cpereira@noblefcm.com, Author at Channelchek

The ODP Corporation (ODP) – Doubling Down on B2B

Posted on March 4, 2025March 4, 2025 by cpereira@noblefcm.com

Tuesday, March 04, 2025

Office Depot, Inc., together with its subsidiaries, supplies a range of office products and services. It offers merchandise, such as general office supplies, computer supplies, business machines and related supplies, and office furniture through its chain of office supply stores under the Office Depot, Foray, Ativa, Break Escapes, Worklife, and Christopher Lowell brand names. The company also provides graphic design, printing, reproduction, mailing, shipping, and other services through design, print, and ship centers. It has operations throughout North America, Europe, Asia, and Central America. The company also sells its products and services through direct mail catalogs, contract sales force, Internet sites, and retail stores, through a mix of company-owned operations, joint ventures, licensing and franchise agreements, alliances, and other arrangements. As of December 31, 2008, Office Depot operated 1,267 North American retail division office supply stores and 162 international division retail stores, as well as participated under licensing and merchandise arrangements in 98 stores. The company was founded in 1986 and is based in Boca Raton, Florida.

Joe Gomes, CFA, Managing Director, Equity Research Analyst, Generalist , 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.

Macro Headwinds. While macro headwinds remain in the B2B and B2C segments, green shoots are appearing, with new B2B contracts and an expanding pipeline of new business opportunities. Over at retail, the Company has seen improved traction with targeted profitable sales campaigns and value added promotions.

Playing to its Strengths. Project “Optimize for Growth” and the B2B focus plays into ODP’s core strengths, such as robust supply chain assets, distribution capabilities, and an expansive B2B customer base. We believe these moves position ODP to unlock sustainable growth and long-term success.

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*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.

Comtech Telecommunications (CMTL) – Some Breathing Space

Posted on March 4, 2025March 4, 2025 by cpereira@noblefcm.com

Tuesday, March 04, 2025

Comtech Telecommunications Corp. engages in the design, development, production, and marketing of products, systems, and services for advanced communications solutions in the United States and internationally. It operates in three segments: Telecommunications Transmission, Mobile Data Communications, and RF Microwave Amplifiers. The Telecommunications Transmission segment provides satellite earth station equipment and systems, over-the-horizon microwave systems, and forward error correction technology, which are used in various commercial and government applications, including backhaul of wireless and cellular traffic, broadcasting (including HDTV), IP-based communications traffic, long distance telephony, and secure defense applications. The Mobile Data Communications segment provides mobile satellite transceivers, and computers and satellite earth station network gateways and associated installation, training, and maintenance services; supplies and operates satellite packet data networks, including arranging and providing satellite capacity; and offers microsatellites and related components. The RF Microwave Amplifiers segment designs, develops, manufactures, and markets satellite earth station traveling wave tube amplifiers (TWTA) and broadband amplifiers. Its amplifiers are used in broadcast and broadband satellite communication; defense applications, such as telecommunications systems and electronic warfare systems; and commercial applications comprising oncology treatment systems, as well as to amplify signals carrying voice, video, or data for air-to-satellite-to-ground communications. The company serves satellite systems integrators, wireless and other communication service providers, broadcasters, defense contractors, military, governments, and oil companies. Comtech markets its products through independent representatives and value-added resellers. The company was founded in 1967 and is headquartered in Melville, New York.

Joe Gomes, CFA, Managing Director, Equity Research Analyst, Generalist , 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.

New Capital Infusion. Last night, after the market closed, Comtech Telecommunications announced a new $40 million capital infusion from the current holders of Comtech’s convertible preferred and subordinated debt, or White Hat Capital and Magnetar Financial. The new capital infusion is made on the same terms and conditions as the prior subordinated debt investment.

Uses. Of the $40 million infusion, $27.3 million is being used to prepay the senior secured term loan and $3.2 million to reduce the revolving credit facility, with a waiver of the prepayment penalties that would have been owed in accordance with the terms of the credit agreement.

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Euroseas (ESEA) – Fourth Quarter and FY 2024 Review and Outlook

Posted on March 3, 2025March 3, 2025 by cpereira@noblefcm.com

Monday, March 03, 2025

Euroseas Ltd. was formed on May 5, 2005 under the laws of the Republic of the Marshall Islands to consolidate the ship owning interests of the Pittas family of Athens, Greece, which has been in the shipping business over the past 140 years. Euroseas trades on the NASDAQ Capital Market under the ticker ESEA. Euroseas operates in the container shipping market. Euroseas’ operations are managed by Eurobulk Ltd., an ISO 9001:2008 and ISO 14001:2004 certified affiliated ship management company, which is responsible for the day-to-day commercial and technical management and operations of the vessels. Euroseas employs its vessels on spot and period charters and through pool arrangements.

Mark Reichman, Managing Director, Equity Research Analyst, Natural Resources, Noble Capital Markets, Inc.

Hans Baldau, Research Associate, Noble Capital Markets, Inc.

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

Fourth quarter results. Euroseas reported fourth quarter 2024 adjusted EBITDA and earnings per share (EPS) of $32.8 million and $3.33, respectively, compared to our estimates of $34.7 million and $3.66. While revenues were generally in line with our estimates, operating expenses were higher than expected. Drydocking expenses were ~$1.7 million above our estimates, while general and administrative expenses were ~$600 thousand above our estimates due to higher share-based compensation.

2025 outlook. Container ship charter rates remained stable in the fourth quarter, with feeder and intermediate segments showing modest gains in early 2025. While ongoing disruptions in the Red Sea continue to support rates, the potential reopening of the Suez Canal could have a negative impact. The global containership orderbook remains high, and vessels have started to come to market. While a large orderbook poses risks, the feeder and intermediate sectors where Euroseas operates face limited new supply and aging fleets.

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Comstock Inc. (LODE) – Strategic Partnership with Marathon Petroleum

Posted on March 3, 2025March 3, 2025 by cpereira@noblefcm.com

Monday, March 03, 2025

Comstock (NYSE: LODE) innovates technologies that contribute to global decarbonization and circularity by efficiently converting under-utilized natural resources into renewable fuels and electrification products that contribute to balancing global uses and emissions of carbon. The Company intends to achieve exponential growth and extraordinary financial, natural, and social gains by building, owning, and operating a fleet of advanced carbon neutral extraction and refining facilities, by selling an array of complimentary process solutions and related services, and by licensing selected technologies to qualified strategic partners. To learn more, please visit www.comstock.inc.

Mark Reichman, Managing Director, Equity Research Analyst, Natural Resources, Noble Capital Markets, Inc.

Hans Baldau, Research Associate, Noble Capital Markets, Inc.

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

Marathon investment in Comstock Fuels. Comstock Fuels entered into definitive agreements with subsidiaries of Marathon Petroleum Corporation, including the purchase of $14.0 million in Comstock Fuels equity as part of Comstock’s planned Series A preferred equity financing. Consideration includes $13.0 million in payment-in-kind (PIK) assets comprised of equipment, intellectual property, and other materials at Marathon’s former renewable fuel demonstration facility in Madison, WI. While the PIK assets were transferred as of the February 28 effective date, the cash portion will be received within five business days of Comstock Fuels’ execution of third-party Series A financing agreements totaling at least $25.0 million.

Key elements of the agreements. The agreements included: 1) an agreement for future equity governing the portion of the investment issued in exchange for the PIK assets, 2) an asset transfer agreement to assign the PIK assets, 3) a license agreement covering applicable intellectual property, 4) an agreement to provide post-closing conditions, and 5) a board observer agreement executed as of the effective date. Separately, Comstock executed a commercial lease for the Madison facility at a rate of $44,000 per month.

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Unicycive Therapeutics (UNCY) – OLC Shows Synergy With Alternative Potassium Binder

Posted on February 21, 2025February 21, 2025 by cpereira@noblefcm.com

Friday, February 21, 2025

Robert LeBoyer, Senior Vice President, Equity Research Analyst, Biotechnology, Noble Capital Markets, Inc.

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Pre-Clinical Study Shows Synergy With Tenapanor. Unicycive Therapeutics announced the results of an animal model study that tested its phosphate binder, OLC, or oxylanthanum carbonate, and tenapanor, a phosphate-control drug that works through a different mechanism than the phosphate binding drugs. The results showed OLC had a greater reduction than tenapanor, and the combination of both drugs given together had synergistic effects that were better than either drug given alone.

Study Design. Tenapanor (Xphozah, from Ardelyx) is a sodium/hydrogen exchanger 3 (NHE3) inhibitor that works through paracellular absorption. It is used in patients that do not respond to phosphate binders or do not tolerate them. The study, “Combination Oxylanthanum Carbonate and Tenapanor Lowers Urinary Phosphate Excretion in Rats,” was published in the American Nephrology Society’s journal Kidney360. It compared the two drugs against a control (delivery vehicle alone) in rats receiving a high phosphorus diet.

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InPlay Oil (IPOOF) – Transformative Acquisition of Pembina Cardium Oil Assets

Posted on February 21, 2025February 21, 2025 by cpereira@noblefcm.com

Friday, February 21, 2025

InPlay Oil is a junior oil and gas exploration and production company with operations in Alberta focused on light oil production. The company operates long-lived, low-decline properties with drilling development and enhanced oil recovery potential as well as undeveloped lands with exploration possibilities. The common shares of InPlay trade on the Toronto Stock Exchange under the symbol IPO and the OTCQX Exchange under the symbol IPOOF.

Mark Reichman, Managing Director, Equity Research Analyst, Natural Resources, Noble Capital Markets, Inc.

Hans Baldau, Research Associate, Noble Capital Markets, Inc.

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

Strategic acquisition. InPlay Oil Corp. executed a definitive agreement to acquire light oil-focused assets from Obsidian Energy Ltd. (TSX: OBE, NYSE American: OBE) in the Pembina area of Alberta. The assets have a current production rate of approximately 10,000 barrels of oil equivalent per day (boe/d), with 68% consisting of oil and natural gas liquids (NGLs). The total purchase price is C$309 million and will consist of C$220 million in cash, C$85 million in InPlay common shares priced at C$1.55 per share, and the inclusion of InPlay’s non-operated 34.6% working interest in the Willesden Green Cardium Unit #2 oil field, which has a year-end 2023 Proved Developed Producing (PDP) value of about C$4.4 million.

Transaction highlights. The acquisition appears to offer significant synergies and benefits to InPlay’s operations. InPlay’s production is expected to more than double to 18,750 boe/d from previous guidance of 8,650-9,150. Additionally, on a per share basis, 2025 adjusted funds flow (AFF) is expected to increase to C$204 million from previous guidance of C$69-75 million. Furthermore, the nature of the assets acquired is expected to enhance operational efficiencies to InPlay’s existing Pembina asset base by increasing the scale and contributing to lower decline, higher oil-weighting, and less capital-intensive production.

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Codere Online (CDRO) – Favorable Underlying Revenue Trends

Posted on February 21, 2025February 21, 2025 by cpereira@noblefcm.com

Friday, February 21, 2025

Codere Online refers, collectively, to Codere Online Luxembourg, S.A. and its subsidiaries. Codere Online launched in 2014 as part of the renowned casino operator Codere Group. Codere Online offers online sports betting and online casino through its state-of-the art website and mobile application. Codere currently operates in its core markets of Spain, Italy, Mexico, Colombia, Panama and the City of Buenos Aires (Argentina). Codere Online’s online business is complemented by Codere Group’s physical presence throughout Latin America, forming the foundation of the leading omnichannel gaming and casino presence in the region.

Michael Kupinski, Director of Research, Equity Research Analyst, Digital, Media & Technology , Noble Capital Markets, Inc.

Jacob Mutchler, Research Associate, Noble Capital Markets, Inc.

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Currency exchange impact. Q4 revenue of €52.6 million was roughly in line with our estimate of €55.0 million in spite of currency headwinds. Adj. EBITDA of €1.9 million was better than our estimate of €1.5 million, as illustrated in Figure #1 Q4 Results. Revenues would have been stronger if not for the depreciation of the Mexican Peso, down roughly 13.5% against the Euro. On a constant currency basis, revenue was up a strong 15% compared to reported growth of 5%.

NASDAQ extends deadline. The company’s auditor, Marcum, resigned unexpectedly in December, quickly replaced by MaloneBailey. Importantly, the company was able to present a plan to NASDAQ in its hearing on January 16 and was granted an extension until May 12 to file its 2023 annual report, the maximum extension allowed. The company intends to file within the extension deadline.

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Aurania Resources (AUIAF) – Take-Aways from the Kuri-Yawi IP Geophysical Survey

Posted on February 21, 2025February 21, 2025 by cpereira@noblefcm.com

Friday, February 21, 2025

Mark Reichman, Managing Director, Equity Research Analyst, Natural Resources, Noble Capital Markets, Inc.

Hans Baldau, Research Associate, Noble Capital Markets, Inc.

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

Kuri-Yawi epithermal gold target. In late 2024, Aurania commenced an induced polarization (IP) geophysical survey over its Kuri-Yawi epithermal gold target at the company’s Lost Cities-Cutucu project in Ecuador. Kuri-Yawi is a geochemical anomaly with enrichments in epithermal pathfinder elements. The IP survey was designed to identify deep conductors that could correspond to gold mineralization and to target drill holes for a future drilling program.

Survey results. Data collected from the survey was used to generate a three-dimensional model of the ground’s resistivity and chargeability. Conductive and chargeability anomalies are geophysical signatures that can indicate the presence of gold mineralization. The survey returned two main chargeability vertical structures. Resistivity results highlighted different bodies of rock, or lithologic units, with a conductive sedimentary unit to the east and a resistive volcanic unit overlaying another conductive unit at depth.

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ACCO Brands (ACCO) – A Peak Into 4Q24 Results

Posted on February 21, 2025February 21, 2025 by cpereira@noblefcm.com

Friday, February 21, 2025

ACCO Brands Corporation is one of the world’s largest designers, marketers and manufacturers of branded academic, consumer and business products. Our widely recognized brands include AT-A-GLANCE®, Esselte®, Five Star®, GBC®, Kensington®, Leitz®, Mead®, PowerA®, Quartet®, Rapid®, Rexel®, Swingline®, Tilibra®, and many others. Our products are sold in more than 100 countries around the world. More information about ACCO Brands, the Home of Great Brands Built by Great People, can be found at www.accobrands.com.

Joe Gomes, CFA, Managing Director, Equity Research Analyst, Generalist , 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.

4Q24. Fourth quarter sales and EPS were in line with expectations, excluding greater than anticipated foreign currency headwinds. ACCO experienced ongoing softer demand for certain office-related products and lower demand for back-to-school products in Brazil, partially offset by growth in the technology accessories categories. ACCO further increased its multi-year cost reduction program to $100 million of cumulative savings.

Details. Revenue of $448.1 million was down 8.3% y-o-y, with comp sales down 5.9% and adverse foreign exchange reducing sales by 2.4%. Adjusted operating income was $64.2 million versus $68.3 million last year. Adjusted net income was $37.5 million, and adjusted EPS was $0.39 for both 4Q24 and 4Q23.

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Great Lakes Dredge & Dock (GLDD) – Strong End to the Year

Posted on February 19, 2025February 19, 2025 by cpereira@noblefcm.com

Wednesday, February 19, 2025

Great Lakes Dredge & Dock Corporation is the largest provider of dredging services in the United States. In addition, Great Lakes is fully engaged in expanding its core business into the rapidly developing offshore wind energy industry. The Company has a long history of performing significant international projects. The Company employs experienced civil, ocean and mechanical engineering staff in its estimating, production and project management functions. In its over 131-year history, the Company has never failed to complete a marine project. Great Lakes owns and operates the largest and most diverse fleet in the U.S. dredging industry, comprised of approximately 200 specialized vessels. Great Lakes has a disciplined training program for engineers that ensures experienced-based performance as they advance through Company operations. The Company’s Incident-and Injury-Free® (IIF®) safety management program is integrated into all aspects of the Company’s culture. The Company’s commitment to the IIF® culture promotes a work environment where employee safety is paramount.

Joe Gomes, CFA, Managing Director, Equity Research Analyst, Generalist , 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.

4Q24. Revenue of $202.8 million was up from $181.7 million a year ago but modestly below our $215 million estimate. Gross margin came in at 24.1%, up from 21.3% in 4Q23 and above our 20.9% estimate. Adjusted EBITDA improved to $40.2 million, flat with $40.8 million a year ago. We had forecasted $37 million. Net income was $19.7 million, or $0.29/sh, versus $21.6 million, or $0.32/sh, last year, which benefitted from a one time $7.4 million gain. We were at $15 million and $0.22/sh.

Backlog. Great Lakes ended the year with $1.19 billion of dredging backlog and $1.24 billion of total backlog. The Company had an additional $282.1 million of low bids and options pending award at year’s end. Approximately 94% of the backlog was in higher margin capital and coastal protection work. This provides solid visibility into 2026.

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FreightCar America (RAIL) – New $35 Million ABL Credit Facility; Adjusting Our Forward Estimates

Posted on February 19, 2025February 19, 2025 by cpereira@noblefcm.com

Wednesday, February 19, 2025

Mark Reichman, Managing Director, Equity Research Analyst, Natural Resources, Noble Capital Markets, Inc.

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New asset-based lending credit facility. FreightCar America executed a new $35 million asset-based lending (ABL) credit agreement with Bank of America consisting of revolving loans and a sub-facility for letters of credit. Compared to the company’s previous ABL credit agreement, the new revolving credit facility offers a lower interest rate that is based on the secured overnight financing rate (SOFR) plus 175 basis points with a term ending on February 12, 2030.

Greater financial flexibility. The new facility is expected to provide the company with greater financial flexibility to support its growth and strategic objectives. Because the borrowing base requirements include eligible parts inventory and railcar inventory, we think the ability to borrow against its inventory could also provide the company with greater flexibility with respect to how it manages its production schedule.

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Comstock Inc. (LODE) – Shareholders Approve Reverse Stock Split

Posted on February 18, 2025February 18, 2025 by cpereira@noblefcm.com

Tuesday, February 18, 2025

Mark Reichman, Managing Director, Equity Research Analyst, Natural Resources, Noble Capital Markets, Inc.

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

Reverse split. Following shareholder approval on February 14, Comstock Inc. announced a reverse split of its common stock at a ratio of 1-for-10, resulting in ~23,767,578 shares outstanding. The reverse split, effective on February 24, will not alter any stockholder’s percentage interest in the company except to the extent that it results in a shareowner owning a fractional share. Fractional shares resulting from the reverse split will be rounded up to the nearest whole share. Comstock’s authorized number of shares of common stock remains 245,000,000. LODE shares will begin trading on a split-adjusted basis when the market opens on February 25.

Greater financial flexibility. The reverse split will increase the number of shares available for issuance should the company need to raise additional capital. We think the company is making significant progress toward commercializing its Comstock Metals and Comstock Fuels businesses. Key elements are coming together for Comstock Fuels to secure project financing to build its first commercial demonstration facility. Comstock Metals currently operates a commercial demonstration facility in Silver Springs, Nevada, and is working toward an industry-scale expansion that will position the company to serve the rapidly expanding solar industry in the western United States.

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Nutriband Inc. (NTRB) – Nutriband Extends Partnership Agreement To Include Post-Approval Financial Terms

Posted on February 14, 2025February 14, 2025 by cpereira@noblefcm.com

Friday, February 14, 2025

Robert LeBoyer, Senior Vice President, Equity Research Analyst, Biotechnology, Noble Capital Markets, Inc.

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Previous Agreements Have Been Extended. Nutriband and its partner, Kindeva, have amended their development and commercialization agreement covering AVERSA Fentanyl, the abuse-deterrent transdermal fentanyl patch in development. The amendments include cost sharing and royalties on product sales. We see this as a sign that both parties are optimistic for the future of the product.

Agreement Provides For Development Cost Sharing and Royalty Payments. Nutriband and Kindeva first collaborated on a feasibility study to determine the efficacy of the AVERSA abuse-deterrent technology and its manufacturing requirements. The next agreement covered the development of manufacturing processes for commercial-scale production. The new revisions cover sharing of development costs and royalty payments on sales.

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