Research 1 800 flowers-com flws gets into a personal space

Thursday, February 20, 2020

1-800-Flowers.com (FLWS)

Gets Into A Personal Space

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

Adds A Personal Touch. The company announces plans to purchase PersonalizationMall.com from Bed, Bath & Beyond for $242 million. The transaction is expected to close in early April, 2020. We view the acquisition favorably as it expands its everyday gifting platform, further distances itself from its peers that a narrow gifting offering.

Reasonable purchase price. The purchase price is estimated to be 1.7 times trailing revenues and 10 times estimated fiscal 2021 EBITDA. a fair price for a business growing revenues in the high-single digit to low-double digits and for cash flow margins in the 15% range. Tax benefits bring the purchase price to…




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Renaissance in Inflammasome Therapeutics

Noblecon16  Panel is set to Discuss Recent Breakthroughs in Inflammasome Space

There is an ongoing renaissance in the potential for drugs targeting a unique inflammation hub, inflammasome. Inflammasomes are crucial to coordinate in?ammatory responses.  Inflammation is a protective immune response to harmful stimuli, such as pathogens, dead cells or irritants, and is tightly regulated by the host. The innate immunity is the first line of defense in recognition of infection and initiation of clearance by the host. The activation of the inflammasome is a key function mediated by the innate immune system. Three main domains comprise inflammasomes: sensor molecule, adaptor protein (ASC), and effector protein mainly pro-caspase 1.

Oligomerization (generation of multi-molecular complex of inflammasome) is triggered by danger associated molecular patterns (DAMPs) or pathogen-associated molecular patterns (PAMPs) that results in effector activation and leading to maturation of procytokines and pyroptosis, a form of inflammatory cell death. The nucleotide-binding domain-like receptor (NLR) family is the main group of proteins considered as inflammasome sensors. Inflammasome sensor proteins are involved in the recognition of particular danger stimulus and then initiate the assembly of inflammasome multimeric complex. Among NLR family (NLRs—NLRP1, NLRP2, NLRP3, and NLRC4, nonNLRs—absent in melanoma 2 (AIM2) and pyrin), NLRP3 recognizes the largest array of stimulus and it is the most studied in terms of developing NLR inhibitors. The adaptor proteins are known as apoptosis-associated speck-like protein (ASC) containing a caspase activation and recruitment domain (CARD). In response to PAMPs or DAMPs, the sensor molecule recruits ASC, which recruits pro-caspase 1. This interaction converts pro-caspase-1 into its activated form, caspase-1. Caspase-1 then cleaves the proforms of IL-1ß and IL-18 into their mature forms, which triggers the inflammatory process, which can induce cell death via a process known as pyroptosis (Exhibit 1). The release of IL-1ß and IL-18 leads to the activation of several downstream pathways that further assist in the inflammatory process.

Exhibit 1. The inflammasome mechanism of action

Source:
Hoffman and Broderick, J Allergy Clin Immunol, 2016

While insufficient inflammation can lead to persistent infection of pathogens, excessive inflammation can cause chronic or systemic inflammatory diseases. Inflammasomes play a crucial role in mediating inflammation and therefore serve as potential drug targets for the treatment of inflammatory-mediated diseases. Inflammasomes have been associated with variety of autoinflammatory and autoimmune diseases, including neurodegenerative diseases (multiple sclerosis, Alzheimer’s disease, and Parkinson’s disease) and metabolic disorders (atherosclerosis, type-2 diabetes, and obesity). Currently, there are no approved inflammasome inhibitors; however, there are several early stage assets in the pipeline. While most companies are targeting the sensor molecule (NLRP3), some others are taking a unique approach targeting either the adaptor protein (ASC) or other molecules.

 

Exhibit 2. Recent selected deals in inflammasome space

At least, four biotechnology firms with NLRP3 inhibitors have been founded in the last four years. In 2018, they raised a collective $117 million in venture capital. Inflazome was recently granted over US$1M in funding from The Michael J. Fox Foundation for Parkinson’s Research (MJFF). High activity in inflammasome space was seen in the recent years. Among the multiple M&A and partnership deals, the majority of them were at preclinical stage. The transaction volume varied, $160 mm – $1.6 billion (Exhibit 2). Multiple acquisitions in the field show the first inflammasome target -NLRP3 -is gaining momentum. The question remains how fast the best set of indications can be identified from the sea of possibilities.

Selected Companies Targeting Inflammasome

Highlighted below the Inflammasome Panel
attendees and selected companies with current programs in inflammasome
therapeutics (alphabetical order).

Inflammasome Inhibitors: The Next Generation of
Innovative Immunotherapy Agents
Monday, February 17 – 10:00am – 11:00am – Terrace Ballroom B

  • Paul Ashton, PhD., Co-Founder & CEO of Inflammasome Therapeutics, Inc.
  • Gary Glick, PhD., Co-Founder & Executive Chairman of IFM Therapeutics and Michigan Professor of Chemistry
  • Steve Glover, Co-Founder, President & CEO of Zyversa Therapeutics, Inc.
  • Robert W. Keane, PhD., Professor Physiology & Biophysics, Neurological Surgery & Microbiology, and Immunology at the University of Miami, and co-founder of InflamaCore, LLC
  • Clay B. Thorp, General Partner at Hatteras Venture Partners

IFM Therapeutics (Private
company)

IFM Therapeutics (IFM) is a Boston-based, a privately held biopharmaceutical company focused on developing novel therapies that regulate the innate immune system. IFM was formed following the acquisition of the original IFM Therapeutics by Bristol-Myers Squibb in 2017 ($1.3 billion). IFM has a unique approach in regulating the management of its research and development activities. IFM has separate subsidiaries that are responsible for a particular set of programs. While each subsidiary is financially independent, they share common infrastructure and resources. IFM has established three subsidiaries: IFM Tre was launched in July 2018 and was subsequently acquired by Novartis in May 2019, IFM Due, which launched in February 2019, and the most recent, IFM Quattro launched in Dec 2019.

 IFM’s inflammasome platform is based on antagonists of NLR proteins for inflammation-mediated diseases (such as, Alzheimer’s, liver fibrosis/non-alcoholic steatohepatitis (NASH), and type 2 diabetes) and anti-cancer agents for modulating the tumor environment. IFM currently has two NLRP3 antagonists in the preclinical stage and one NLRP3 antagonist in Phase 1 for the treatment of inflammation, fibrosis, neuroinflammation. The rights of the above molecules belong to Novartis. IFM has another NLRP3 agonist, an anti-cancer agent, owned by Bristol-Myers Squibb.

Inflammasome Therapeutics
(Private company)

Inflammasome therapeutics is developing therapies for Alzheimer’s, multiple sclerosis, macular degeneration, and type 2 diabetes by averting unusual inflammasome activation. They have identified and licensed a series of molecules known as Kamuvudines. The company has presented and published favorable preclinical data and recently established partnership with Boehringer Ingelheim to co-develop up to three therapies for patients with retinal diseases. Based on the agreement, Inflammasome is entitled to receive up to $160 million in up-front, research and development support and milestone payments and royalties based on future commercial sales of the products.

Inflazome (Private company)

Inflazome is a clinical stage biotechnology company that specializes in developing a NLRP3 small-molecule targeting inflammatory mediated diseases. The company received a grant in October 2019 from The Michael J. Fox foundation for the development of a NLRP3-specific Positron Emission Tomography (PET) tracer to allow non-invasive imaging of inflammasome-driven inflammation in the brain. Inflazome also completed a $46 million Series B funding in 2018. Inflazome’s lead asset Inzomelid is a potent, selective, brain penetrant NLRP3 inhibitor that is currently in Phase Ib trials. Inzomelid is indicated for the treatment of neuroinflammatory and neurodegenerative diseases such as Parkinson’s, Alzheimer’s and Motor Neuron Disease as well as the orphan disease CAPS. The second is Somalix, a potent, selective, peripherally restricted NLRP3 inhibitor that is currently in Phase I trials indicated for the treatment of arthritis and cardiovascular diseases. Clinical trial data are not available at this time.

Nodthera (Private company)

Nodthera is an early-stage biopharmaceutical company developing novel NLRP3 inhibitors for the treatment of NASH, pulmonary fibrosis, neurodegenerative disorders, and inflammatory bowel disease (IBD). The company’s lead candidate NT-0167 is currently under pre-IND stage. Nodthera completed a $40 million Series A funding in 2018.

Zyversa Therapeutics, Inc (Private
company
)

Zyversa is a clinical stage biopharmaceutical company developing first-in-class therapeutics for inflammatory (e.g., multiple sclerosis and NASH) and renal (e.g., diabetic nephropathy and lupus nephritis) diseases. Zyversa’s lead inflammasome targeting agent is IC 100, a monoclinal antibody targeting ASC for the treatment of multiple sclerosis. The company licensed IC 100 from InflamaCORE. Preclinical studies suggest that IC 100 inhibits the downstream inflammatory pathways. IC 100 is a nonspecific ASC inhibitor, which has a wide therapeutic range potentially inhibiting various types of inflammasomes. Zyversa has three additional ASC inhibitors under development for Lupus Nephritis, NASH, and diabetic kidney disease.

Research – EuroDry Ltd. (EDRY) – Solid Quarter and Well Positioned for Expected 2H2020 Recovery

Friday, February 14, 2020

EuroDry Ltd. (EDRY)

Solid Quarter and Well Positioned for Expected 2H2020 Recovery

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. For every five ESEA shares, ESEA shareholders received one EDRY share. There are currently ~2.2 million EDRY shares outstanding. EuroDry operates in the dry bulk shipping markets. EuroDry’s operations are managed by Eurobulk Ltd., an affiliated ship management company, and Eurobulk FE (Far East) Ltd, which are responsible for the day-to-day commercial and technical management and operation of the fleet. EuroDry employs the fleet on spot and period charters and through pool arrangements.

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

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

Another solid quarter as pure dry bulk play.  Adjusted 4Q2019 EBITDA of $3.8 million was above our estimate of $2.8 million mainly due to higher than expected TCE rates and and lower opex.

Lowering 2020 estimates.  Due to dry bulk market weakness, we are moving adjusted 2020 EBITDA estimate lower to $11.5 million based on TCE rates of $11,671/day down from $13.4 million based on TCE rates of $12,622/day. Given the current dry bulk market environment, we are forecasting that TCE rates weaken slightly in 1H2019 from 4Q2019 levels. There was limited change in the contract status, but one longer term contract will move from a fixed rate to indexed rate in 1Q2020 and…



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Research seanergy ship focus on weak cape market and upcoming refinancing

Friday, February 14, 2020

Seanergy (SHIP)

Focus on Weak Cape Market and Upcoming Refinancing

Seanergy Maritime Holdings Corp., an international shipping company, provides marine dry bulk transportation services through the ownership and operation of dry bulk vessels. Seanergy Maritime Holdings Corp. is the only pure-play Capesize shipping company listed in the US capital markets. Seanergy provides marine dry bulk transportation services through a modern fleet of 10 Capesize vessels, with total capacity of approximately 1,748,581 dwt and an average fleet age of about 9.8 years. The Company is incorporated in the Marshall Islands with executive offices in Athens, Greece and an office in Hong Kong. The Company’s common shares trade on the Nasdaq Capital Market under the symbol “SHIP” and class A warrants under “SHIPW”.

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

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

4Q2019 operating results were higher than our recently revised estimates. EBITDA of $11.9 million, TCE rates of $22.9k/day and EPS of $0.08 were above expectations.

Dry bulk market weakness impacts 2020 estimate. The early part of the year has been weaker than expected and our new EBITDA estimate is $27.2 million based on TCE rates of $15.3k, down from our previous estimate of…



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Research newrange gold corp nrg ca striking gold with district scale projects in nevada and the red lake region of ontario

Friday, February 14, 2020

Newrange Gold Corp (NRG:CA)

Striking Gold with District-Scale Projects in Nevada and the Red Lake Region of Ontario

Newrange Gold Corp is an exploration stage company focused on acquiring and exploring exploration and evaluation assets in Colombia and the United States. The Company operates in a single reportable operating segment-the acquisition, exploration, and development of mineral properties. Some of the projects acquired by the company are Pamlico gold project in Nevada and Rocky mountain project in Colorado. The company also holds an interest in the Yarumalito property, El Dovio property and Anori property in Colombia.

Mark Reichman, Senior Research Analyst of Natural Resources, Noble Capital Markets, Inc.

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

Initiating coverage with an Outperform rating. We are initiating coverage of Newrange Gold Corp. with an investment rating of Outperform and a price target of C$0.25 per share. In our view, the equity offers investors exposure to an early-stage exploration mining company with significant gold and silver discovery potential.

Pamlico and North Birch projects represent significant upside for investors. The Pamlico project, located in Nevada, represents a unique opportunity to explore and develop a district-scale gold deposit in multiple target areas across the property. While the company recently optioned its North Birch project, located in the Red Lake region of Ontario, Canada, we view the property as a hidden gem as its potential remains to be unlocked with the…



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Research the mcclatchy company mni what happened

Friday, February 14, 2020

The McClatchy Company (MNI)

What happened?

The McClatchy Company publishes news and information in the United States. Its publications include the Miami Herald, The Kansas City Star, The Sacramento Bee, The Charlotte Observer, The (Raleigh) News and Observer, the (Fort Worth) Star-Telegram, and The (Durham, NC) Herald-Sun. The companyÂ’s businesses comprise daily newspapers, Websites, mobile apps, mobile news and advertising, video products, niche publications, direct marketing, direct mail services, and nearby community newspapers. The McClatchy Company was founded in 1860 and is headquartered in Sacramento, California.

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

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

Files for voluntary Chapter 11. There was an outside chance that the company would be able to move unfunded pension liabilities off balance sheet and do a reorganization that would leave some equity value for shareholders. This did not happen. Less favorable terms from the Pension Benefit Guaranty Corporation (PBGC) may have tipped the company’s decision.

Submits plans for a reorganization. The company plans to go private in a transaction that will swap a large portion of its debt for equity. Given the prospect of moving all but a small portion of its unfunded pension liability off its balance sheet, the company could have a moderate $299 million in long term debt and…



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Research kelly services inc- kelya can the new growth plan work

Friday, February 14, 2020

Kelly Services Inc. (KELYA)

Can the New Growth Plan Work?

Kelly Services Inc is a provider of workforce solutions and consulting and staffing services. The company’s operations are divided into three business segments namely Americas Staffing, Global Talent Solutions (“GTS”) and International Staffing. It provides staffing solutions through its branch networks in Americas and International operations and also provides a suite of innovative talent fulfilment and outcome-based solutions through GTS segment. Americas Staffing generates maximum revenue from its operations.

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

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

New Growth Strategy. New CEO Peter Quigley is rolling out a new, aggressive organic and inorganic growth plan to build a sustainable and profitable specialty talent solutions provider. We believe Kelly has the means, capability, and opportunity to successfully implement the plan.

4Q19 Results.  Fourth quarter results were mixed. Revenue fell short of expectations due to ongoing softness in select U.S. niches, continued disruption from the early 2019 restructuring of U.S. operations, and economic headwinds in Europe. However, better mix lead to improved gross margin and…



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Research eurodry ltd- edry solid quarter and well positioned for expected 2h2020 recovery

Friday, February 14, 2020

EuroDry Ltd. (EDRY)

Solid Quarter and Well Positioned for Expected 2H2020 Recovery

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. For every five ESEA shares, ESEA shareholders received one EDRY share. There are currently ~2.2 million EDRY shares outstanding. EuroDry operates in the dry bulk shipping markets. EuroDry’s operations are managed by Eurobulk Ltd., an affiliated ship management company, and Eurobulk FE (Far East) Ltd, which are responsible for the day-to-day commercial and technical management and operation of the fleet. EuroDry employs the fleet on spot and period charters and through pool arrangements.

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

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

Another solid quarter as pure dry bulk play.  Adjusted 4Q2019 EBITDA of $3.8 million was above our estimate of $2.8 million mainly due to higher than expected TCE rates and and lower opex.

Lowering 2020 estimates.  Due to dry bulk market weakness, we are moving adjusted 2020 EBITDA estimate lower to $11.5 million based on TCE rates of $11,671/day down from $13.4 million based on TCE rates of $12,622/day. Given the current dry bulk market environment, we are forecasting that TCE rates weaken slightly in 1H2019 from 4Q2019 levels. There was limited change in the contract status, but one longer term contract will move from a fixed rate to indexed rate in 1Q2020 and…



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NOTE: investment decisions should not be based upon the content of
this research summary.  Proper due diligence is required before
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Is the Market Disregarding Earnings Results?

The Market and Management Seem to be at Odds on Earnings Projections

As of February 12, 70% of S&P 500 companies had reported earnings results for the fourth quarter and 2019 year.  While the reporting season is still young, the initial reports are somewhat disappointing.

  •  Fewer companies are beating estimates.  72.2% of the companies reporting beat expectations.  This may seem like a high percentage, but it is below the 12-quarter average of 77.9%.  It is not unusual for most companies to report results above expectations as company management and analysts take a conservative view when making projections.
  •  Earnings growth is low.  Net income for the fourth quarter rose 0.9% y-o-y on average for the companies that have reported.  This is significantly below the trailing 12-month average of 11.8% but above recent quarterly growth numbers that have been negative.  John Butters of Factset reports that if earnings growth in 2019-4Q ends up in the negative, it would be the first time the index has reported four straight quarters of y-o-y declines since 2016.  Earnings per share growth has been slightly better due to share buybacks, but the overall growth remains anemic. 
  •  Market is not rewarding favorable earnings.  According to Factset, companies reporting positive surprises have seen an average price increase of 0.5% in the four-day window before and after the report date.  This compares to a 1.0% increase for companies reporting earnings below expectations.
  •  Earnings estimates are being revised
    downward. 
    2020-1Q estimates have been lowered to reflect the impact of the Coronavirus.  The latest estimate is for 2020-1Q earnings to grow 1.2% year over year.  This is down from a growth rate of 4.5% as recently as December 4, 2019, shortly before the outbreak of the Coronavirus.  Even with the revision, such projections look rosy compared to negative growth in recent quarters and in light of the effects of the virus.
  •  The technology sectors have been strong while
    manufacturing has been weak
    .  The technology sector reported earnings that have been 9.4% above expectations while the manufacturing sector has reported results 3.7% below expectations.  The technology sector has been buoyed by favorable results at Intel and Microsoft while the manufacturing sector can point to a large loss at Boeing to explain the negative surprise.  Other sectors reporting favorable results include communications and consumer discretionary while results for the energy, utility and real estate sectors have been disappointing.
  •  Valuation multiples are high.  The S&P 500 is trading at 18.4 times forward earnings versus a 10-year average of 15.0 times.  The S&P 500 trades at 25 times trailing 12-month earnings versus an average P/E of 19.4 times since 1971.  High valuation multiples are partly due to historically low interest rates.  However, the fact that stock prices have risen at a faster rate than earnings estimates in recent quarters despite steady interest rates is a possible concern for investors.

 The market believes there will be a rebound in earnings in 2020 even as management and analysts revise projections downward.  Whether or not current projections are realistic or Pollyannaish remains to be seen.  History would indicate that analysts begin the year with lofty projections and then lower them as management gives conservative guidance for the year.  Actual results then surpass lowered expectations.  So far, the current earnings period is showing a similar trend, perhaps amplified by virus concerns.  This time, however, the market seems to be disregarding earnings results and dampened projections as it soars to new levels.  As valuation multiples climb, it is getting harder and harder to make the case that the market is undervalued.

 Sources

https://finance.yahoo.com/news/positive-earnings-picture-212009000.html, Sheraz Mian, Zacks, February 12, 2020

https://www.marketwatch.com/story/earnings-recession-set-to-end-as-sp-500-earnings-growth-turns-positive-2020-02-05, Tomi Kilgore, MarketWatch, February 5, 2020

https://www.forbes.com/sites/sergeiklebnikov/2020/01/07/earnings-preview-wall-street-banking-on-profits-to-rebound-in-2020/#4c8417865a3a, Sergei Klebnikov, Forbes, January 7, 2020

https://www.longtermtrends.net/price-earnings-ratio/, Longtermtrends, February 13, 2020

https://www.valuescopeinc.com/resources/white-papers/the-sp-500-pe-ratio-a-historical-perspective/,
ValueScope
, February 13, 2020

https://www.yardeni.com/pub/peacocksp500revisions.pdf, Yardeni Research, January 27, 2020

https://www.factset.com/hubfs/Resources%20Section/Research%20Desk/Earnings%20Insight/EarningsInsight_013120.pdf, John Butters, Factset, January 31, 2020

Research – Trovagene (TROV) – Lead Drug Shows Efficacy in Difficult to Treat Prostate Cancer Patients

Friday, February 14, 2020

Trovagene (TROV)

Lead Drug Shows Efficacy in Difficult to Treat Prostate Cancer Patients

Trovagene, Inc. is a clinical stage biotechnology company focused on the development of new therapeutics for hematology and oncology. The company’s clinical programs of Onvansertib (PLK1 inhibitor) include Phase 1b/2 study in AML, Phase 1b/2 study in mCRPC and Phase 1b/2 trial in KRAS-mutant colorectal cancer.

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

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

Data Presentation at ASCO Medical Conference. Trovagene, Inc. yesterday announced results from an ongoing Phase II clinical trial on the use of its lead drug, onvansertib, in combination with hormonal therapy for the treatment of metastatic castration-resistant prostate cancer (mCRPC). Results were presented at the American Society for Clinical Oncology (ASCO) 2020 Genitourinary Cancers Symposium in San Francisco.

Patients treated with onvansertib showed a clinical benefit. In the trial, 63% of the evaluable mCRPC patients (12 out of nineteen) treated with onvansertib showed a response to treatment. Patients carrying genetic alterations of the androgen receptor, a very difficult patient population to treat, showed a clinical benefit, which we believe is a…



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Research – Seanergy (SHIP) – Focus on Weak Cape Market and Upcoming Refinancing

Friday, February 14, 2020

Seanergy (SHIP)

Focus on Weak Cape Market and Upcoming Refinancing

Seanergy Maritime Holdings Corp., an international shipping company, provides marine dry bulk transportation services through the ownership and operation of dry bulk vessels. Seanergy Maritime Holdings Corp. is the only pure-play Capesize shipping company listed in the US capital markets. Seanergy provides marine dry bulk transportation services through a modern fleet of 10 Capesize vessels, with total capacity of approximately 1,748,581 dwt and an average fleet age of about 9.8 years. The Company is incorporated in the Marshall Islands with executive offices in Athens, Greece and an office in Hong Kong. The Company’s common shares trade on the Nasdaq Capital Market under the symbol “SHIP” and class A warrants under “SHIPW”.

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

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

4Q2019 operating results were higher than our recently revised estimates. EBITDA of $11.9 million, TCE rates of $22.9k/day and EPS of $0.08 were above expectations.

Dry bulk market weakness impacts 2020 estimate. The early part of the year has been weaker than expected and our new EBITDA estimate is $27.2 million based on TCE rates of $15.3k, down from our previous estimate of…



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NOTE: investment decisions should not be based upon the content of
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Research – The McClatchy Company (MNI) – What happened?

Friday, February 14, 2020

The McClatchy Company (MNI)

What happened?

The McClatchy Company publishes news and information in the United States. Its publications include the Miami Herald, The Kansas City Star, The Sacramento Bee, The Charlotte Observer, The (Raleigh) News and Observer, the (Fort Worth) Star-Telegram, and The (Durham, NC) Herald-Sun. The companyÂ’s businesses comprise daily newspapers, Websites, mobile apps, mobile news and advertising, video products, niche publications, direct marketing, direct mail services, and nearby community newspapers. The McClatchy Company was founded in 1860 and is headquartered in Sacramento, California.

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

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

Files for voluntary Chapter 11. There was an outside chance that the company would be able to move unfunded pension liabilities off balance sheet and do a reorganization that would leave some equity value for shareholders. This did not happen. Less favorable terms from the Pension Benefit Guaranty Corporation (PBGC) may have tipped the company’s decision.

Submits plans for a reorganization. The company plans to go private in a transaction that will swap a large portion of its debt for equity. Given the prospect of moving all but a small portion of its unfunded pension liability off its balance sheet, the company could have a moderate $299 million in long term debt and…



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Research – Kelly Services Inc. (KELYA) – Can the New Growth Plan Work?

Friday, February 14, 2020

Kelly Services Inc. (KELYA)

Can the New Growth Plan Work?

Kelly Services Inc is a provider of workforce solutions and consulting and staffing services. The company’s operations are divided into three business segments namely Americas Staffing, Global Talent Solutions (“GTS”) and International Staffing. It provides staffing solutions through its branch networks in Americas and International operations and also provides a suite of innovative talent fulfilment and outcome-based solutions through GTS segment. Americas Staffing generates maximum revenue from its operations.

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

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

New Growth Strategy. New CEO Peter Quigley is rolling out a new, aggressive organic and inorganic growth plan to build a sustainable and profitable specialty talent solutions provider. We believe Kelly has the means, capability, and opportunity to successfully implement the plan.

4Q19 Results.  Fourth quarter results were mixed. Revenue fell short of expectations due to ongoing softness in select U.S. niches, continued disruption from the early 2019 restructuring of U.S. operations, and economic headwinds in Europe. However, better mix lead to improved gross margin and…



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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).

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