June 2020 - Channelchek

Orion Group Holdings (ORN) – Additional Work Awarded. Outlook Remains Favorable.

Posted on June 30, 2020 by Admin

Tuesday, June 30, 2020

Orion Group Holdings (ORN)

Additional Work Awarded. Outlook Remains Favorable.

Orion Group Holdings, based in Houston, Texas, is a specialty construction company within the Marine and Industrial Construction sectors, with operations focused in the continental United States and Caribbean. Revenue is split roughly 50/50 between a Marine Construction segment that provides marine facility, pipeline and structural construction services and a Commercial Concrete segment that provides turnkey concrete services in the light commercial and structural construction markets.

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

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

Dredging award announced by US Army Corp of Engineers (USACE) late last week. ORN was awarded a $14.65 million contract for pipeline dredging in Port Mansfield, Texas. Bids were solicited via the internet with three received, and the contract was published on the Department of Defense web site. ORN has not yet issued a press release on the work, which has an estimated completion date of March 1, 2021.

Risk to existing projects is moderating. Despite moves to curb the spread of COVID-19, work in Seattle continues on the Terminal 5 upgrade and the Fairview Avenue North bridge replacement. Also, the solid rebound in crude oil prices also dampens some risk on…

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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.

Seanergy Maritime (SHIP) – Reverse Stock Split Effective. Adjusting Estimates and Price Target.

Posted on June 30, 2020 by Admin

Tuesday, June 30, 2020

Seanergy Maritime (SHIP)

Reverse Stock Split Effective. Adjusting Estimates and Price Target.

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.

Another reverse stock split is set for today, June 30th. While the deadline to cure the NASDAQ listing deficiency notice is not until late-September 2020, a 1 for 16 reverse stock split became effective today, June 30th, to meet listing requirements. As a result, the number of shares outstanding will drop to 30.0 million from 480.0 million. Based on yesterday’s closing price, the adjusted stock price is $2.52/share.

We Maintain our Outperform rating. Our new adjusted price target is $8.00/share. While the dry bulk market is recovering following severe weakness, dilution from recent equity offerings is significant and financial leverage remains high. Despite these challenges, we believe that dry bulk market recovery is likely to extend into….

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

Dyadic International (DYAI) – Higher Visibility to Emerge after Joining Russell 3000 and 2000

Posted on June 29, 2020 by Admin

Monday, June 29, 2020

Dyadic International Inc. (DYAI)

Higher Visibility to Emerge after Joining Russell 3000 and 2000

Dyadic International, Inc. is a global biotechnology company which is developing what it believes will be a potentially significant biopharmaceutical gene expression platform based on the industrially proven hyper productive engineered fungus Thermothelomyces heterothallica (formerly Myceliophthora thermophila), named C1.
The C1 microorganism, which enables the development and large scale manufacture of low cost proteins, has the potential to be further developed into a safe and efficient expression system that may help speed up the development, lower production costs and improve the performance of biologic vaccines and drugs at flexible commercial scales. Dyadic is using the C1 technology and other technologies to conduct research, development and commercial activities for the development and manufacturing of human and animal vaccines and drugs, such as virus like particles (VLPs) and antigens, monoclonal antibodies, Fab antibody fragments, Fc-Fusion proteins, biosimilars and/or biobetters, and other therapeutic proteins. Dyadic pursues research and development collaborations, licensing arrangements and other commercial opportunities with its partners and collaborators to leverage the value and benefits of these technologies in development and manufacture of biopharmaceuticals. In particular, as the aging population grows in developed and undeveloped countries, Dyadic believes the C1 technology may help bring biologic vaccines, drugs and other biologic products to market faster, in greater volumes, at lower cost, and with new properties to drug developers and manufacturers, and improve access and cost to patients and the healthcare system, but most importantly save lives.

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

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

Joined Russell 2000 and 3000 indices. Dyadic (DYAI) is scheduled to join the U.S. broad-market Russell 3000 and 2000 indices effective after the U.S. market opens on June 29, 2020, following the annual Russell index reconstitution.

What does it mean? The Russell 3000 index represents approximately 98% of the investable US equity market and captures the performance of the largest 3,000 companies in the US, while the Russell 2000 index is a small-cap stock market index that comprehends the smallest 2,000 stocks in the Russell 3000 Index. Russell indices are widely used as benchmarks for…

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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).

Seanergy Maritime (SHIP) – 1Q2020 Numbers In Line. Positioned for 2H2020 Recovery

Posted on June 29, 2020 by Admin

Monday, June 29, 2020

Seanergy (SHIP)

1Q2020 Numbers In Line. Positioned for 2H2020 Recovery

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

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

1Q2020 operating results largely in line with recently revised estimates. Reported EBITDA was $1.0 million, TCE rates were $8.5k/day and the net loss was $0.31/share. TCE revenue of $7.6 million was about $0.4 million below expectations due to a $500/day shortfall in TCE rates of $8.5k/day versus our estimate of $8.9k/day. TCE rates were about $3,912/day above the Baltic Cape Index (BCI) average of $4,569/day in 1Q2020 due to the opportunistic fixing of a rate on one Cape and premiums on charters over the BCI index.

Equity issuance improved financial position. Refinancing activity will be high this year and news on capital allocation expected shortly. Close to $50 million of equity was issued this quarter in response to dry bulk market weakness and ahead of bank debt refinancings. Pro forma for….

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

The GEO Group, Inc. (GEO) – Initiating Coverage of The GEO Group

Posted on June 29, 2020 by Admin

Monday, June 29, 2020

The GEO Group, Inc. (GEO)

Initiating Coverage of The GEO Group

With over 94,000 beds owned, leased or managed across its business lines and serving over 260,000 people daily, GEO is a leading provider of mission critical real estate to its governmental partners. The Company is the first fully integrated equity REIT specializing in the design, financing, development, and operation of secure facilities, processing centers, and community reentry centers in the U.S., Australia, South Africa, and the U.K.

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

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

We are Initiating Coverage on this Company.

Initiating Coverage. We are initiating research coverage of The GEO Group. GEO enjoys significant growth opportunities across its business segments, in our view. An aging and overcrowded public option needs GEO’s beds to perform its societal function, while GEO’s extensive, and growing, post-release options present another avenue of growth.

Leading Provider of Mission Critical Real Estate. With over 94,000 beds owned, leased or managed across its business lines and serving over 260,000 people daily, GEO is a leading provider of mission critical real estate to its governmental partners. The Company is the first fully integrated equity REIT specializing in the design, financing, development, and operation of secure facilities, processing centers, and ….

Click 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).

Raw Materials and the Scalability of Tesla’s Vision

Posted on June 29, 2020 by Admin

BATTERIES INCLUDED – Tesla’s EV Revolution and Materials Suppliers

While Tesla is perhaps best known for its electric cars, its solar panel, solar roof, and Powerwall product offerings make it a leader in advancing and commercializing distributed energy technologies. The key to its products is raw materials. Because batteries are a central part of the electric car revolution, Tesla has been working to optimize the design of its batteries to achieve high energy density at decreasing costs while maintaining safety, reliability, and increasing longevity. At the company’s Gigafactory in Nevada, Tesla works with suppliers to integrate battery material, cell, module, and battery pack production in one location. The company may scale up its factories using automated manufacturing processes to reduce labor costs and increase scale. While electric vehicles are in their infancy, improved battery technology could be key to increased customer adoption, much as improved battery technology helped expand the market for mobile communications.

What are the Components of an EV Battery?

Most electric vehicle batteries are lithium-based and include a mix of cobalt, manganese, nickel, graphite, and other components. Based on the growth potential, many companies are researching different battery chemistries to optimize battery technologies using components that are the most widely available at the lowest cost. For example, the Democratic Republic of Congo supplies roughly 60% of the global supply of cobalt. This is problematic for many companies, given that the DRC has a poor human rights track record. Many companies, including Tesla, are thinking hard about the importance of securing future supplies of raw materials and how their supply chains are configured. In the past, Tesla has committed to sourcing materials only from North America for its battery production facility. Battery supplier LG Chem claims to have stopped using conflict-sourced cobalt and seeks to produce cathodes with lower proportions of cobalt such as 80% nickel and 10% cobalt, known as NMC 811. Tesla now produces nickel-cobalt-aluminum (NCA) batteries with Panasonic in Nevada and purchases NMC batteries from LG Chemical. Tesla’s first Model S, launched in 2012, was built with an average of 11 kilograms of cobalt per vehicle. The Model 3, launched in 2018, used about 4.5 kilograms of cobalt. The reduction was achieved using nickel-cobalt-aluminum chemistry. Earlier this year, Tesla executed an agreement with Contemporary Amperex Technology Co. Ltd. (CATL) to supply batteries for the Model 3 produced at the company’s Gigafactory in Shanghai where cars are produced for the local market.

What Could Disrupt Tesla’s Vision?

The United States is increasingly dependent on imports to meet its raw materials. China now dominates the production of many critical minerals, including graphite and magnesium. China is the third-largest supplier of natural resources to the United States behind Canada and Mexico. While Australia accounts for over 40% of global lithium production, China has been increasing its influence in the global lithium market by making deals to secure future supplies. As mentioned earlier, the DRC is the largest source of cobalt supplies. As part of a strategy to ensure secure and reliable supplies of critical minerals, the U.S. Department of the Interior identified 35 critical minerals, including aluminum (bauxite), cobalt, graphite, and lithium. Tesla executives have expressed concerns about underinvestment in the mining sector and its impact on future supplies of nickel, copper, and other electric-vehicle battery components. Securing long-term supplies of critical raw materials will help protect both the United States and Tesla’s ability to lead in distributed energy advancements.

What Will Be Tesla’s Big Reveal?

While we expect Tesla to showcase advancements in its battery and powertrain technologies, we think investors will also want the company to address its plans for sourcing key raw materials and designing its supply chain to avoid disruption. Tesla’s products use various raw materials, including aluminum, steel, cobalt, lithium, nickel, and copper. The prices for these materials fluctuate, and supplies may be unstable depending on market conditions and global demand for these materials. Assuring reliable supplies of raw materials while meeting ethical considerations with respect to sourcing, meanwhile advancing a battery design that minimizes environmental impact, may be just as important as the battery’s commercial aspects. Recycling may also be a theme in addition to integrating the car battery with the electric grid and Tesla’s other products, including the Powerwall. Tesla’s “Battery Day” (September 15), which should unveil new battery technologies, could also be the catalyst for investors to begin paying more attention to long-term supply and demand trends for the materials that underpin its products.

Suggested Reading:

Virtual Power Plants and Tesla Car Batteries

Is
Elon Musk’s Battery Day Losing its Charge?

Cobalt and Rare Earth Metals from the Ocean Floor Eyed to Meet Growing Battery Demand

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Sources:

Annual
Report, Form 10-K, Tesla, Inc., Fiscal Year Ended 2019.

Electric Vehicle Batteries: Materials, Cost, Lifespan, Union of Concerned Scientists, March 9, 2018.

The
World’s Biggest Cobalt Producing Countries, NS Energy Staff Writer, May 4, 2019.

A Million Mile Battery from China Could Power Your Electric Car, Bloomberg, John Liu, Chunying Zhang, Martin Ritchie and David Stringer, June 7, 2020.

A Federal Strategy to Ensure Secure and Reliable Supplies of Critical Minerals, Executive Office of the President, December 20, 2017.

Final List of Critical Minerals 2018, Office of the Secretary, Interior, May 18, 2018.

The New Energy Era: The Impact of Critical Minerals on National Security, Markets Insider, Nicholas LePan, April 28, 2020.

Cutting Battery Industry’s Reliance on Cobalt will be an Uphill Task, The Guardian, Jasper Jolly. January 5, 2020.

Tesla Expects Global Shortage of Electric Vehicle Battery Minerals, Reuters, Ernest Scheyder, May 2, 2019.

Tesla’s
Secret Batteries Aim to Rework the Math for Electric Cars and the Grid, Reuters, Norihiko Shirouzu and Paul Liebert, May 14, 2020.

Copying the Brightest Investment Ideas

Posted on June 28, 2020 by Admin

Copycat Investing, Bright Idea or Dud?

“Risk comes from not knowing what you’re doing.” – Warren Buffett

There’s a scene in the 1992 movie “My Cousin Vinny,” which, unlike the rest of the classic, is not quotable. There are no spoken words, just actions that let the viewer know exactly what is going on. Many of us can relate. The scene takes place the first day of an arraignment on murder charges. In the movie, Vinny is defending his nephew Bill and his friend Stan. The challenge is, Vinny just passed his bar exam and has never been a trial attorney. He figures out quickly, along with the audience, that he does not have enough experience to know even the basics to steer clear of the dangers of courtroom proceedings. He finds himself in a situation where the outcome is critical, yet he is very out of place. To raise the stakes even more, he is surrounded by and competing with veterans of courtroom proceedings. Everyone else knows what they are supposed to do. In the scene I’m referring to, he tries to avoid trouble by mimicking the prosecutor — when the prosecutor sits, he sits, when the prosecutor places his briefcase by his chair, Vinny places his briefcase down, and so on. There are no words spoken to tell the viewer what’s going on. Still, it’s clear that Vince Gambini is determined to be successful, and the method he chooses is to become a copycat of the opposing attorney who is already a proven success.

If you’re familiar with the movie, you know that Vince Gambini does learn and eventually builds on his knowledge and then merges his own strengths and style with what he has copied. He is successful in the end, presenting his essential case. Many investors who are new and learning, or just more comfortable copying or riding the coattails of top money managers do something similar. It is called “copycat” investing, or “coattail” investing. The method and practice is done in many different ways. It certainly has its merits and its limits.

Copycat Investing:

The concept of copycat investing is simple: by mimicking investment picks of consistently successful large investors, smaller investors can possess a well-researched and thought out portfolio with little analysis and minimal knowledge of investing.

There’s no shame in mimicking investors who have a track record you’d like to enjoy. Copycat investing is a selection method, like many other popular methods such as index investing, Dogs-of-the-Dow, or long/short. These can be just as mechanical as replicating the investment moves of well-known professional investors or fund managers.

But is copycat investing a viable investment strategy? While the evidence of its success is somewhat mixed, there are certain techniques you can use to get you closer to being the perfect copycat investor.

SEC Filings

The Securities and Exchange Commission (SEC) requires investors who manage more than $100 million to disclose their holdings once every 90 days. This information is available on the SEC website as Form 13F; a link is included below for your convenience. When you determine the fund manager you’d like to mimic (Buffett, Ackman, Icahn, etc.), this is the first site to be updated. A secondary site worth looking at is holdingschannel.com.

A search here presents visitors with the most recent filings and the investment decisions of historically successful investors such as Berkshire Hathaway or Carl Icahn. The risk that individual investors and those who manage money for others should be aware of, is that with up to a 90-day delay in posting new information, coattail investors may be too late to participate in any early benefits the professionals enjoyed.

Investors who wish to direct their decisions by copying others should understand the objectives of those they follow and make sure it fits with their own objectives. For example, Warren Buffett is a long-term investor. He’s been quoted as saying: “If you aren’t willing to own a stock for ten years, don’t even think about owning it for ten minutes.” A long-term investor who doesn’t expect to always be transacting may be better suited to ride Warren Buffett’s coattails. Alternatively, Carl Icahn has an enviable investment record, but his intent is often to seek board seats or control and effect change within the company. This is not very straightforward, so it may not suit most smaller players.

Problems With Approach

The successful investors already have a portfolio. Their entry point in their current holdings may have been years ago and for a very different price. An investor purchasing shares in those companies now may be placing themselves in a holding that has already experienced its growth spurt. Therefore, future results may be limited. Yet, to ignore these holdings is to ignore the idea that any new positions (that you plan to mimic) may have been added as a compliment, hedge, or diversifier to what is already held. If your own portfolio only accumulates new additions, you may have lopsided risk. An identically weighted portfolio has you mis-timing transactions.

Sales are another consideration. Even long-term investors would have a hard time tolerating finding out about divestiture of a position 90 days later. Large successful investors do sell; when they do, they often help set a downward trend in the market. Investors sitting tight in down-trending positions, only to find out months later the position is no longer in their copied portfolio, are doomed for occasional large disappointments.

Take-Away

If you are going to practice copycat investing, the filings on the SEC website will become an important source of information. The best investors to copy are those that hold much longer than the 90-days. This may limit you to successful buy-and-hold managers, but only if you desire a buy and hold portfolio. If you prefer to be more proactive and less patient, the copycat strategy may be impossible to fully realize.

One large benefit to copycatting is that by mimicking those that are successful, you can get started investing quicker while you learn your own way around the market following the experienced money with a track record. This gives you a starting point to develop your own strategies and investment style. Success does not always come from blazing your own trail; sometimes it comes from directly copying the greats, often a mix of both creates the perfectly tailored portfolio for the individual.

Paul Hoffman

Managing Editor

Suggested Reading:

Has Robinhood, the Online Brokerage
Disruptor, Been Disrupted?

Investment Barriers Once Seen as Insurmountable
are Falling Fast

Why Index funds Could be a Mistake in 2020

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Sources:

SEC Company Filings

Activist
Investors

Holdings Channel

One Stop Systems (OSS) – Removes Interim CEO Tag from David Raun

Posted on June 26, 2020 by Admin

Friday, June 26, 2020

One Stop Systems Inc. (OSS)

Removes Interim CEO Tag from David Raun

One Stop Systems Inc is US-based company which is principally engaged in designing, manufacturing, marketing high-end systems for high performance computing (HPC) applications. The company offers custom servers, compute accelerators, solid-state storage arrays and system expansion systems. The product line of the company includes GPU Appliances, GPU Expansion, GPUs and co-processors, Flash storage arrays, Flash storage expansion, Servers, Disk Arrays, Desktop computing appliances, accessories and parts. The company delivers high-end technology to customers through the sale of equipment and software for use on their premises or through remote cloud access to secure data centres housing technology.

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

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

Its Official. Yesterday, One Stop Systems named David Raun as President and CEO. Mr. Raun had been serving as interim CEO since February. Mr. Raun originally joined OSS’s Board in 2016 and served as audit committee chair. As we mentioned upon his interim appointment, Mr. Raun is a seasoned leader with extensive experience in the technology space. He has a track record of driving increased revenue and profits and is intimately familiar with the PCIe switch technology. Mr. Raun is a good fit for OSS, in our view.

New Directors. Earlier this month, OSS announced the appointment of three independent board members, Sita Lowman, Gioia Messinger, and Greg Matz, effective July 1. In addition to increasing the Board to seven members, the new directors bring a wide range of relevant experience 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).

The Next Round of Stimulus and Industries Impacted

Posted on June 26, 2020 by Admin

Is There Profit to Be Made Off Government Stimulus 2.0?

With all the conflicting chatter surrounding the next round of Covid related government stimulus, the only thing that’s certain is that there will be another round. Expectations differ as to what will be elevated to high priority and what may be different than the previous round. The amount of money involved, likely to be $1- $3 trillion or more, will impact the fortunes of both the industries targeted and ancillary businesses not directly touched. This, of course, keeps investors listening for clues to where stimulus dollars will be spent, which industries are incentivized, and if infrastructure spending will be ramped up as it was during the economic weakness in 2008-2009.

The direction the final package takes could depend on the soon to be released jobs report which will be out just before the long holiday weekend. The previous jobs report included many positive surprises. If the surge in Non-Farm Payrolls continued, it would weaken the argument for new stimulus checks and extended unemployment insurance.

U.S. Payroll, Actual and Forecast – May/June

Source: Trading Economics
(Calendar)

As with most things in Washington, the nature of the stimulus is a high stakes contest. Continued strength and employment gains could weaken the Democrats’ preferred plan of extending benefits to individuals. If Payrolls declined in June, that would pressure the White House and Republican-controlled Senate to support larger measures than they are now considering. The lawmakers are not expected to discuss any plans until they reconvene on July 17, after their Independence Day recess.

The Chatter

Most presume that the next mega-dose of stimulus out of Washington will set aside a large portion dedicated to infrastructure improvement projects, and perhaps manufacturing support. Much uncertainty lies in how individuals and small businesses are best supported.

In anticipation of any package, materials prices have been rising as commodity traders anticipate all competing plans to include infrastructure projects. Within infrastructure, there are expectations of spending on “green” energy and digital technology. In a CNBC article published on June 24^th titled, “Welcome to the age of copper: Why the coronavirus pandemic could spark a red metal rally,” it’s shown that copper is seen as a bellwether for the general state of the economy. The demand turned sharply down during the height of the pandemic in March. In recent days, copper has been trading close to its pre-coronavirus high at $5,909 per metric ton. Both here and abroad, there are expectations that demand for copper will dramatically increase as investments in energy generation and distribution have more support from public funds. Any new demand would not create shortages, as copper mines that have been closed during the worst part of the pandemic are reopening throughout the globe.

Expectations from a White House stimulus plan are that it will be designed with an eye toward changing our economic landscape with more domestic manufacturing. According to White House trade advisor Peter Navarro, the president wants the next stimulus bill to be “at least $2 trillion.” This is close to double the $1 trillion Senate Majority Leader McConnell said he plans to target. However, it’s smaller by a third to the House bill asking for $3 trillion, which was passed on May 15^th. The House bill is not scheduled for a Senate vote.

Government Led Construction Spending in Recessions

Spokesmen for the White House have been very public on what they believe should be the primary impetus of any stimulus spending. In an interview on Fox Business News trade advisor, Navarro said a “key thrust” to the stimulus bill should focus on manufacturing jobs. He followed this by highlighting an underlying theme of “Buy American” “Hire American” and “Make it in the USA.” The strategy would be to remake and improve on what we had before the lockdown. Although the service sector could benefit from more direct attention, the plan more likely would support manufacturing jobs. These jobs would then be expected to have a ripple effect creating more service sector demand. When asked for specific incentives to be included, Navarro said, the bill will be designed to create demand for more investment in the U.S. A payroll tax cut is also viewed as a “critical” part of the plan. The White House views this as critical to create the appropriate incentives for employers to keep workers working.” It also serves as a take-home “pay raise” for workers.

The Beneficiaries

What could tax cuts, deregulation, cheap energy, and beneficial trade deals mean for business? As mentioned, it would help rebuild the country’s manufacturing base. There is a particular focus on domestic production of pharmaceuticals, medical supplies, and equipment. The demand-driven growth could positively impact new tech, including biotech and what Navarro called the “SpaceX economy.” Other beneficiaries could be raw material providers and producers of infrastructure development, including electricity providers. Some of the expectations may already be reflected in equity prices.

Companies with high payrolls doing business in the USA will immediately see reduced costs. Investors should not just look for where revenues will be increased, as cost reduction immediately adds to income statement bottom lines. Government contractors should be busier with projects as diverse as drinking water, roadway construction, border barriers, waterway maintenance such as dredging, bridges, etc.

If stimulus checks are part of an approved plan, this could have a positive impact on discount brokers. After the last round of government checks, there was an increase in the newer breed of app-based traders. Additional funds in their accounts add to the bottom line of no cost per trade brokers that make money off the spread between what they earn on the balances and their cost. Additionally, household name stocks with per-share price equal to or less than the cost of a large coffee at Starbucks may also rise as these securities get more attention from investors on these apps.

Take-Away

Change brings opportunity. Determining what that change will be and how it will impact industries and businesses is how uncommon returns are made. Within political bargaining, there’s universal support for infrastructure projects as a way to update the old and take a giant step forward with the new. This explains why metals such as copper have experienced a strong rebound. The pandemic demonstrated the need to manufacture medicine and equipment within the U.S. Domestic pharmaceutical companies could continue to gain more investor attention. The attention from “app-traders” to low priced stocks, both those that were giants and have been beaten down, and small and micro-cap stocks that could be on their way to becoming giants, will continue to create runaway opportunities that can no longer be ignored by mainstream investors.

Suggested Reading:

The Limits of Government Tinkering

Are Individual Investors the “Smart Money?”

Will There be an Explosion of New Acquisitions?

Enjoy Premium Channelchek Content at No Cost

Sources:

Congress Days in Session 2020

Fitch Solutions maintains copper price forecast as economies start to reopen

Copper Demand
Could Soar Thanks to Coronavirus

TRANSPORTATION CONSTRUCTION WHAT IMPACTS
WILL COVID-19 HAVE ON PROJECT FUNDING?

A Wharton analysis predicts Trump’s infrastructure plan could create 1 million new jobs

Latest Updates On The Coronavirus
Pandemic

Next Stimulus
Bill Will Be The Last, Says McConnell

Cumulus Media (CMLS) – A Nice Cash Boost

Posted on June 25, 2020 by Admin

Thursday, June 25, 2020

Cumulus Media Inc. (CMLS)

A Nice Cash Boost

CUMULUS MEDIA, Inc. (NASDAQ: CMLS) is a leading audio-first media and entertainment company delivering premium content to over a quarter billion people every month — wherever and whenever they want it. CUMULUS MEDIA engages listeners with high-quality local programming through 428 owned-and-operated stations across 87 markets; delivers nationally-syndicated sports, news, talk, and entertainment programming from iconic brands including the NFL, the NCAA, the Masters, the Olympics, the GRAMMYS, the American Country Music Awards, and many other world-class partners across nearly 8,000 affiliated stations through Westwood One, the largest audio network in America; and inspires listeners through its rapidly growing network of original podcasts that are smart, entertaining and thought-provoking. CUMULUS MEDIA provides advertisers with local impact and national reach through on-air, digital, mobile, and voice-activated media solutions, as well as access to integrated digital marketing services, powerful influencers, and live event experiences. CUMULUS MEDIA is the only audio media company to provide marketers with local and national advertising performance guarantees.

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

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

Closes on the Maryland land sale! After a protracted period of regulatory hurdles, the company finalized the sale of its 75 acre Maryland land to the Toll Brothers for gross proceeds of $75.1 million.

A nice chunk of cash. The company received $5 million in an advance payment in 2019, and, as such, the company received…

Click 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.

Great Panther Mining Limited (GPL) – Encouraging Initial Results from the 2020 Tucano Drilling Program

Posted on June 24, 2020 by Admin

Wednesday, June 24, 2020

Great Panther Mining (GPL)(GPR:CA)

Encouraging Initial Results from the 2020 Tucano Drilling Program

As of April 24, 2020, Noble Capital Markets research on Great Panther Mining is published under ticker symbols (GPL and GPR:CA). The price target is in USD and based on ticker symbol GPL. Research reports dated prior to April 24, 2020 may not follow these guidelines and could account for a variance in the price target.
Great Panther Mining Limited, headquartered in Vancouver, Canada, is a precious metals mining and exploration company that operates three mines. These include: 1) the Tucano gold mine in Amapa State, Brazil, 2) the Guanajuato mine complex which includes the Guanajuato and San Ignacio mines in Mexico, and 3) the Topia mine in Mexico. Great Panther also owns the Coricancha Mine in Peru, which is expected to restart operations in 2020. The shares are traded under the ticker “GPR” on the Toronto Stock Exchange and under the ticker “GPL” on the NYSE American.

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

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

Initial Tucano drilling results are encouraging. Initial drill results from the 2020 drill program at the Tucano mine included some high-grade gold intercepts. To date, 12,000 meters of drilling has been completed, including 6,000 meters of near-mine diamond and reverse circulation drilling at the Tapereba AB1 and AB3 open pits. The 2020 program at Tucano will entail 55,000 meters of drilling at near-mine and regional targets at a cost of $6.6 million. The company also plans to spend an additional $4 million this year on a 25,000-meter drilling program in Mexico to define new zones and develop high grade resources.

Mr. Nick Winer appointed Vice President of Exploration. Prior to joining Great Panther, Mr. Winer was Vice President, Exploration for AngloGold and was responsible for activities in South America. He is a resident of Brazil and was involved in the initial resource/reserve definition program …

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

Onconova Therapeutics Announces Participation In Noble Capital Markets Investor Webinar

Posted on June 24, 2020 by Admin

Onconova Therapeutics Announces Participation In Noble Capital Markets Investor Webinar

NEWTOWN, PA – June 23, 2020 – Onconova Therapeutics, Inc. (NASDAQ: ONTX), a Phase 3 stage biopharmaceutical company focused on discovering and developing novel products to treat cancer, with an initial focus on myelodysplastic syndromes (MDS), today announced its participation in the Noble Capital Markets c-suite webinar series.

The webinar was led by Noble Capital Markets Biotechnology Analyst Ahu Demir, Ph.D., with participation by Steven M. Fruchtman, M.D., President and Chief Executive Officer of Onconova, and Richard C. Woodman, M.D., Chief Medical Officer. The session included a comprehensive discussion of recent Company developments, upcoming milestones, and addressable markets.

The webinar, recorded June 16, is now available on-demand at channelchek and will be accessible for one year.

About Onconova Therapeutics, Inc.

Onconova Therapeutics, Inc. is a Phase 3-stage biopharmaceutical company focused on discovering and developing novel drugs to treat cancer, with an initial focus on myelodysplastic syndromes (MDS). Onconova has a pipeline of proprietary targeted agents designed to work against specific cellular pathways that are important in cancer cells. Advanced clinical trials with the Company’s lead compound, rigosertib, are aimed at what the Company believes are unmet medical needs of patients with MDS. Onconova has conducted trials with two other research compounds and has a pre-clinical program with a CDK4/6 and ARK5 inhibitor, ON 123300.

For more information, please visit https://www.onconova.com.

About Myelodysplastic Syndromes

Myelodysplastic syndromes (MDS) are conditions that can occur when the blood-forming cells in the bone marrow become dysfunctional and thus produce an inadequate number of circulating blood cells. It is frequently associated with the presence of blasts or leukemic cells in the marrow. This leads to low numbers of one or more types of circulating blood cells, and to the need for blood transfusions. In MDS, some of the cells in the bone marrow are abnormal (dysplastic) and may have genetic abnormalities associated with them. Different cell types can be affected, although the most common finding in MDS is a shortage of red blood cells (anemia). Patients with higher-risk MDS may progress to the development of acute leukemia.

About Rigosertib

Rigosertib, Onconova’s lead candidate, is a proprietary Phase 3 small molecule. A key publication in a preclinical model reported rigosertib’s ability to block cellular signaling by targeting RAS effector pathways (Divakar, S.K., et al., 2016: “A Small Molecule RAS-Mimetic Disrupts RAS Association with Effector Proteins to Block Signaling.” Cell 165, 643). Onconova is currently in the clinical development stage with oral and IV rigosertib, including clinical trials studying single agent IV rigosertib in second-line higher-risk MDS patients (pivotal Phase 3 INSPIRE trial) and oral rigosertib plus azacitidine in HMA naive and refractory higher-risk MDS patients (Phase 2). Patents covering oral and injectable rigosertib have been issued in the US and are expected to provide coverage until at least 2037.

About the INSPIRE Phase 3 Clinical Trial

The clinical trial INternational Study of Phase 3 IV RigosErtib, or INSPIRE, was finalized following guidance received from the U.S. Food and Drug Administration and European Medicines Agency. INSPIRE is a global, multi-center, randomized, controlled study to assess the efficacy and safety of IV rigosertib in higher-risk MDS (HR-MDS) patients who had progressed on, failed to respond to, or relapsed after previous treatment with a hypomethylating agent (HMA) within nine cycles over the course of one year after initiation of HMA treatment. This time frame optimizes the opportunity to respond to treatment with an HMA prior to declaring treatment failure, as per NCCN Guidelines. Patients are randomized at a 2:1 ratio into two study arms: IV rigosertib plus Best Supportive Care versus Physician’s Choice plus Best Supportive Care. The primary endpoint of INSPIRE is overall survival. The trial continued beyond the pre-specified interim analysis and is nearing its conclusion. Full details of the INSPIRE trial, such as inclusion and exclusion criteria, as well as secondary endpoints, can be found on clinicaltrials.gov (NCT02562443).

About IV Rigosertib

The intravenous form of rigosertib has been studied in Phase 1, 2, and 3 clinical trials involving more than 1000 patients, and is currently being evaluated in a randomized Phase 3 international INSPIRE trial for patients with HR-MDS after failure of HMA therapy.

About Oral Rigosertib

The oral form of rigosertib was developed to provide a potentially more convenient dosage form for use where the duration of treatment may extend to multiple years. This dosage form may also support combination therapy modalities.? To date, over 400 patients have been dosed with the oral formulation of rigosertib in clinical trials.? Combination therapy of oral rigosertib with azacitidine, the standard of care in HR-MDS, has also been studied. Currently, oral rigosertib is being developed as a combination therapy together with azacitidine for patients with higher-risk MDS who require HMA therapy. A Phase 1/2 trial of the combination therapy has been fully enrolled, and the updated efficacy and safety data was presented at the ASH 2019 Annual Meeting in December 2019.

Forward-Looking Statements

Some of the statements in this release are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995, and involve risks and uncertainties. These statements relate to Onconova expectations regarding the INSPIRE Trial and Onconova’s other development plans. Onconova has attempted to identify forward-looking statements by terminology including “believes,” “estimates,” “anticipates,” “expects,” “plans,” “intends,” “may,” “could,” “might,” “will,” “should,” “approximately” or other words that convey uncertainty of future events or outcomes. Although Onconova believes that the expectations reflected in such forward-looking statements are reasonable as of the date made, expectations may prove to have been materially different from the results expressed or implied by such forward-looking statements. These statements are only predictions and involve known and unknown risks, uncertainties, and other factors, including Onconova’s ability to continue as a going concern, maintain its Nasdaq listing, the need for additional financing, the success and timing of Onconova’s clinical trials and regulatory approval of protocols, our collaborations including the effective termination of the HanX license and securities purchase agreements and plans for partnering certain territories, and those discussed under the heading “Risk Factors” in Onconova’s most recent Annual Report on Form 10-K and quarterly reports on Form 10-Q. Any forward-looking statements contained in this release speak only as of its date. Onconova undertakes no obligation to update any forward-looking statements contained in this release to reflect events or circumstances occurring after its date or to reflect the occurrence of unanticipated events.

Press release contact information

Company Contact:
Avi Oler
Onconova Therapeutics, Inc.
267-759-3680
ir@onconova.us
https://www.onconova.com/contact/

Media
David Schull, Russo Partners LLC: (212) 845-4271
Nic Johnson, Russo Partners LLC: (212) 845-4242

Investors
Jan Medina, CFA, Russo Partners LLC: (646) 942-5632

Kratos Defense & Security (KTOS) – Announces $250 million Stock Offering

Posted on June 24, 2020 by Admin

Wednesday, June 24, 2020

Kratos Defense & Security (KTOS)

Announces $250 million Stock Offering

Kratos Defense & Security Solutions is a National Security technology provider with proprietary expertise in the area of unmanned aerial vehicles, electronics for missile defense systems, electronic warfare systems, satellite control and management systems and support services for emerging naval weapon systems. Commercial and state and local government revenues are about 25% of the total and comprise primarily of critical infrastructure monitoring and protection systems.

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

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

Stock Offering. Last week, Kratos announced a public offering of 13.5 million shares at $16.25/sh, raising $219.4 million, or $209 million, net to Kratos after underwriting costs and fees. Underwriters have the option to purchase up to an additional 2.025 million shares, which would increase the amount raised to Kratos to $240 million. Assuming the underwriter exercise in full, the additional 15.5 million shares equate to a 14% increase in the outstanding shares. All shares proposed to be sold are being sold by the Company.

Uses. According to the prospectus, the proceeds will be used for “general corporate purposes, including for potential strategic ‘tuck-in’ acquisitions, to further position us for projected growth from new and anticipated increased production and to facilitate our long-term strategy.” The funds will easily cover the $35 million cost of the acquisition of ASC Signal announced…

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