Month: March 2021

QuickChek – March 16, 2021

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Voyager Digital Up 15% in Midday Trading

Voyager Digital (VYVGF) gaining attention following a revised analyst price target. Voyager Digital reported FQ2 results on March 1st.

News & Market Data on Voyager Digital

Watch recent presentation from NobleCon17



Sierra Metals Announces Receipt of Environmental Permit for Its Yauricocha Mine, Peru

Flotek Industries, Inc. announced it has received a permit from the Peruvian Ministry of Environment, the second to last step to increasing the permitted throughput of the Chumpe Plant at the Yauricocha Mine.

Research, News & Market Data on Flotek Industries

Watch recent presentation from NobleCon17



Flotek Industries Announces Q4 And Full-Year 2020 Results

Flotek Industries, Inc. announced results for the fourth quarter and full-year ended December 31, 2020.

Research, News & Market Data on Flotek Industries

Watch recent presentation from NobleCon17



Great Bear Resources Drills New High-Grade Gold at Northwest LP Fault

Great Bear Resources Ltd. Drills New High-Grade Gold at Northwest LP Fault: 25.12 g/t Gold Over 4.25 m

News & Market Data on Great Bear Resources

Watch recent presentation from NobleCon17

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Release – Sierra Metals Inc. (SMT:CA)(SMTS) – Announces Receipt of Environmental Permit for Its Yauricocha Mine Peru

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Sierra Metals Announces Receipt of Its Environmental Permit for a 20% Increase of Throughput to 3,600 TPD at Its Yauricocha Mine, Peru

 

TORONTO–(BUSINESS WIRE)– Sierra Metals Inc. (TSX: SMT) (BVL: SMT) (NYSE AMERICAN: SMTS) (“Sierra Metals” or the “Company”) has received an Informe Tecnico Sustentatorio (“ITS”) permit from the Peruvian Ministry of Environment through its Agency SENACE. The ITS is a key permitting milestone and the second to last step for the Company on receiving approval to increasing the permitted throughput of the Chumpe Plant, located at the Yauricocha Mine, to 3,600 tonnes per day (‘TPD’).

This press release features multimedia. View the full release here.

Luis Marchese, CEO of Sierra Metals, commented: “I am delighted with the
receipt of the ITS permit. The Company may now submit the required
documentation for an Informe Tecnico Minero (“ITM”) permit, which is the
final step in the process to permit an increased throughput at Yauricocha to
3,600 TPD. The Company expects to receive the ITM permit in the second quarter
of 2021. This permit would allow a 20% increase in throughput and assist the
Company in maintaining its annual production guidance.

Additionally,
we continue focusing on the completion of the Prefeasibility Study at
Yauricocha, which examines increasing throughput to 5,500 TPD starting in 2024,
as well as on the Prefeasibility Studies examining increases at Bolivar to
10,000 TPD and Cusi to 2,400 TPD.”

He Concluded: “2021 continues to be an exciting time for the Company as we
continue with organic growth plans including significant brownfield and
greenfield exploration programs to support future mineral resource and
production growth. Management also continues to focus on improving and
modernizing our mine operations, increasing operating efficiencies to improve
productivity and reduce costs.”

Quality Control

All technical data contained in this news release has been reviewed and approved by:

Americo Zuzunaga, FAusIMM CP (Mining Engineer) and Vice President of Corporate Planning, is a Qualified Person under National Instrument 43-101 – Standards of Disclosure for Mineral Projects.

Augusto Chung, FAusIMM CP (Metallurgist) and Vice President of Metallurgy and Projects to Sierra Metals, is a Qualified Person under National Instrument 43-101 – Standards of Disclosure for Mineral Projects.

About Sierra Metals

Sierra Metals Inc. is a diversified Canadian mining company focused on the production and development of precious and base metals from its polymetallic Yauricocha Mine in Peru, and Bolivar and Cusi Mines in Mexico. The Company is focused on increasing production volume and growing mineral resources. Sierra Metals has recently had several new key discoveries and still has many more exciting brownfield exploration opportunities at all three Mines in Peru and Mexico that are within close proximity to the existing mines. Additionally, the Company also has large land packages at all three mines with several prospective regional targets providing longer-term exploration upside and mineral resource growth potential.

The Company’s Common Shares trade on the Bolsa de Valores de Lima and on the Toronto Stock Exchange under the symbol “SMT” and on the NYSE American Exchange under the symbol “SMTS”.

Sierra is currently in a quiet period as per the Company’s press release of January 8, 2021. As such, the Company is unable to engage directly with shareholders at this time. The Company does not intend to provide announcements or updates unless or until it determines that further disclosure is appropriate or necessary.

For further information regarding this press release, please visit www.sierrametals.com or email us at info@sierrametals.com.

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This press release contains “forward-looking information” and “forward-looking statements” within the meaning of Canadian and U.S. securities laws (collectively, ” forward-looking information “). Forward-looking information includes, but is not limited to, statements with respect to the results of the strategic review process. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as “expects”, “anticipates”, “plans”, “projects”, “estimates”, “assumes”, “intends”, “strategy”, “goals”, “objectives”, “potential” or variations thereof, or stating that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved, or the negative of any of these terms and similar expressions) are not statements of historical fact and may be forward-looking information.

Forward-looking information is subject to a variety of risks and uncertainties, which could cause actual events or results to differ from those reflected in the forward-looking information, including, without limitation, the risks described under the heading “Risk Factors” in the Company’s annual information form dated March 30, 2020 for its fiscal year ended December 31, 2019 and other risks identified in the Company’s filings with Canadian securities regulators and the United States Securities and Exchange Commission, which filings are available at www.sedar.com and www.sec.gov, respectively.

The risk factors referred to above are not an exhaustive list of the factors that may affect any of the Company’s forward-looking information. Forward-looking information includes statements about the future and is inherently uncertain, and the Company’s actual achievements or other future events or conditions may differ materially from those reflected in the forward-looking information due to a variety of risks, uncertainties and other factors. The Company’s statements containing forward-looking information are based on the beliefs, expectations and opinions of management on the date the statements are made, and the Company does not assume any obligation to update such forward-looking information if circumstances or management’s beliefs, expectations or opinions should change, other than as required by applicable law. For the reasons set forth above, one should not place undue reliance on forward-looking information.

Mike
McAllister
Vice President, Investor Relations
Sierra Metals Inc.
Email: info@sierrametals.com

Luis
Marchese
CEO
Sierra Metals Inc.

Source: Sierra Metals Inc.

Release – Great Bear Resources (GTBAF) – Drills New High-Grade Gold at Northwest LP Fault

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Great Bear Drills New High-Grade Gold at Northwest LP Fault: 25.12 g/t Gold Over 4.25 m

 

March 16, 2021 –
Vancouver, British Columbia, Canada – Great Bear Resources Ltd. (the “Company” or “Great Bear”, TSX-V: GBR; OTCQX: GTBAF) today reported results from its ongoing fully funded $45 million 2021 exploration program at its 100% owned flagship Dixie Project in the Red Lake district of Ontario.

Chris Taylor, President and CEO of Great Bear said, “We returned to the northwestern kilometre of the LP Fault zone after more than a year drilling elsewhere along strike, and completed seven new drill holes, four of which are located within a 200 metre long previously undrilled segment of the zone. 
We encountered new
high-grade gold mineralization in addition to the expected bulk tonnage
intervals, and will undertake additional drilling in this area over the coming months.”

Note the drill holes in this release are located 1.93 – 2.40 kilometres northwest of the drill holes provided in the Company’s news release of March 11, 2021, within the same multi-kilometre
continuously mineralized gold zone, the LP Fault.

This news release provides results from 7
new LP Fault drill holes completed along 250 metres of strike length.  Great Bear has now published results from 267 LP Fault drill holes and anticipates at least 133 additional LP Fault drill holes will be completed by the end of 2021, for a total of at least 400 drill holes.

New LP Fault drill results from this release are provided in Table 1,  Figure 1, Figure 2 and Figure 3.  Table 2 contains highlighted drill results from initial drilling completed from May 2019 to March 2020.

New LP Fault Drill
Results – Northwest Area

  • Several drill holes were planned for previously undrilled section 22200, testing a 200 metre long undrilled segment of the LP Fault zone.  The four deepest holes were completed first and are reported in this release, testing from approximately 180 to
    550 metres vertical depth    .  All drill holes intersected the same geology with gold mineralization.  Near-surface drilling will follow.
  • Drill hole BR-271 intersected several mineralized zones including:
    • 25.12 g/t gold over 4.25
      metres       from 406.25 to 410.50 metres
    • This included a high-grade core of 197.00 g/t gold
      over 0.50 metres       from 407.50 to 408.00 metres.
    • 1.11 g/t gold over 23.65
      metres       from 460.35 to 484.00 metres.
    • 1.07 g/t gold over 53.60
      metres       from 495.50 to 549.10 metres.
  • Drill hole BR-239 also intersected several mineralized zones including:
    • 19.00 g/t gold over 1.30
      metres       from 268.50 to 269.80 metres.
    • 1.01 g/t gold over 42.50
      metres       from 377.20 to 419.70 metres.
  • Drill hole BR-270 intersected 0.85 g/t gold over 81.70 metres from 397.50 to 479.20 metres.

The Company formerly referred to this area as the Bear-Rimini or Discovery zone, prior to determining the LP Fault comprises a multi-kilometre continuously mineralized gold zone.  The Company’s LP Fault discovery drill hole DNW-011 was completed here, intersecting 12.33 g/t gold over 14.00 metres, 194.21 g/t gold over 2.00 metres, and 0.74 g/t gold over 50.60 metres (May 28, 2019).  Also see Table 2.


The full release can be viewed at www.greatbearresources.ca

Should Stock Market Investors Worry About Inflation?

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Inflation Expectations, FOMC Meetings, and Investor Anticipation

 

The Federal Open Market Committee (FOMC) holds eight regularly scheduled meetings during the year to take the pulse of economic measures that it’s targeting and to adjust policy when necessary. The FOMC has at times added phone or in-person meetings in-between those regularly scheduled. In 2021 all eight of the meetings are held over two days. A statement is expected after each meeting from which Fed-watchers and investors pick over even the smallest word change from the previous statement to base their reaction.

FOMC Meeting

The March 16-17, 2021 FOMC meeting takes place one year after the novel coronavirus was declared a pandemic. The announcement on Wednesday is highly anticipated and has the potential to send the markets in either direction as new economic concerns over inflation and rate movements are likely to be addressed. Money managers and individuals have their ears open for any hint of inflation. An increase in inflation would cause bond investors to hold out for more yield to compensate for inflation’s erosive impact on invested balances. For the past year, the Fed has been guiding the U.S. economy through the pandemic-forced-slowdown by holding rates very low with all the old tools, and many new ones they had never used before, such as buying bond ETFs when rates rise above a certain level.

Inflation

The subject of inflation has not been the topic of investor conversation since 2018. If you recall, in the last quarter of 2018, the stock market plummeted 17%. The cause was largely investor concern that unemployment had fallen to a 49-year low, oil prices were rising, and inflation wasn’t being contained by the previous 7 bump-ups in short-term interest rates. Businesses were beginning to experience mounting pressure for higher wages which would have worked its way into prices. Not just the U.S. markets were impacted, rising U.S. Treasury rates inspired global stock market sell-offs. Rates also rose as the ten-year USTN yield increased to 3.25% during October of 2018.

Inflation and rising interest rates certainly put fixed-income investors at risk. But would it be the end of the world for domestic businesses and those that invest in them? Companies that exclusively do business in the U.S. and don’t have concerns about exchange rates and cost of materials from overseas have far less to be concerned about long-term. Businesses that export may actually increase business. Short term, the stock market could react to the unknown that any change brings, but long-term, native companies supplied by and doing business in the U.S. may have natural protection from rising prices.

Stocks

Some of us remember or have read about the inflation and the lost years of the stock market during the ’70s. The U.S. economy is very different from when we were first taken off the gold standard and OPEC began more tightly controlling oil prices. Asher Rogovy is the Chief Investment Officer at Magnifina, LLC, a New York-based investment advisor that takes a long-term view with their client’s portfolios. He explains rising inflation and equity price risk this way, “Inflation is when prices rise, and this includes asset prices. Over the long-term stock prices rise along with inflation, as do other investment assets. The key here is long-term, because inflation may cause short-term volatility in stock prices. Stock prices are sensitive to interest rates, which are affected by inflation expectations.” Rogovy further explains that this isn’t the 1970s economy, ”Anyone investing during the 1970s remembers the damage caused by the oil crisis. In this case, persistent inflation held stock prices down for a long time. However, today’s economy is structurally different. In the 1970s, many manufacturing stocks were hurt as the cost of energy rose which cut profit margins. Today’s service-based stocks are less sensitive to input prices.”

The idea that inflation leads to higher asset prices is widely held. Andrew M. Aran, Managing Partner at Regency Wealth Management out of New Jersey, agrees but says that post-pandemic may be a bit different. “A pick-up in inflation has historically been good for stock returns as growing demand bodes well for corporate sales and earnings. This time could be different as stock valuations are high, and there may be some disruptions to supply chains and labor. High valuations currently reflect both the anticipated increase in spending as the economy reverts toward normalcy and the low cost of financing. The latter is likely to rise if and when inflation rises.” Said Aran, he then concluded by also suggesting that long term, equities should eventually take their queue from small increases in inflation, “…stock price/earnings multiples may contract partly offsetting revenue growth. Supply chains may not be able to keep up with demand and delays could extend the sales cycle [reduce asset turnover] while labor may need higher wages to incentivize them to work in an environment of liberal government unemployment support. Higher corporate earnings may also give cover to increased corporate taxes in 2022 and further pressure earnings. Once markets normalize, incremental inflation should translate into higher stock prices.”

 

 

Take-Away

The Fed Chair J. Powell has as recently as a month ago reiterated his resolve to keep rates low. If inflation should incrementally tick up, the Fed is not likely to remove the proverbial “punch-bowl” before the economy has fully opened. So, the risk is inflation, without the Fed combatting the causes. Equity investors in for the long term may already be exactly where they should be in the event of rising prices. Cash would devalue and fixed income would be in a bear market with tremendous potential to harm those investors.

The March FOMC meeting will have investors of all stripes paying attention to every nuance of the post-meeting announcement. The major indices are at their all-time highs giving them a longer way to fall than ever before in history. So the market seems to be looking for causes to be concerned. Put another way, the fear of missing out (FOMO) is being tested by the fear of staying at the party too long.

The truth that can’t be denied for long-term equity investors, inflation is of small concern. It may even drive more investors out of interest-rate sensitive sectors such as real estate and bonds and into the stock market.

 

Paul Hoffman

Managing Editor, Channelchek

Channelchek Insight from the Beginnning of the Pandemic:


A Significant Indicator of the Feds Resolve Do Market Scares Provide Uncommon Opportunity?


Climbing a Wall of Worry What Does the Fed Purchasing ETFs Mean for Equity Investors?

 

Sources:

https://www.wsj.com/articles/global-stock-markets-dow-update-03-15-2021-11615797300

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Release – Flotek Industries (FTK) – Announces Q4 And Full-Year 2020 Results

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Flotek Announces Q4 And Full-Year 2020 Results

 

HOUSTON, March 16, 2021 – Flotek Industries, Inc. (“Flotek” or the “Company”) (NYSE: FTK) today announced results for the fourth quarter and full-year ended December 31, 2020.
 

“We faced extraordinary challenges in 2020, but we remained focused and opportunistic in the face of a global pandemic and an extremely volatile macro-environment. While we continue to face challenges of lower global demand and industry pressures impacting both segments, we have improved our operational efficiencies and found new ways to create, diversify, and grow profitable revenue, resulting in improved adjusted EBITDA on approximately half the revenue year-over-year,” said John W. Gibson, Jr., Chairman, President, and Chief Executive Officer.
 

“It was a transformational year for Flotek for multiple reasons. Flotek made investments in the business to create a strong foundation for 2021 and beyond. Through our acquisition of JP3, we diversified our revenue stream across the hydrocarbon value chain and are well-positioned to capture long-term growth as early adopters of the digital transformation of chemistry. Second, with the launch of our cleaning and sanitizing product lines, we leveraged our existing supply chain, facilities, and chemistries to generate margin-accretive revenue. Finally, we have enhanced our focus on ESG and are well positioned to partner with customers seeking to improve their ESG performance with our products and services that help to improve the safety, reliability, and efficiency of their operations. Looking ahead, we seek to grow our energy-focused products and services internationally, increase the domestic market share of our products as the energy market recovers in the latter half of 2021 and expand our ESG-related product offerings.”
 

Fourth Quarter and
Full-Year 2020 Financial Results

  • Consolidated Revenues:  Flotek generated fourth quarter 2020 consolidated revenue of $12.1 million, down 5.0% from $12.7 million in the third quarter, and below $19.5 million in the fourth quarter last year. The decline continues to be driven by volatility in the macro-environment for U.S. onshore drilling and completion activity, further impacted by global economic events, as well as concerns related to COVID-19 pressuring productivity and customer demand across the oil and gas market.
  • Loss from Continuing
    Operations:      The Company reported a loss from continuing operations for the fourth quarter 2020 of $17.7 million, or a loss of $0.30 per diluted share, compared to a loss from continuing operations in the fourth quarter 2019 of $36.9 million, or a loss of $0.64 per diluted share.
    • Terpene Agreement:  The loss from continuing operations includes a loss of $9.4 million in the fourth quarter related to the Company’s amended terpene agreement due to adjustments to the Company’s expected usage of terpene.
  • Consolidated Operating
    Expenses:      Consolidated operating expenses (excluding depreciation and amortization) were $24.3 million in the fourth quarter 2020, which contributed to a 42.6% decline from $42.4 million in the same period last year.  The decline was driven by a reduction in overall compensation spending, lower discretionary spending, including professional fees, partially offset by one-time severance charges and discretionary bonuses.
  • Corporate, General, &
    Administrative Expenses:      Corporate general and administrative expenses for the fourth quarter of 2020 were $3.7 million compared to $9.0 million for the fourth quarter of 2019.
  • Adjusted EBITDA:  Adjusted EBITDA for the fourth quarter 2020 was a loss of $6.8 million, which narrowed from the loss of $8.5 million during the fourth quarter of 2019, driven by headcount and expense reductions in freight, equipment rentals, and travel & entertainment. 
  • For the full-year 2020, Flotek generated revenue of $53.1 million, a loss from continuing operations of $136.5 million, compared to revenue of $119.4 million, a loss from continuing operations of $76.1 million for the full-year 2019.
  • Full-year 2020 adjusted EBITDA loss was $26.2 million, compared to an adjusted EBITDA loss of $33.1 million for the full-year 2019.
  • For the full-year 2020, the Company’s cost-cutting and process improvement initiatives reduced annualized expenses by approximately 40.4% across the enterprise. 

 
Balance Sheet and
Liquidity 
As of December 31, 2020, the Company had cash and equivalents of $38.7 million. As previously disclosed on April 16, 2020, the Company received a $4.8 million loan, and JP3 received a $0.9 million loan, both pursuant to the Paycheck Protection Program administered by the U.S. Small Business Administration as part of the Coronavirus Aid, Relief, and Economic Security Act, known as the “CARES” Act.
 

Chemistry Technologies
Segment 
In the fourth quarter, sales in the Chemistry Technologies segment declined sequentially 10.2% to $10.8 million. The decline was primarily attributed to ongoing market volatility in the macro-environment impacting energy supply and demand, as well as fourth quarter seasonality as several customers in the energy chemistry business temporarily shut down operations at year-end.
 

During the fourth quarter, Flotek implemented several initiatives with the goal to be the collaborative partner of choice for chemistry technology. 
 

Energy Chemistry

  • The Company relaunched the Flotek brand to elevate its enhanced value approach. 
  • The Company is targeting a customer base with sustainable activity and operational programs, particularly in unconventional shale markets, whose strategic objectives align with Flotek’s proven performance and value proposition of cost-effective chemistry solutions that can improve production at lower cost per barrel produced.
  • Flotek deployed sustainable chemistry technologies for customer efficacy and profitability, offering cost-effective, greener and safer chemistry solutions, for companies seeking to improve their ESG performance.

 Professional
Chemistry

  • Flotek expanded its product offerings and technologies and announced the launch of its new professional chemistries brand Flotek Protekol™, which includes a robust line of surface cleaners, degreasers, wipes, disinfectants and sanitizers.
  • As the Company builds its long-term business strategy, it has partnered with Matt Lazlo as a strategic advisor. A former Clorox executive, Lazlo brings more than 25 years of experience serving in senior business, sales and marketing roles across consumer, commercial, retail, e-Commerce and industrial markets for Clorox.
  • The Company executed a strategic agreement with a major global manufacturer of specialty and intermediate chemicals to produce and package EPA-registered disinfectant wipes. 

Data Analytics Segment 
In the fourth quarter, Data Analytics’ sales improved 91.8% sequentially to $1.3 million, primarily driven by an increase in new sales in North America, as well as maintenance and support services.
 

During the fourth quarter, Flotek continued to enhance its offerings and increase its efficiency in delivering solutions, while targeting new customers and markets to transform their businesses through real-time data and analytics. Highlights include:

  • Progressed its international market entry strategy, continuing meaningful engagement with potential customers in the Middle East, Africa and Asia, and securing its first pilot in the Middle East. 
  • Implemented software development enhancements by accelerating Artificial Intelligence and machine learning capabilities, improving the precision of our measurement between batches of refined hydrocarbon products – reducing time, waste and money spent.
  • Began streamlining the Company’s sampling process to improve operational efficiencies, reduce costs to customers and increase speed to commissioning JP3’s systems to customers.   

 
Board of Directors
Updates 

  • Kevin Brown, a director that joined the Company’s Board in June 2020 following the acquisition of JP3, passed away unexpectedly in January. Harsha Agadi has been appointed to the Audit Committee to replace Mr. Brown.
  • Flotek has created the Risk and Sustainability Committee, a new committee designated to oversee risk, which will be chaired by director Mike Fucci.
  • Director Michelle M. Adams will not stand for re-election at the 2021 annual meeting of stockholders of the Company, due to outside demands on her time and her schedule.
  • The Board has engaged Heidrick & Struggles to conduct the search for a replacement director.

 
Conference Call
Details 
Flotek will host a conference call on Tuesday, March 16, 2021, at 4:00 pm CDT (5:00 p.m. EDT) to discuss its fourth quarter and full-year operating results ended December 31, 2020. To participate in the call, participants should dial 844-835-9986 approximately five minutes prior to the start of the call. The call can also be accessed from Flotek’s website at www.flotekind.com.
 

About Flotek
Industries, Inc. 
Flotek Industries, Inc. is a technology-driven, specialty chemistry and data company that serves customers across industrial, commercial and consumer markets. Flotek’s Chemistry Technologies segment develops, manufactures, packages, distributes, delivers, and markets high-quality sanitizers and disinfectants for commercial, governmental and personal consumer use. Additionally, Flotek empowers the energy industry to maximize the value of their hydrocarbon streams and improve return on invested capital through its real-time data platforms and chemistry technologies. Flotek serves downstream, midstream and upstream customers, both domestic and international. Flotek is a publicly traded company headquartered in Houston, Texas, and its common shares are traded on the New York Stock Exchange under the ticker symbol “FTK.” For additional information, please visit Flotek’s web site at www.flotekind.com.
 

Forward-Looking
Statements
Certain statements set forth in this press release constitute forward-looking statements (within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934) regarding Flotek Industries, Inc.’s business, financial condition, results of operations and prospects. Words such as will, continue, expects, anticipates, intends, plans, believes, seeks, estimates and similar expressions or variations of such words are intended to identify forward-looking statements, but are not the exclusive means of identifying forward-looking statements in this press release.  Although forward-looking statements in this press release reflect the good faith judgment of management, such statements can only be based on facts and factors currently known to management.  Consequently, forward-looking statements are inherently subject to risks and uncertainties, and actual results and outcomes may differ materially from the results and outcomes discussed in the forward-looking statements.  Further information about the risks and uncertainties that may impact the Company are set forth in the Company’s most recent filing with the Securities and Exchange Commission on Form 10-K (including, without limitation, in the “Risk Factors” section thereof), and in the Company’s other SEC filings and publicly available documents.  Readers are urged not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company undertakes no obligation to revise or update any forward-looking statements in order to reflect any event or circumstance that may arise after the date of this press release.
 

 

Inquiries, contact:
Danielle Allen
Senior Vice President, Chief of Staff
E: DAllen@flotekind.com
P: (713) 726-5322

Financials can be found at www.flotekind.com

SOURCE: Flotek Industries, Inc.

Eagle Bulk Shipping (EGLE) – Firm Market Drives Price Target Higher Again

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Monday, March 15, 2021

Eagle Bulk Shipping (EGLE)
Firm Market Drives Price Target Higher Again

Eagle Bulk Shipping Inc. is a US-based drybulk owner-operator focused on the Supramax/Ultramax mid-size asset class, which ranges from 50,000 and 65,000 deadweight tons in size; these vessels are equipped with onboard cranes allowing for the self-loading and unloading of cargoes, a feature which distinguishes them from the larger classes of drybulk vessels and provides for greatly enhanced flexibility and versatility- both with respect to cargo diversity and port accessibility. The Company transports a broad range of major and minor bulk cargoes around the world, including coal, grain, ore, pet coke, cement, and fertilizer. Eagle operates out of three offices, Stamford (headquarters), Singapore, and Hamburg, and performs all aspects of vessel management in-house including: commercial, operational, technical, and strategic.

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

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

    ATM program filing seems well timed. After seeing the stock more than double this year, the move to establish an ATM program and raise up to $50 million of equity seems logical. We would not be surprised to see the major shareholders scale back too. Currently, more than 60% of the outstanding shares are owned by two investment funds and any selling would expand the public market float and improve trading liquidity.

    Strong currency adds flexibility.  The ATM filing highlighted that Ultramax acquisitions as a possible use of proceeds. While we don’t like using net asset value (NAV) in a normal/rising market, Ultramax acquisitions funded with equity would have a favorable impact since the stock is trading at a premium to our YE2021 NAV estimate …



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. 

Information Services (III) – Additional 4Q Comments and Updated Projections

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Monday, March 15, 2021

Information Services (III)
Additional 4Q Comments and Updated Projections

ISG (Information Services Group) (Nasdaq: III) is a leading global technology research and advisory firm. A trusted business partner to more than 700 clients, including more than 70 of the top 100 enterprises in the world, ISG is committed to helping corporations, public sector organizations, and service and technology providers achieve operational excellence and faster growth. The firm specializes in digital transformation services, including automation, cloud and data analytics; sourcing advisory; managed governance and risk services; network carrier services; strategy and operations design; change management; market intelligence and technology research and analysis. Founded in 2006, and based in Stamford, Conn., ISG employs more than 1,300 digital-ready professionals operating in more than 20 countries—a global team known for its innovative thinking, market influence, deep industry and technology expertise, and world-class research and analytical capabilities based on the industry’s most comprehensive marketplace data. For more information, visit www.isg-one.com

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

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

    Client Expansion. In spite of a difficult operating environment, ISG’s value proposition resonated with existing and new clients during 2020. During the year, ISG served 722 clients, up 3% y-o-y, including 224 new clients, all won in a work-from-home selling environment. ISG GovernX increased users by 90%, to 12,000, during the year. The number of contracts under management rose by 80% to 8,000 and the total contract value under management rose by 30% to $46 billion.

    ISG NEXT.  As we have previously mentioned, ISG NEXT can be a game changer for the Company, potentially increasing EBITDA margin by 400 basis points over the next two years. Under the new platform, ISG consultant utilization rose to 73% versus 66% in the year ago period. In addition to enhancing ISG’s ability to sell higher value added solutions to clients, it promotes increased cross selling …



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. 

Release – Palladium One Mining (NKORF)(PDM:CA) – Strengthens Board of Directors

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Palladium One Strengthens Board of Directors

 

March 15, 2021 – Toronto,
Ontario – Palladium One Mining Inc. (“Palladium One” or the “Company”) (TSXV: PDM, FRA: 7N11, OTC: NKORF) is pleased to announce the appointment of Ms. Giovanna Bee Moscoso as an independent director to the board of directors of the Company, effective April 2, 2021.

“We are absolutely delighted to have Giovanna join as an independent director of the Company and we look forward to her many valuable contributions and oversight. Her extensive legal background, at a senior mining company, includes obtaining environmental permits and social licenses for the development of major open pit mines in the Americas and the design and implementation of the global ethics and compliance program on behalf of Barrick Gold Corporation, these experiences will undoubtedly benefit Palladium One Mining as we continue to evolve and advance our LK project on an expedited basis.” said Derrick Weyrauch, President and CEO.

Ms. Bee Moscoso is an experienced mining executive with over 28 years of experience, including progressive responsibilities over 25 years at Barrick Gold Corporation, where previously she was a partner, Vice President and Assistant General Counsel.

Giovanna has managed legal, regulatory, permitting and contractual matters for various mines in the Americas during exploration, development, operations and mine closures, and held responsibilities for coordinating government and public relations, and developing social outreach programs to foster positive relations with stakeholders, including long-term agreements with indigenous communities and private landowners. Her background also includes providing legal and governance oversight to major mining operations in the Americas and Africa.

Ms. Bee Moscoso graduated suma cum laude with the highest GPA of the Law School at the University of Lima, Peru (1992) and obtained her Masters in Law degree at Duke University, U.S.A. (2007). She has been a speaker at various international conferences, sharing her experiences in the resource sector.

Incentive Share Plan
The Board of Directors of the Company has approved the granting of stock options and restricted share units to consultants, employees, management and directors pursuant to the Company’s Incentive Share Plan. The stock options entitle the holders to purchase a total of 775,000 common shares in the capital stock of the Company at a price of $0.29 per common share. The stock options are exercisable for three years and 1/3rd vest immediately, thereafter 1/3rd annually. The restricted share units entitle the holders to receive the equivalent of 1,275,862 common shares of the Company or cash, at the discretion of the Company, upon exercise. The restricted share units have a 3-year vesting term.

About Palladium One
Palladium One Mining Inc. is an exploration company targeting district scale, platinum-group-element (PGE)-copper nickel deposits in Finland and Canada. Its flagship project is the Läntinen Koillismaa or LK Project, a palladium dominant platinum group element-copper-nickel project in north-central Finland, ranked by the Fraser Institute as one of the world’s top countries for mineral exploration and development. Exploration at LK is focused on targeting disseminated sulfides along 38 kilometers of favorable basal contact and building on an established NI 43-101 open pit resource.

ON BEHALF OF THE BOARD
“Derrick Weyrauch”
President & CEO,
Director

For further information contact: Derrick Weyrauch, President
& CEO
Email: info@palladiumoneinc.com

Neither the TSX Venture Exchange nor its Market Regulator (as
that term is defined in the policies of the TSX Venture Exchange) accepts
responsibility for the adequacy or accuracy of this release.

This
press release includes “forward-looking information” that is subject
to a few assumptions, risks and uncertainties, many of which are beyond the
control of the Company. Statements regarding listing of the Company’s common
shares on the TSXV are subject to all of the risks and uncertainties normally
incident to such events. Investors are cautioned that any such statements are
not guarantees of future events and that actual events or developments may
differ materially from those projected in the forward-looking statements. Such
forward-looking statements represent management’s best judgment based on
information currently available. Factors that could cause the actual results to
differ materially from those in forward-looking statements include regulatory
actions and general business conditions. Such forward-looking information
reflects the Company’s views with respect to future events and is subject to
risks, uncertainties and assumptions, including those set out in the Company’s
annual information form dated April 29, 2020 and filed under the Company’s
profile on SEDAR at www.sedar.com. The Company does not undertake to update
forward?looking statements or forward?looking
information, except as required by law. Investors are cautioned that any such
statements are not guarantees of future performance and actual results or
developments may differ materially from those projected in the forward-looking
statements.

SOURCE: Palladium One Mining

QuickChek – March 15, 2021

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DOW breaks new record – over 32,900


Money Supply Drives Stock Market Performance
How Much is a Trillion ?


Aeterna Zentaris – Potential Oral Vaccine Against COVID-19

Aeterna Zentaris Inc. announced its exclusive license agreement and research contract with Julius-Maximilians-University Wuerzburg for development of a potential oral prophylactic bacterial vaccine against COVID-19

News & Market Data on Aeterna Zentaris

Watch recent presentation from NobleCon17



Palladium One Strengthens Board of Directors

Palladium One Mining Inc. announced the appointment of Ms. Giovanna Bee Moscoso as an independent director to the board of directors of the Company, effective April 2, 2021.

Research, News & Market Data on Palladium One

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Release – Aeterna Zentaris (AEZS) – Announces Exclusive License Agreement and Research Contract with Julius-Maximilians-University Wuerzburg

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Aeterna Zentaris Announces Exclusive License Agreement and Research Contract with Julius-Maximilians-University Wuerzburg for Development of a Potential Oral Prophylactic Bacterial Vaccine Against COVID-19

 

– Company secures next step to continue to build-out pipeline of assets

– Company exercised its option to enter into an exclusive license of intellectual property for the development of a proprietary and orally active bacterial vaccine platform technology currently undergoing pre-clinical studies for the prevention of coronavirus diseases, including COVID-19

CHARLESTON, S.C., March 15, 2021 (GLOBE NEWSWIRE) — Aeterna Zentaris Inc. (NASDAQ: AEZS) (TSX: AEZS), through its wholly-owned subsidiary Aeterna Zentaris GmbH, (“Aeterna” or the “Company”), a specialty biopharmaceutical company commercializing and developing therapeutics and diagnostic tests, today announced that the Company exercised its option announced on February 2, 2021 and has entered into an exclusive worldwide sub-licensable patent and know-how license agreement for a potential COVID-19 vaccine currently in preclinical development that was invented at the Julius-Maximilians-University Wuerzburg (the “University”), one of Germany’s leading research and teaching universities. Additionally, the Company has entered into a research agreement with the University to conduct supplementary research activities and preclinical development studies on the potential vaccine.

The vaccine technology developed at the University uses the approved typhoid fever vaccine Salmonella Typhi Ty21a as a carrier strain and has the potential to be an orally active, live-attenuated bacterial vaccine to prevent SARS-CoV-2 infection leading to COVID-19.

“Over the last months, we learned that the original SARS-CoV-2 strain mutates rapidly, and these mutant strains continue to spread throughout the population. It has been reported that the currently available vaccines for COVID-19 are still effective against the known mutant strains. However, we believe there is the potential to develop an improved vaccine which relies on several SARS-CoV-2 antigens in parallel with the goal of improving the immune response against mutated viruses. Additionally, our vaccine has the potential to become a cost-effective oral alternative with less demanding storage and logistics requirements”, commented Dr. Klaus Paulini , Chief Executive Officer of Aeterna Zentaris. “We look forward to advancing our scientific collaboration with Prof. Rudel and his group at the University. Aeterna plans to select from a set of vaccine candidates to perform further in vitro and in vivo characterization before selecting the most active and stable bacterial strain for further preclinical and potentially clinical development. The goal is to develop an oral dosage form of COVID-19 vaccine which is also active against mutated viruses that can be stored in a common fridge and manufactured with relatively low costs of goods.

Prof. Thomas Rudel of the University added, “We are looking forward to our collaboration with Aeterna and a new phase of accelerated preclinical and potential clinical development. Our oral vaccine candidates based on the Salmonella Typhi Ty21a vaccine platform technology open the possibility to integrate more than one SARS-CoV-2 related antigen into the expression system of the modified vaccine bacteria and may improve the immune response of an individual against mutated viruses.”

About the Potential COVID-19 Vaccine

The approved Salmonella Typhi Ty21a bacterial strain is the basis of the new vaccine approach against corona virus infections. The typhoid fever vaccine Ty21a is effective, safe, easy to handle, and the capsule formulation can be stored at fridge temperature of 2°C to 8°C. The most common vaccine capsule Vivotif ® has been used worldwide in more than 150 million administered doses.

The carrier strain has been modified by plasmid insertion with two expression cassettes together with a special E. coli -based secretion system to secrete two or more coronavirus antigens fused to an immunological adjuvant peptide. Additionally, a balanced lethal system based on an essential tRNA synthetase has been integrated to stabilize the plasmid in the absence of antibiotic resistance genes. The specific bacterial vector strain is expected to enable oral application and release of the proteins into the gut system which may consequently stimulate mucosal and systemic immunity.

Transaction Terms and Conditions

On March 14, 2021, the Company exercised the Option and entered into the License Agreement. Pursuant to the terms of the License Agreement, the Company has been granted an exclusive, world-wide, license to certain patents and know-how owned by the University to research and develop, manufacture, and sell a potential COVID-19 vaccine using the University’s bacterial vaccine platform technology (the “Licensed Rights”). The Company will pay an up-front payment under the License Agreement of €140,000 as well as make certain milestones payments to be paid upon the achievement of certain development, and regulatory and sales milestones as well as a percentage of any sub-licensing revenue received by the Company and royalty payments on net sales of the licensed vaccine products (including for by the Company or its sub-licensees). The License Agreement will expire upon the latter of (i) the existence of a valid patent claim of a Licensed Right or (ii) 10 years after the first commercial sale of a product that was developed, manufactured, marketed, and sold using a least one Licensed Right. The License Agreement may be terminated by the Company by providing six (6) months’ notice to the University.

Pursuant to the License Agreement, the University has also granted the Company an exclusive option for the exclusive use of the Licensed Rights in an undisclosed field. The Company has six (6) months from the date of the License Agreement to exercise that is option.

Additionally, the Company has entered into the Research Agreement under which the Company has engaged the University on a fee-for-service basis to conduct supplementary research activities and preclinical development studies on the potential vaccine.

About COVID-19

COVID-19 is the disease caused by a new coronavirus called SARS-CoV-2, and was first reported in December 2019 in Wuhan, Hubei province, China. Most people infected with the COVID-19 virus will experience mild to moderate respiratory illness and recover without requiring special treatment. Older people, and those with underlying medical problems like cardiovascular disease, diabetes, chronic respiratory disease, and cancer are more likely to develop serious illness.

Globally over 116 million confirmed cases and over 2.5 million deaths are reported since the start of the pandemic. Currently, there are no definite approved therapies endorsed by the World Health Organization for COVID-19, focusing on supportive care and preventive immunization.

About Aeterna Zentaris Inc.

Aeterna Zentaris Inc. is a specialty biopharmaceutical company commercializing and developing therapeutics and diagnostic tests. The Company’s lead product, macimorelin, is the first and only U.S. FDA and European Commission approved oral test indicated for the diagnosis of adult growth hormone deficiency (AGHD). Macimorelin is currently marketed in the United States under the tradename Macrilen™ through a license agreement with Novo Nordisk where Aeterna receives royalties on net sales. According to a commercialization and supply agreement, Megapharm Ltd. will seek regulatory approval and then commercialize macimorelin in Israel and the Palestinian Authority. Additionally, upon receipt of pricing and reimbursement approvals, Aeterna expects that macimorelin will be marketed in Europe and the United Kingdom through a recently established license agreement with Consilient Health Ltd. and Aeterna will receive royalties on net sales and other potential payments.

Aeterna is also leveraging the clinical success and compelling safety profile of macimorelin to develop it for the diagnosis of childhood-onset growth hormone deficiency (CGHD), an area of significant unmet need.

Aeterna is actively pursuing business development opportunities for the commercialization of macimorelin in Asia and the rest of the world, in addition to other non-strategic assets to monetize their value. For more information, please visit www.zentaris.com and connect with the Company on Twitter , LinkedIn and Facebook .

Forward-Looking Statements

This press release contains forward-looking statements (as defined by applicable securities legislation) made pursuant to the safe-harbor provision of the U.S. Securities Litigation Reform Act of 1995, which reflect our current expectations regarding future events. Forward-looking statements in this press release include those relating to the potential of the University’s coronavirus vaccine platform technology (and any vaccine candidates using that technology) to be effective as a vaccine against COVID-19 (SARS-CoV-2) or any other coronavirus disease (or to offer an alternative to other approved vaccines against COVID-19, the ability to obtain approval to commence any clinical trial or the timeline to develop any potential vaccine and the characteristics of any potential vaccine (including cost, storage temperatures and oral availability and Aeterna’s expectation that, upon receipt of pricing and reimbursement approvals, macimorelin will be marketed in Europe and the United Kingdom and the initiation of Study P02, which is expected to be initiated in Q2 of 2021. Forward-looking statements involve known and unknown risks and uncertainties, including those discussed in this press release and in our Annual Report on Form 20-F, under the caption “Key Information – Risk Factors” filed with the relevant Canadian securities regulatory authorities in lieu of an annual information form and with the U.S. Securities and Exchange Commission. Known and unknown risks and uncertainties could cause our actual results to differ materially from those in forward-looking statements. Such risks and uncertainties include, among others, that the University’s coronavirus vaccine platform technology (and any vaccine candidates using that technology) has never been tested in humans and so further pre-clinical or clinical studies of that technology and any vaccine developed using that technology may not be effective as a vaccine against COVID-19 (SARS-CoV-2) or any other coronavirus disease, that such technology or vaccines may not receive the necessary approvals to be studied in human clinical trials, that the timeline to develop a vaccine may be longer than expected, that such technology or vaccines may not be capable of being used orally, may not have the same characteristics (including storage temperatures) as vaccines previously approved using the Salmonella Typhi Ty21a carrier strain, any such vaccine developed using the University’s technology may not lower the evolution of resistant viral mutants or may not be competitive with vaccines developed by third parties against COVID-19, our ability to raise capital and obtain financing to continue our currently planned operations, our ability to continue to list our Common Shares on the NASDAQ, our now heavy dependence on the success of Macrilen™ (macimorelin) and related out-licensing arrangements and the continued availability of funds and resources to successfully commercialize the product, including our heavy reliance on the success of the License Agreement with Novo Nordisk, the global instability due to the global pandemic of COVID-19, and its unknown potential effect on our planned operations, including studies, our ability to enter into out-licensing, development, manufacturing, marketing and distribution agreements with other pharmaceutical companies and keep such agreements in effect, our reliance on third parties for the manufacturing and commercialization of Macrilen™ (macimorelin), potential disputes with third parties, leading to delays in or termination of the manufacturing, development, out-licensing or commercialization of our product candidates, or resulting in significant litigation or arbitration, uncertainties related to the regulatory process, unforeseen global instability, including the instability due to the global pandemic of the novel coronavirus, our ability to efficiently commercialize or out-license Macrilen™ (macimorelin), our reliance on the success of the pediatric clinical trial in the European Union (“E.U.”) and U.S. for Macrilen™ (macimorelin), the degree of market acceptance of Macrilen™ (macimorelin), our ability to obtain necessary approvals from the relevant regulatory authorities to enable us to use the desired brand names for our product, our ability to successfully negotiate pricing and reimbursement in key markets in the E.U. for Macrilen™ (macimorelin), the outcome of our pre-clinical and clinical development efforts of in-licensed products, any evaluation of potential strategic alternatives to maximize potential future growth and shareholder value may not result in any such alternative being pursued, and even if pursued, may not result in the anticipated benefits, our ability to take advantage of business opportunities in the pharmaceutical industry, our ability to protect our intellectual property, and the potential of liability arising from shareholder lawsuits and general changes in economic conditions. Investors should consult our quarterly and annual filings with the Canadian and U.S. securities commissions for additional information on risks and uncertainties. Given these uncertainties and risk factors, readers are cautioned not to place undue reliance on these forward-looking statements. We disclaim any obligation to update any such factors or to publicly announce any revisions to any of the forward-looking statements contained herein to reflect future results, events or developments, unless required to do so by a governmental authority or applicable law.

Investor Contact:

Jenene Thomas
JTC Team
T (US): +1 (833) 475-8247
E: aezs@jtcir.com

Is it Smart to Avoid Brokers that Sell Trade Orders?

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The Better Reason to Pay Attention to Paid Order Flow

 

Payment for order flow (PFOF), often characterized as brokers selling customer orders to receive kickbacks from market makers, has become a hot topic. The same subject had surfaced occasionally in the past, after brokers like Robinhood reduced transaction fees to zero, but with far less emotion. The intensity of the recent discussion has been heightened by the attention given to the self-directed traders that coordinated on the subreddit, Wall Street Bets (WallStreetBets), and then traded unexpectedly contrary to individual investors’ normal patterns.

One important part of the PFOF conversation, not usually included, is the value, over time, of cost-effective execution. Payment for order flow is an established and integral part of the investment brokerage business. It’s not very far off from tipping wait staff, a golf caddy, or the person you regularly trust to cut your hair. Promoting exceptional service for your own benefit or those you’re responsible for often includes a financial incentive. And a smart broker will try to promote exceptional service for those they’re responsible for. Individuals should maximize this. Opening a brokerage account should include the due-diligence of asking: what’s the broker’s track record of filling orders better than “market?” Fortunately, you can find publicly reported metrics that allow a look back to know if a broker brought additional value filling orders relative to best price. With some digging and comparing, you can assess past performance in this category and then apply this performance forward and determine what this better execution could mean to you in dollars and cents. We already know that compounding mere pennies over time adds up; it’s why low fee ETFs became more popular than mutual funds, why mortgages take forever to pay off, and may be why you were attracted to a no-fee broker, to begin with. The time value of money suggests every slice of profit you give away costs you more than that slice over time.

The Market Makers Role

We understand what a broker is; one of their jobs is to take your market order and fill it at the best-posted price (or better). But, what’s a market maker? Most people have a vision of stock exchanges that includes frantic brokers in colorful smocks all piled in a room giving hand signals and screaming in the same direction. Well, the opening bell for most stock trading venues doesn’t look anything like that. The transactions are done by electronic exchanges with traders at computers watching bids and offers come in and matching them up or temporarily positioning some so as to fill mismatched size orders. The open outcry style pictured in movies, I dare say, is almost non-essential to the process. In fact, Wall Street trading activity actually experienced an uptick in volume during the two months that the NYSE was closed in 2020.

So, who are these people we don’t see? What is the alternative trading system (ATS)? The electronic communications network (ECN) are computer-based systems that are part of a network that uses a “maker-taker” model for the securities it specializes in. This model sees ECNs paying money for orders that add liquidity (makes the price) and charging for orders that remove liquidity (takes the price). One example of an ECN market maker is the NYSE Arca (formerly Archipeligo) which is the volume leader in ETFs. However, there are dozens of these ECNs, Arca is just one. I’ve listed their fee schedule as a source after this article.

 

SEC Rule 605 requires that market makers publish their execution stats every month. Looking at the recent data, it indicates that the system saves customers money—$3.57 billion of price improvement in 2020 alone.

 

The Regulation National Market System, (RegNMS), an SEC law requires brokers to obtain “best execution” for their clients, that is, fills at the best bid/best offer. How does your broker get the best bid or best offer when speed is critical and there may be many ECNs making a market in a stock and prices are always in flux? If they use a market maker that is able to improve the price above the published best price, there need not be the necessity to search through the various ECNs and trading venues. RegNMS, by the SEC, requires a best-published price, if you’re filled better than the published price, this meets the requirement. The easiest way a market maker can do this is by having plenty of volume to help match buyers with sellers. Paying for order flow, or as I suggested earlier, “tipping,” helps them fill at better prices and also speeds execution because they have higher volume.  Most transactions aren’t matched because someone came in selling 150 shares of XYZ while another came in to buy 150 XYZ. A market maker bridges this mismatch by warehousing (holding) the risk of the position it just bought on its balance sheet using its own capital. As compensation for taking this risk, the market maker earns a small bid/offer spread, often less than a penny per share. Paying for order flow helps cut the risk of them getting caught holding a position too long.

What to Know About Your Broker

Many brokers voluntarily publish exactly how much their price improvement has been so customers can better judge how well they’re being served. Brokers are not uniform in their presentation, but enough similar information can be found to compare, one to another.

The below table is the Retail Execution Quality Statistics (Q4 2020) from Charles Schwab (CSIM).

 

Above table of retail execution quality statistics from  Schwab.com

Execution and Compounding Numbers

This is where it gets fun. All we have is past performance as an indicator of which broker will perform better in the future, there are no guarantees. But, if we keep the math simple and make some presumptions, we can see what price improvement (helped by PFOF) does for us. We can also compare one broker’s track record to another. Here’s how: Presume (in this case) Schwab will continue to perform at this rate for the next ten years, and we have an account with them where we send $1500 a month and then place two trades for 100 – 499 shares (each trade), and our expected yearly portfolio performance is 8%. We can figure, with this conservative scenario, what the value of the $4.95 (average) saved per order is to your Schwab account.

Using the compound interest calculator found at Investor.gov and inputting the variables presumed above shows a total benefit to the account after ten years of $1,792.87. This would be invisible to you as an account owner using most broker platforms.

 

 

Founder and CEO of online brokerage All of Us Financial, Alan Grujic has as his companies business model what he calls radical transparency. He strongly advocates for retail investors and believes there should be an open book as to what the self-directed trader is worth to the broker. In the case of All of Us, it will even rebate a portion back. They essentially undercut the price of the no trading fee brokers. Grujic supports PFOF as a system that isn’t necessarily broken. He weighed in on the subject of PFOF with unabashed clarity that his company does pay for order flow, he had this to say, “As a startup founder, I understand the desire and attractiveness of tearing down legacy institutions. However, we owe it to ourselves to shoot straight with our investors. For us, the enemy is not PFOF, it’s the lack of transparency in how brokers share information and money. In fact, we think PFOF is a good deal for investors, and we are not alone.”

 

 

Take-Away

Retail investors benefit from their trades being executed at better prices than are publicly available ($3.57 billion in 2020). The varied trading venues and competition maintains relentless price improvement pressure for market makers to bring consumers good execution. As with many areas of the financial markets that are not well understood, or are oversimplified by investment TV shows, there can be a knee-jerk reaction to get “up-in-arms” and want to “fix” something based on a misunderstanding of how it works. This could add unnecessary regulation that may add to costly inefficiencies.

More liquidity in our public markets is a win for everyone, and the complex system that we have today provides more liquidity than at any time in history — this brings a more level playing field to retail investors. It may be imperfect, but the reduction in trading costs to zero or below demonstrates the system is extraordinarily effective. 

PFOF is part of the system which leads to efficiencies that have been shown to lead to price improvement for the end customer. This price improvement has real value. Even an individual brokerage account that places only 2 relatively small buys per month over ten years can experience measurable enrichment.  

Paul Hoffman

Managing Editor, Channelchek

 

Suggested Reading:


Seeking Alpha Paywall Causes Frustration Blockchain, Beverages, and Baloney


Are Meme Stocks Improving Flawed Markets? Can Brokers Level the Playing Field for Individual Investors?

 

Sources:

https://www.banking.senate.gov/imo/media/doc/Piwowar%20Testimony%203-9-21.pdf

https://www.sec.gov/news/press-release/2018-253

https://www.hsgac.senate.gov/imo/media/doc/STMT%20-%20Robert%20Battalio%20(20140612)1.pdf

https://www.finra.org/rules-guidance/guidance/sec-rule-605

https://www.sec.gov/reportspubs/investor-publications/investorpubsexqualityhtm.html

https://centerpointsecurities.com/payment-for-order-flow-guide/

https://www.nyse.com/publicdocs/nyse/markets/nyse-arca/NYSE_Arca_Marketplace_Fees.pdf

https://www.theguardian.com/us-news/2020/may/26/nyse-reopens-two-months-closing-covid-19

https://www.allofusfinancial.com/post/mythbusting-about-payment-for-order-flow-tipping

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Information Services (III) – Better than Expected 4Q20 Results

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Friday, March 12, 2021

Information Services (III)
Better than Expected 4Q20 Results

ISG (Information Services Group) (Nasdaq: III) is a leading global technology research and advisory firm. A trusted business partner to more than 700 clients, including more than 70 of the top 100 enterprises in the world, ISG is committed to helping corporations, public sector organizations, and service and technology providers achieve operational excellence and faster growth. The firm specializes in digital transformation services, including automation, cloud and data analytics; sourcing advisory; managed governance and risk services; network carrier services; strategy and operations design; change management; market intelligence and technology research and analysis. Founded in 2006, and based in Stamford, Conn., ISG employs more than 1,300 digital-ready professionals operating in more than 20 countries—a global team known for its innovative thinking, market influence, deep industry and technology expertise, and world-class research and analytical capabilities based on the industry’s most comprehensive marketplace data. For more information, visit www.isg-one.com

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

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

    4Q20 Results. Revenue of $66.4 million, up 8% sequentially and up 1% year over year, although down 1% on a constant currency basis. Excluding the impact of reimbursable T&E, revenues were up 5%, y-o-y. Adjusted EBITDA of $9 million, up 11% sequentially and down slightly from the $9.2 million in the 4Q19. EPS of $0.03 versus $0.04. Adjusted EPS of $0.10 flat with the year ago period. We had projected revenue of $56 million, adjusted EBITDA of $7.4 million, EPS of $0.04, and adjusted EPS of $0.07. Consensus called for revenue of $56.2 million and EPS of $0.06.

    Behind the Beat.  Solid sequential revenue growth in the Americas and Europe drove results. Americas revenue was up 8% sequentially and 6% y-o-y. Europe was up 10% sequentially and 1% y-o-y. Clients continued to seek out ways to become more efficient while setting up to prosper in the new digital environment. Digital revenues topped 50% of total revenue and recurring revenues hit 33% of the …



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. 

Lineage Cell Therapeutics (LCTX) – Q4 2020 EPS: Catalysts Rich 2021 Ahead

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Friday, March 12, 2021

Lineage Cell Therapeutics (LCTX)
Q4 2020 EPS: Catalysts Rich 2021 Ahead

Lineage Cell Therapeutics is a clinical-stage biotechnology company developing novel cell therapies for unmet medical needs. Lineage’s programs are based on its robust proprietary cell-based therapy platform and associated in-house development and manufacturing capabilities. With this platform Lineage develops and manufactures specialized, terminally differentiated human cells from its pluripotent and progenitor cell starting materials. These differentiated cells are developed to either replace or support cells that are dysfunctional or absent due to degenerative disease or traumatic injury or administered as a means of helping the body mount an effective immune response to cancer. Lineage’s clinical programs are in markets with billion dollar opportunities and include three allogeneic (“off-the-shelf”) product candidates: (i) OpRegen®, a retinal pigment epithelium transplant therapy in Phase 1/2a development for the treatment of dry age-related macular degeneration, a leading cause of blindness in the developed world; (ii) OPC1, an oligodendrocyte progenitor cell therapy in Phase 1/2a development for the treatment of acute spinal cord injuries; and (iii) VAC, an allogeneic dendritic cell therapy platform for immuno-oncology and infectious disease, currently in clinical development for the treatment of non-small cell lung cancer. For more information, please visit www.lineagecell.com or follow the Company on Twitter @LineageCell.

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

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

    Full Year 2020 financials. Lineage reported net loss of $20.6 million or ($0.14) EPS. The company has $41.6 million cash, cash equivalents, and marketable securities as of December 31, 2020. Total revenues were $1.8 million and total operating loss was $27.9 million – $12.3 million in R&D expenses and $15.6 million in SG&A expenses. We estimated $1.9 million in revenue, $12.3 million in R&D expenses, and $16.9 million in SG&A expenses and implemented the changes in our model. The company also had a good start to the year with the sale of additional marketable securities resulting in net proceedings above $21 million. With this, the company now has $57 million in cash only (161 million shares outstanding) bringing cash runway to 2023.

    Value-generating inflection points.  We expect multiple inflection points to generate value for the shares in 2021 selected catalysts include a) Interim data analysis from Cohort 4 OpRegen program 3-months data in Q1 and 6-months data at the annual Association for Research in Vision and Ophthalmology (ARVO) meeting on May 1-7, b) conducting regenerative medicine advanced therapy (RMAT) meeting with …



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.