Month: May 2020

ACCO Brands Corporation (ACCO) – Post 1Q20 Call Commentary

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Wednesday, May 6, 2020

ACCO Brands Corporation (ACCO)

Post 1Q20 Call Commentary

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. The company offers office products, such as stapling, binding and laminating equipment, and related consumable supplies, as well as shredders and whiteboards; and academic products, including notebooks, folders, decorative calendars, and stationery products. It also provides private label products, as well as business machine maintenance and repair services. The company offers its business, academic, and calendar product lines under the Artline, AT-A-GLANCE, Derwent, Esselte, Five Star, GBC, Hilroy, Leitz, Marbig, Mead, NOBO, Quartet, Rapid, Rexel, Swingline, Tilibra, Wilson Jones, and other brand names. In addition, it designs, sources, distributes, markets, and sells accessories for laptop and desktop computers, and tablets comprising security products; input devices, such as presenters, mice, and trackballs; ergonomic aids, including foot and wrist rests; docking stations; and other personal computers and tablet accessories under the Kensington, Microsaver, and ClickSafe brand names. The company sells its products to consumers and commercial end-users primarily through resellers, including traditional office supply resellers, wholesalers, mass merchandisers, and retailers, as well as directly to consumers through on-line and direct mail. ACCO Brands Corporation is headquartered in Lake Zurich, Illinois.

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

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

    COVID Impacting Operations. ACCO began experiencing the impacts in March as many countries in Europe began shutting down. Second quarter revenues and profits are expected to be significantly below last year, with April the weakest month of the quarter. Visibility past then is poor currently, although the back-to-school season is seeing strength from mass merchants and e-tailers, the largest B2S retailers. ACCO has been deemed an essential business, a positive in our view.

    But Well Positioned. ACCO is well positioned to ride out the COVID storm. From an operating perspective, roughly 65% of revenues are derived from consumables and B2S sales account for a significant portion of revenues. Financially, the Company ended the quarter with $93.4 million of cash and $450 million of availability under its revolving facility. The recent bank debt amendment provides…

    Click here to get the full report.

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. 

Great Lakes Dredge & Dock (GLDD) – Exceptional quarter to start the year on a positive note.

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Wednesday, May 6, 2020

Great Lakes Dredge & Dock (GLDD)

Exceptional quarter to start the year on a positive note.

Great Lakes Dredge & Dock Corp is a provider of dredging services in the United States. The company only’s operating segments is Dredging. Dredging involves the enhancement or preservation of navigability of waterways or the protection of shorelines through the removal or replenishment of soil, sand or rock. Its projects portfolio includes Coastal Restoration, Coastal Protection, Port expansion, and others.

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

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

    High equipment utilization and strong project execution drove higher profitability. Record 1Q2020 operating results beat expectations across the board due to strong growth in
    revenue, gross profit and EBITDA.

    Increasing 2020 EBITDA estimate to $159 million from $140 million. 1Q2020 will be best quarter of year, but outlook remains positive. Similar to last year, 1Q2020 is likely to be the strongest quarter of the year. While revenue and gross margin are likely to moderate over the rest of the year due to planned fleet downtime, several factors are positive for…


    Click here to get the full report.

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. 

Sierra Metals (SMTS)(SMT:CA) – Resetting Expectations

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Wednesday, May 6, 2020

Sierra Metals (SMTS)(SMT:CA)

Resetting Expectations

As of April 24, 2020, Noble Capital Markets research on Sierra Metals is published under ticker symbols (SMTS and SMT:CA). The price target is in USD and based on ticker symbol SMTS. Research reports dated prior to April 24, 2020 may not follow these guidelines and could account for a variance in the price target.
Sierra Metals Inc is a precious and base metals producer in Latin America. The company acquires, explores, extracts, and produces mineral concentrates consisting of silver, copper, lead, zinc and gold in Mexico and Peru. Its activity includes the operation of the Yauricocha Mine in Peru, and the Bolivar and Cusi mines in Mexico. Yauricocha is an underground polymetallic mine using the sublevel block caving and cut-and-fill mining methods. Bolivar is a copper-silver-zinc-gold underground mine using room-and-pillar mining method. The majority of the revenue is earned by selling of the mineral concentrates to its customers in Peru.

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

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

    Lowering estimates. We are lowering our 2020 EPS and EBITDA estimates to $0.05 and $60.8 million from $0.12 and $81.5 million, respectively. The revised estimates reflect a lower first quarter Yauricocha mine EBITDA contribution due, in part, due to higher costs, and lower company-wide production and average realized metals prices for the balance of the year. While the Cusi mine was put in care in maintenance in response to Mexican government mandated work restrictions associated with COVID-19, we now assume the Cusi mine will remain in care and maintenance for the remainder of 2020. We expect the company to undertake more development work to position Cusi for greater production capacity and margin improvement. We have also lowered our 2021 EPS and EBITDA estimates to $0.19 and $108.6 million from $0.24 and $122.6 million to reflect lower metal prices and margins.

    COVID-19 work restrictions. In Peru and Mexico, work restrictions are expected to continue until May 10 and May 30, respectively. In Mexico, operations in remote locations, including the Bolivar mine, may return to service as early as May 18. While it may take a few weeks to ramp up to normal production levels, we expect Yauricocha and Bolivar to resume production on May 11 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).

*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. 

Torchlight Energy Resouces Inc. (TRCH) – Coverage Dropped

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Wednesday, May 6, 2020

Torchlight Energy Resouces Inc. (TRCH)

Coverage Dropped

Torchlight Energy Resources Inc acquires, explores, exploits, and develops oil and natural gas properties in the United States. The company has an interest in four oil and gas projects: the Orogrande Project in Hudspeth County, Texas; the Hazel Project in Sterling, Tom Green, and Irion Counties, Texas; the Winkler Project in Winkler County, Texas; and the Hunton wells in partnership with Husky Ventures in central Oklahoma.

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

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

    We are dropping coverage of Torchlight Energy to devote resources to other areas. Past recommendations or estimates should not be viewed as reliable.


    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. 

Reports First Quarter Results. What Will COVID-19 Impact Be?

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Tuesday, May 5, 2020

Kelly Services Inc. (KELYA)

Reports First Quarter Results. What Will COVID-19 Impact Be?

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.

    1Q20 Results. Kelly Services reported revenue of $1.26 billion for the first quarter, down 8.8%, year-over-year. Reported net loss was $153.2 million or $3.91 per share. Included in the net loss is a $147.7 million impairment charge, a $77.8 million loss on Persol investment, $8.7 million of restructuring charges, and a $32.1 million gain from the HQ sale. Adjusted EPS came in at $0.20 versus an adjusted $0.45 in the prior year period.

    COVID-19 Impact. During the quarter, management estimates COVID-19 accounted for 270 basis points of the year-over-year decline in revenue for the quarter. We anticipate the COVID-19 impact to be significantly greater in the second quarter with a lessening of the impact going forward dependent upon the timing and particulars of any economic re-opening. The Insight acquisition contributed 110 bp of…


    Click here to get the full report.

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. 

First Quarter Preview

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Tuesday, May 5, 2020

Genie Energy Ltd. (GNE)

First Quarter Preview

Genie Energy Ltd, through its subsidiaries, operates as a retail energy provider; and an oil and gas exploration company. Its segments are Genie Retail Energy (GRE) which is the key revenue generator, Genie Energy Services (GES), and Genie Oil and Gas (GOGAS). GRE owns and operates retail energy providers (REPs), including IDT Energy, Residents Energy, Town Square Energy, and Mirabito. Its REP businesses resell electricity and natural gas to residential and small business customers in the Eastern and Midwestern United States. GES designs, manufactures and distributes solar panels and also offers energy brokerage and advisory services. GOGAS is an oil and gas exploration company that owns an interest in a contracted drilling services operation and interest in Afek Oil and Gas (Afek).

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

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

    Genie is facing tough 1Q comparisons. In 2019, GNE reported a strong first quarter due to customer and new business acquisitions. The favorable results reversed in the second quarter when mild weather resulted in decreased customer usage, fewer customer conversions, and excess supply held at falling prices. We believe Thursday’s upcoming results could be a repeat of last year’s second quarter. We would remind investors that the shares of GNE fell approximately 30% in response to the announcement of 2Q results before recovering in the fall when the company repurchased shares.

    Weather was warm in the first quarter. The EIA reports heating degree days for the first quarter were 14% warmer than normal and 16% warmer than last year. Temperatures were even warmer in the east portion of the United States where GNE’s Retail Energy markets are generally located. This will most likely mean decreased customer usage and lower customer growth. We also believe it is probable the company will need to take a charge 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 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. 

ACCO Brands Corporation (ACCO) – 1Q20 Met Expectations in Spite of COVID-19

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Tuesday, May 5, 2020

ACCO Brands Corporation (ACCO)

1Q20 Met Expectations in Spite of COVID-19

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. The company offers office products, such as stapling, binding and laminating equipment, and related consumable supplies, as well as shredders and whiteboards; and academic products, including notebooks, folders, decorative calendars, and stationery products. It also provides private label products, as well as business machine maintenance and repair services. The company offers its business, academic, and calendar product lines under the Artline, AT-A-GLANCE, Derwent, Esselte, Five Star, GBC, Hilroy, Leitz, Marbig, Mead, NOBO, Quartet, Rapid, Rexel, Swingline, Tilibra, Wilson Jones, and other brand names. In addition, it designs, sources, distributes, markets, and sells accessories for laptop and desktop computers, and tablets comprising security products; input devices, such as presenters, mice, and trackballs; ergonomic aids, including foot and wrist rests; docking stations; and other personal computers and tablet accessories under the Kensington, Microsaver, and ClickSafe brand names. The company sells its products to consumers and commercial end-users primarily through resellers, including traditional office supply resellers, wholesalers, mass merchandisers, and retailers, as well as directly to consumers through on-line and direct mail. ACCO Brands Corporation is headquartered in Lake Zurich, Illinois.

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

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

    1Q20 Results. Sales decreased 2.5% to $384.1 million in the quarter while net income was $8.0 million or $0.08 per share. We were at $397 million and $0.07, respectively. Consensus was $396 million and $0.09. Adjusted EPS was $0.07. Notably, North American sales rose 4.6%, with comp sales up 4.7%, but EMEA was down 13%, with comp sales off 10.1%. International sales were up 2.1% due to the Foroni acquisition but down 7.5% on a comp basis.

    COVID Response. ACCO has taken steps to combat the impact of the crisis. New cost reduction actions are expected to reduce expenses by approximately $20 million in the second quarter. The Company’s balance sheet remains strong, liquidity is good and there are no debt maturities until 2024. ACCO amended its debt maintenance covenant to provide…

    Click here to get the full report.

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. 

Kelly Services Inc. (KELYA) – Reports First Quarter Results. What Will COVID-19 Impact Be?

Posted on by Admin

Tuesday, May 5, 2020

Kelly Services Inc. (KELYA)

Reports First Quarter Results. What Will COVID-19 Impact Be?

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.

    1Q20 Results. Kelly Services reported revenue of $1.26 billion for the first quarter, down 8.8%, year-over-year. Reported net loss was $153.2 million or $3.91 per share. Included in the net loss is a $147.7 million impairment charge, a $77.8 million loss on Persol investment, $8.7 million of restructuring charges, and a $32.1 million gain from the HQ sale. Adjusted EPS came in at $0.20 versus an adjusted $0.45 in the prior year period.

    COVID-19 Impact. During the quarter, management estimates COVID-19 accounted for 270 basis points of the year-over-year decline in revenue for the quarter. We anticipate the COVID-19 impact to be significantly greater in the second quarter with a lessening of the impact going forward dependent upon the timing and particulars of any economic re-opening. The Insight acquisition contributed 110 bp of…


    Click here to get the full report.

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. 

The Correlation of Passive Ownership and Underperformance

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The Pitfalls of Index Funds Demonstrated During Pandemic Selloff

In what has become an increase in warnings from news outlets like The Wall
Street Journal, another article was published yesterday unmasking and quantifying built-in negatives to index-based portfolio construction.

Hypothesis
– The Enormity of Index Fund Assets Presents Undue Risk

Last September, The Wall Street Journal published a widely discussed article titled “Index Funds Are the New Kings on Wall Street.” Within it, it was reported, “U.S.-focused index equity funds make up nearly 14% of the American stock market, up from roughly 7% in 2010, according to the Investment Company Institute. Index funds generally contribute up to 5% of U.S. stock-market trading, economists estimate.” The two primary warnings in that story were related to corporate governance and overvaluation of companies once added to an index. The fears were that there is too much power in too few hands and severe downside risk to owners during periods when investors quickly moved out of equities. From September to March, the percent and dollar amount invested in indexed mutual funds and indexed ETFs had grown. As of March 2020, $4.26 trillion sat invested in passive index funds. Up until now, there had not been conditions that tested the hypothesis. Data from the harsh market moves during the late Winter of 2020 are now available for people to evaluate the theory.

Yesterday’s WSJ article repeated this risk and also highlighted that any disruption or change in how people live could also impact the valuation of each industry sector within any large index. And, within each sector, every company could have amplified valuation shifts. The WSJ article referenced a new study of the economic shutdown and market sell-off that followed.

Evaluation
– 2020 Sell-off Provides a Test

The study, conducted by Jun Zhu, a portfolio manager at The Leuthold Group, asks, “Is Passive Ownership Exacerbating the Sell-off?” One of the main conclusions presented was that ‘Stocks with high passive ownership in the sectors with the greatest selling pressure underperformed.’ The underperformance detracted from the overall investment performance. Portfolio’s not bound by any index can be managed to instead match the current conditions. These portfolios are more nimble. For example, without the ability to lessen a portfolio’s exposure to energy, transportation, or hospitality as the pandemic grew was severely limiting and damaging. The same reasoning would hold that as the pandemic recedes, index funds do not allow a heavier exposure in these areas. In effect, Ms. Zhu was able to use the sell-off coinciding with the shutdown to empirically test the theories discussed in the September WSJ article.

The research analyzed data from the early weeks following February 19. She concluded those stocks most heavily owned by passive index funds and sector ETFs dropped more rapidly than the market as a whole. Even more compelling, she discovered they fell farther than similar companies not included in the large indexes.

Conclusion
– Supporting Data and Results

The performance study concluded stocks with the highest weightings within passive funds declined nearly three percent more than stocks not traded within an index (40.4% versus 37.5%). The study period was the 34 day period from February 19 through to March 23.

Ms. Zhu also found a correlation between sectors that attracted above-average levels of passive ownership and underperformance. Examples include financial, real estate, energy sector, and consumer-discretionary. The one industry that bucked this trend was healthcare, which dropped 30.3% during the freefall, compared with 60.7% for energy companies or 45.2% for the financial services sector.

It was discovered that index-heavy sectors were highly represented among the sectors that were hurt most. That is, in addition to broader indexes such as the S&P 500, sector investing, where there is also a high percentage of passive assets, showed the holdings were also among the big losers relative to their peers. The article quotes Zhu explaining, “It’s logical to say that sectors with highest passive ownership will fall more during a sell-off. My thinking is that it’s because ETFs will immediately sell when investors redeem assets; they don’t need to peek under the hood to decide which stocks to sell.” Overall the conclusion is that investing in an index fund is limiting and could be especially damaging during rapid declines.

Take-Away

Portfolio management that is focused on stock selection rather than index or index sector selection now has an advantage. Investing in companies instead, allows investors to pivot quickly.  It is like the difference between a small boat changing course compared to a large ship. When the need to turn is sudden, the ship is less capable.

There is a growing undercurrent of discussion within investment circles of the negatives that come with massive pools of money all invested in the same stocks. The size itself is one of the greatest negatives as it produces overvaluation and has now demonstrated worse performance during a sell-off.

Change favors the most agile. Change is constant. Indexes and the funds that shadow them, by design, have no agility.

 

Suggested Reading:

Taking Stock of Index Funds

Have Active Managers Received a Bum Rap?

Investment Barriers Once Seen as Insurmountable are Falling
Fast

 

Register to Enjoy Premium Channelchek Content
at No Cost

 

Sources:

Index
Funds Are the New Kings of Wall Street

Stocks
Owned by Passive Funds Fared Worse in the Sell-off

Genie Energy Ltd. (GNE) – First Quarter Preview

Posted on by Admin

Tuesday, May 5, 2020

Genie Energy Ltd. (GNE)

First Quarter Preview

Genie Energy Ltd, through its subsidiaries, operates as a retail energy provider; and an oil and gas exploration company. Its segments are Genie Retail Energy (GRE) which is the key revenue generator, Genie Energy Services (GES), and Genie Oil and Gas (GOGAS). GRE owns and operates retail energy providers (REPs), including IDT Energy, Residents Energy, Town Square Energy, and Mirabito. Its REP businesses resell electricity and natural gas to residential and small business customers in the Eastern and Midwestern United States. GES designs, manufactures and distributes solar panels and also offers energy brokerage and advisory services. GOGAS is an oil and gas exploration company that owns an interest in a contracted drilling services operation and interest in Afek Oil and Gas (Afek).

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

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

    Genie is facing tough 1Q comparisons. In 2019, GNE reported a strong first quarter due to customer and new business acquisitions. The favorable results reversed in the second quarter when mild weather resulted in decreased customer usage, fewer customer conversions, and excess supply held at falling prices. We believe Thursday’s upcoming results could be a repeat of last year’s second quarter. We would remind investors that the shares of GNE fell approximately 30% in response to the announcement of 2Q results before recovering in the fall when the company repurchased shares.

    Weather was warm in the first quarter. The EIA reports heating degree days for the first quarter were 14% warmer than normal and 16% warmer than last year. Temperatures were even warmer in the east portion of the United States where GNE’s Retail Energy markets are generally located. This will most likely mean decreased customer usage and lower customer growth. We also believe it is probable the company will need to take a charge to…


    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. 

1Q20 Met Expectations in Spite of COVID-19

Posted on by Admin

Tuesday, May 5, 2020

ACCO Brands Corporation (ACCO)

1Q20 Met Expectations in Spite of COVID-19

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. The company offers office products, such as stapling, binding and laminating equipment, and related consumable supplies, as well as shredders and whiteboards; and academic products, including notebooks, folders, decorative calendars, and stationery products. It also provides private label products, as well as business machine maintenance and repair services. The company offers its business, academic, and calendar product lines under the Artline, AT-A-GLANCE, Derwent, Esselte, Five Star, GBC, Hilroy, Leitz, Marbig, Mead, NOBO, Quartet, Rapid, Rexel, Swingline, Tilibra, Wilson Jones, and other brand names. In addition, it designs, sources, distributes, markets, and sells accessories for laptop and desktop computers, and tablets comprising security products; input devices, such as presenters, mice, and trackballs; ergonomic aids, including foot and wrist rests; docking stations; and other personal computers and tablet accessories under the Kensington, Microsaver, and ClickSafe brand names. The company sells its products to consumers and commercial end-users primarily through resellers, including traditional office supply resellers, wholesalers, mass merchandisers, and retailers, as well as directly to consumers through on-line and direct mail. ACCO Brands Corporation is headquartered in Lake Zurich, Illinois.

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

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

    1Q20 Results. Sales decreased 2.5% to $384.1 million in the quarter while net income was $8.0 million or $0.08 per share. We were at $397 million and $0.07, respectively. Consensus was $396 million and $0.09. Adjusted EPS was $0.07. Notably, North American sales rose 4.6%, with comp sales up 4.7%, but EMEA was down 13%, with comp sales off 10.1%. International sales were up 2.1% due to the Foroni acquisition but down 7.5% on a comp basis.

    COVID Response. ACCO has taken steps to combat the impact of the crisis. New cost reduction actions are expected to reduce expenses by approximately $20 million in the second quarter. The Company’s balance sheet remains strong, liquidity is good and there are no debt maturities until 2024. ACCO amended its debt maintenance covenant to provide…

    Click here to get the full report.

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. 

Energy Fuels (UUUU)(EFR:CA) – Slow but Steady Progress

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Monday, May 4, 2020

Energy Fuels (UUUU)(EFR:CA)

Slow but Steady Progress

As of April 24, 2020, Noble Capital Markets research on Energy Fuels is published under ticker symbols (UUUU and EFR:CA). The price target is in USD and based on ticker symbol UUUU. Research reports dated prior to April 24, 2020 may not follow these guidelines and could account for a variance in the price target.
Energy Fuels is the largest uranium producer in the U.S. and holds more production capacity and uranium resources than any other U.S. producer. The Company also produces vanadium. Headquartered in Colorado, Energy Fuels holds three of America’s key uranium production centers: the White Mesa Mill in Utah, the Nichols Ranch ISR Facility in Wyoming, and the Alta Mesa ISR Facility in Texas. The producing White Mesa Mill is the only conventional uranium mill in the U.S. and has a licensed capacity of 8 million pounds of U3O8 per year. Nichols Ranch is in production and has a licensed capacity of 2 million pounds of U3O8 per year. Alta Mesa is currently on standby. Energy Fuels also owns several licensed and developed uranium and vanadium mines on standby and other projects in development

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

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

    No big surprises. Energy Fuels reported a first quarter loss of $5.7 million, or ($0.05) per share, compared to a loss of $12.1 million, or ($0.13) per share during the prior year period. We had forecast a loss of $6.2 million, or ($0.06) per share. While revenue was below our estimate, the variance was largely due to higher-than-expected other income in the amount of $2.5 million.

    Reasons for optimism. President Trump’s 2021 budget proposal includes $150 million to fund a strategic uranium reserve to provide assurance of uranium supplies and to support U.S. nuclear fuel cycle capabilities through the domestic production and conversion of uranium. Assuming no changes by the time an appropriations bill is signed into law by September 30, purchases could begin in fiscal year 2021 which begins October 1. Additionally, the U.S. Nuclear Fuel Working Group (NFWG) released recommendations supportive of uranium producers and…


    Click here to get the full report.

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.