cpereira@noblefcm.com, Author at Channelchek

Beasley Broadcast Group (BBGI) – Powering Through The Economic Headwinds

Posted on February 17, 2023February 17, 2023 by cpereira@noblefcm.com

Friday, February 17, 2023

Beasley Broadcast Group, Inc. owns and operates 61 stations (47 FM and 14 AM) in 15 large- and mid-size markets in the United States. Approximately 20 million consumers listen to the Company’s radio stations weekly over-the-air, online and on smartphones and tablets, and millions regularly engage with the Company’s brands and personalities through digital platforms such as Facebook, Twitter, text messaging, digital and web applications and email. The Overwatch League’s Houston Outlaws esports team is a wholly owned subsidiary. The Company also owns BeasleyXP, a national esports content hub, and AXLR-R8, a Rocket League Championship Series team, in its esports portfolio. For more information, please visit www.bbgi.com.

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

Patrick McCann, Research Associate, Noble Capital Markets, Inc.

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Solid Q4 results. The company reported revenue of $72 million, beating our estimate of $70.9 million by 1.7%. Top line revenue benefited from $5.1 million in political advertising as well as strong digital and local advertising. Adj. EBITDA of $12.87 million was roughly in line with our estimate of $14 million.

Favorable guidance. Management provided favorable Q1 revenue guidance to be slightly up from the prior year period. Digital and local advertising revenue are pacing up 15% and 6%, respectively. Notably, Management issued guidance for digital revenue to reach 20% to 30% of total revenue, and digital margins to reach 20%. Digital revenue is currently 16% of total revenue and Digital margins are currently 11%.

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Axcella Therapeutics (AXLA) – Regulatory Pathway Clarified for AXA1125

Posted on February 17, 2023February 17, 2023 by cpereira@noblefcm.com

Friday, February 17, 2023

Axcella is a clinical-stage biotechnology company pioneering a new approach to treat complex diseases using compositions of endogenous metabolic modulators (EMMs). The company’s product candidates are comprised of EMMs and derivatives that are engineered in distinct combinations and ratios to restore cellular homeostasis in multiple key biological pathways and improve cellular energetic efficiency. Axcella’s pipeline includes lead therapeutic candidates in Phase 2 development for the treatment of Long COVID and non-alcoholic steatohepatitis (NASH), and the reduction in risk of overt hepatic encephalopathy (OHE) recurrence. The company’s unique model allows for the evaluation of its EMM compositions through non-IND clinical studies or IND clinical trials. For more information, please visit www.axcellatx.com.

Robert LeBoyer, Vice President, Research Analyst, Life Sciences , Noble Capital Markets, Inc.

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Regulatory Pathway Clarified For AXA1125. Axcella announced acceptance of its IND for a Phase 2b/3 trial testing AXA1125 in Long COVID. As a newly recognized condition with no approved drugs, the requirements for clinical trials and regulatory approval were unknown. We view the announcement as significant milestone that establishes the regulatory pathway for AXA1125 in Long COVID. The proposed trial has been accepted for both US and UK regulatory approval, allowing Axcella to move the program forward.

Conference Call Reiterates Details For Long Covid Trial As anticipated, the FDA and MHRA will accept a single, placebo-controlled study for regulatory approval in the US and UK. The study will include endpoints to assess mental and physical functions that are common symptoms of Long COVID. The planned enrollment is about 300 patients, with a treatment period of 3 months.

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Tokens.com Corp. (SMURF) – Riding It Out

Posted on February 16, 2023February 16, 2023 by cpereira@noblefcm.com

Thursday, February 16, 2023

Tokens.com Corp is a publicly traded company that invests in Web3 assets and businesses focused on the Metaverse, NFTs, DeFi, and gaming based digital assets. Tokens.com is the majority owner of Metaverse Group, one of the world’s first virtual real estate companies. Hulk Labs, a wholly-owned Tokens.com subsidiary, focuses on investing in play-to-earn revenue generating gaming tokens and NFTs. Additionally, Tokens.com owns and stakes crypto assets to earn additional tokens. Through its growing digital assets and NFTs, Tokens.com provides public market investors with a simple and secure way to gain exposure to Web3.

Joe Gomes, Managing Director – Generalist Analyst, Noble Capital Markets, Inc.

Joshua Zoepfel, Research Associate, Noble Capital Markets, Inc.

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First Quarter Results. Total revenue for the quarter was at $151,848, an increase from the prior quarter of $101,235. We will be comparing quarters as Tokens.com has two new revenue streams, leasing and gaming revenue, which both did not occur last year. We estimated revenue at $105,000. Operating loss for Tokens.com was $566,525 versus $879,430 last quarter, and net loss was at $1.7 million, or EPS loss of $0.02, versus the prior quarter loss of $1.8 million, or a $0.02/sh loss.

Market Appreciation. The overall cryptocurrency market has seen an increase in total market cap over the last three months, as total market cap has risen to $1.05 trillion from $843.3 billion on November 15, 2022. This is an increase of $206.1 billion or 24.4%. If sustained, the rebound in the cryptocurrency market will be a positive for Tokens.com, in our view.

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Haynes International (HAYN) – Uniquely Positioned to Benefit from Growing Demand for High-Performance Alloys

Posted on February 16, 2023February 16, 2023 by cpereira@noblefcm.com

Thursday, February 16, 2023

Haynes International, Inc. is a leading developer, manufacturer and marketer of technologically advanced, nickel and cobalt-based high-performance alloys, primarily for use in the aerospace, industrial gas turbine and chemical processing industries.

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

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Initiating coverage with an Outperform rating. Haynes International, Inc., headquartered in Kokomo, Indiana, is one of the world’s largest developers, producers, and distributors of advanced high-performance nickel- and cobalt-based alloys. Haynes’ products, which are sold primarily to companies in the aerospace, chemical processing, and industrial gas turbine industries, consist of high-temperature resistant alloy (HTA) and corrosion-resistant alloy (CRA) products.

Track record of innovation. Founded in 1912, Haynes has a track record of pioneering many well-known nickel- and cobalt-based super alloys. In fiscal 2022, 59% of the company’s revenues were from alloys the company invented. Haynes currently has 20 published U.S. patents and applications. Approximately 27% of its product margin dollars were from proprietary alloys that no one else produces due to Haynes’ patent protection and/or processing technology and expertise. Since 2003, Haynes’ technical programs have yielded nine new proprietary alloys.

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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).

Bowlero (BOWL) – In A League Of Its Own

Posted on February 16, 2023February 16, 2023 by cpereira@noblefcm.com

Thursday, February 16, 2023

Bowlero Corp. is the worldwide leader in bowling entertainment, media, and events. With more than 300 bowling centers across North America, Bowlero Corp. serves more than 26 million guests each year through a family of brands that includes Bowlero, Bowlmor Lanes, and AMF. In 2019, Bowlero Corp. acquired the Professional Bowlers Association, the major league of bowling, which boasts thousands of members and millions of fans across the globe. For more information on Bowlero Corp., please visit BowleroCorp.com.

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

Patrick McCann, Research Associate, Noble Capital Markets, Inc.

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Impressive Q2 results. The company reported fiscal Q2 end December 2022 revenue of $273.4 million, up a strong 33%, and Adj. EBITDA of $97 million, up 45%. The impressive revenue and Adj. EBITDA beat our estimates by 7.4% and 18.6%, respectively. Adj. EBITDA margins increase from 32.9% a year earlier to 35.5%.

Events and walk-in revenue rebound. The company reported impressive event revenue of $69 million, an increase of 74% from the prior year period. Walk in retail revenue in the quarter was $170 million, growing by 24% from the prior year period. Management attributed the strong rebound in event revenue to waning concerns over the Omicron Covid variant.

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Axcella Therapeutics (AXLA) – Phase 2b/3 Trial Receives Clearance To Move Forward

Posted on February 16, 2023February 16, 2023 by cpereira@noblefcm.com

Thursday, February 16, 2023

Robert LeBoyer, Vice President, Research Analyst, Life Sciences , Noble Capital Markets, Inc.

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

IND Cleared For Phase 2b/3. Axcella Health announced that its IND submission for a Phase 2b/3 trial for AXA1125 in Long COVID Fatigue has been cleared by the FDA. This trial has been designed as a registrational trial to support an NDA filing. In January 2023, Axcella announced the UK’s MHRA (Medicines and Health Regulatory Agency) gave guidance that that a single trial could serve as a registrational trial. Axcella now has clearance in both the US and UK that allows AXA1125 to move forward as planned.

Phase 2b/3 Trial Design. The placebo-controlled trial has a projected enrollment of 300 patients. Patients will be treated for 12 weeks, compared with 4 weeks in the Phase 2a trial. The primary endpoint will be the CFQ11, an accepted clinical tool for measuring fatigue. Secondary endpoints will include the PROMIS questionnaire to measure pain, fatigue, physical function, emotional distress, and ability to return to work.

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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).

One Stop Systems (OSS) – A New $1.3 Million AI Transportables Contract

Posted on February 15, 2023February 15, 2023 by cpereira@noblefcm.com

Wednesday, February 15, 2023

One Stop Systems, Inc. (OSS) designs and manufactures innovative AI Transportable edge computing modules and systems, including ruggedized servers, compute accelerators, expansion systems, flash storage arrays, and Ion Accelerator™ SAN, NAS, and data recording software for AI workflows. These products are used for AI data set capture, training, and large-scale inference in the defense, oil and gas, mining, autonomous vehicles, and rugged entertainment applications. OSS utilizes the power of PCI Express, the latest GPU accelerators and NVMe storage to build award-winning systems, including many industry firsts, for industrial OEMs and government customers. The company enables AI on the Fly® by bringing AI datacenter performance to ‘the edge,’ especially on mobile platforms, and by addressing the entire AI workflow, from high-speed data acquisition to deep learning, training, and inference. OSS products are available directly or through global distributors. For more information, go to www.onestopsystems.com.

Joe Gomes, Managing Director – Generalist Analyst, Noble Capital Markets, Inc.

Joshua Zoepfel, Research Associate, Noble Capital Markets, Inc.

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

Getting More Work. Yesterday, One Stop Systems announced the Company has received a $1.3 million contract from the U.S. Army to develop vehicle visualization systems. OSS will be working closely with the Army to deliver prototypes later in 2023. The announcement comes on the heels of the $3 million order last month, and further signifies the Company’s capabilities in military applications.

Details. The contract from the U.S. Army is for the design, development, and prototypes for a ruggedized compute visualization system. Using OSS PCIe Gen 4 switched fabric technology and NVIDIA Jetson AGX Orin system-on-modules, the system will be used to support 360-degree visualization for U.S. Army ground vehicles.

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ChitogenX Inc. (CHNXF) – Proof of Concept Confirmed in Meniscus Tear Repair Study

Posted on February 15, 2023February 15, 2023 by cpereira@noblefcm.com

Wednesday, February 15, 2023

Gregory Aurand, Senior Research Analyst, Healthcare Services & Medical Devices, Noble Capital Markets, Inc.

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Proof of concept confirmed. ChitogenX announced yesterday that in the meniscus tear repair study, the ORTHO-R biopolymer showed residency on the tissue more than 24 hours after surgery. In addition, PRP regenerative cells were recruited and aggregated at the surgery site. PRP alone disperses quickly, but the “sticky” PRP/chitosan biopolymer matrix showed extended tissue adherence.

Meniscus tear repair study in sheep. This pre-clinical study, composed of 22 sheep, tested the subjects’ menisci with sutures alone vs. platelet rich plasma (PRP) alone vs. PRP delivered by ORTHO-R biopolymer. This study represents the Company’s second proof of concept for their ORTHO-R drug/biologic in an orthopedic indication.

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EuroDry (EDRY) – Sensitivity to shipping rates is hurting results & could get worse

Posted on February 14, 2023February 14, 2023 by cpereira@noblefcm.com

Tuesday, February 14, 2023

EuroDry Ltd. was formed on January 8, 2018 under the laws of the Republic of the Marshall Islands to consolidate the drybulk fleet of Euroseas Ltd. into a separate listed public company. EuroDry was spun-off from Euroseas Ltd. on May 30, 2018; it trades on the NASDAQ Capital Market under the ticker EDRY. EuroDry operates in the dry cargo, drybulk shipping market. EuroDry’s operations are managed by Eurobulk Ltd., an ISO 9001:2008 and ISO 14001:2004 certified affiliated ship management company and Eurobulk (Far East) Ltd. Inc., which are responsible for the day- to-day commercial and technical management and operations of the vessels. EuroDry employs its vessels on spot and period charters and under pool agreements.

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

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Lower shipping rates hurting results. Eurodry reported 2022-4Q revenues, net, of $15.1 million versus $22.3 million and below our projection of $19.9 million. Average TCE rates for the quarter were $16,689 versus $29,157 and our $18,982 estimate. Lower shipping rates led to a a 54% decline in adj. ebitda and a 78% decrease in adjusted net income. The sharp declines demonstrate Eurodry’s extreme sensitivity to shipping rates.

Shipping rate sensitivity will only increase in upcoming months. Fleet rate coverage drops off dramatically after the 2023-1Q. In fact, all 11 ships will be exposed to spot or indexed prices. This, combined with a further drop in shipping rates in February, could result in a difficult upcoming quarter for the company. Management estimates it would need rates above $12,700 to be cash flow breakeven while noting current prices in the $6,000-$7,000 range.

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RCI Hospitality Holdings (RICK) – A Solid First Quarter

Posted on February 13, 2023February 13, 2023 by cpereira@noblefcm.com

Monday, February 13, 2023

With more than 60 units, RCI Hospitality Holdings, Inc., through its subsidiaries, is the country’s leading company in adult nightclubs and sports bars/restaurants. Clubs in New York City, Chicago, Dallas-Fort Worth, Houston, Miami, Minneapolis, Denver, St. Louis, Charlotte, Pittsburgh, Raleigh, Louisville, and other markets operate under brand names such as Rick’s Cabaret, XTC, Club Onyx, Vivid Cabaret, Jaguars Club, Tootsie’s Cabaret, Scarlett’s Cabaret, Diamond Cabaret, and PT’s Showclub. Sports bars/restaurants operate under the brand name Bombshells Restaurant & Bar.

Joe Gomes, Managing Director – Generalist Analyst, Noble Capital Markets, Inc.

Joshua Zoepfel, Research Associate, Noble Capital Markets, Inc.

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

1Q23 Operating Results. First quarter revenue came in at $70 million, up 13.2% y-o-y. Adjusted EBITDA in the quarter was $20.5 million, up 13.9% y-o-y. Impacted by non-comp expense and D&A, net income fell 3.2% to $10.2 million. EPS was $1.11 and adjusted EPS was $1.19, down 0.9% and up 8.2%, respectively, y-o-y. We had forecast revenue of $72 million, adjusted EBITDA of $23 million, and EPS of $1.32.

Segments. Nightclubs revenue rose 20.3% to $56.3 million, driven by acquired clubs and a 1.2% SSS growth, with a 40.4% operating margin. Bombshells continues to face challenges with revenue of $13.4 million down 9.5%, SSS off 13.9%, and a 13.8% operating margin.

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CoreCivic, Inc. (CXW) – Post Call Commentary

Posted on February 13, 2023February 13, 2023 by cpereira@noblefcm.com

Monday, February 13, 2023

CoreCivic is a diversified, government-solutions company with the scale and experience needed to solve tough government challenges in flexible, cost-effective ways. We provide a broad range of solutions to government partners that serve the public good through high-quality corrections and detention management, a network of residential and non-residential alternatives to incarceration to help address America’s recidivism crisis, and government real estate solutions. We are the nation’s largest owner of partnership correctional, detention and residential reentry facilities, and believe we are the largest private owner of real estate used by government agencies in the United States. We have been a flexible and dependable partner for government for nearly 40 years. Our employees are driven by a deep sense of service, high standards of professionalism and a responsibility to help government better the public good. Learn more at www.corecivic.com.

Joe Gomes, Managing Director – Generalist Analyst, Noble Capital Markets, Inc.

Joshua Zoepfel, Research Associate, Noble Capital Markets, Inc.

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Prepping For an End to Title 42. Once again, during the quarter CoreCivic continued to hire staff in anticipation of an ending of Title 42 and a surge in ICE populations. The additional expense impacted margins. Management did note that without the extra expense, guidance for 2023 would have been in the ballpark of consensus estimates for the year.

Potential New Business? Management again noted increasing interest from various states, both current clients and potential new clients, for solutions as these parties deal with a very tight labor market. With excess bed capacity available and the staff hired, CoreCivic is well positioned to pick up additional business, in our view.

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Century Lithium Corp. (CYDVF) – A Watershed Moment?

Posted on February 13, 2023February 13, 2023 by cpereira@noblefcm.com

Monday, February 13, 2023

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

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Collaboration with Koch. Century Lithium is collaborating with Koch Technology Solutions (KTS) in the application of its proprietary Li-Pro direct lithium extraction process (DLE) at Century’s lithium extraction facility in Nevada.

Li-Pro technology. Koch purchased exclusive rights to theLionex DLE technology, for which Century had licensed, and integrated it into their Li-Pro process. The companies have executed an agreement to test KTS equipment and evaluate features of the Li-Pro process at Century’s pilot plant. While the program is independent from the company’s ongoing feasibility study, KTS will provide an engineering design along with costs for deployment of the DLE portion of the processing plant.

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ChitogenX Inc. (CHNXF) – Offering Announced; Increasing Price Target

Posted on February 10, 2023February 10, 2023 by cpereira@noblefcm.com

Friday, February 10, 2023

Gregory Aurand, Senior Research Analyst, Healthcare Services & Medical Devices, Noble Capital Markets, Inc.

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Raising up to $6.1 million gross proceeds. Yesterday, ChitogenX announced a two-part equity placement. The first is a best efforts private placement for up to $4.35 million (currencies in Canadian $) gross proceeds, subject to a $3 million minimum, under a financing prospectus exemption in Part 5A of the Canadian National Instrument 45-106 – Prospectus Exemptions. Second is a non-brokered private placement of up to $1.75 million gross proceeds. The closing of the first offering is conditional upon the closing of the second private placement. The offerings are expected to close on or around February 28, 2023.

Offering terms. Each of the two offerings carry the same terms priced at $0.225 per unit. Each unit consists of one Class A share of common and one purchase warrant exercisable at $0.35 with a 5 year expiration. If the volume weighted daily average trading price exceeds $0.50 for 10 consecutive trading days, ChitogenX can accelerate the expiration date. ChitogenX expects to use the net proceeds to complete enrollment of the Rotator Cuff U.S. Phase I/II clinical trial program, and for working capital and general corporate purposes.

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