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Release – Comtech Telecommunications (CMTL) – Awarded $2.8 Million Contract for High-Power Amplifier Systems

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Comtech Telecommunications Corp. Awarded $2.8 Million Contract for High-Power Amplifier Systems

 

MELVILLE, N.Y.–(BUSINESS WIRE)–Feb. 23, 2021– February 23, 2021–Comtech Telecommunications Corp. (NASDAQ: CMTL) announced today, that during its second quarter of fiscal 2021, its New York-based subsidiary, Comtech PST Corp., which is part of Comtech’s Government Solutions segment, was awarded a $2.8 million contract for high-power amplifier systems from an international prime contractor.

These very broad frequency band amplifier systems, which utilize the latest in solid-state GaN transistor technology, will be incorporated into electronic warfare systems. This order supplements an installed base of Comtech solid-state high-power amplifiers previously delivered to this international prime contractor.

Commenting on this award, Fred Kornberg, Chairman of the Board and Chief Executive Officer of Comtech Telecommunications Corp. said, “This order clearly demonstrates our continued leadership position in providing electronic warfare transmitter technology and the ongoing demand for our high-power broadband amplifiers that are utilized by major electronic warfare application programs in both domestic and international markets.”

Comtech PST Corp. (www.comtechpst.com) is a leading independent supplier of broadband, high-power, high performance RF microwave amplifiers and control components for use in a broad spectrum of applications including defense, medical, satellite communications systems and instrumentation.

Comtech Telecommunications Corp. designs, develops, produces, and markets innovative products, systems and services for advanced communications solutions. The Company sells products to a diverse customer base in the global commercial and government communications markets.

Certain information in this press release contains statements that are forward-looking in nature and involve certain significant risks and uncertainties. Actual results could differ materially from such forward-looking information. The Company’s Securities and Exchange Commission filings identify many such risks and uncertainties. Any forward-looking information in this press release is qualified in its entirety by the risks and uncertainties described in such Securities and Exchange Commission filings.

Media Contact:
Michael D. Porcelain, President and Chief Operating Officer
631-962-7000

[email protected]

Source: Comtech Telecommunications Corp.

QuickChek – February 23, 2021

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Newrange Intersects New High-Grade Gold Zone at Pamlico

Newrange Gold announced that continued Reverse Circulation (RC) drilling at the Pamlico Project in Nevada has discovered high-grade, oxide gold mineralization approximately 85 meters east of the Merritt Zone.

Research, News & Market Data on Newrange Gold


Watch recent presentation from NobleCon17



Comtech Telecommunications Awarded $2.8 Million Contract for High-Power Amplifier Systems

Comtech Telecommunications announced that during its second quarter of fiscal 2021, its New York-based subsidiary, Comtech PST Corp., was awarded a $2.8 million contract for high-power amplifier systems from an international prime contractor.

Research, News & Market Data on Comtech Telecommunications


Watch recent presentation from NobleCon17



electroCore Announces Two-Year Extension of gammaCore(TM) Listing in the NHS Supply Chain Catalogue

electroCore announced that gammaCore will continue to be listed in the NHS Supply Chain catalogue for an additional two years through June 3, 2023.

Research, News & Market Data on electroCore

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Release – electroCore (ECOR) – Announces Two-Year Extension of gammaCore(TM) Listing in the NHS Supply Chain Catalogue

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electroCore Announces Two-Year Extension of gammaCore(TM) Listing in the NHS Supply Chain Catalogue

 

Extension maintains listing through June 3, 2023

ROCKAWAY, N.J., Feb. 23, 2021 (GLOBE NEWSWIRE) — electroCore, Inc. (Nasdaq: ECOR), a commercial-stage bioelectronic medicine company, announced today that gammaCore will continue to be listed in the NHS Supply Chain catalogue for an additional two years through June 3, 2023. The original listing, which commenced on June 4, 2019, was scheduled to terminate on June 3, 2021.

“We are pleased that this extension will allow NHS trusts and healthcare organizations the option to continuously procure gammaCore Sapphire™ (nVNS) through the NHS Supply Chain online catalogue for an additional two years,” stated Iain Strickland, Vice President of European Operations at electroCore. “Importantly, inclusion in this catalogue helps ensure gammaCore therapy is broadly accessible to patients across the UK who may benefit from non-invasive vagus nerve stimulation.”

The role of the NHS Supply Chain is to help the NHS deliver clinically assured, quality products at the best value to its patients. The inclusion of gammaCore in the catalogue allows hospitals to purchase gammaCore Sapphire™ for their primary headache patients, taking into account their own budgetary restrictions. The listing of gammaCore Sapphire™ as an e-Direct product marks a key milestone in the Company providing its medical technologies to UK patients, in an easier, cost-effective way.

About electroCore, Inc.

electroCore, Inc. is a commercial stage bioelectronic medicine company dedicated to improving patient outcomes through its platform non-invasive vagus nerve stimulation therapy initially focused on the treatment of multiple conditions in neurology. The company’s current indications are the preventative treatment of cluster headache and migraine and acute treatment of migraine and episodic cluster headache.

For more information, visit www.electrocore.com.

About gammaCore TM

gammaCore TM (nVNS) is the first non-invasive, hand-held medical therapy applied at the neck as an adjunctive therapy to treat migraine and cluster headache through the utilization of a mild electrical stimulation to the vagus nerve that passes through the skin. Designed as a portable, easy-to-use technology, gammaCore can be self-administered by patients, as needed, without the potential side effects associated with commonly prescribed drugs. When placed on a patient’s neck over the vagus nerve, gammaCore stimulates the nerve’s afferent fibers, which may lead to a reduction of pain in patients.

gammaCore is FDA cleared in the United States for adjunctive use for the preventive treatment of cluster headache in adult patients, the acute treatment of pain associated with episodic cluster headache in adult patients, and the acute and preventive treatment of migraine in adolescent (ages 12 and older) and adult patients. gammaCore is CE-marked in the European Union for the acute and/or prophylactic treatment of primary headache (Migraine, Cluster Headache, Trigeminal Autonomic Cephalalgias and Hemicrania Continua) and Medication Overuse Headache in adults.

  • gammaCore is contraindicated for patients with:
    • An active implantable medical device, such as a pacemaker, hearing aid implant, or any implanted electronic device
    • A metallic device, such as a stent, bone plate, or bone screw, implanted at or near the neck
    • An open wound, rash, infection, swelling, cut, sore, drug patch, or surgical scar(s) on the neck at the treatment location
  • Safety and efficacy of gammaCore have not been evaluated in the following patients:
    • Patients diagnosed with narrowing of the arteries (carotid atherosclerosis)
    • Patients who have had surgery to cut the vagus nerve in the neck (cervical vagotomy)
    • Pediatric patients (younger than 12 years)
    • Pregnant women
    • Patients with clinically significant hypertension, hypotension, bradycardia, or tachycardia

Forward-Looking Statements

This press release and other written and oral statements made by representatives of electroCore may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements include, but are not limited to, statements about electroCore’s business prospects and clinical and product development plans; its pipeline or potential markets for its technologies; the timing, outcome and impact of regulatory, clinical and commercial developments; the business, operating or financial impact of such studies; the commercial potential of nVNS generally and gammaCore in particular in the UK and other statements that are not historical in nature, particularly those that utilize terminology such as “anticipates,” “will,” “expects,” “believes,” “intends,” other words of similar meaning, derivations of such words and the use of future dates. Actual results could differ from those projected in any forward-looking statements due to numerous factors. Such factors include, among others, the ability to raise the additional funding needed to continue to pursue electroCore’s business and product development plans, the inherent uncertainties associated with developing new products or technologies, the ability to commercialize gammaCore™, the potential impact and effects of COVID-19 on the business of electroCore, electroCore’s results of operations and financial performance, and any measures electroCore has and may take in response to COVID-19 and any expectations electroCore may have with respect thereto, competition in the industry in which electroCore operates and overall market conditions. Any forward-looking statements are made as of the date of this press release, and electroCore assumes no obligation to update the forward-looking statements or to update the reasons why actual results could differ from those projected in the forward-looking statements, except as required by law. Investors should consult all of the information set forth herein and should also refer to the risk factor disclosure set forth in the reports and other documents electroCore files with the SEC available at www.sec.gov.

Investors:
Hans Vitzthum
LifeSci Advisors
617-430-7578

[email protected]

Media Contact:
Jackie Dorsky
electroCore

973-290-0097

[email protected]

SOURCE: electroCore

Small Cap Names in a Big Crypto Market

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Owning Bitcoin isn’t the Only Way to Invest in a Burgeoning Cryptocurrency Market

 

Bitcoin (BTC) in circulation just exceeded one trillion ($USD) in value.  Dogecoin (DOGE) is “heading to the moon” thanks to a strong Reddit community of investors and a few tweets from Elon Musk. In its short history, cryptocurrency has already made an impact on global markets.  And the investment community has taken notice.  Since you’re on Channelchek, you might be looking for the next outperformer like Bitcoin.  Does the lovable Shiba-Inu inspired crypto-coin that was started as a joke (DOGE) have the staying power to reach the stratosphere?  Time will tell.  But the direct holding of cryptocurrency isn’t the only way to benefit from its growth. Currency exchange platforms, blockchain providers, and crypto mining companies all represent their own unique investment opportunities.

Blockchain

Blockchain is the platform that serves as the backbone of cryptocurrency.  In the simplest terms, blockchain is a public electronic ledger.  Built around a peer-to-peer (P2P) system, multiple users create a series of records in the ledger.  These entries may be infinitely amended over time, but each entry is unchangeable.  This process creates complete transactional transparency. Every entry, and amendment, can be verified based on this transparency, and every entry is approved by consensus between the participants in the chain.  Basically, this platform has created an accounting ledger with no eraser and a nearly infinite supply of auditors.

While blockchain is still technically in its infancy, and its level of global adoption in the future is still in question, it has certainly gained traction in the past five years.  Beyond the rise in cryptocurrency popularity, larger public companies have implemented their own private blockchain systems to track internal processes, such as produce from farm to store (Wal-Mart) and diamonds from mine to authenticator to distributor (De Beers). 

 

Taal Distributed Information Technologies (TAALF)

TAAL Distributed Information Technologies is a company that provides a wide range of Blockchain/Crypto-related services, including transaction processing, pool management, data storage solutions, and blockchain computing. Their primary focus is on the global adoption of Bitcoin SV (original Bitcoin). TAAL’s vision is ‘New Innovations for the New Economy.”

TAAL recently announced a successful first phase deployment of blockchain computer power at their Alberta facility.  Part of their 2021 strategy, this first phase helps TAAL support transaction volume growth and meet scalability requirements, providing the computing power needed for enterprise clients to achieve business advantages using their processing services.   “We are pleased to mark this important first step in reaching our operational infrastructure milestone for 2021. Despite the global pandemic challenges, we have successfully begun TAAL’s next-generation blockchain infrastructure operations in Alberta, Canada on schedule. This brings online, trusted, compliant blockchain transaction solutions for global enterprise clients”, commented TAAL CEO, and Executive Chairman, Stefan Matthews,.

TAALF’s stock has experienced a nearly 500% increase over the past three months, reaching a 52 week high on February 18, 2021.

 

DMG Blockchain Solutions 
(DMGGF)

Straddling blockchain and mining sectors of crypto, DMG is a diversified cryptocurrency and blockchain platform company.  In the blockchain space, they offer a permissioned blockchain technology focused on developing enterprise software for supply chain management.  Other company focal areas include crypto mining, hosting services for mining clients, transaction fees, and data analytics. 

In January, DMG joined Marathon Patent Group (MARA) to launch North America’s first cooperative mining pool, Digital Currency Miners of North America (DCMNA).  The goal of DCMNA is to create North America’s first cooperative mining pool, and to help improve their financial performance.  As part of their role in this agreement, DMG will provide their patent-pending technologies to create transaction blocks that omit transactions identified as risky and those that might not meet OFAC standards. 

DMGGF has seen a substantial increase in share price over the past 3 months, reaching a 52 week high in February of 2021, trading at an average of over 3 million shares per day over the past 3o days.

 

HIVE Blockchain Technologies  (HVBTF)

Shareholders of HIVE Blockchain Technologies, Ltd. own a pure-play blockchain investment.  HIVE creates newly minted cryptocurrencies continuously on the cloud through their data center facilities in Canada, Sweden, and Iceland.

HIVE recently announced plans to expand their Ethereum footprint by 30% using 6MW of green energy to mine. This expansion involves a $9M investment in GPU chips and associated mining computers and refitting their Sweden facility.  As part of the announcement, HIVE proclaimed they would continue to “utilize cash flow to make opportunistic investments in ASIC and GPU new and next-generation mining equipment that can provide positive gross mining margins.”

HVBTF has seen a 500% increase in share price over the past 3 months, resting at a 52 week high in February 2021.

 

 

Cryptocurrency Mining

Cryptocurrency mining is a process where a computer (or a group of computers) complete a series of math equations as a computational task, generally processing other cryptocurrency transactions.  In exchange for their assistance in performing these tasks, the “miners” are rewarded cryptocurrency.  This process is akin to credit card processing fees.  The various frameworks required to process a credit card transaction, from bank fees to computational requirements, lead to transaction fees.  Generally, these fees are passed on to the merchant.  In cryptocurrency mining, the miners take on some of these computational requirements, allowing merchants to absorb a lower fee.

While home users can use their own PCs and electricity to participate in crypto mining, the payoff is generally small, and not outweighed by electricity and equipment cooling costs.  This is especially true as transaction processing demands increase.  In modern-day crypto-mining the majority of the work is done by data farms – large data rooms filled with GPU-rich computers with the single purpose of processing transactions.  (profit potential)

 

Hut 8 Mining Corp  (HUTMF)

Hut 8 Mining Corp focuses entirely on Bitcoin mining, operating 56 BlackBox datacenters (all operating at a maximum capacity of 65 MW) in Medicine Hat, Alberta, and another 38 operating at 42MW in Drumheller, Alberta. Hut 8 aims to provide a secure and simple way to invest directly in bitcoin.

In February 2021, they reached a milestone of 400 minters installed, following the scheduled delivery of the first batch of 5400 machines ordered in January 2021.   “Guaranteeing our access to new, cutting-edge mining equipment while market demand greatly outweighs supply has solidified our position as one of the only miners operating at full capacity, taking full advantage of today’s economics,” said Jaime Leverton, CEO, Hut 8.

In the past three months, HUTMF has surged over 800%, trading at a 30-day average of over 2M shares/day. 

 

Marathon Patent  Group  (MARA)

Marathon Patent Group is a digital asset company and one of the first Nasdaq-listed Cryptocurrency mining companies.  Marathon mines cryptocurrencies, with a focus on the blockchain ecosystem.  They currently operate a proprietary mining facility operating at 105 MW in Montana, as well 2000+ ASIC Bitcoin Miners at a co-hosted facility in North Dakota.

Marathon recently announced that 4000 miners had shipped from Bitmain to their Montana facility.  Once installed, their mining fleet will consist of over 6500 miners.  “This shipment of 4,000 S-19 Pro miners is the first of many we will be receiving from Bitmain in 2021 as we build towards becoming one the largest and most efficient miners in North America,” said Merrick Okamoto, Marathon’s chairman, and CEO.

Over the last 90 days, MARA has increased from just over $3.00/share to a February 19th closing price of $43.27. 

 

Voyager Digital (VYGVF)

Voyager Digital allows users to build their cryptocurrency portfolio by facilitating the purchase and trade of over 50 digital assets through the platform, which includes an app for Apple and Android smartphones.  Voyager offers users a layer of security with advanced fraud protection and FDIC insurance up to $250,000. 

Recent mergers and acquisitions have brought Voyager more users and have fueled high growth over the past few months.  Voyager recently announced that assets under management had surpassed $1.1 billion ($USD), up 500% from $230 million at the close of 2020.  “Voyager could not have reached this important milestone of AUM exceeding $1 billion without the support of our loyal community.  With our recent capital raises in 2021 totaling US$146 million and our strong cash balance of approximately US$156 million, Voyager is better positioned than ever to grow our team, expand internationally and offer new exciting products to our users. We thank all of our stakeholders for their support on this momentous occasion,” said Stephen Ehrlich, Co-founder, Director and CEO of Voyager.

VYGVF has jumped from just under $1/share in mid-November 2020 to over $15/share in mid-February, with daily volume steadily increasing over the same period.

 

Currency Exchanges

A cryptocurrency exchange is a platform that facilitates the exchange of cryptocurrencies for other assets, generally cash.  As in the exchange of any other currencies, the cryptocurrency exchange platform makes money through fees for acting as the intermediary. 

The majority of current cryptocurrency exchanges are centralized.  Centralized exchanges are backed and controlled by a company and provide security and stability for users on both ends of the transaction.  Still, and often because of the transactional fees associated with a centralized exchange, some users prefer a decentralized exchange, which allows for direct peer-to-peer transactions. 

 

Take-Away

Direct ownership of cryptocurrency is not the only way to gain exposure to what has been a growing and lucrative play. Technology companies that either mine or provide crypto or blockchain services would allow an equity investment in companies that stand to benefit from the increased acceptance and speculation in cryptocurrencies.

Channelchek can serve as an excellent resource to mine ideas and develop an understanding of small and microcap companies that could benefit from crypto growth.

The sectors and companies mentioned in this article represent a small sample of the various investment opportunities in the world of cryptocurrencies.  While recent results look positive, you should always know the risk before investing.  No investment decision should be made solely on this or any one article you read.  You are solely responsible for deciding whether any investment or transaction is suitable for you based upon your investment goals, financial situation, and tolerance for risk. You must seek independent professional advice to ascertain the investment, legal, tax, accounting, regulatory or other consequences before investing or transacting.

 

Suggested Reading:

Is the Small Firm Effect for Microcaps Real?

Interest Rate Impact on Investment Sectors

The Fed and MIT are Experimenting with Digital Currency

 

Sources:

https://www.computerworld.com/article/3191077/what-is-blockchain-the-complete-guide.html

https://www.taal.com/news/taal-alberta-facility-blockchain-computer-power/

https://www.globenewswire.com/fr/news-release/2021/01/05/2153647/0/en/Marathon-Patent-Group-and-DMG-Blockchain-Solutions-to-Form-the-Digital-Currency-Miners-of-North-America-DCMNA-and-Launch-North-America-s-First-Cooperative-Mining-Pool.html

https://www.hiveblockchain.com/news/hive-blockchain-announces-plans-to-expand-ethereum-footprint-by-30-using-6-mw-of-green-energy-to-mine-ethereum/

https://www.bitdegree.org/crypto/tutorials/how-to-mine-cryptocurrency

https://hut8mining.com/hut-8-equips-up-ready-to-match-the-momentum-of-bitcoin-adoption-with-the-successful-installation-of-its-first-batch-of-mining-equipment-on-schedule

https://www.marathonpg.com/news/press-releases/detail/1226/bitmain-ships-4000-antminer-s-19-pro-asic-miners-to

https://corporatefinanceinstitute.com/resources/knowledge/other/cryptocurrency-exchanges/

https://cointelegraph.com/news/voyager-token-vgx-gains-926-as-mergers-and-acquisitions-bring-new-users

https://www.investvoyager.com/pressreleases/voyager-digital-announces-assets-under-management-surpass-ususd1-1-billion

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Release – Newrange Gold (NRGOF)(NRG:CA) – Newrange Intersects New High-Grade Gold Zone at Pamlico

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NRG 2021-02-23 Newrange Intersects New High-Grade Gold Zone at Pamlico_ Drills 12.47 grams per tonne Au over 4.5 meters

 

VANCOUVER, BRITISH COLUMBIA, February 23, 2021 (TSXV: NRG, US: NRGOF, Frankfurt: X6C) – Newrange Gold Corp. (“Newrange” or the “Company”) is pleased to announce that continued Reverse Circulation (RC) drilling at the Pamlico Project in Nevada has discovered high-grade, oxide gold mineralization approximately 85 meters east of the Merritt Zone. Hole P21-115, drilled at -60°, intersected several high-grade structures assaying up to 22.35 grams gold per metric tonne (g/t Au) over 1.5 meters surrounded by lower grade halos, very similar in nature to the Merritt Zone itself.

The uppermost zone of gold mineralization starts at 15.2 meters downhole, returning 4.38 g/t Au over 13.7 meters, including 12.47 g/t Au over 4.5 meters from 16.77 to 21.34 meters. Other high-grade intervals of note include 5.52 g/t Au over 7.62 meters from 92.99 to 100.61 meters, including 22.35 g/t Au from 94.51 to 96.04, and 13.01 g/t Au over 1.5 meters from 123.48 to 125.00 meters. The rocks between these zones are variably mineralized such that the entire 123.5 meter interval averages 1.13 g/t Au. All mineralization is within 117 meters of surface.

It is not yet clear if this new zone is continuous with the Merritt Zone, which was previously thought to have been cut off to the east in the direction of hole P21-115. A follow-up drill program is being planned in order to determine the attitude, size and true width of the new zone which remains open to the north and east and to depth. This new mineralized zone is completely oxidized and, being so close to surface, is well within common open-pit mining limits.

“The discovery of more high-grade gold mineralization close to the Merritt Zone is an exciting development and appears to validate our hypothesis that multiple high-grade zones surrounded by halos of lower grade exist over a much broader area,” stated Robert Archer, Newrange’s CEO. “While historic mining may have removed some gold from the hills, we are confident that other, buried zones remain to be found. Our new, intrusive-related exploration model is being validated by drill-testing of Induced Polarization (IP) targets and the extension of the geophysical survey to cover the entire property is indicating that the entire system may be several kilometers in size.”

Refining the Model

A good exploration model comprises both empirical (fact-based) and genetic (theoretical) components. As field work progresses, data are fed into the model and it is constantly being refined in an iterative manner in order to maximize the odds of success. Given the association of gold mineralization with pyrite at Pamlico and the depth of oxidation, IP has been critical in detecting remnant pyrite below the oxidation level that could give clues as to the distribution and even the origin of the pyrite-gold mineralization. To this end, the RC drill holes targeting shallow IP anomalies in the ‘Line 5 area’ of the property have confirmed the presence of fine-grained pyrite and a relatively flat-lying series of ‘stacked’ zones of gold mineralization.

Drill holes P20-111 and 112 and P21-113 and 116 were all drilled in the area of hole P20-091 that first detected the gold-pyrite association near the western margin of the large ‘Line 5’ IP anomaly (see Newrange news release for December 1, 2020). These holes have now collectively defined gold mineralization starting at a consistent vertical depth of 110-120 meters and, in most cases, continuing to the bottom of the holes. The mineralization appears to be consistent over a distance of at least 200 meters east-west but has only been defined over a distance of about 50 meters in a north-south direction. Gold grades and intercept lengths appear to be increasing to the east, towards the ‘main’ chargeability anomaly. The uppermost zone ranges in thickness from 30 to 80 meters and higher-grade sections are typically found at or near the upper and/or lower boundaries. Individual 1.5 meter samples attain grades of up to 3.83 g/t Au while thicker intervals include 0.75 g/t Au over 18 meters within 0.4 g/t Au over 50.3 meters in hole P20-091 and 0.58 g/t Au over 35 meters in hole P20-111. Several other flat-lying zones exist below this in the 0.25-0.35 g/t Au range over thicknesses of 4.5 to 21.0 meters.

As this is the first time that this style of mineralization has been found on the property, it is unknown whether these grades and thicknesses are representative but the continuity of the mineralization and the apparent increase in grade towards an anomaly that is at least 1,000 meters north-south and hundreds of meters wide is very encouraging. Two vertical holes, P21-120 and P21-121, recently drilled from the top of the limestone ridge overlying the main anomaly were successful in penetrating the limestone into the underlying volcanic rocks. The latter contain disseminated pyrite in both holes and copper mineralization was observed in hole P21-121. Assays are pending for both of these holes.

Geophysics

The current IP survey being conducted at Pamlico when combined with the Company’s 2019 IP survey will cover the entire property, including the target area known as the Skarn Zone. As previously noted, gold bearing skarn systems form some of the largest and most important deposits in the world and some of the most important are found in Nevada, including at Battle Mountain, Carlin, Cove-McCoy, and many other districts.

A large chargeability anomaly extending more than 2.5 kilometers north-south and at least a kilometer east-west has been detected in the vicinity of the Skarn Zone and may be reflecting sulfides introduced by the same system that caused the skarn alteration of the overlying limestones. It is important to note that this anomaly appears to be entirely separate from the ‘Line 5 anomaly’ currently being drill-tested. A full interpretation of the combined IP survey is expected within about three weeks and the Company will release the results at that time.

Next Steps

With the discovery of additional high-grade gold mineralization so close to the Merritt Zone, a follow-up program of RC drilling is being prepared to delineate this new zone. Bids for a diamond drilling program are being evaluated and a contractor will be chosen in the next few days. At present, a minimum of 5 holes are contemplated in approximately 2,000 meters to test the deep chargeability anomaly in the 2019-2020 IP survey and to test the new anomaly in the Skarn area. It is likely that this program will be expanded once underway as the current IP survey is completed and interpreted and as assay results for holes P21-120 and 121 are received. Diamond drilling is anticipated to begin in approximately three weeks.

Quality Assurance – Quality Control

Mr. Robert G. Carrington, P. Geo, a Qualified Person as defined by National Instrument 43-101, the President and Chairman of the Company, has reviewed, verified and approved for disclosure the technical information contained in this news release. All drilling was conducted by Reverse Circulation (RC) methods using a five inch diameter center return bit. All drilling was supervised by professional geologists. Samples were collected on 1.5 meter (5 foot) intervals. Drill cuttings were captured in a vacuum augmented, closed system cyclone, then riffle split in a three-tiered Jones-type splitter. Samples were then securely stored and delivered to Paragon Geochemical Laboratories in Sparks, Nevada for sample preparation and analysis. Samples were dried then stage crushed to 80% passing 10 mesh. A 300 gram sub-sample was then split out and pulverized to 90% passing 140 mesh from which 1 Assay Ton, approximately 30 gram samples were split for analysis by fire assay (FA) with an OES finish. Samples assaying in excess of 5 g/t Au were re-assayed by fire assay with a gravimetric finish. Silver was determined by fire assay with an atomic absorption finish. In addition to the QA – QC conducted by the laboratory, the Company inserts blanks, standards and certified reference material (CRM) at a rate of not less than 1 in 20. Duplicate samples are collected for all drill samples. Duplicate samples are submitted at a rate of 1in 40.

About Pamlico

Discovered in 1884, the Pamlico District rapidly gained a reputation as being one of Nevada’s highest-grade districts. Held by private interests for most of its history, the property remains underexplored in terms of modern exploration. A new geological model being developed for the Pamlico Project by Newrange suggests that past production may be just the exposed manifestation of a much larger, and mostly buried, gold-bearing system.

Located 12 miles southeast of Hawthorne, Nevada, along US Highway 95, the project enjoys excellent access and infrastructure, a mild, year-round operating climate and strong political support from Mineral County, one of the most pro-mining counties in the pro-mining state of Nevada.

About Newrange Gold Corp.

Newrange is a precious metals exploration and development company focused on near to intermediate term production opportunities in favorable jurisdictions including Nevada, Ontario and Colorado. With numerous drill intercepts of near surface oxide gold mineralization to 340 grams gold per metric tonne, the Company’s flagship Pamlico Project is poised to become a significant new Nevada discovery. Focused on developing shareholder value through exploration and development of key projects, the Company is committed to building sustainable value for all stakeholders. Further information can be found on our website at www.newrangegold.com.

Signed: “Robert Archer”
CEO & Director

For further information contact:

Sharon Fleming
Corporate Communications
Phone: 760-898-9129
Email: [email protected]

Dave Cross
Chief Financial Officer and Corporate Secretary
Phone: 604-669-0868
Email: [email protected]

Website: www.newrangegold.com

Neither the TSX Venture Exchange nor the Investment Industry Regulatory Organization of Canada accepts responsibility for the adequacy or accuracy of this release.

Forward-Looking Statement: Some of the statements in this news release contain forward-looking information that involves inherent risk and uncertainty affecting the business of Newrange Gold Corp. Actual results may differ materially from those currently anticipated in such statements.

SOURCE: Newrange Gold

One Stop Systems Inc. (OSS) – Moving to Market Perform on Price Appreciation

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Monday, February 22, 2021

One Stop Systems Inc. (OSS)
Moving to Market Perform on Price Appreciation

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

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

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

    Market Perform. We are moving to a Market Perform on OSS from a previous Outperform rating and removing our $6 price target. Following a strong run up in the stock price in 4Q20, we raised our target price to $6 from $4 on January 8th. While we continue to be big believers in the One Stop story and the vast potential of its position within the High Performance Computing and AI spaces, it appears to us the stock has gotten ahead of itself.

    A Rocket Ship.  Just for background, OSS shares began trading October 1st at $2.10 and hit the $3 level on December 11th. On the majority of these days, ADV traded less than 200,000 shares. OSS shares hit $4, then $5 on December 20th. Since the beginning of February, the shares climbed from $3.80 to Friday’s closing price of $8.28. And, in the 14 trading days in February, ADV was over one million …



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. 

QuoteMedia (QMCI) – Setting The Table For A Strong 2021

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Monday, February 22, 2021

QuoteMedia (QMCI)
Setting The Table For A Strong 2021

QuoteMedia, based in Fountain Hills, Arizona, provides cloud-based financial data, market news feeds, and financial software solutions.  Its customers include financial service companies, online brokerages, clearing firms, banks, media portals, public corporations and individual investors.  The company provides a single source solution providing products such as streaming quotes, charting, historical data, technical analysis, news and research.  Information can customized and provided to multiple platforms including terminals and mobile devices.

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

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

    Prospect of landing a big fish improves. We believe that the recently added new product feature sets and sourcing its own data should allow the company to compete for larger clients, more terminals, more usage. This provides the prospect for an acceleration in revenue growth to strong double digits growth, which would be expected for a company of this size, with improving margins.

    Q4 preview.  Q4 is likely to have a hangover from Covid related noise, including the prospect for higher bad debt expenses and expense accruals. As such, the improving revenue and cash flow trends that we originally thought would become evident may be masked by non recurring items. We are lowering our Q4 revenue estimate from $3.475 million to $3.275 million and our cash flow (adj. EBITDA) estimate …



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. 

The GEO Group, Inc. (GEO) – Tapping Market for $200 Million in Exchangeable Bonds

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Monday, February 22, 2021

The GEO Group, Inc. (GEO)
Tapping Market for $200 Million in Exchangeable Bonds

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

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

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

    Bond Offering. Late last week The GEO Group announced an offering of $200 million of senior unsecured notes due 2026. The notes will be sold to qualified institutional investors. There is the potential for an additional $30 million for over-allotments. Net proceeds, $192 million or $221.1 million if the full over-allotment is exercised, will be used to repurchase the 5.875% notes due 2022, of which there was $193.9 million outstanding as of yearend.

    Terms.  The new notes will bear interest at an annual rate of 6.5%, plus an additional amount based on the dividends paid by GEO on its common stock. In essence, note holders will receive annual dividends based on the shares into which the notes are convertible. The exchange rate for the notes is 108.4011 shares per $1,000 of principal amount (exchange price of approximately $9.25 per share), or …



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. 

QuickChek – February 22, 2021

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Midwest Energy Emissions Corp. will convert outstanding principal into shares of the Company’s common stock

The Company will convert a total of $860,000 of outstanding principal into shares of the Company’s common stock at the Note’s conversion price of $0.50 per share.

News and Market Data on Midwest Energy Emissions


Watch recent presentation from NobleCon17



Gevo and Scandinavian Airlines System Amend $100 Million Fuel Agreement

Gevo, Inc. and Scandinavian Airlines System have signed an amendment to increase SAS’s minimum purchase obligation to purchase sustainable aviation fuel to 5,000,000 gallons per year.

Research, News and Market Data on Gevo


Watch recent presentation from NobleCon17



Comtech Telecommunications Awarded Contract for 21.5m Radome

Comtech Telecommunications announced that its Space & Component Technology Division was awarded a Q2 2021 follow-on order from a multinational infrastructure support company for a 21.5m radome.

Research, News and Market Data on Comtech


Watch recent presentation from NobleCon17

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Release – Comtech Telecommunications (CMTL) – Awarded Contract for 21.5m Radome from Commercial Space Company

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Comtech Telecommunications Corp. Awarded Contract for 21.5m Radome from Commercial Space Company

 

MELVILLE, N.Y.–(BUSINESS WIRE)–Feb. 22, 2021– February 22, 2021– Comtech Telecommunications Corp. (NASDAQ: CMTL) announced today, that during its second quarter of fiscal year 2021, its Mission-Critical Technologies group’s Space & Component Technology Division, which is part of Comtech’s Government Solutions segment, was awarded a follow-on order from a multinational infrastructure support company for a 21.5m radome.

“Based on our success with this customer on the first radome we supplied, we are quite pleased that we were able to secure a follow-on order, providing our customer with the product and service they require for their satellite ground system and radar project,” said Fred Kornberg, Chairman of the Board and Chief Executive Officer of Comtech Telecommunications Corp.

For over 40 years, Comtech’s Space & Component Technology (“SCT”) division, located in Cypress, California, has specialized in the supply of high reliability microelectronics, supplying EEE parts for use in satellite, launch vehicle and manned space applications. Combining longstanding resources in Cypress, with new locations in Plano, Texas and Hampshire, United Kingdom, SCT also provides services encompassing all aspects of ground station life cycle management to include requirements definition and analysis, design, development and integration of turnkey systems from antenna to data processing, civil works and construction, station installation and verification, operations and maintenance, and decommissioning at end of life. A full line of satellite tracking antennas from 30cm to 13m, as well as RF feeds, radomes and carbon fiber reflectors, all for LEO, MEO and GEO orbits, are also supplied to customers worldwide. For more information, visit www.comtechspace.com.

The Mission-Critical Technologies group is focused on ensuring its customers are able to successfully carry out their mission, whether that be communicating in an austere environment on land or at sea, launching or tracking a satellite, or protecting the cyber security posture of their network.

Comtech Telecommunications Corp. designs, develops, produces, and markets innovative products, systems and services for advanced communications solutions. The Company sells products to a diverse customer base in the global commercial and government communications markets.

Certain information in this press release contains statements that are forward-looking in nature and involve certain significant risks and uncertainties. Actual results could differ materially from such forward-looking information. The Company’s Securities and Exchange Commission filings identify many such risks and uncertainties. Any forward-looking information in this press release is qualified in its entirety by the risks and uncertainties described in such Securities and Exchange Commission filings.

Media Contact:
Michael D. Porcelain, President and Chief Operating Officer
631-962-7000

[email protected]

Source: Comtech Telecommunications Corp.

Release – Gevo (GEVO) – Gevo and Scandinavian Airlines System Amend $100 Million Fuel Agreement

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Gevo and Scandinavian Airlines System Amend Agreement to Increase Off-Take of Sustainable Aviation Fuel, valued at over $100 Million

 

ENGLEWOOD, Colo., Feb. 22, 2021 (GLOBE NEWSWIRE) — Gevo, Inc. (NASDAQ: GEVO), announced today that it and Scandinavian Airlines System (“SAS”) have signed an amendment to increase SAS’s minimum purchase obligation to purchase sustainable aviation fuel (“SAF”) to 5,000,000 gallons per year. Gevo and SAS signed the original fuel sales agreement in October 2019 (the “Fuel Sales Agreement”).

With the finalization of this this amendment to the Fuel Sales Agreement (the “Amendment”), Gevo expects to supply SAS with SAF beginning in 2024 from Gevo’s Net-Zero 2 Project for use and distribution in low carbon fuel regions of the United States. The value of the Fuel Sales Agreement, as amended, is estimated at over $100 million over the entire term of the agreement inclusive of the related SAF and environmental credits.

“With this amendment, SAS has significantly increased the amount of SAF that it is willing to purchase from Gevo. This amendment is evidence of the strong and growing demand for Gevo’s renewable hydrocarbon products. We expect to ink additional offtake agreements later this year,” said Patrick R. Gruber, Chief Executive Officer of Gevo. “SAS have a vision and plan that they are executing, even in spite of the global pandemic. This additional volume will help Gevo grow its business and hopefully accelerate making real Gevo’s Net-Zero 2 plant,” added Mr. Gruber.

“SAS has an ambitious goal in reducing its’ absolute climate affecting emissions by 25 percent from 2005 levels by 2025. This increase of Gevo SAF will help us to reach at least 20% of the SAF needed to reach our emission reductions goal. SAS chooses partners like Gevo that have the vision and ambition to support the aviation industry’s transition to net zero emission,” says Lars Andersen Resare, Head of Sustainability, SAS.

Beyond Net-Zero 1

Gevo has introduced the concept of Net Zero Projects. Announced in early 2021, these production facilities are being designed to produce energy-dense liquid hydrocarbons using renewable energy and Gevo’s proprietary technology. The first Net-Zero project, Net-Zero 1, is expected to be built in Lake Preston, South Dakota.

The Net-Zero Projects are being designed to produce liquid hydrocarbons in the form of sustainable aviation fuel and renewable gasoline. These fuels, when used for transportation, should have a net-zero greenhouse-gas footprint as measured across the entire lifecycle, based on the Argonne National Laboratory’s GREET model.

Gevo expects that each Net-Zero Project will have the capability to produce approximately 45MGPY of liquid hydrocarbons (jet fuel and renewable gasoline) and are also expected to produce at least 350,000,000 lbs/yr of high protein animal feed. To reduce and eliminate the fossil fuel resources used in the production facilities, each Net Zero Project is expected to have an anaerobic digestion wastewater treatment plant that is capable of generating enough biogas to run the plant and supply a combined heat and power unit, capable of meeting approximately 30% of the plant’s electricity needs. The remaining 70% of electricity to run the plant is expected to come from wind power. Net-Zero 1 may also obtain renewable natural gas (“RNG”) using manure from dairy or beef cows. These efforts should make this Net-Zero 1 self-sufficient and help ensure it will be off a fossil-based grid. Gevo also believes in transparency and is setting up sustainability tracking methods to work alongside our farmers.

The Fuel Sales Agreement, as amended, is subject to certain conditions precedent. A copy of the Fuel Sales Agreement and the Amendment have been filed with the U.S. Securities and Exchange Commission on Form 8-K.

About Gevo

Gevo’s mission is to transform renewable energy and carbon into energy-dense liquid hydrocarbons. These liquid hydrocarbons can be used for drop-in transportation fuels such as gasoline, jet fuel, and diesel fuel, that have the potential to yield net-zero greenhouse gas emissions when measured across the full lifecycle of the products. Gevo uses low-carbon renewable resource-based carbohydrates as raw materials from residues and slurries, and is in an advanced state of developing renewable electricity and renewable natural gas for use in production processes, resulting in low-carbon fuels with substantially reduced carbon intensity (the level of greenhouse gas emissions compared to standard petroleum fossil-based fuels across their lifecycle) and GHG scores. Gevo’s products perform as well or better than traditional fossil-based fuels in infrastructure and engines, but with substantially reduced greenhouse gas emissions. In addition to addressing the problems of fuels, Gevo’s technology also enables certain plastics, such as polyester, to be made with more sustainable ingredients. Gevo’s ability to penetrate the growing low-carbon fuels market depends on the price of oil and the value of abating carbon emissions that would otherwise increase greenhouse gas emissions. Gevo believes that its proven and patented technology, which enables the use of a variety of low-carbon sustainable feedstocks to produce price-competitive low carbon products such as gasoline components, jet fuel, and diesel fuel, yields the potential to generate project and corporate returns that justify the build-out of a multi-billion-dollar business.

Learn more at Gevo’s website: www.gevo.com

About SAS

SAS, Scandinavia’s leading airline, with main hubs in Copenhagen, Oslo and Stockholm, flies to destinations in Europe, USA and Asia. Spurred by a Scandinavian heritage and sustainability values, SAS aims to be the global leader in sustainable aviation. We will reduce total carbon emissions by 25 percent by 2025, by using more sustainable aviation fuel and our modern fleet with fuel-efficient aircraft. In addition to flight operations, SAS offers ground handling services, technical maintenance and air cargo services. SAS is a founding member of the Star Alliance™, and together with its partner airlines offers a wide network worldwide.

Learn more at https://www.sasgroup.net

Forward-Looking Statements

Certain statements in this press release may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements relate to a variety of matters, including, without limitation, statements related to the Agreement and the Amendment, Gevo’s SAF, Gevo’s ability to produce the SAF, Gevo’s ability to realize revenue from the Agreement and Amendment, Gevo’s ability to enter into additional offtake agreements for its products, Gevo’s Net-Zero Projects, including Net-Zero 2, Gevo’s ability to produce products that have a “net-zero” greenhouse gas footprint, Gevo’s plans and strategy, the NW Iowa Project, Gevo’s ability to finance its projects, and other statements that are not purely statements of historical fact. These forward-looking statements are made on the basis of the current beliefs, expectations and assumptions of the management of Gevo and are subject to significant risks and uncertainty. Investors are cautioned not to place undue reliance on any such forward-looking statements. All such forward-looking statements speak only as of the date they are made, and Gevo undertakes no obligation to update or revise these statements, whether as a result of new information, future events or otherwise. Although Gevo believes that the expectations reflected in these forward-looking statements are reasonable, these statements involve many risks and uncertainties that may cause actual results to differ materially from what may be expressed or implied in these forward-looking statements. For a further discussion of risks and uncertainties that could cause actual results to differ from those expressed in these forward-looking statements, as well as risks relating to the business of Gevo in general, see the risk disclosures in the Annual Report on Form 10-K of Gevo for the year ended December 31, 2019, and in subsequent reports on Forms 10-Q and 8-K and other filings made with the U.S. Securities and Exchange Commission by Gevo.

Investor and Media Contact
[email protected]

+1 720-647-9605

SOURCE: Gevo

Kelly Services Inc. (KELYA) – Raising to Outperform on Positive Trends Favorable Risk Reward

Posted on by Admin

Monday, February 22, 2021

Kelly Services Inc. (KELYA)
Raising to Outperform on Positive Trends, Favorable Risk/Reward

Kelly Services Inc is a provider of workforce solutions and consulting and staffing services. The company’s operations are divided into three business segments namely Americas Staffing, Global Talent Solutions (“GTS”) and International Staffing. It provides staffing solutions through its branch networks in Americas and International operations and also provides a suite of innovative talent fulfilment and outcome-based solutions through GTS segment. Americas Staffing generates maximum revenue from its operations.

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

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

    4Qtr Results. Kelly reported revenue of $1.24 billion in 4Q20, down 7.2% y-o-y. EPS was $0.59, and adjusted EPS was $0.41, compared to $0.43 and $0.71, respectively. Note, 4Q20 consisted of 53 weeks compared to 52 in 4Q19. We had forecast revenue of $1.15 billion and EPS of $0.28 while consensus called for revenue of $1.14B and EPS of $0.27.

    Improving Trends — 1.  While COVID continues to impact, particularly the Education market, Kelly saw positive trends over the quarter with each of Kelly’s five operating segments reporting sequential revenue improvement during the quarter. The OCG segment actually reported y-o-y growth in revenue. We believe Kelly is well positioned to benefit from improving economic trends …



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. 

Managing Investment Portfolio Risk

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Two Ways High Performing Investment Portfolios Guard Against Losses

 

Are stocks overbought, or does the bull market have more to run? Sound arguments can be made for either side.

On the side that forecasts more stock market gains, they may point to earnings expectations. This makes sense since fewer pandemic-related restrictions are now leading to more business activity. Activity means earnings increases which normally equates to the stock market rising. On the bearish side, those that think the market is pricey and too risky may argue that interest rates have begun to move up from their historic lows. Higher rates add to the cost of doing business and serve to reduce consumer purchases. Additionally, stocks are an alternative for income investors that have left the bond market in hopes of a higher yield. As higher bond yields return, they may shed their stock market positions and return to the fixed income market.

Both bullish arguments and bearish positions have merit. This leaves investors with the decision to either leave a still booming stock market and possibly miss out on returns in exchange for near-zero interest or the potential for double-digit gains in equities. The double-digit returns, of course, may be negative double-digit to investors. It is basic physics that the higher something climbs, the further it has to fall. Both stocks and bonds are near priced near historic highs. This means they both have more potential downside than ever before.

Capturing Upside and Limiting Downside

Stocks have not exhibited any real weakness since late March 2020. The trend is still rapidly upward. People are putting more and more money in equities. The more money that goes in, the less money that can be used to help drive up prices later. And the more money that may run for cover later when an eventual selloff occurs.

Investors that expect an inevitable selloff will one day occur, but also that the market has more upside, could consider practicing a little defense. In today’s point-and-shoot world of stock trading both online and by phone app, many individuals don’t take the time to protect themselves from major losses. With the market continuously going up and quickly erasing any downward moves, investors have been rewarded for ignoring the fundamentals of risk management. The truth is, we don’t know when the big slide (or slow march) down will occur, but we do know we are closer to it than we were yesterday.

The two most basic methods for an individual to feel confident that their portfolio can still capture gains, without too much risk on the downside, are placing stop losses on their positions or buying puts. The stop losses cost the portfolio owner the erosion down to the Stop (sell price) only if hit. The cost of the Put is upfront and known even if it is never exercised which would be the case if the stock continued to perform well through the Put option’s expiration.

Using Stop Loss Orders

A stop-loss order gets you out of a stock you’re long when the price starts falling. If you’re short, a stop-loss buy order can be used. There are several types of stops you may use. A Hard Stop is when you set a fixed price that, if reached, triggers a market sell order. For example, you own “Company A” stock at $4.25; it is now trading at $7. Over the past few weeks, it has dropped to $6.50 several times but seems to have firm support there. To protect yourself if the stock should drop below that and keep going, you could set a hard stop a little below the $6.50 price. For example, If you set this stop loss at $6.30, an at-market sell order will be triggered when it hits $6.30.  In a world of commission-free trades, you may wish to quickly get back in at a lower price if it should drop considerably.

 

 

A Trailing Stop is a little different; it moves up with the stock price in a long position and down with the price in a short position. The order is spread to the price in terms of dollars or a percent difference. Using the example from above, if you set a trailing stop of 10% and Company A stock rises from $7.00 to $9.00, the trailing stop will move from the original $7 less $0.70 ($6.30) to $9 less $0.90 $8.10). The idea is more profit is captured when the stock does turn downward. A set dollar amount, rather than a percentage, can also be used for trailing stops.

Proponents of stop losses take comfort in their ability to protect the position from rapidly changing markets. Opponents could argue that both hard and trailing stops make temporary losses permanent. For an investor who is always monitoring their account and can trust their decision-making as moves unfold, they may feel a stop loss is not for them; they can stop losses on their own. Whether an investor uses them or not, once in a position, pre-planning various scenarios and actions you could take is critical to managing downside risk.  

At the end of the day, if you are going to have continued success as an investor, you have to be confident in your strategy. This means carrying through with your plan. The advantage of stop-loss orders is that they can help you stay on track and prevent your judgment from getting clouded with emotion.

Put Option

The S&P 500 declined in one out of every four years between 1926 and 2009. Then the “Great Financial Crisis” of 2008 cleared the way for years of stock market growth leading us to today’s heights. That is a very long barely interrupted growth trendline, historically. The most basic way for an investor to protect their upside gains is to take profits. One problem with this is what if the stock is still the best place for your money. After all, selling the stock means you have to do something else with the proceeds. When this is the case, locking in some of your gains, and holding the stock, can be done using the options market.

A common strategy is to buy a Put Option (a Put). This gives the holder the option of being able to sell stock at a certain price at a specific date in the future.  

For example, you own 100 shares of “Company B.” It has risen by 80% in a single year and now trades at $100. All the analysts covering the stock have price targets well in excess of $100, and the industry is experiencing a boom for the foreseeable future. But, who knows, some of these positives may already be built-in, and the bigger picture economy is questionable.  Or there could be a black swan event. To protect your profits, you could buy a Put on Company B with an expiration date six months into the future, and at a strike price (sale price) of $105, (slightly in the money). This option’s market value will fluctuate as you hold it with expectations, time to expiration,  and changes in the equities value. But, for the example, let’s say the option costs $600 ($6 per share). You now have the right (contractual ability) to sell 100 shares of Company B at $105.

If the stock drops to $90, the value of the Put will have risen significantly. At this point, you can sell the option for a profit to offset the decline in the stock price. Options do have expiration dates, at which time the contract for the counterparty to honor your ability to exercise the Put expires. It becomes an unused “insurance policy.”

Take-Away

With stocks and bonds trading at historic highs, being in either the equity or fixed income markets represents a greater potential for loss. There are tools and strategies which can protect you from extreme losses.

Getting completely out of any investment may not be the best plan. After all, everything has a cost, even doing nothing. Just think about the investors that stepped aside and went into cash during the first half of 2020, thinking, “it isn’t wise to be long during a pandemic.” They are likely worse off than if they had invested in a diversified mix of large and small-cap stocks. They didn’t get hurt by stepping aside, but they missed a huge run-up.

Investors that believe there is likely plenty of upside to a market index or particular stocks can still participate and capture much of it if it occurs. This, too, has a cost, but that cost serves as insurance against extreme losses.

Your broker can provide you with more detailed descriptions and various reasons when these strategies and other possible risk-limiting measures benefit your account. Each trading platform works differently, if you have questions you should contact a representative of your broker.

Paul Hoffman

Managing Editor, Channelchek

Suggested Reading:

Money Supply Drives Stock Market Performance

Can Small Investors Compete with Wall Street?

Seeking Alpha’s Paywall Causes Frustration

 

 

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