Author: cpereira@noblefcm.com

Hemisphere Energy (HMENF) – Second Quarter Financial Results Exceed Expectations; Increasing Estimates

Posted on by cpereira@noblefcm.com


Wednesday, August 21, 2024

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.

Second quarter financial results. Hemisphere Energy reported second-quarter net income of C$10.4 million or C$0.10 per share compared to $5.8 million or $0.06 per share during the prior year period. We had forecast net income of C$9.5 million or C$0.09 per share. Year-over-year, revenue rose 52.2% to C$28.9 million driven by an increase in average daily production to 3,628 barrels of oil equivalent per day (BOE/d) compared to 2,883 during the prior year quarter and our estimate of 3,500. The average sales price per BOE increased to C$87.65 compared to C$72.48 in the second quarter of 2023. Adjusted funds flow from operations increased to C$13.6 million compared to C$8.1 million during the prior year period.

Updating estimates. We increased our 2024 adjusted funds flow (AFF) and earnings per share (EPS) estimates to C$45.4 million and C$0.35, respectively, from C$44.3 million and C$0.34. Our revisions are driven by the better than expected second quarter financial results. Our third and fourth quarter production estimates of 3,600 and 3,775 BOE/d are unchanged. We have increased our 2025 production estimate to 3,625 BOE/d from 3,504 and raised our AFF and EPS estimates to C$42.6 million and C$0.32, respectively, from C$41.1 million and C$0.30.


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Great Lakes Dredge & Dock (GLDD) – More New Business

Posted on by cpereira@noblefcm.com


Wednesday, August 21, 2024

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.

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Recent DOD Awards. Great Lakes has been awarded over $120 million in two new contracts since August 9th, according to the Department of Defense daily contract release. We believe the additional awards highlight the amount of opportunity available to Great Lakes.

Mobile Harbor. Yesterday, Great Lakes was awarded a $65.9 million firm-fixed-price contract to deepen and widen Mobile Harbor, with an estimated completion date of April 27, 2025. Fiscal 2020 civil construction funds and fiscal 2024 civil operation and maintenance funds in the amount of $65.9 million were obligated at the time of the award. The U.S. Army Corps of Engineers, Mobile, Alabama, is the contracting activity.


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Bit Digital (BTBT) – Focused On Computing

Posted on by cpereira@noblefcm.com


Wednesday, August 21, 2024

Joe Gomes, CFA, Managing Director, Equity Research Analyst, Generalist , Noble Capital Markets, Inc.

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

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HPC Focus. Management is placing greater emphasis on the HPC segment given the near-term potential of the business, its higher margin profile, and growing pipeline of opportunity. Management continues to believe the business could obtain a $100 million annualized revenue run rate by the end of 2024.

Realization of Pipeline. The Company is adding staff in its HPC segment, including a head of sales, to realize more of the Company’s growing pipeline in the segment. It has already come to fruition with the Boosteroid agreement announcement and management noted that other potential clients are not far behind. We expect the addition of more salespeople in the near term and won’t be surprised to see more agreement announcements sooner rather than later.


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Bit Digital (BTBT) – First Look at the Second Quarter

Posted on by cpereira@noblefcm.com


Tuesday, August 20, 2024

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.

Results. Revenue for the quarter totaled $29.0 million, a 220% increase from last year of $9.0 million due to the inclusion of the HPC business. We estimated revenue of $24.9 million. Driven by an $11.5 million unrealized loss on digital assets, adjusted EBITDA was a negative $3.8 million from a positive $1.9 million last year. Net loss for the quarter was $12.0 million, or $0.09/sh, from a loss of $2.4 million, or $0.03/sh, the prior year.

A Temporary Setback. The Company’s anchor HPC client is temporarily delaying its purchase order to potentially upgrade the servers to have newer generation Nvidia GPUs. The contract may be amended to provide for the newer GPUs. We believe the delay to only be temporary as Nvidia’s new Blackwell architecture is expected to be released later in the year or in early 2025.


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GeoVax Labs (GOVX) – Raising Price Target To $10 Based On Program Progress

Posted on by cpereira@noblefcm.com


Monday, August 19, 2024

GeoVax Labs, Inc. is a clinical-stage biotechnology company developing novel therapies and vaccines for solid tumor cancers and many of the world’s most threatening infectious diseases. The company’s lead program in oncology is a novel oncolytic solid tumor gene-directed therapy, Gedeptin®, presently in a multicenter Phase 1/2 clinical trial for advanced head and neck cancers. GeoVax’s lead infectious disease candidate is GEO-CM04S1, a next-generation COVID-19 vaccine targeting high-risk immunocompromised patient populations. Currently in three Phase 2 clinical trials, GEO-CM04S1 is being evaluated as a primary vaccine for immunocompromised patients such as those suffering from hematologic cancers and other patient populations for whom the current authorized COVID-19 vaccines are insufficient, and as a booster vaccine in patients with chronic lymphocytic leukemia (CLL). In addition, GEO-CM04S1 is in a Phase 2 clinical trial evaluating the vaccine as a more robust, durable COVID-19 booster among healthy patients who previously received the mRNA vaccines. GeoVax has a leadership team who have driven significant value creation across multiple life science companies over the past several decades.

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

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

GeoVax Has Made Substantial Clinical and Manufacturing Process. We are raising our Price Target on GEOX to $10 based on the recent progress that has driven the stock through our previous $6 target. The company recently announced a DARPA grant for CM04S1 and its Phase 2 plans for Gedeptin in HNSCC. Last week, Mpox news highlighted recent advances in GeoVax’s manufacturing platform and its MVA-based vaccine for smallpox and Mpox.

Mpox News Draws Attention To GeoVax’s MVA Manufacturing Platform. On August 14, WHO declared Mpox to be a “public health emergency of international concern”, or PHEIC, due to a new type of Mpox (formerly monkeypox) spreading in West Africa. The new type is more infectious and more fatal than the type seen 2022. The previous virus spread through sexual contact (bodily fluids), while the current strain has also spread to health care workers through contact with patients’ clothing and bedding.


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Xcel Brands (XELB) – Near Term Moving Parts, But 2025 Revenue Trends Appear Favorable

Posted on by cpereira@noblefcm.com


Friday, August 16, 2024

Xcel Brands, Inc. 1333 Broadway 10th Floor New York, NY 10018 United States https:/Sector(s): Consumer Cyclical Industry: Apparel Manufacturing Full Time Employees: 84 Key Executives Name Title Pay Exercised Year Born Mr. Robert W. D’Loren Chairman, Pres & CEO 1.27M N/A 1958 Mr. James F. Haran CFO, Principal Financial & Accou

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

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

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

Q2 Results. Total company revenues of $2.95 million was in line with our $3.0 million estimate. Adj. EBITDA, which was essentially flat at a loss of $40,000, was in line with our loss estimate of $44,000. Q2 reflected sequential quarterly improvement from the Q1 adj. EBITDA loss of $1.6 million. 

A Lot of moving parts. We anticipate some noise in Q3 from the absence of Lori Goldstein’s brand. But, we expect a lift in Q4 revenue from holiday spending, particularly in Jewelry. Furthermore, the company has a lot in the pipeline; a launch of a food and kitchen products brand in Q1, expansion of Christie Brinkley’s brand, TWRHLL, including a possible launch into two big box retailers, and contributions from Halston, slated for Spring of 2025.


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Traws Pharma (TRAW) – Traws Reports 2Q24 and Gives Post-Acquisition Update

Posted on by cpereira@noblefcm.com


Friday, August 16, 2024

Onconova Therapeutics is a clinical-stage biopharmaceutical company focused on discovering and developing novel products for patients with cancer. The Company has proprietary targeted anti-cancer agents designed to disrupt specific cellular pathways that are important for cancer cell proliferation. Onconova’s novel, proprietary multi-kinase inhibitor narazaciclib (formerly ON 123300) is being evaluated in a combination trial with estrogen blockade in advanced endometrial cancer. Based on preclinical and clinical studies of CDK 4/6 inhibitors, Onconova is also evaluating opportunities for combination studies with narazaciclib in additional indications. Onconova’s product candidate rigosertib is being studied in multiple investigator-sponsored studies. These studies include a dose-escalation and expansion Phase 1/2a study of oral rigosertib in combination with nivolumab in patients with KRAS+ non-small cell lung cancer, a Phase 2 program evaluating rigosertib monotherapy in advanced squamous cell carcinoma complicating recessive dystrophic epidermolysis bullosa (RDEB-associated SCC), and a Phase 2 trial evaluating rigosertib in combination with pembrolizumab in patients with metastatic melanoma.

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

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

Operations Were Integrated During The Second Quarter. Traws Reported a 2Q24 loss of $123.1 million or $(4.87) per share, including a $117.5 million charge for in-process research and development related to the acquisition of Transfynydd. Excluding the charge, net loss would have been around $5.7 million or about $(0.22) per share. The company ended the quarter with $16.4 million in cash, which we expect to fund operations and clinical milestone announcements through the end of 2024.

Influenza Program Is In Phase 1.TRX100 (tivoxavir marboxil) is a cap-dependent endonuclease inhibitor for influenza. Inhibition of this enzyme in the influenza virus inhibits viral replication of both influenza A and B strains. Early dosing studies have shown safety and tolerability, with data to support a single oral dose for therapeutic or prophylactic use. A Phase 1 dose single-dose escalation study is currently in progress.


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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. 

QuoteMedia Inc. (QMCI) – Revenue Remains Lackluster

Posted on by cpereira@noblefcm.com


Friday, August 16, 2024

QuoteMedia is a leading software developer and cloud-based syndicator of financial market information and streaming financial data solutions to media, corporations, online brokerages, and financial services companies. The Company licenses interactive stock research tools such as streaming real-time quotes, market research, news, charting, option chains, filings, corporate financials, insider reports, market indices, portfolio management systems, and data feeds. QuoteMedia provides industry leading market data solutions and financial services for companies such as the Nasdaq Stock Exchange, TMX Group (TSX Stock Exchange), Canadian Securities Exchange (CSE), London Stock Exchange Group, FIS, U.S. Bank, Broadridge Financial Systems, JPMorgan Chase, CI Financial, Canaccord Genuity Corp., Hilltop Securities, HD Vest, Stockhouse, Zacks Investment Research, General Electric, Boeing, Bombardier, Telus International, Business Wire, PR Newswire, FolioFN, Regal Securities, ChoiceTrade, Cetera Financial Group, Dynamic Trend, Inc., Qtrade Financial, CNW Group, IA Private Wealth, Ally Invest, Inc., Suncor, Virtual Brokers, Leede Jones Gable, Firstrade Securities, Charles Schwab, First Financial, Cirano, Equisolve, Stock-Trak, Mergent, Cision, Day Trade Dash and others. Quotestream®, QModTM and Quotestream ConnectTM are trademarks of QuoteMedia. For more information, please visit www.quotemedia.com.

Michael Kupinski, Director of Research, Equity Research Analyst, Digital, Media & Technology , 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.

Weak Q2 Results. The company reported revenue of $4.7 million and adjusted EBITDA of $0.5 million, lighter than our estimates of $5.0 million and $0.9 million, respectively. Figure #1 Q2 Variance highlights the company’s results against our expectations. Revenues stayed flat from the first quarter and decreased by 1.0% from the year earlier Q2 2023. 

Lackluster revenue outlook. Management indicated the lackluster revenue trends appear to be continuing into the third quarter in spite of a building pipeline of business. We believe that the company is being buffeted by clients switching to cheaper data alternatives (although this is low margin business) and lower volumes. 


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InPlay Oil (IPOOF) – Updating Estimates to Reflect Revised Guidance

Posted on by cpereira@noblefcm.com


Friday, August 16, 2024

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.

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

Second quarter financial results. InPlay Oil reported second quarter net income of C$5.4 million or C$0.06 per compared to C$4.3 million or C$0.05 per during the prior year period. We had forecast net income of C$3.6 million or C$0.04 per share. Average quarterly production increased 2.2% to 8,657 barrels of oil equivalent per day (boe/d) compared to 8,474 in the second quarter of 2023.

Corporate guidance. InPlay trimmed its 2024 production guidance to a range of 8,700 to 9,000 boe/d from 9,000 to 9,500, and lowered expectations for crude oil prices. Lower production reflects foregone production from a Glauconite well that was drilled but experienced casing failure, downtime, and a decision to bring wells on later in the year. Expense guidance is mostly unchanged on a dollar per barrel of oil equivalent basis. Adjusted funds flow is expected to be in the range of C$80 million to C$85 million compared to prior guidance of C$90 million to C$97 million.


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Conduent Inc. (CNDT) – Nearing the Trough, Looking Towards the Future

Posted on by cpereira@noblefcm.com


Friday, August 16, 2024

Patrick McCann, CFA, Research Analyst, Noble Capital Markets, Inc.

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

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

Q2 beat. The company delivered solid Q2 with revenue of $828 million, slightly better than our forecast of $812 million, and adj. EBITDA of $35 million, 84% better than our estimate of $19 million. Importantly, we believe the company is nearing the trough of its operating results as its divestiture activity appears to be winding down.

Favorable trends emerging. Importantly, the Commercial segment, the company’s largest by revenue, appears to be trending positively. Management highlighted that new business signings rebounded in Q2. Additionally, the Transportation segment is positioned for sequential revenue growth in the back half of the year, buoyed by a large contract in Australia.


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Xcel Brands (XELB) – Its Transformation Appears To Be Working

Posted on by cpereira@noblefcm.com


Thursday, August 15, 2024

Xcel Brands, Inc. 1333 Broadway 10th Floor New York, NY 10018 United States https:/Sector(s): Consumer Cyclical Industry: Apparel Manufacturing Full Time Employees: 84 Key Executives Name Title Pay Exercised Year Born Mr. Robert W. D’Loren Chairman, Pres & CEO 1.27M N/A 1958 Mr. James F. Haran CFO, Principal Financial & Accou

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

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

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

In line Q2. Total company revenues of $2.95 million was in line with our $3.0 million estimate. Adj. EBITDA, which was essentially flat at a loss of $40,000 was in line with our loss estimate of $44,000. See Figure #1 Q2 Results for highlights. Q2 reflected sequential quarterly improvement from the Q1 adj. EBITDA loss of $1.6 million. 

Behind the numbers. In our view, the recent results reflect the company’s progress toward its high margin licensing model. But, the quarter also reflected the revenue from Lori Goldstein, which was sold on June 30. As such, Q3 will reflect the absence of revenue from that brand. Notably, the company’s developing brands, Christie Brinkley and C. Wonder, appear to be performing well and may offset a large portion of the anticipate revenue impact. 


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Unicycive Therapeutics (UNCY) – 2Q24 Reported With Guidance For NDA Submission By End Of August

Posted on by cpereira@noblefcm.com


Thursday, August 15, 2024

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

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

OLC Data and NDA Dominated 2Q24. Unicycive reported 2Q24 income of $3.0 million or $0.08 per share and a loss of $(0.15) on a fully diluted basis. Loss from operations for 2Q24 was $7.4 million, with a gain of $16.8 million from the change in fair value of warrant conversion. This offsets a charge of $11.8 million in 1Q24, bringing the six-month total for fair value of warrant conversion to $5.0 million. Cash on June 30 was $41.8 million, which we expect to fund operations into 2H25.

Pivotal Study Met Its Endpoints and Showed Patients Reaching Target Levels. As discussed in our Research Note on June 26, Unicycive reported results from its OLC pivotal study met its tolerability and safety endpoints with data that compares favorably with Fosrenol (lanthanum carbonate). Over 90% of the patients were able to lower their serum phosphate to target levels, with 70% reaching target at the lowest dose tested. We believe these results could make OLC highly competitive in the marketplace.


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SKYX Platforms (SKYX) – Setting the Table for Future Revenue Growth

Posted on by cpereira@noblefcm.com


Thursday, August 15, 2024

Patrick McCann, CFA, Research Analyst, Noble Capital Markets, Inc.

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

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

Execution on target. The company reported a solid quarter, in line with our revenue estimate and better than our adj. EBITDA loss estimate. Q2 revenue was $21.4 million, roughly in line with our estimate of $22.0 million, while an adj. EBITDA loss of $2.1 million was better than our forecast of a loss of $4.0 million. In our view, the sequential revenue growth, coupled with a diminishing cash burn should serve as a favorable indicator of the company’s ability to execute its growth strategy, while targeting a swing towards profitability in 2025.  

Expanding distribution channels. Recently, the company announced that its products would become available at Home Depot. Products are already live on Home Depot’s website and various products are expected to arrive in a select number of stores in the coming months. We view this as a significant expansion that furthers the company’s ability to reach both the retail and professional channels at scale. As such, we believe the inclusion of SKYX products at Home Depot could accelerate revenue growth in both customer verticals.


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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.