, 11.2% of these sales are from online purchases. Despite digital retailers being able to attract more sales each year, there is a growing trend from “clicks to bricks.” Stores that have historically existed only as cyber shops are now appearing on Main Street, complete with signage, stock clerks, and in most cases, cashiers. Internet retail is still a disruptive technology, does it make sense for successful online stores to also develop a presence as a more traditional retail outlet?

Should Government Limit the Export of Fossil Fuels?

Posted on by Admin

Presidential Hopefuls Float Plans to Curb Fossil Fuels

(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 are listed after the
Balanced section.)

With Democratic 2020 presidential hopefuls embracing green energy to curb climate change, proposals to ban hydraulic fracturing (fracking), limiting U.S. exports of fossil fuels and carbon taxes have all entered the public debate.  Due to the increased use of hydraulic fracturing and horizontal drilling, the United States has significantly increased its production of crude oil and natural gas.  The U.S. Energy Information Administration expects total crude oil and petroleum net exports to average 750,000 barrels per day (b/d) in 2020 compared with average net imports of 520,000 b/d in 2019.  U.S. liquefied natural gas (LNG) exports are expected to average 4.7 billion cubic feet per day (Bcf/d) in 2019 and 6.4 Bcf/d in 2020 as three new liquefaction projects are commissioned.  This has resulted in significant economic and political gains.  As the country moves from limiting its dependence on energy imports to becoming a significant exporter of energy, should it consider restricting exports in the interest of curbing climate change?  Restricting exports would have both positive (bull) and negative (bear) implications for energy producers, consumers and investors.

Research – QuoteMedia (QMCI) – What Investors Are Looking For

Posted on by Admin

Thursday, December 5, 2019

QuoteMedia (QMCI)

What Investors Are Looking For

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.

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

Large market opportunity. We believe that investors would like to see faster revenue growth from the company given the large market opportunity for financial information and services.

Tweaking Q4 estimates. We are lowering our Q4 2019 revenue estimate, which anticipates a smaller sequential quarterly improvement in revenues than originally thought (6.1% versus 7.3%). We are lowering our cash flow estimate from $556,000 to $463,000 due to lower revenues. Our full year 2019 revenue estimate is…


Get the full report on Channelchek desktop.

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 the 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 – Comtech (CMTL) – Strong Q1; Can The Momentum Be Maintained?

Posted on by Admin

Thursday, December 5, 2019

Comtech Telecommunications Corp. (CMTL)

Strong Q1; Can The Momentum Be Maintained?

Comtech Telecommunications Corp. engages in the design, development, production, and marketing of products, systems, and services for advanced communications solutions in the United States and internationally. It operates in three segments: Telecommunications Transmission, Mobile Data Communications, and RF Microwave Amplifiers. The Telecommunications Transmission segment provides satellite earth station equipment and systems, over-the-horizon microwave systems, and forward error correction technology, which are used in various commercial and government applications, including backhaul of wireless and cellular traffic, broadcasting (including HDTV), IP-based communications traffic, long-distance telephony, and secure defense applications. The Mobile Data Communications segment provides mobile satellite transceivers, and computers and satellite earth station network gateways and associated installation, training, and maintenance services; supplies and operates satellite packet data networks, including arranging and providing satellite capacity; and offers microsatellites and related components. The RF Microwave Amplifiers segment designs develop, manufactures, and markets satellite earth station traveling wave tube amplifiers (TWTA) and broadband amplifiers. Its amplifiers are used in broadcast and broadband satellite communication; defense applications, such as telecommunications systems and electronic warfare systems; and commercial applications comprising oncology treatment systems, as well as to amplify signals carrying voice, video, or data for air-to-satellite-to-ground communications. The company serves satellite systems integrators, wireless and other communication service providers, broadcasters, defense contractors, military, governments, and oil companies. Comtech markets its products through independent representatives and value-added resellers. The company was founded in 1967 and is headquartered in Melville, New York.

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

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

1Q20 Results. Revenue of $170.3 million, EPS of $0.26, and Adjusted EBITDA of $20.6 million all exceeded our forecasts of $168 million, $0.15, and $17.8 million, respectively. In 1Q19, revenues were $160.8 million, EPS $0.14, and adjusted EBITDA $18.0 million. Adjusted EPS totaled $0.32 compared to $0.22 last year. Strong results from the Commercial Solutions segment drove quarterly results.

Contract Wins and Acquisitions Driving Results.  New contract wins, such as the $98.6 million Army contract announced in October, the $325 million, 10-year troposcatter award for the U.S. Marines, and…



Get full report on Channelchek desktop.

This 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. 

Can Modern Monetary Theory Work?

Posted on by Admin

Countries are Promoting Growth by Raising Debt While Holding Rates Down

(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 are listed after the
Balanced section.)

Keynesian economic theory says that the government should expand and take on debt during downswings in the economic cycle and pay back the debt when the economy is strong.  Keynesian theory has been thrown out the window by Modern Monetary Theory (MMT) advocates who believe the government should grow the economy up to the point of full employment (sometimes advocating for guaranteed jobs at a minimum wage) regardless of economic conditions.  MMT challenges the notion that government spending should be funded by taxes, arguing that the government can finance expenditures by easing monetary policy.   At the root of the argument is the belief that government debt does not compete against the private sector’s ability to issue debt.  This is because the government has a unique ability to print money and the ability to influence interest rate levels through the Federal Reserve.  Can Modern Monetary Theory work?  Or is it creating a ticking time bomb that will create problems for future politicians and taxpayers?

New Era of Gene Therapy

Posted on by Admin

New Era of Gene Therapy

(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 are listed after the
Balanced section.)

Gene therapy is a biological product that mediates its effect by transcription and/or translation of transferred genetic material by integrating into the host genome. It is administered as nucleic acids, viruses, or genetically engineered microorganisms. In gene therapy, a normal gene is inserted into the genome, often via a viral vector, to replace an abnormal gene responsible for causing a certain disease. The first clinical protocol introducing a foreign gene into humans was approved by the Recombinant DNA Advisory Committee (RAC) in December 1988. On September 14th, 1990, the U.S. Food and Drug Administration (FDA) approved for the first time treatment of a human patient with an experimental gene therapy. Two children were suffering from adenosine deaminase deficiency (ADA-SCID), a monogenetic disease leading to severe immunodeficiency. They were treated with white blood cells taken from their own blood (autologous therapy) and modified ex vivo to express the normal gene for making adenosine deaminase. After twelve years performing experimental protocols, Glybera (alipogene tiparvovec) became the first approved gene therapy, intended to treat lipoprotein lipase (LPL) deficiency, by European Medicines Agency in 2012 (Exhibit 1). However, Glybera was never approved by FDA in the U.S.

Exhibit 1. History of Gene Therapy

Source: T. Wirth et al., Gene 525 (2013)
162–169

Over the three decades since the first clinical trial, there have been many attempts using gene therapy for treatment of various indications. Among over 2 thousand clinical trials, the majority focused on cancer indications (65%, Exhibit 2). Despite many early failures, there is an increasing number of therapeutic successes in human clinical trials being reported in recent years. As a result, investments in gene therapy technologies are increasing rapidly. The disease targets of gene therapy are currently center around rare, inherited genetic diseases.

Exhibit 2. Various Indications Addressed by Gene
Therapy in Clinical Trials

Source: The Journal of Gene Medicine,
2017, John Wiley and Sons Ltd.