Category: Aerospace and Defense

Research – IEC Electronics (IEC) – Raising price target

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Thursday, February 07, 2019

IEC Electronics (IEC)

Bookings momentum accelerates into 2019.

IEC Electronics Corp.
provides electronic manufacturing services (EMS) to technology companies in the
United States. It involves in the custom manufacture of circuit cards, system
level assemblies, and an array of custom cable/wire harness assemblies. The
company also provides electronic manufacturing services primarily for wireless
communication systems, test diagnostic equipment, military and defense systems,
transportation products, and medical instrumentation.

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

RATING: OUTPERFORM

  • Significant
    Top Line Beat.     Fiscal Q1 revenue was $35.4 million beating our estimate of $34 million. On a sequential basis revenue grew 3.6% over Q4, which is a meaningful increase considering Q1 revenue typically experiences a seasonal drop. As the seasonally lowest sales quarter, these results imply strong year-over-year growth in 2019 assuming revenue can build sequentially throughout the year.
  • Organic
    Growth Momentum.     IEC continued to attract new work driving backlog up over 15% during the quarter. Industry-wide component shortages have created an obstacle to converting thi…


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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 – Information Services (III) – NobleCon 15 Highlights

Posted on by Admin

Tuesday, February 05, 2019

Information Services Group Inc. (III)

NobleCon 15 presentation highlights digital, RPA business.

Information Services
Group (ISG) (III) is a leading technology insights, market intelligence and
advisory services company, serving more than 500 clients around the world to
help them achieve operational excellence. ISG supports private and public
sector organizations to transform and optimize their operational environments
through research, benchmarking, consulting and managed services, with a focus
on information technology, business process transformation, program management
services and enterprise resource planning.

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

RATING: OUTPERFORM

  • NobleCon 15. ISG management’s presentation at NobleCon 15 highlighted the Company’s ongoing expansion in the digital and Robotics Process Automation (RPA) markets. With some 53% of surveyed firms reporting significant investments in RPA and 44% investing in the cloud to achieve operational cost savings goals, according to a 2018 study, we believe ISG is in the right place at the right time.
  • Revenue Mix Continues To Trend Upwards. As we stated in prior reports, the rapid adoption of RPA services is continuing, with revenue now at a $25 million run rate. In addition, recurri…


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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. 

News – Trump – Is he right to withdraw from INF?

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Is Trump right to withdraw from the Intermediate-Range
Nuclear Forces Agreement (INF)?

(Note: all the sources listed in the “Balanced” section)

End of an Era. At the end of October, 2018, National Security Adviser John Bolton  traveled to Russia to deliver Trump’s likely decision to pull out of the Intermediate-Range Nuclear
Forces agreement (INF). This was a landmark treaty brokered between President Ronald Reagan and Soviet leader Mikhail Gorbachev in 1987. This agreement banned the possession ground-launched missiles with ranges of between 300 and 3,500 miles. The treaty was successful in the destruction of thousands of missiles in both countries, however, in recent years Russia has been accused of breaking the agreement by testing and storing ground-launched cruise missiles. In a recent statement, President Trump expressed his frustration to reporters, “We’re the ones that have stayed in the
agreement and we’ve honored the agreement, but Russia has not unfortunately
honored the agreement, so we’re going to terminate the agreement, we’re going
to pull out.” 2, 5, 6