Research – Trovagene (TROV) – Data displays room for improvement

Posted on February 20, 2019 by Admin

Wednesday, February 20, 2019

Trovagene Inc. (TROV)

Room for improvement in early prostate cancer data.

TrovaGene Inc is a
US-based life science company which focuses on the development and
commercialization of a proprietary molecular genetic detection technology for
use in pharmaceutical development, clinical research and medical testing across
a variety of clinical disciplines, including oncology and virology.

Ahu Demir, Ph.D., Biotechnology Research Analyst, Noble Capital Markets, Inc.

RATING: OUTPERFORM

ASCO GU Data
Presentations. The company presented early unfavorable data from the Phase 2 Study of Onvansertib in combination with abiraterone and prednisone in patients with metastatic castration-resistant prostate cancer at the Genitourinary Cancers Symposium on February 14. The clinical benefit in patients was determined by the prostate-specific antigen (PSA) level and reduction was observed only transiently.
Adjusted Dosing Schedule. We believe the adjustment in dosing schedule and levels is not uncommon in early stages of drug development, The company intends to open a second arm, reducing the dose cycle to 14 days from 21 days t…

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*Analyst
certification and important disclosures included in 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.

Research – DLH Holdings (DLHC) – Updating Estimates

Posted on February 19, 2019 by Admin

Tuesday, February 19, 2019

DLH Holdings (DLHC)

Call Confirms Solid Quarter, Moving Forward While Waiting on VA COMP.

DLH Holdings Corp is a provider of technology-enabled business process outsourcing and program management solutions in the United States. The company offer 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.

RATING: OUTPERFORM

Solid
Operating Performance. On the earnings call and in our 1×1 with management, the Company re-iterated the solid performance in 1Q19. DLH continues to garner additional value add business from its core VA and HHS customers.
VA COMP
Waiting Game. Nothing new on the VA COMP re-compete as its remains in a “quiet period.” This contract represents nearly 40% of overall revenue. We believe DLH is well positioned to capture at least part of the contract in the re-compete. We continue to expect the re-compete to have minimal impact on DLH’s fiscal 2019 operating results…

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Research – ProMIS Neurosciences (PMN:CA) – Initiation Report

Posted on February 15, 2019 by Admin

Friday, February 15, 2019

ProMIS Neurosciences (PMN:CA)

ProMIS Initiation Report.

ProMIS Neurosciences,
Inc., a development stage biotech company, discovers and develops precision
medicine therapeutics for the treatment of neurodegenerative diseases,
primarily Alzheimer’s disease (AD) and amyotrophic lateral sclerosis (ALS). Its
proprietary target discovery engine is based on the use of two complementary
techniques.

Cosme Ordoñez, M.D., Ph. D.

, Life Sciences Analyst, Noble Capital Markets, Inc.

RATING: OUTPERFORM

Coverage initiation. We are initiating coverage on ProMIS Neurosciences, Inc. with an Outperform Rating and a $1.00 target price.
A unique technology. ProMIS has developed a unique technology to identify disease specific conformational epitopes, which allows the Company to discover antibodies targeting neurodegenerative diseases such as Alzhei…

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Research – Kratos Defense (KTOS) – Industry Transaction Highlights

Posted on February 15, 2019 by Admin

Friday, February 15, 2019

Kratos Defense & Security (KTOS)

Recent industry transactions highlight value of unmanned systems.

Kratos Defense &
Security Solutions, Inc. provides engineering, information technology (IT)
services, and warfighter solutions primarily in the United States. It operates
in two segments, Kratos Government Solutions (KGS) and Public Safety and
Security (PSS). The KGS segment provides engineering, IT, and weapons systems
to federal, state, and local government agencies, primarily U.S. Department of
Defense.

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

Refer to full report for rating

Recent Industry
Transactions. Two recent acquisitions in the unmanned vehicle space highlight the value of the business. FLIR Systems announced two acquisitions over the last two weeks and while FLIR did not provide financials, our back of the envelope calculations suggest the acquisitions were made in excess of 5 times revenue, above the 4 multiple we have used to value Kratos’s unmanned business.
KTOS Unmanned System is a
Game Changer. As we have previously highlighted, the UAS business is a game changer for Kratos. We believe it is not a question of if but, rather, when the Company will begin to reap the fru…

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Research – ACCO Brands (ACCO) – Long -term strategy in play; difficult quarter

Posted on February 14, 2019 by Admin

Thursday February 14, 2019

ACCO Brands (ACCO)

A Tough Ending to a Difficult Year.

ACCO Brands
Corporation designs, manufactures, sources, markets, and sells office products,
academic supplies, and calendar products primarily in the United States,
Canada, Northern Europe, Brazil, Australia, and Mexico. It operates through
three segments: ACCO Brands North America, ACCO Brands EMEA, and ACCO Brands
International.

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

RATING: OUTPERFORM

A Tough End to the Year. ACCO reported 4Q18 revenue of $529.3 million and adjusted net income of $42.9 million, or $0.41 per share, below our forecast of $558.1 million and $0.43, respectively, and consensus of $553 million and $0.43, respectively. For the full year, revenue came in at $1,941.2 million and adjusted EPS at $1.14.
A Confluence of Events. 2018 top line was impacted by reduced sales to North American wholesalers, reduced calendar sales and lower Australia and Mexico sales, among others. Margins were negatively impacted by unfavorable product and cust…

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Research – Cumulus Media (CMLS) – Raising price target

Posted on February 14, 2019 by Admin

Thursday, February 14, 2019

Cumulus Media (CMLS)

A win,win.

CUMULUS MEDIA, Inc. (NASDAQ: CMLS) is a leading audio-first media and entertainment company delivering premium content to over a quarter billion people every month — wherever and whenever they want it. CUMULUS MEDIA engages listeners with high-quality local programming through 428 owned-and-operated stations across 87 markets; delivers nationally-syndicated sports, news, talk, and entertainment programming from iconic brands including the NFL, the NCAA, the Masters, the Olympics, the GRAMMYS, the American Country Music Awards, and many other world-class partners across nearly 8,000 affiliated stations through Westwood One, the largest audio network in America; and inspires listeners through its rapidly growing network of original podcasts that are smart, entertaining and thought-provoking. CUMULUS MEDIA provides advertisers with local impact and national reach through on-air, digital, mobile, and voice-activated media solutions, as well as access to integrated digital marketing services, powerful influencers, and live event experiences. CUMULUS MEDIA is the only audio media company to provide marketers with local and national advertising performance guarantees.

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

RATING: OUTPERFORM

Strengthening its position. Two transactions were announced that will 1) reduce debt and 2) strengthen its market position. The company sold 6 stations for a combined price of $103.5 million, at an estimated 17 times cash flow. Separately, it swapped stations with Entercom (ETM: Not Rated) to have a developed radio cluster in Indianapolis.
Moves viewed favorably. The company has a significant number of under penetrated markets. As such, swapping out of those markets for developed station clusters should increase total company margins. Furthermore, asset…

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Research – DLH Holdings (DLHC) – Solid 1Q19

Posted on February 14, 2019 by Admin

Thursday, February 14, 2019

DLH Holdings (DLHC)

10Q reveals solid 1Q19.

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

RATING: OUTPERFORM

Year Off to a Great Start. DLH Holdings filed its 10Q for the period ended 12/31/2018 last night. The filing reveals a solid start to the year. Revenue of $33.8M and diluted EPS of $0.13 was above our estimate of $32.5 million and $0.06, respectively, and beat consensus estimates of $32.1 million and $0.07, respectively.
Solid Execution. The 11.7% year-over-year revenue increase was due to an expansion of workload volumes on both the VA and HHS contracts. An improved quality of revenue drove gross margin up to 23.1% from 21.6%, while SG&…

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Research – Albany International (AIN) – Quarterly results surpass expectations

Posted on February 13, 2019 by Admin

Wednesday, February 13, 2019

Albany International Corp. (AIN)

Grand finale to a stellar quarter.

Albany International
Corp. is a textiles and materials processing company. The Company operates
through two segments: Machine Clothing (MC) and Albany Engineered Composites
(AEC). Its MC segment supplies permeable and impermeable belts used in the
manufacture of paper, paperboard, nonwovens, fiber cement and various other
industrial applications.

Christian Herbosa, Research Analyst, Noble Capital Markets, Inc.

RATING: Market Perform

Surpassed Guidance by Leaps and Bounds. AIN finished 2018 with full year revenue growth of 36% over 2017 in the AEC Segment and full year adjusted EBITDA of $212.1 in the MC segment. These results significantly exceeded the company’s original guidance ranges of 20%-30% revenue growth in AEC and adjusted EBITDA of $180-$195 in MC.
AEC Improves Efficiency Ahead of Schedule. During Q4, AIN achieved adjusted EBITDA margins of 17.9% in the AEC Segment nearly achieving the company’s 2020 target. These margins may continue to gradually improve…

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News – High-yield bonds: Trash or Treasure?

Posted on February 13, 2019 by Admin

The case for high-yield bond investing.

(Note: related companies are at base of the story and all the sources
listed in the “Balanced” section)

High-yield bonds, once thought of as appropriate only for sophisticated investors or bond investment houses, have become more commonplace in recent years with the spread of high-yield bond ETFs. Through these ETFs, individual investors can have a diversified exposure to an investment class with characteristics of both bonds and equities. But investing in high-yield bonds is not for the faint of heart. High-yield bonds performed poorly in 2018 causing the spread between junk bonds and treasuries to widen. This potential for higher return begs the question:

Is now a good time to invest in high-yield bonds?

News – Trump vs Obama: Who did the first two years better?

Posted on February 12, 2019 by Admin

Trump versus Obama: an economic review of the Presidents’ first two years.

(Note: related
companies are at base of the story and all the sources listed in the
“Balanced” section)

The first half of President Trump’s first term of office is over. And whether or not the administration did a good job in office probably depends on one’s political persuasion. But what do the facts say? As you might expect, some data points favor the Trump administration and some favor the Obama administration. This article is not meant to be a commentary on performance but simply a scorecard of key economic indicators during each president’s time in office. Here’s a look at the two presidential economies at the midpoint of their first term.

Research – Great Panther Silver (GPL) – Beadell acquisition approved

Posted on February 12, 2019 by Admin

Tuesday, February 12, 2019

Great Panther Silver (GPL)

Shareholders Approve Great Panther Acquisition of Beadell Resources.

Great Panther Silver
Ltd is a precious metals mining and exploration company. It owns two mines
Topia and Guanajuato Mine Complex (GMC). The Topia operations produce silver,
gold, lead, and zinc whereas the GMC operation produces silver and gold.

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

RATING: OUTPERFORM

Shareholders
vote to approve. Great Panther shareholders approved the company’s acquisition of Beadell Resources Limited (ASX: BDR) and a name change to Great Panther Mining Limited. The transaction was also approved by BDR shareholders who will receive 0.0619 new GPL shares for each BDR share held on the anticipated February 25th record date.
Transaction
terms. With the issuance of new shares at an exchange ratio of 0.0619, Great Panther will be issuing 103.6 million new shares bringing the total number of shares issued and outstanding to ~273.0 million. Upon com…

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Research – Scorpio Bulkers (SALT) – Lowering price target

Posted on February 12, 2019 by Admin

Tuesday, February 12, 2019

Scorpio Bulkers (SALT)

Global Growth and Trade Concerns Dampen Near-term Rate Outlook.

Scorpio Bulkers Inc
is a shipping company based in Monaco. It owns and operates a fleet of modern
mid to large-size dry bulk carriers which provide marine transportation for
major bulks, which include iron ore, coal and grain and minor bulks which
include bauxite, fertilizers and steel products internationally.

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

RATING: OUTPERFORM

Adjusting
EBITDA estimates to reflect 1Q2019 contract cover, time charters, recent dry bulk market weakness and scrubber installations. Lowering adjusted 2019 EBITDA estimate to $110.3 million (from $143.4 million) and TCE rates to $11,938/day (from $13,823/day), which represents a modest improvement over adjusted 2018 EBITDA of $107.3 million and TCE rates of $11,844/day.
NobleCon
XV Transportation Panel offered positive long-term outlook for dry bulk
industry. Our conference panel of five seasoned executives from three dry bulk and two tanker companies reinfo…

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WORTH READING – Electric Cars, OPEC Today, FED Impact

Posted on February 11, 2019 by Admin

Get
the bullish, bearish and balanced angle on the events that might shape our
future. And the future of the companies poised to gain or lose.

All the talk about electric cars; with 1% of
global cars sales, why is anyone listening? Read it Now

Is OPEC still the ruler of global price-setting
or does the “O” now stand for obsolete? Read it Now

The FED has raised rates at the displeasure of
the President; is there reason to panic? Read it Now