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Solid Quarter, But Rough Sledding Ahead Before 2H2020 Recovery

Posted on by Admin

Friday, May 8, 2020

Genco Shipping & Trading Limited (GNK)

Solid Quarter, But Rough Sledding Ahead Before 2H2020 Recovery

Genco Shipping & Trading Limited, incorporated on September 27, 2004, transports iron ore, coal, grain, steel products and other drybulk cargoes along shipping routes through the ownership and operation of drybulk carrier vessels. The Company is engaged in the ocean transportation of drybulk cargoes around the world through the ownership and operation of drybulk carrier vessels. As of December 31, 2016, its fleet consisted of 61 drybulk carriers, including 13 Capesize, six Panamax, four Ultramax, 21 Supramax, two Handymax and 15 Handysize drybulk carriers, with an aggregate carrying capacity of approximately 4,735,000 deadweight tons (dwt). Of the vessels in its fleet, 15 are on spot market-related time charters, and 27 are on fixed-rate time charter contracts. As of December 31, 2016, additionally, 19 of the vessels in its fleet were operating in vessel pools.

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

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

    Adjusted 1Q2020 EBITDA of $17.9 million was below our estimate of $19.3 million, mainly due to lower than expected TCE rates of $9.8k/day, or ~$700 below our estimate. Operating results were partially insulated from weak market conditions due to the forward cover of 79% of 1Q2020 days booked at $10.9k/day, but the remainder of the quarter was weaker than expected. Scrubbers on Capes and lower downtime were positives versus last year.

    Lowering 2020 EBITDA estimate to $83.4 million from $108.2 million based on lower TCE rates of $10.7k/day due to dry bulk market weakness, tighter fuel spreads and a smaller fleet. Forward cover is not as attractive this quarter with 62% of 2Q2020 days booked at $6.8k/day, and EBITDA is likely to be much weaker in 2Q2020. Softer market fundamentals have extended into the quarter and…

    Click to get the full report.

This research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst
certification and important disclosures included in the full report. 
NOTE: investment decisions should not be based upon the content of
this research summary.  Proper due diligence is required before
making any investment decision. 

Making The Most of a Difficult Situation

Posted on by Admin

Friday, May 8, 2020

InPlay Oil (IPOOF)(IPO:CA)

Making The Most of a Difficult Situation

As of April 24, 2020, Noble Capital Markets research on InPlay Oil is published under ticker symbols (IPOOF and IPO:CA). The price target is in USD and based on ticker symbol IPOOF. Research reports dated prior to April 24, 2020 may not follow these guidelines and could account for a variance in the price target. 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 OTCQZ Exchange under the symbol IPOOF.

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

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

    2020-1Q results above expectations. The company reported production of 4,784 boe/d slightly below our 5,000 boe/d estimate, with 304 boe/d lost due to cold weather. Production costs of C$14.67/boe were slightly above expectations due to the low production. Realized oil pricing held up better than expected ($46.17), but the impact will clearly be felt in future quarters. Adjusted Fund Flow of $3.4 million was above our $1.0 million estimate as were earnings $(0.07), excluding $1.41 in nonrecurring charges versus our estimate of $(0.11).

    Tough times are coming. Keep an eye on debt. In April, management reduced salaries, deferred well workovers and sought concessions from vendors. Cost reductions are running 25-30% ahead of expectations but there will be an impact on production. Management indicated it will nominate oil sales in June at 20% of pre-curtailment capacity, or 2,300 boe/d, as it fills excess oil storage. These were difficult steps to take for a management team that prided itself on continual production growth. IPO has drawn down $52.6 million of its revolving credit facility. The facility will be reviewed on or…


    Click to get the full report.

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. 

Uncharted and Choppy, But Very Capable To Navigate

Posted on by Admin

Friday, May 8, 2020

Gray Television Inc. (GTN)

Uncharted and Choppy, But Very Capable To Navigate

Gray Television, Inc. operates as a television broadcast company in the United States. As of April 6, 2010, it operated 36 television stations in 30 markets, including 17 affiliated with CBS Inc.; 10 affiliated with the National Broadcasting Company, Inc.; 8 affiliated with the American Broadcasting Company (ABC); and 1 affiliated with FOX Entertainment Group, Inc. (FOX). The company also operated 39 digital second channels comprising 1 affiliated with ABC, 4 affiliated with FOX, 7 affiliated with CW Network, LLC, 18 affiliated with Twentieth Television, Inc., 2 affiliated with Universal Sports Network, and 7 local news/weather channels. Gray Television, Inc. was founded in 1897 and is headquartered in Atlanta, Georgia.

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

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

    Q1 largely in line, beats our Adj. EBITDA estimate. While Q1 revenues were lighter than expected ($534 million versus $542 million), the company overachieved our Adjusted EBITDA estimate ($168 million versus $163 million). The revenue variance was due to the fall-off in advertising in March as mitigation efforts of the Coronavirus took hold.

    Q2 appears better than many. Core advertising appears to be down roughly 33%, slightly better than some peers that have indicated Q2 core to be down 35% to 40%. Company reaffirms Political advertising expectations in the range of…


    Click to get the full report.

This research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst
certification and important disclosures included in the full report. 
NOTE: investment decisions should not be based upon the content of
this research summary.  Proper due diligence is required before
making any investment decision. 

Navigating The Crisis With A Boat Load Of Cash

Posted on by Admin

Friday, May 8, 2020

Entravision Communications Corporation (EVC)

Navigating The Crisis With A Boat Load Of Cash

Entravision Communications Corporation is a diversified Spanish-language media company utilizing a combination of television and radio operations to reach Hispanic consumers across the United States, as well as the border markets of Mexico. Entravision owns and/or operates 53 primary television stations and is the largest affiliate group of both the top-ranked Univision television network and Univision’s TeleFutura network, with television stations in 20 of the nation’s top 50 Hispanic markets. The Company also operates one of the nation’s largest groups of primarily Spanish-language radio stations, consisting of 48 owned and operated radio stations.

Michael Kupinski, Senior Research Analyst, Noble Capital Markets, Inc.

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

    Q1 results better than expected. Revenues were $64.2 million versus our $62.2 million estimate and cash flow (adj. EBITDA) was $9.6 million versus our $7.2 million estimate. The largest variance to our estimates was better-than-expected TV revenues, $39.2 million versus our estimate of $37.4 million.

    Q2 pacings appear in line with previously lowered expectations, outlines significant cost reductions. Advertising trends appear in line with our previous expectations. Management outlined aggressive cost cutting measures that is expected to reduce Q2 costs by $6 million. The cost reductions may be kept in place if revenues do not recover, implying $20 million in…


    Click to get full report.

This Company Sponsors 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. 

A First Quarter Beat, But Lower Expectations for the Second Quarter

Posted on by Admin

Friday, May 8, 2020

Kratos Defense & Security (KTOS)

A First Quarter Beat, But Lower Expectations for the Second Quarter

Kratos Defense & Security Solutions is a National Security technology provider with proprietary expertise in the area of unmanned aerial vehicles, electronics for missile defense systems, electronic warfare systems, satellite control and management systems and support services for emerging naval weapon systems. Commercial and state and local government revenues are about 25% of the total and comprise primarily of critical infrastructure monitoring and protection systems.

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

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

    1Q20 Results. Kratos reported revenue of $168.9 million, above the $164.0 million consensus estimate and our $165.0 million projection. Adjusted EPS totaled $0.09, compared to a consensus and our $0.07 estimate. Adjusted EBITDA for the quarter was $16.3 million. Revenue came in at the high end of guidance, while adjusted EBITDA exceeded the $12-$15 million guidance. range.

    Unmanned Continues to Lead the Way. US revenues of $42.0 million rose $7.1 million, or 20.3%, over the first quarter of 2019, driven by new target awards and additional tactical development contracts. Government Systems segment revenue increased $1.4 million to $126.9 million as organic growth in turbines, microwave, rocket systems, and cyber were offset by reductions in training solutions. satellite communications, and…


    Click to get the full report.

This research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst
certification and important disclosures included in the full report. 
NOTE: investment decisions should not be based upon the content of
this research summary.  Proper due diligence is required before
making any investment decision. 

New CEO, New Name, Still a Promising Cancer Drug

Posted on by Admin

Friday, May 8, 2020

Trovagene (TROV)

New CEO, New Name, Still a Promising Cancer Drug

Trovagene, Inc. is a clinical stage biotechnology company focused on the development of new therapeutics for hematology and oncology. The company’s clinical programs of Onvansertib (PLK1 inhibitor) include Phase 1b/2 study in AML, Phase 1b/2 study in mCRPC and Phase 1b/2 trial in KRAS-mutant colorectal cancer.

Cosme Ordonez, MD, Ph.D., Senior Life Sciences Analyst, Noble Capital Markets, Inc.

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

    Financial Results in line with expectations. Trovagene, Inc. yesterday released Q1/F2020 financial results. The Company reported a net loss of $(4.1) mm and total operating expenses of $4.2 mm compared to $(4.2) mm and $4.0 mm, respectively, in Q1/F2019. Net cash used in operations was $3.37 mm in Q1/F2020, compared to $3.36 mm in Q1/F2019. The Company finished the quarter with $9.3 mm in cash and cash equivalents. Overall, the results were in line with our expectations.

    New name is Cardiff Oncology, Inc. Trovagene announced a name change to Cardiff Oncology, Inc. The Company’s Nasdaq ticker symbol will change to CRDF, which will become effective at the open of the market on…


    Click to get the full report.

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. 

DLH Holdings Corp. (DLHC) – Post Call Commentary and Updated Models

Posted on by Admin

Friday, May 8, 2020


DLH Holdings Corp. (DLHC)

Post Call Commentary and Updated Models

DLH Holdings Corp is a provider of technology-enabled business process outsourcing and program management solutions in the United States. The company offers services to several government agencies which include the Department of veteran affairs, Department of health and human services, Department of Defense and other government agencies. It operates primarily through prime contracts and also derives its revenue from agencies of the federal government, primarily as a prime contractor but also as a subcontractor to other Federal prime contractors.

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

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

    Strong VA Organic Growth in Quarter. VA related revenues in the quarter of $25.6 million were up 12.6% from the year earlier $22.7 million. For the first six months of fiscal 2020, pharmacy services revenues rose to $27.8 million from $26.4 million a year earlier, while logistics services revenues rose to $21.8 million from $19.1 million.

    S3 Sequential Growth. Revenue increased to $18.7 million in the quarter, up from $17.3 million in the fiscal first quarter. We believe S3 could show more growth as the unit assists its clients during the COVID crisis. Notably, in the full three quarters since its acquisition, S3 has generated $55.8 million of revenue (average of $18.6 million/qtr), nicely above original guidance that the unit would contribute approximately…


    Click here to get the full report.

This research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst
certification and important disclosures included in the full report. 
NOTE: investment decisions should not be based upon the content of
this research summary.  Proper due diligence is required before
making any investment decision. 

Genco Shipping & Trading Limited (GNK) – Solid Quarter, But Rough Sledding Ahead Before 2H2020 Recovery

Posted on by Admin

Friday, May 8, 2020

Genco Shipping & Trading Limited (GNK)

Solid Quarter, But Rough Sledding Ahead Before 2H2020 Recovery

Genco Shipping & Trading Limited, incorporated on September 27, 2004, transports iron ore, coal, grain, steel products and other drybulk cargoes along shipping routes through the ownership and operation of drybulk carrier vessels. The Company is engaged in the ocean transportation of drybulk cargoes around the world through the ownership and operation of drybulk carrier vessels. As of December 31, 2016, its fleet consisted of 61 drybulk carriers, including 13 Capesize, six Panamax, four Ultramax, 21 Supramax, two Handymax and 15 Handysize drybulk carriers, with an aggregate carrying capacity of approximately 4,735,000 deadweight tons (dwt). Of the vessels in its fleet, 15 are on spot market-related time charters, and 27 are on fixed-rate time charter contracts. As of December 31, 2016, additionally, 19 of the vessels in its fleet were operating in vessel pools.

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

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

    Adjusted 1Q2020 EBITDA of $17.9 million was below our estimate of $19.3 million, mainly due to lower than expected TCE rates of $9.8k/day, or ~$700 below our estimate. Operating results were partially insulated from weak market conditions due to the forward cover of 79% of 1Q2020 days booked at $10.9k/day, but the remainder of the quarter was weaker than expected. Scrubbers on Capes and lower downtime were positives versus last year.

    Lowering 2020 EBITDA estimate to $83.4 million from $108.2 million based on lower TCE rates of $10.7k/day due to dry bulk market weakness, tighter fuel spreads and a smaller fleet. Forward cover is not as attractive this quarter with 62% of 2Q2020 days booked at $6.8k/day, and EBITDA is likely to be much weaker in 2Q2020. Softer market fundamentals have extended into the quarter and…

    Click to get the full report.

This research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst
certification and important disclosures included in the full report. 
NOTE: investment decisions should not be based upon the content of
this research summary.  Proper due diligence is required before
making any investment decision. 

InPlay Oil (IPOOF)(IPO:CA) – Making The Most of a Difficult Situation

Posted on by Admin

Friday, May 8, 2020

InPlay Oil (IPOOF)(IPO:CA)

Making The Most of a Difficult Situation

As of April 24, 2020, Noble Capital Markets research on InPlay Oil is published under ticker symbols (IPOOF and IPO:CA). The price target is in USD and based on ticker symbol IPOOF. Research reports dated prior to April 24, 2020 may not follow these guidelines and could account for a variance in the price target. 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 OTCQZ Exchange under the symbol IPOOF.

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

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

    2020-1Q results above expectations. The company reported production of 4,784 boe/d slightly below our 5,000 boe/d estimate, with 304 boe/d lost due to cold weather. Production costs of C$14.67/boe were slightly above expectations due to the low production. Realized oil pricing held up better than expected ($46.17), but the impact will clearly be felt in future quarters. Adjusted Fund Flow of $3.4 million was above our $1.0 million estimate as were earnings $(0.07), excluding $1.41 in nonrecurring charges versus our estimate of $(0.11).

    Tough times are coming. Keep an eye on debt. In April, management reduced salaries, deferred well workovers and sought concessions from vendors. Cost reductions are running 25-30% ahead of expectations but there will be an impact on production. Management indicated it will nominate oil sales in June at 20% of pre-curtailment capacity, or 2,300 boe/d, as it fills excess oil storage. These were difficult steps to take for a management team that prided itself on continual production growth. IPO has drawn down $52.6 million of its revolving credit facility. The facility will be reviewed on or…


    Click to get the full report.

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. 

Gray Television Inc. (GTN) – Uncharted and Choppy, But Very Capable To Navigate

Posted on by Admin

Friday, May 8, 2020

Gray Television Inc. (GTN)

Uncharted and Choppy, But Very Capable To Navigate

Gray Television, Inc. operates as a television broadcast company in the United States. As of April 6, 2010, it operated 36 television stations in 30 markets, including 17 affiliated with CBS Inc.; 10 affiliated with the National Broadcasting Company, Inc.; 8 affiliated with the American Broadcasting Company (ABC); and 1 affiliated with FOX Entertainment Group, Inc. (FOX). The company also operated 39 digital second channels comprising 1 affiliated with ABC, 4 affiliated with FOX, 7 affiliated with CW Network, LLC, 18 affiliated with Twentieth Television, Inc., 2 affiliated with Universal Sports Network, and 7 local news/weather channels. Gray Television, Inc. was founded in 1897 and is headquartered in Atlanta, Georgia.

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

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

    Q1 largely in line, beats our Adj. EBITDA estimate. While Q1 revenues were lighter than expected ($534 million versus $542 million), the company overachieved our Adjusted EBITDA estimate ($168 million versus $163 million). The revenue variance was due to the fall-off in advertising in March as mitigation efforts of the Coronavirus took hold.

    Q2 appears better than many. Core advertising appears to be down roughly 33%, slightly better than some peers that have indicated Q2 core to be down 35% to 40%. Company reaffirms Political advertising expectations in the range of…


    Click to get the full report.

This research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst
certification and important disclosures included in the full report. 
NOTE: investment decisions should not be based upon the content of
this research summary.  Proper due diligence is required before
making any investment decision. 

Entravision Communications Corporation (EVC) – Navigating The Crisis With A Boat Load Of Cash

Posted on by Admin

Friday, May 8, 2020

Entravision Communications Corporation (EVC)

Navigating The Crisis With A Boat Load Of Cash

Entravision Communications Corporation is a diversified Spanish-language media company utilizing a combination of television and radio operations to reach Hispanic consumers across the United States, as well as the border markets of Mexico. Entravision owns and/or operates 53 primary television stations and is the largest affiliate group of both the top-ranked Univision television network and Univision’s TeleFutura network, with television stations in 20 of the nation’s top 50 Hispanic markets. The Company also operates one of the nation’s largest groups of primarily Spanish-language radio stations, consisting of 48 owned and operated radio stations.

Michael Kupinski, Senior Research Analyst, Noble Capital Markets, Inc.

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

    Q1 results better than expected. Revenues were $64.2 million versus our $62.2 million estimate and cash flow (adj. EBITDA) was $9.6 million versus our $7.2 million estimate. The largest variance to our estimates was better-than-expected TV revenues, $39.2 million versus our estimate of $37.4 million.

    Q2 pacings appear in line with previously lowered expectations, outlines significant cost reductions. Advertising trends appear in line with our previous expectations. Management outlined aggressive cost cutting measures that is expected to reduce Q2 costs by $6 million. The cost reductions may be kept in place if revenues do not recover, implying $20 million in…


    Click to get full report.

This Company Sponsors 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. 

Kratos Defense & Security (KTOS) – A First Quarter Beat, But Lower Expectations for the Second Quarter

Posted on by Admin

Friday, May 8, 2020

Kratos Defense & Security (KTOS)

A First Quarter Beat, But Lower Expectations for the Second Quarter

Kratos Defense & Security Solutions is a National Security technology provider with proprietary expertise in the area of unmanned aerial vehicles, electronics for missile defense systems, electronic warfare systems, satellite control and management systems and support services for emerging naval weapon systems. Commercial and state and local government revenues are about 25% of the total and comprise primarily of critical infrastructure monitoring and protection systems.

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

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

    1Q20 Results. Kratos reported revenue of $168.9 million, above the $164.0 million consensus estimate and our $165.0 million projection. Adjusted EPS totaled $0.09, compared to a consensus and our $0.07 estimate. Adjusted EBITDA for the quarter was $16.3 million. Revenue came in at the high end of guidance, while adjusted EBITDA exceeded the $12-$15 million guidance. range.

    Unmanned Continues to Lead the Way. US revenues of $42.0 million rose $7.1 million, or 20.3%, over the first quarter of 2019, driven by new target awards and additional tactical development contracts. Government Systems segment revenue increased $1.4 million to $126.9 million as organic growth in turbines, microwave, rocket systems, and cyber were offset by reductions in training solutions. satellite communications, and…


    Click to get the full report.

This research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst
certification and important disclosures included in the full report. 
NOTE: investment decisions should not be based upon the content of
this research summary.  Proper due diligence is required before
making any investment decision. 

Trovagene (TROV) – New CEO, New Name, Still a Promising Cancer Drug

Posted on by Admin

Friday, May 8, 2020

Trovagene (TROV)

New CEO, New Name, Still a Promising Cancer Drug

Trovagene, Inc. is a clinical stage biotechnology company focused on the development of new therapeutics for hematology and oncology. The company’s clinical programs of Onvansertib (PLK1 inhibitor) include Phase 1b/2 study in AML, Phase 1b/2 study in mCRPC and Phase 1b/2 trial in KRAS-mutant colorectal cancer.

Cosme Ordonez, MD, Ph.D., Senior Life Sciences Analyst, Noble Capital Markets, Inc.

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

    Financial Results in line with expectations. Trovagene, Inc. yesterday released Q1/F2020 financial results. The Company reported a net loss of $(4.1) mm and total operating expenses of $4.2 mm compared to $(4.2) mm and $4.0 mm, respectively, in Q1/F2019. Net cash used in operations was $3.37 mm in Q1/F2020, compared to $3.36 mm in Q1/F2019. The Company finished the quarter with $9.3 mm in cash and cash equivalents. Overall, the results were in line with our expectations.

    New name is Cardiff Oncology, Inc. Trovagene announced a name change to Cardiff Oncology, Inc. The Company’s Nasdaq ticker symbol will change to CRDF, which will become effective at the open of the market on…


    Click to get the full report.

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.