slightbourne@noblecapitalmarkets.com, Author at Channelchek

Comstock (LODE) – Comstock Achieves a Transformative Milestone

Posted on May 27, 2025May 27, 2025 by slightbourne@noblecapitalmarkets.com

Tuesday, May 27, 2025

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

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

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

Annual general meeting. Comstock Inc. recently hosted its virtual annual general meeting. Shareholders voted to: 1) elect seven named nominees to the Board of Directors for the ensuing year or, if earlier, until their successors are duly elected and qualified, 2) to ratify the appointment of Assure CPA, LLC as the company’s independent registered public accounting firm for the fiscal year ending December 31, 2025, and 3) to approve a non-binding advisory resolution for the compensation of named executive officers.

Separation of Comstock Fuels. Comstock Inc. officially separated and contributed the assets that formerly comprised Comstock’s fuels segment into Bioleum Corporation, a newly formed company that will operate independently with the objective of becoming a publicly traded company.

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

Circle Targets Nearly $6 Billion Valuation in Landmark Stablecoin IPO

Posted on May 27, 2025May 27, 2025 by slightbourne@noblecapitalmarkets.com

Key Points:
– Circle launches IPO to raise $624M, targeting a $5.65B valuation amid stablecoin growth.
– USDC’s market cap has surged 40% in 2025, driven by rising demand and pending U.S. regulation.
– Cathie Wood’s ARK and Coinbase stand to benefit as Circle eyes wider institutional adoption.

Circle, the fintech firm behind the widely-used USDC stablecoin, has officially launched its long-anticipated initial public offering (IPO), aiming to raise approximately $624 million. The move would value the company at around $5.65 billion — and closer to $6.7 billion when including outstanding shares and options — marking a pivotal moment for both Circle and the broader digital asset space.

The offering includes 24 million shares of Class A common stock, priced between $24 and $26 per share. Of those, Circle itself will sell 9.6 million, while existing shareholders are offloading the remaining 14.4 million. The shares will trade under the ticker CRCL on the New York Stock Exchange, giving traditional investors direct exposure to one of the most influential players in the crypto ecosystem.

Founded in 2018, Circle’s signature product, USD Coin (USDC), is now the second-largest stablecoin in the world, with around $62 billion in circulation — roughly 27% of the total stablecoin market. It trails only Tether (USDT), which holds a 67% share. However, USDC has outpaced its rival in growth this year, boasting a 40% increase in market cap compared to Tether’s 10%, according to CryptoQuant.

The IPO comes at a strategic inflection point for the crypto industry, as U.S. lawmakers move closer to passing the first major federal legislation aimed at stablecoins. Last week, the Senate advanced a regulatory bill that would establish clear guidelines for their issuance and oversight. Former President Donald Trump, now back in office, has voiced strong support for crypto regulation and stated his desire to sign a stablecoin-focused bill before the August recess.

A significant backer of Circle’s IPO is ARK Investment Management, led by Cathie Wood, which has signaled interest in purchasing up to $150 million worth of shares — a vote of confidence in Circle’s future and stablecoin utility.

The IPO is also expected to have notable ripple effects for Coinbase, a co-founder of USDC and one of its primary distribution channels. Coinbase and Circle maintain a 50/50 revenue-sharing agreement on USDC, and the crypto exchange earns 100% of the interest income generated by USDC-based products on its platform. Coinbase CEO Brian Armstrong has called making USDC the world’s top stablecoin a “stretch goal” for the company.

Beyond trading and DeFi use cases, USDC and other stablecoins have increasingly been recognized for their ability to move U.S. dollars quickly and inexpensively across borders. This functionality is attracting attention from fintech firms, traditional banks, and policymakers alike — especially as global conversations around preserving U.S. dollar dominance intensify.

With its IPO, Circle isn’t just going public — it’s stepping into the spotlight as a central player in the next era of global finance.

Oil Prices Rise Slightly as U.S.-Iran Nuclear Talks Stall and Geopolitical Tensions Mount

Posted on May 27, 2025May 27, 2025 by slightbourne@noblecapitalmarkets.com

Key Points:
– Oil inches up as U.S.-Iran nuclear talks stall without resolution.
– Geopolitical risks and strong U.S. data support prices amid market fears.
– Bearish sentiment persists due to OPEC+ supply hikes and rising U.S. stockpiles.

Oil prices edged higher this week as U.S.-Iran nuclear negotiations failed to deliver significant progress, deepening market uncertainty and raising concerns over potential disruptions in global supply. West Texas Intermediate (WTI) crude hovered near $61 a barrel following a fifth round of talks in Rome, where both sides reported “some but not conclusive progress.”

Iranian Foreign Minister Abbas Araghchi acknowledged that while talks had moved forward, critical issues remain unresolved. The lack of a breakthrough is fueling doubts about whether Iranian crude will re-enter the market anytime soon. Traders are watching closely, as failed negotiations could restrict supply from the OPEC member and tighten global markets.

Geopolitical tension is further intensifying sentiment. Reports from U.S. intelligence suggesting that Israel may be preparing to strike Iranian nuclear facilities have added to anxiety in the energy sector. While Iranian officials indicated that a deal limiting nuclear weapons development might be possible, Tehran remains firm on continuing uranium enrichment—an issue that could derail diplomacy.

Meanwhile, strong U.S. economic data helped buoy prices after a brief dip triggered by fresh tariff threats from former President Donald Trump. In a social media post, Trump criticized the European Union as “very difficult to deal with” and suggested a sweeping 50% tariff on EU imports starting June 1. The rhetoric briefly shook markets, but solid U.S. consumer and industrial data helped counterbalance demand fears.

Despite the recent uptick, oil’s broader outlook remains bearish. Crude prices are down about 14% year-to-date, recently touching lows not seen since 2021. A faster-than-anticipated easing of production limits by OPEC+ and rising U.S. commercial oil stockpiles have both added to concerns about oversupply.

Energy strategist Jens Naervig Pedersen from Danske Bank emphasized that bearish sentiment persists. He cited ongoing output hikes by OPEC+, lackluster progress in both trade and nuclear talks, and the possibility of sanctions relief for Iran as factors undermining oil prices.

Looking ahead, a virtual meeting of key OPEC+ producers, including Saudi Arabia, is set for June 1 to decide on output levels for July. Most analysts surveyed by Bloomberg anticipate a continued rise in production, which could further pressure prices.

Adding another wrinkle, the European Commission is proposing to lower the price cap on Russian oil to $50 a barrel. Currently set at $60, the cap was designed to punish Russia for its war in Ukraine while keeping oil flowing. With prices already low, the existing ceiling is seen as ineffective.

In summary, oil is caught in a tug-of-war between geopolitical risk and structural oversupply. Unless a clear resolution emerges in U.S.-Iran talks or OPEC+ shifts its stance on production, the market may remain volatile with a downward bias.

QuoteMedia Inc. (QMCI) – Delivers Encouraging Q1 Results

Posted on May 23, 2025May 23, 2025 by slightbourne@noblecapitalmarkets.com

Friday, May 23, 2025

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

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

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

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

Solid Q1 Results. The company reported Q1 revenue of $4.8 million, which increased 3% over the prior year period, and was in line with our estimate of $4.8 million. Notably, revenue in Q1 was highest amount of quarterly revenue in the company’s history. Moreover, the company recorded adj. EBITDA of $0.4 million in Q1, which was moderately lower than our estimate of $0.5 million, as illustrated in Figure #1 Q1 Results.

Q1 adj. EBITDA impact. Notably, adj. EBITDA in Q1 was impacted by the company capitalizing less development costs than in prior quarters, leading to more development costs expensed in Q1. Importantly, the increase in development costs that were expensed did not have an impact on cashflow. Furthermore, the company highlighted that it will be expensing development costs at a similar rate to Q1, which was higher than in previous quarters, moving forward.

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

Hemisphere Energy (HMENF) – Strong Start to the Year

Posted on May 23, 2025May 23, 2025 by slightbourne@noblecapitalmarkets.com

Friday, May 23, 2025

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

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

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

First quarter financial results. Hemisphere generated first quarter oil and gas revenue of C$27.3 million, an increase of 30.4% year-over-year, and above our estimate of C$24.4 million. Net income amounted to C$8.9 million or C$0.09 per share compared to C$6.8 million or C$0.07 per share during the prior year period and our estimates of C$8.2 million or C$0.08 per share. The strong earnings were reflective of a 22.3% year-over-year increase in production to 3,833 barrels of oil equivalent per day (boe/d) from 3,133 boe/d, along with better-than-expected commodity pricing due to the company’s strategic hedging. Adjusted funds flow (AFF) amounted to C$12.7 million or C$0.13 per diluted share compared to C$10.1 million or C$0.10 per diluted share during the prior year period. We had forecasted AFF of C$11.2 million.

Updating estimates. Based on first quarter results and management’s production guidance of 3,800 boe/d for the second quarter, we are raising our 2025 revenue estimates to C$98.2 million from C$94.8 million. We have modestly increased our operating expense estimate to C$38.4 million from C$37.6 million. Additionally, we are raising our net income and earnings per share (EPS) estimates to C$31.3 million and C$0.30, from C$30.3 million and C$0.29. We expect full year 2025 AFF of C$44.7 million, up from our previous estimate of C$43.0 million.

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

Gold Nears All-Time Highs: Why It’s Defying the Typical Market Cycle

Posted on May 23, 2025May 23, 2025 by slightbourne@noblecapitalmarkets.com

Key Points:
– Gold surges as investors seek safety from Trump’s tariff threats.
– U.S. fiscal worries and a weaker dollar drive demand for gold.
– Gold defies norms, staying strong despite rising Treasury yields.

Gold is trading just a few percentage points below its all-time highs, confounding expectations for a significant retracement typical of most asset classes. In a normal market cycle, rapid price increases are often followed by pullbacks as traders take profits and reassess fundamentals. But gold’s current behavior suggests that broader forces are at play, reshaping how investors evaluate risk and value in today’s geopolitical and macroeconomic landscape.

As of May 23, 2025, gold surged nearly 2% to $3,357.78 an ounce, extending its weekly gain toward 5%. This spike follows fresh threats from former President Donald Trump, who vowed to impose sweeping tariffs on the European Union and Apple Inc. These geopolitical tensions have reignited demand for gold as a safe haven, a traditional response to rising uncertainty.

According to a Bloomberg report, Trump’s proposed 50% tariffs on EU goods and a minimum 25% tariff on Apple if it fails to manufacture in the U.S. rattled financial markets. U.S. equity futures dropped in response, highlighting investor unease. At the same time, bullion prices surged as traders sought refuge from the volatility.

But tariffs alone don’t explain why gold is hovering so close to record highs without a typical retracement. Several structural shifts underpin the resilience of gold in this cycle.

First, gold is being buoyed by deep concerns over U.S. fiscal health. Moody’s recently downgraded the U.S. credit rating, citing fears that the government’s ballooning deficit—exacerbated by Trump’s tax proposals—could worsen. With trust in government debt shaken, gold has gained favor as a store of value.

Second, the usual inverse relationship between gold and Treasury yields appears to be breaking down. Yields on 10-year U.S. Treasuries have risen to around 4.5%, a level that would historically undermine gold, which offers no yield. However, this time, investors are prioritizing safety over returns. The desire to shield portfolios from political and economic instability is overriding traditional valuation models.

Third, the macroeconomic backdrop includes a weakening U.S. dollar, as evidenced by the Bloomberg Dollar Spot Index slipping 0.6% for the week. A softer dollar makes gold cheaper for foreign buyers, further boosting demand.

Finally, investor psychology has shifted. Gold’s surge of over 25% this year has created a momentum-driven market where fear of missing out (FOMO) is fueling further buying. This sentiment-driven rally leaves little room for retracement, especially when headlines continue to reinforce the bullish narrative.

In conclusion, gold’s current strength—so close to its peak with little sign of reversal—reflects more than just a temporary flight to safety. It signals a deeper lack of confidence in traditional hedges like government bonds and an increasingly uncertain geopolitical environment. Until those pressures ease, gold may not follow the rules of a “normal” market cycle.

Inside the “Big Beautiful Bill”: What It Means for You and the Markets

Posted on May 23, 2025May 23, 2025 by slightbourne@noblecapitalmarkets.com

House Republicans have passed a massive new tax and spending proposal dubbed the “One Big Beautiful Bill Act,” aiming to rewrite large portions of the U.S. tax code while reshaping safety net programs and personal finance tools. The multi-trillion-dollar legislation is already stirring debate on Wall Street and Main Street alike, with wide-reaching implications for taxpayers, investors, and public programs.

One of the centerpiece changes is the permanent extension of the 2017 Trump tax cuts, along with a significant expansion of the SALT (state and local tax) deduction. The new cap would rise to $40,000 in 2025—up from $10,000—before gradually increasing through 2033. The benefit phases out for incomes above $500,000, reinforcing its tilt toward middle- and upper-middle-income households.

The bill temporarily boosts the child tax credit from $2,000 to $2,500 through 2028, but offers no added benefit for families with very low incomes who don’t owe federal tax. Analysts caution that about 17 million children may continue to be left out of full credit eligibility.

Among the new personal finance tools is a $4,000 “bonus deduction” for seniors aged 65 and up, aimed at helping retirees reduce their taxable income. It applies fully to individuals earning up to $75,000 and couples earning up to $150,000.

The legislation also expands the reach of health savings accounts (HSAs), doubling annual contribution limits to $8,600 for individuals and $17,100 for couples earning under $75,000 and $150,000, respectively. Starting in 2026, HSAs could also be used for select fitness expenses, like gym memberships, up to $500 per individual or $1,000 per couple.

A notable new provision introduces government-seeded savings vehicles for children, now branded “Trump Accounts.” These accounts start with a $1,000 deposit from the U.S. Treasury and can be used for education, home buying, or launching a business. Parents can contribute up to $5,000 annually, with investments growing tax-deferred.

There are also breaks for car buyers and tipped workers. A new tax deduction allows up to $10,000 in annual auto loan interest for vehicles assembled in the U.S., while tip income for workers earning under $160,000 would be temporarily exempt from federal tax through 2028.

To fund these changes, the bill proposes historic cuts to Medicaid and SNAP, totaling roughly $1 trillion. Tighter work requirements could result in 14 million people losing health coverage and 3 million households losing food assistance, according to policy analysts.

For student borrowers, the news isn’t good. The bill would eliminate subsidized loans, meaning interest would begin accruing while students are in school. Forgiveness on income-driven repayment plans would be delayed to 30 years in many cases, drawing criticism from higher education experts.

Though markets may welcome expanded consumer spending power and tax relief, concerns about the growing deficit and the bill’s political path forward loom large. The Senate is expected to revise key components before a final vote.

Whether the “Big Beautiful Bill” becomes law as drafted or is reshaped in the coming weeks, its impact could ripple across household budgets and investment strategies for years.

Sanofi Acquires Vigil Neuroscience in $470 Million Deal to Bolster Alzheimer’s Drug Pipeline

Posted on May 22, 2025May 22, 2025 by slightbourne@noblecapitalmarkets.com

Key Points:
– Sanofi to acquire Vigil Neuroscience for $470 million, expanding its neurology focus.
– Deal includes $8 per share and a $2 contingent value right tied to an Alzheimer’s candidate.
– The acquisition strengthens Sanofi’s long-term R&D pipeline without impacting 2025 guidance.

In a strategic move to deepen its commitment to neuroscience and neurodegenerative disorders, French pharmaceutical giant Sanofi (SASY.PA) announced it will acquire Vigil Neuroscience (VIGL.O), a U.S.-based clinical-stage biotech company, in a deal valued at $470 million. The transaction includes an upfront cash payment of $8 per share, along with a $2 per share contingent value right (CVR) tied to the progress of Vigil’s Alzheimer’s drug candidate, VG-3927.

The acquisition signals Sanofi’s growing ambition in the neurology space, particularly in the high-stakes race to develop effective treatments for Alzheimer’s disease, a market expected to grow dramatically as global populations age. VG-3927, an oral drug currently in clinical development, is the centerpiece of the deal and could offer a differentiated approach to treating Alzheimer’s by targeting the TREM2 receptor, which plays a role in immune responses in the brain.

This deal is part of a broader, aggressive push by Sanofi into neuroscience and U.S.-based innovation. Earlier this month, the company announced it would invest $20 billion in the U.S. through 2030, a capital injection aimed at bolstering research, development, and domestic manufacturing capabilities. The acquisition of Vigil aligns with this strategic direction, expanding Sanofi’s U.S. biotech footprint and pipeline in tandem.

The CVR component of the deal is particularly notable. CVRs are often used in biotech mergers to tie additional shareholder value to the success of specific development milestones. In this case, the extra $2 per share is dependent on the advancement of VG-3927, which could become a valuable addition to Sanofi’s neurology portfolio if it clears clinical and regulatory hurdles.

Sanofi already had a vested interest in Vigil before this announcement. In June 2024, the French firm made a $40 million equity investment in Vigil, securing exclusive negotiation rights to VG-3927. This prior relationship helped pave the way for the full acquisition, giving Sanofi a head start in due diligence and integration planning.

Interestingly, Vigil’s other key asset, VGL101, a monoclonal antibody program, is excluded from the acquisition and will be returned to its original licensor, Amgen (AMGN). This indicates Sanofi’s laser focus on VG-3927 and its potential as an oral therapy—a more scalable and patient-friendly alternative to injectable biologics currently used in Alzheimer’s treatment.

The transaction is expected to close in the third quarter of 2025, pending customary regulatory approvals. Sanofi confirmed that the acquisition would not impact its 2025 financial guidance, suggesting it is being funded through existing capital reserves or allocated R&D spending.

As big pharma continues to chase the next blockbuster treatment in neurology, Sanofi’s acquisition of Vigil could position the company as a stronger contender in the evolving Alzheimer’s market—provided VG-3927 delivers on its clinical promise.

Take a moment to take a look at more emerging growth biotechnology companies by taking a look at Noble Capital Markets’ Research Analyst Robert LeBoyer’s coverage list.

Bitcoin Smashes All-Time High, Surges Past $109K Amid Favorable Market Winds

Posted on May 21, 2025May 21, 2025 by slightbourne@noblecapitalmarkets.com

Bitcoin soared to a new all-time high on Wednesday, piercing through the $109,000 mark and marking yet another milestone in the cryptocurrency’s volatile but increasingly legitimized journey. The flagship digital asset reached an intraday peak of $109,500 before slightly paring gains, according to data from Coin Metrics. At last check, it was trading around $108,955—up over 2% on the day and 16% higher for the month of May so far.

This surge caps off a month of bullish momentum for Bitcoin, fueled by a cocktail of macroeconomic tailwinds, favorable sentiment, and deepening institutional adoption. Analysts say the rally is being supported by a combination of softening U.S. inflation, easing geopolitical tensions—especially in U.S.-China trade—and mounting concerns about fiat currencies following Moody’s recent downgrade of U.S. sovereign debt.

Just months ago, in April, Bitcoin had dipped as low as $74,000, amid heightened global uncertainty and a broader risk-off sentiment. The turnaround underscores how quickly sentiment can swing in the crypto space—especially when supported by fundamental developments.

Institutional Money Flows In

Institutional interest continues to be a driving force behind Bitcoin’s latest leg higher. Exchange-traded funds (ETFs) tied to the digital asset have attracted more than $40 billion in cumulative inflows, with just two days of outflows in May—a sign of sustained demand.

Meanwhile, on-chain data reveals declining selling pressure. Bitcoin inflows into centralized exchanges remain low, suggesting long-term holders are staying put. Liquidity is also expanding, as seen by growing reserves of Tether (USDT), a stablecoin often used to enter crypto positions, now sitting at record levels on exchanges. This indicates fresh buying power is ready to be deployed.

Regulatory Progress Fuels Optimism

Another catalyst powering the rally is the recent advancement of crypto-focused legislation in Washington. The U.S. Senate this week approved a bill to establish a national framework for regulating stablecoins, a key component of the broader crypto ecosystem. President Donald Trump has expressed interest in signing the legislation before the August congressional recess—a development that could bring clarity and credibility to the space.

Adding fuel to the fire, Coinbase—the largest U.S. crypto exchange—was recently added to the S&P 500 index, a symbolic milestone that’s helping cement crypto’s place in the traditional financial system.

As Bitcoin climbs to new heights, questions naturally arise about sustainability and the possibility of a correction. But for now, the world’s largest cryptocurrency is riding high, and investors are watching closely to see if this breakout is just the beginning of another historic bull run.

Take a moment to take a look at emerging growth cryptocurrency companies Bitcoin Depot and Bit Digital.

Century Lithium Corp. (CYDVF) – Right Time, Right Place, Right Project

Posted on May 21, 2025May 21, 2025 by slightbourne@noblecapitalmarkets.com

Wednesday, May 21, 2025

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

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

Investor webinar. Century Lithium recently discussed the Angel Island Lithium project during an insightful investor webinar. Key highlights included: 1) Angel Island is an advanced project with one of the largest lithium deposits in the United States, 2) the project employs a proven patent-pending process for chloride leaching, along with direct lithium extraction to produce lithium carbonate, 3) Century has a secured a 1,770 acre-feet per year water rights permit, and 4) the company has demonstrated its ability to consistently produce battery grade lithium carbonate on-site at its pilot plant in Amargosa Valley, Nevada.

Nearing completion of a Plan of Operations. Management expects to submit a Plan of Operations to the Bureau of Land Management within the next few months, which would enable the company to initiate the National Environmental Policy Act (NEPA) permitting process. We anticipate the NEPA permitting process could take between 12 and 24 months, depending on whether an environmental assessment or environmental impact statement is required. An environmental impact statement generally takes longer.

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

The Russell Reconstitution 2025 Preliminary List

Posted on May 21, 2025May 21, 2025 by slightbourne@noblecapitalmarkets.com

The preliminary list of stocks to be included in the Russell Reconstitution, and also which Russell Index, is a huge day for many stock investors and the impacted companies as well. This year, it occurs on Friday, May 23. The list, although preliminary and subject to refinements each Friday through June, includes the stocks that are believed to meet the requirements based on valuations taken on April 30. This is the first official file from the popular index provider, in addition to informing the investor public what to expect when the indexes are reconstituted. The reconstitution can be expected to impact prices as index fund managers readjust holdings. The event also, for many, redefines market-cap levels that are considered small-cap, mid-cap, and large-cap.

Background

The Russell Reconstitution is an annual event that reconfigures the membership of the Russell indexes by defining the top 3000 stocks based on market-cap (Russell 3000), then the top 1000 stocks (Russell 1000), and reclassifying the smaller 2000 stocks to form the Russell 2000 Small Cap Index. These serve as a benchmark for many institutional investors, as the indexes reflect the performance of the U.S. equity market across different market-cap classifications. The reconstitution process adds, removes, and weights stocks to ensure the indexes accurately represent the market.

The Preliminary List which will be published after the market closes on May 23, 2025, is a crucial step in the market cap reclassification process. It provides market participants with an initial glimpse into potential additions and deletions from the indexes. The stocks listed on this preliminary roster may experience increased attention from investors, as it hints at potential buying or selling pressure once the final reconstitution is completed.

The newly reconstituted indexes become live after the market close on June 23.

Implications for Investors

The release of the Russell Preliminary List on May 23 could provide opportunities for investors, including:

Enhanced Market Visibility – Companies listed on the Preliminary List may experience increased trading volumes and heightened market popularity, or even scrutiny, as investors evaluate their potential inclusion in the Russell indexes.

Potential Price Movements – Stocks slated for addition or deletion from the indexes can experience price volatility as market participants adjust their positions to align with the anticipated reconstitution changes.

Portfolio Adjustments – Active managers who track the Russell indexes may need to realign their portfolios to reflect the new index constituents, potentially triggering buying or selling activity in affected stocks.

Investor Considerations

Stock market participants should consider the following factors when analyzing the Preliminary List and its potential impact:

Final Reconstitution – The Preliminary List is subject to changes in the final reconstitution, which is typically announced in late June. Investors should monitor subsequent updates to confirm the actual index membership changes. These updates may occur as the result of faulty data or dramatic changes to the company such as a merger since the April 30 market cap snapshot.

Fundamental Analysis – As always, the fundamentals and financial health of the companies should be among the most important factors for non-index investors to consider. In the past, potential additions often presented attractive investment opportunities, while potential deletions may mean the stock gets less attention from investors.

Take Away

The release of the Preliminary List on May 23, 2025, marks a significant milestone in the Russell Reconstitution process. Investors should pay close attention to the stocks listed, as they may experience increased market visibility and potential price movements. However, it is important to remember that the Preliminary List is subject to changes. Thorough fundamental analysis, including earnings, potential growth, and liquidity assessment, is prudent for most stock investments. For more information to evaluate small-cap names, look to Channelchek as a source of data on over 6,000 small cap companies.

Levi Strauss Sells Dockers to Authentic Brands for Up to $391 Million

Posted on May 20, 2025May 20, 2025 by slightbourne@noblecapitalmarkets.com

Key Points:
– Levi Strauss sells Dockers to Authentic Brands Group for up to $391M to sharpen focus on core labels.
– Dockers, a 1980s icon of “Casual Friday,” has struggled amid the rise of athleisure and remote work.
– Authentic aims to revitalize Dockers and expand it into new markets and categories.

Levi Strauss & Co. is parting ways with one of its most recognizable labels, announcing Tuesday that it will sell its Dockers brand to Authentic Brands Group for up to $391 million. The sale marks a major shift for Levi Strauss, which is increasingly focused on its namesake denim line and the growing Beyond Yoga brand.

The transaction includes an initial payment of $311 million, with the potential for an additional $80 million in performance-based payouts. The sale is expected to close by July 31, 2025, for U.S. and Canadian operations, with global segments transitioning by January 2026.

Dockers, launched by Levi’s in 1986, became a defining symbol of the 1990s “Casual Friday” movement. Known for its khakis and relaxed office wear, the brand helped usher in a cultural shift away from stiff corporate dress codes. But in recent years, Dockers has fallen out of fashion favor, as a pandemic-driven work-from-home culture and the meteoric rise of athleisure wear left traditional khakis collecting dust in closets.

“Selling Dockers further aligns our portfolio with our strategic priorities,” Levi Strauss CEO Michelle Gass said. “We’re doubling down on the Levi’s brand and on high-growth categories like athleisure.” Gass also praised the Dockers team for its decades of brand stewardship, calling the line “the authority on khaki.”

The decision comes amid a broader effort by Levi Strauss to tighten its brand focus and revitalize profitability. In fiscal 2024, Levi’s reported $210.6 million in profit on $6.36 billion in revenue. However, growth in its core denim line and newer segments like Beyond Yoga has far outpaced Dockers in recent years.

Meanwhile, the buyer — Authentic Brands Group — is no stranger to resurrecting legacy names. The brand management firm, led by founder and CEO Jamie Salter, owns a portfolio of well-known but often underperforming or dormant brands, including Reebok, Brooks Brothers, and Forever 21.

Salter described Dockers as a “natural fit” for Authentic’s brand development model. “Dockers played a key role in shaping casual workwear, and we see significant potential to build on that legacy,” he said. Authentic plans to expand the Dockers brand across multiple categories and potentially international markets.

Analysts view the deal as a win-win: Levi Strauss sharpens its brand identity while shedding a slower-growth asset, and Authentic takes on a nostalgic brand with solid name recognition and room for reinvention. The sale also highlights the ongoing evolution in consumer preferences, as shoppers prioritize comfort, versatility, and lifestyle-driven fashion over traditional workplace attire.

As Dockers moves into new hands, the brand that helped define office wear for a generation now faces a new challenge—redefining its place in a post-business-casual world.

Direct Digital Holdings (DRCT) – There Is A Path Forward

Posted on May 20, 2025May 20, 2025 by slightbourne@noblecapitalmarkets.com

Tuesday, May 20, 2025

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

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

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

Taking the necessary steps to remain listed. The company faces a two pronged battle to remain listed on the NASDAQ. On one front, it must address the shareholder equity deficiency. And, on the other front, it must address the stock price, which is trading below $1. We view the issues separately and believe that the company has a strategy to remain listed on both fronts.

Addressing the shareholder deficit. The company has a program to raise capital through an equity reserve facility to address its shareholder deficit issue to comply with a NASDAQ requirement. To date, the company has raised $7 million on its $20 million facility. The company could raise even more capital when it becomes S3 eligible at the end of Summer. Currently, the company is $23 million short of turning shareholder equity positive.

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