Tuesday, April 26, 2022

The GEO Group, Inc. (GEO)
NobleCon 18 Presentation Notes

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.

Joshua Zoepfel, Research Associate, Noble Capital Markets, Inc.

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

NobleCon 18. GEO CFO Brian Evans presented at NobleCon 18. The Company highlighted its leading market position, dependable cash flows, and potential market opportunity.

Title 42.  Government officials continue to give credence to a projected massive surge once Title 42 is lifted. Most recently, ICE said it is expecting a “historic” surge in migration at the border. In an April 8th court filing, the agency stated, “ICE is preparing to…respond to an historic border surge, with projections forecasted to triple current arrivals.” …

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. 

 

Tuesday, April 26, 2022

Kelly Services (KELYA)
NobleCon 18 Presentation

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.

Joshua Zoepfel, Research Associate, Noble Capital Markets, Inc.

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

NobleCon 18. Kelly Services CEO Peter Quigley and CFO Olivier Thirot presented at NobleCon 18. Highlights of the presentation were the recent Persol Holdings and PersolKelly sales, the RocketPower acquisition, and strategy for future acquisitions. A rebroadcast is available here.

More Cash in the Pocket.  The Company highlighted their recent sale of Persol Holdings common shares and PersolKelly joint venture interest. Both these sales accumulated roughly $235 million, net of repurchases of common shares. This additional cash will prove to be beneficial, in our view, as the Company is aggressively looking for companies to purchase …

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. 

 

Monday, April 25, 2022

DLH (DLHC)
NobleCon 18 Presentation Notes

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.

Joshua Zoepfel, Research Associate, Noble Capital Markets, Inc.

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

NobleCon 18. DLH Holding CFO Kathryn Johnbull presented at NobleCon18. The Company highlighted growth of their end markets and potential for expansion in the future, in our view. A rebroadcast is available here.

Budget Growth.  Continued budget growth in government programs sets up DLH for the future, as their top three customers by revenue-DOD, HHS, and VA-have seen 1.8%, 8,5%, and 9.2% CAGRs, respectively, in their budgets from fiscal year 2019 to the 2022 presidential budget request. DLH’s pipeline exceeds $2 billion, with $800 million of proposals in process …

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. 

 

Monday, April 25, 2022

Information Services (III)
NobleCon 18 Presentation

ISG (Information Services Group) (Nasdaq: III) is a leading global technology research and advisory firm. A trusted business partner to more than 700 clients, including more than 70 of the top 100 enterprises in the world, ISG is committed to helping corporations, public sector organizations, and service and technology providers achieve operational excellence and faster growth. The firm specializes in digital transformation services, including automation, cloud and data analytics; sourcing advisory; managed governance and risk services; network carrier services; strategy and operations design; change management; market intelligence and technology research and analysis. Founded in 2006, and based in Stamford, Conn., ISG employs more than 1,300 digital-ready professionals operating in more than 20 countries—a global team known for its innovative thinking, market influence, deep industry and technology expertise, and world-class research and analytical capabilities based on the industry’s most comprehensive marketplace data. For more information, visit www.isg-one.com

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

Joshua Zoepfel, Research Associate, Noble Capital Markets, Inc.

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

NobleCon 18. ISG CEO Michael Connors and CFO Bert Alfonso presented at NobleCon18. The transformation of the Company during COVID, ISG NEXT, and potential for acquisitions were highlighted in the presentation. A rebroadcast is available here.

A Changing Model.  The COVID environment gave ISG the ability to transform the business towards two different segments, ISG Digital and ISG Enterprise, which gave companies the ability to choose which solution is needed, whether it is for more data analytics and cyber security (Digital) or Human Resources and Accounting (Enterprise). Combined with the iFlex working structure, ISG transformed the …

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. 

 

Placing a Bid to Own a Public Company

 

A tender offer is a bid to purchase some or all the shares in a corporation. Most often these bids are a public invitation for shareholders to sell their positions to the bidding party, at a specified price, within a set timeframe.  As an inducement, the price offered is generally higher than the current market price. The offer is most often reliant on a minimum number of shares tendered, for example, 51% of outstanding to allow control.

A common variation of this is an exchange offer. This is a non-cash type of tender offer in which securities or other non-cash alternatives are offered in exchange for shares. When one company acquires another, it often does a share exchange in an exchange offer tender.

A publicly-traded company may present a tender offer for its own publicly held shares to either take themselves private or to reduce shares in the public’s hands and increase those in the corporation’s treasury.

Tender offers to acquire a company without the Board of Directors’ approval can be considered a hostile takeover. Hostile takeover acquirers in the past have included hedge funds, private equity firms, management-led investor groups, SPACs, and more recently a wealthy entrepreneur (Elon Musk).

 

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CoreCivic Announces 2022 First Quarter Earnings Release and Conference Call Dates

Research, News, and Market Data on CoreCivic

 

BRENTWOOD, Tenn., April 21, 2022 (GLOBE NEWSWIRE) — CoreCivic, Inc. (NYSE: CXW) (the Company) announced today that it will release its 2022 first quarter financial results after the market closes on Wednesday, May 4, 2022.  

A live broadcast of CoreCivic’s conference call will begin at 10:00 a.m. central time (11:00 a.m. eastern time) on Thursday, May 5, 2022, and will be accessible through the Company’s website at www.corecivic.com under the “Events & Presentations” section of the “Investors” page. The live broadcast can also be accessed by dialing 888-882-4478 in the U.S. and Canada, including the confirmation passcode 8967211. An online replay of the call will be archived on our website promptly following the conference call. In addition, there will be a telephonic replay available beginning at 1:15 p.m. central time (2:15 p.m. eastern time) on May 5, 2022, through 1:15 p.m. central time (2:15 p.m. eastern time) on May 13, 2022. To access the telephonic replay, dial 888-203-1112 in the U.S. and Canada. International callers may dial +1 719-457-0820 and enter passcode 8967211.

About CoreCivic

CoreCivic is a diversified, government-solutions company with the scale and experience needed to solve tough government challenges in flexible, cost-effective ways. We provide a broad range of solutions to government partners that serve the public good through high-quality corrections and detention management, a network of residential and non-residential alternatives to incarceration to help address America’s recidivism crisis, and government real estate solutions. We are the nation’s largest owner of partnership correctional, detention and residential reentry facilities, and believe we are the largest private owner of real estate used by government agencies in the United States. We have been a flexible and dependable partner for government for nearly 40 years. Our employees are driven by a deep sense of service, high standards of professionalism and a responsibility to help government better the public good. Learn more at www.corecivic.com.

Image Credit: NobleCon (4/20/2022)

Panelists Pulled No Punches at NobleCon18 Discussing ESG, Politics, Inflation, and War

 

Is the world going through a financial, political, and logistical phase that will forever change investment markets? This was not the name given to the panel discussion that closed the first day of presentations at NobleCon18. The actual title was more directly, The World Is HOT Right
Now! The room full of investors was treated to insights by panelists from the world of energy, banking, retail, and the U.S. military. Mike Gallagher, the host of the Mike Gallagher radio show, made sure the panelists didn’t pull any punches as they agreed and disagreed on subjects as hot as political unrest, supply chain constraints, the ESG movement, inflation, and War.

The Line-up

Radio Personality, Host of the Mike Gallagher Show (Moderator)

Brigadier General Blaine Holt, Deputy US Military Representative to NATO (Panelist)

Rani Selwanes, Noble’s Head of Investment Banking (Panelist)

Chuck Rubin, former Chairman & CEO, Michaels (Panelist)

Mark Chalmers, CEO, Energy Fuels (Panelist)

ESG Movement

Mike Gallagher began the discussion with the day’s big news story that Disney (DIS) could lose its special district privileges in Florida. This would cost the public company dearly. He dovetailed this into the discussion of companies taking a strong stance on subjects that come under the mantle of ESG.

None of the panelists shied from discussing their take on the topic as the former CEO of Michael’s pointed out that management’s job is to make money, and that they should do this in a way that has a good impact. He relayed a story where the craft giant he ran, that sold items that averaged between $7-$8, saved on costs, and helped the environment by using less packaging. The overall message was to serve your customers in a way that benefits society. Don’t cater to the PR benefit, instead, do what makes sense.

The investment banker on the panel discussed the movement from an investor’s standpoint. He discussed many examples where issuers, particularly in the fixed income market are being required by investors and asset managers for their ESG policies.

Geopolitical Events and War

The Brigadier General was brought into the conversation as Mike Gallagher pointed out that this is the first time since the 1980’s that the words “World War III” and possible “nuclear war” is being used. The General made sure the investor crowd was aware that President Putin had sold all of Russia’s holding of U.S. Treasuries in 2018. He told the listeners that they should teach military officers more about economics because Russia then proceeded to increase its gold position to $140 billion worth. The point was that this aggression has been going on for the past eight years, and only recently has it reached a point where it’s being recognized.

The concern raised by a few panelists is that Ukraine and Russia provide 30% of the world’s wheat. Conditions could reach a point where there is famine, and in the past, those conditions lead to war.

The CEO of an energy company explained to the attendees that we have become addicted to “cheap.” By this, he explained we are always shopping for the lowest price, and not building at home. With this, a country allows its capacity to wain and leaves them relying on others, potentially future enemies. One notable example given was that we no longer enrich uranium anyplace in the United States. We rely on unfriendly nations for enriching nuclear fuel and even weapons-grade material. The expression used by the CEO was, “digging a hole that you don’t have a ladder to climb back out of.”

Inflation

Rising prices is more than just supply chain issues. We have been creating money which has been our answer to every problem. Instead, we need to build our way out of challenges. From the military point of view, it was explained that the higher inflation goes, the more national security is threatened.

The conversation moved to why people aren’t going back to work. While there was no definitive explanation, it was clear the panelists are perplexed that it is not likely to lead to a soft landing of the economy. The basic cost of living is rising, workers at the lowest levels are able to command much higher wages, and it is very difficult to attract employees which is inflationary.

Take Away

While this discussion hit on many difficult realities, and the panelists, to their credit took them head-on, the silver lining was pointed out to the investors at the end.

The Head of Investment Banking at Noble Capital Markets called upon his international knowledge and experience to remind the audience of something important. He told investors that during periods of turmoil capital experiences a “flight to quality.” That quality has historically been to the U.S., the largest receiver of capital when the world senses enhanced risk. He reminded everyone, including many of the C-level audience members, that there is plenty of capital looking for opportunity in the U.S., they just don’t know where to find you. His advice was to find an advisor (i.e. investment bank) that can help you find this capital.

Paul Hoffman

Managing Editor, Channelchek

 

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Image Credit: Alex Castro (Flickr)

Do Poison Pills Work? A Finance Expert Explains the Anti-Takeover Tool that Twitter Hopes Will Keep Elon Musk at Bay

 

Takeovers are usually friendly affairs. Corporate executives engage in top-secret talks, with one company or group of investors making a bid for another business. After some negotiating, the companies engaged in the merger or acquisition announce a deal has been struck.

But other takeovers are more hostile in nature. Not every company wants to be taken over. This is the case with Elon Musk’s US$43 billion bid to buy Twitter.

Companies have various measures in their arsenal to ward off such unwanted advances. One of the most effective anti-takeover measures is the shareholder rights plan, also more aptly known as a “poison pill.” It is designed to block an investor from accumulating a majority stake in a company.

Twitter adopted a poison pill plan on April 15, 2022, shortly after Musk unveiled his takeover offer in a Securities and Exchange filing.

 

This article was republished with permission from The Conversation, a news site dedicated to sharing ideas from academic experts. It represents the research-based findings and opinions of Tuugi Chuluun, Associate Professor of Finance, Loyola University Maryland

 

I’m a scholar of corporate finance. Let me explain why poison pills have been effective at warding off unsolicited offers, at least until now.

 

What’s a Poison Pill?

Poison pills were developed in the early 1980s as a defense tactic against corporate raiders to effectively poison their takeover efforts – sort of reminiscent of the suicide pills that spies supposedly swallow if captured.

There are many variants of poison pills, but they generally increase the number of shares, which then dilutes the bidder’s stake and causes them a significant financial loss.

Let’s say a company has 1,000 shares outstanding valued at $10 each, which means the company has a market value of $10,000. An activist investor purchases 100 shares at the cost of $1,000 and accumulates a significant 10% stake in the company. But if the company has a poison pill that is triggered once any hostile bidder owns 10% of its stock, all other shareholders would suddenly have the opportunity to buy additional shares at a discounted price – say, half the market price. This has the effect of quickly diluting the activist investor’s original stake and also making it worth a lot less than it was before.

 

Twitter adopted a similar measure. If any shareholder accumulates a 15% stake in the company in a purchase not approved by the board of directors, other shareholders would get the right to buy additional shares at a discount, diluting the 9.2% stake Musk recently purchased.

Poison pills are useful in part because they can be adopted quickly, but they usually have expiration dates. The poison pill adopted by Twitter, for example, expires in one year.

 

A Successful Tactic

Many well-known companies such as Papa John’s, Netflix, JCPenney and Avis Budget Group have used poison pills to successfully fend off hostile takeovers. And nearly 100 companies adopted poison pills in 2020 because they were worried that their careening stock prices, caused by the pandemic market swoon, would make them vulnerable to hostile takeovers.

No one has ever triggered – or swallowed – a poison pill that was designed to fend off an unsolicited takeover offer, showing how effective such measures are at fending off takeover attempts.

These types of anti-takeover measures are generally frowned upon as a poor corporate governance practice that can hurt a company’s value and performance. They can be seen as impediments to the ability of shareholders and outsiders to monitor management, and more about protecting the board and management than attracting more generous offers from potential buyers.

However, shareholders may benefit from poison pills if they lead to a higher bid for the company, for example. This may be already happening with Twitter as another bidder – a $103 billion private equity firm – may have surfaced.

 

A poison pill isn’t foolproof, however. A bidder facing a poison pill could try to argue that the board is not acting in the best interests of shareholders and appeal directly to them through either a tender offer – buying shares directly from other shareholders at a premium in a public bid – or a proxy contest, which involves convincing enough fellow shareholders to join a vote to oust some or all of the existing board.

And judging by his tweets to his 82 million Twitter followers, that seems to be what Musk is doing.

 

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Image Credit: UFA (Flickr)

Can One Wrong Board Member Cost Stockholders?

 

Jack Dorsey, co-founder of Twitter (TWTR) and current board member of the social media giant, used Twitter on Saturday (April 16) to share his thoughts on Twitter’s Board of Directors, (BOD). One of Jack’s tweets about the BOD read, “it’s consistently been the dysfunction of the company.”

Leading up to the string of tweets was last week’s historic offer by Elon Musk to acquire the micro-blogging platform for $43 billion. The online exchange of ideas with Dorsey started with a venture capitalist by the name of Garry Tan, who tweeted: “The wrong partner on your board can literally make a billion dollars in value evaporate.” The tweet continued, “It is not the sole reason behind every startup failure, but it is the true story a surprising percentage of the time.”

In response, Dorsey who left Twitter last November and will remain a BOD member until May responded in a tweet, “Big Facts.”

 

 

 

Dorsey retains a 2.2% share of TWTR. The string continues with a tech professional that follows Dorsey with the handle (@iHadrami) discussing what he recollects as plots and coups from the earliest days of Twitter being public.

The most telling tweet related to Dorsey’s frustration is his final tweet. Dorsey uses one word to show that his venting may get him into hot water.

 

 

It isn’t clear if the co-founder is saying “no” that he isn’t allowed based on Twitter rules, SEC rules, or some written or unwritten code of conduct. But, this punctuates his earlier points by showing that he no longer cares what he is “allowed” to say.

Take-Away

The initial 9.2% stake that Elon Musk acquired in Twitter, the BOD seat offer, which he later declined, and the current $43 billion, take-it-or-leave-it bid are creating a lot of discussion of big tech power, media companies, and billionaires. The well-known participants in these discussions are growing.

This is the first time Dorsey has joined the fray and shown frustration toward BOD oversight and decision-making.

 

Paul Hoffman

Managing Editor, Channelchek

 

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Sources

https://fortune.com/2022/04/17/its-consistently-been-the-dysfunction-of-the-company-twitter-cofounder-jack-dorsey-appears-to-call-out-his-social-media-platforms-board-elon-musk-poison-pill/

https://economictimes.indiatimes.com/tech/technology/after-musk-jack-dorsey-slams-twitters-board-amid-takeover-push/articleshow/90904651.cms

 

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Image: MichaelGoodin (Flickr)

Fannie Mae’s Latest Survey Highlights Pessimism in the Real Estate Market

 

Good time to buy? Good time to sell? Unlike the stock or even bond market, the real estate market can’t always be avoided. None of us “need” an investment account, but we all could use shelter from the rain and a safe place to sleep. Having said that, all markets are related. When the values of homes go up, households feel wealthier and more confident in their spending. This drives economic growth and stock valuations. When valuations go down, people are less likely to make improvements and have less equity to borrow from for purchases. So real estate is an important market for stock market investors to pay attention to.

The Federal National Mortgage Association, Fannie Mae (FNMA) just released two survey results on housing optimism/pessimism that are of value to anyone who has investments. The surveys measure attitudes and expectations. The results highlight the highest reading ever recorded in a couple of categories.

The surveys are the National Housing Survey and the Home Purchaser Sentiment Survey Index.

 

What Fannie Mae’s National Housing Survey Tells Us

Consumer attitudes are measured in the NHS through a telephone poll of approximately 1,000 households to assess their attitudes toward owning and renting a home, home and rental price changes, homeownership distress, the economy, household finances, and overall consumer confidence. Homeowners and renters are asked more than 100 questions designed to track attitude changes

The most recent survey answers were collected between March 1 and March 24, 2022.

 

What Fannie Mae’s Home Purchase Sentiment Index Tells Us

The HPSI creates a single number using information about consumers’ home purchase sentiment from Fannie Mae’s National Housing Survey which it weights. The number reflects consumers’ current views and forward-looking expectations of housing market conditions. It is distilled from six questions that answer consumers’ overall thoughts on, do they think that it is a good or bad time to buy or sell a house, what direction they expect home prices and mortgage interest rates to move, how concerned they are about losing their jobs, and whether their incomes are higher than they were a year earlier.

What Fannie Mae Learned

69% of respondents expect mortgage rates to go up in the next 12 months

The Home Purchase Sentiment Index decreased by 2.1 points to 73.2 in March, as consumers continue to be pessimistic regarding the direction of mortgage rates and the homebuying climate. Overall, four of the index’s six components decreased month over month, including the components asking consumers whether they expect mortgage rates to go up and whether they believe it’s a good time to buy a home. On the whole, the “Good Time to Buy” component set a new survey low, with 73% of respondents reporting that it’s a bad time to buy a home.

Year over year, the HPSI index is down 8.5 points.

 Only 24% of consumers believe it’s a good time to buy a home, with similar levels of pessimism expressed by nearly all of the demographic groups surveyed.

In March the survey also broke a new high of consumers expecting their financial situations to worsen over the next year; this was especially true among current homeowners. These concerns, together with the run-up in mortgage rates since the end of 2021, will likely lower mortgage demand from move-up buyers – and fewer move-up buyers mean fewer available entry-level homes. This adds to the rising-rate hurdles for potential first-time homebuyers. If consumer pessimism toward homebuying conditions continues and the recent mortgage rate increases are sustained, then there can be an accelerated cooling of the housing market.

Granular Details

Good/Bad Time to Buy: The percentage of those surveyed who said it’s a good time to buy a home decreased from 29% to 24%, while the percentage who said it is a bad time to buy increased from 67% to 73%. As a result, the net of those who say it is a good time to buy decreased 11 percentage points month over month.

Good/Bad Time to Sell: The percentage of respondents who say it is a good time to sell a home increased from 72% to 74%, while the percentage who say it’s a bad time to sell decreased from 22% to 21%. As a result, the net share of those who say it is a good time to sell increased 3 percentage points month over month.

Home Price Expectations: The percentage of respondents who say home prices will go up in the next 12 months increased from 46% to 48%, while the percentage who say home prices will go down increased from 16% to 20%. The share who think home prices will stay the same decreased from 32% to 28%. As a result, the net share of Americans who say home prices will go up decreased 2 percentage points month over month.

Mortgage Rate Expectations: The percentage of respondents who say mortgage rates will go down in the next 12 months increased from 3% to 4%, while the percentage who expect mortgage rates to go up increased from 67% to 69%. The share who think mortgage rates will stay the same increased from 22% to 23%. As a result, the net share of Americans who say mortgage rates will go down over the next 12 months decreased 1 percentage point month over month.

Job Concerns: The percentage of respondents who say they are not concerned about losing their job in the next 12 months decreased from 87% to 86%, while the percentage who say they are concerned increased from 9% to 11%. As a result, the net share of Americans who say they are not concerned about losing their job decreased 3 percentage points month over month.

Household Income: The percentage of respondents who say their household income is significantly higher than it was 12 months ago increased from 27% to 29%, while the percentage who say their household income is significantly lower increased from 12% to 13%. The percentage who say their household income is about the same decreased from 56% to 53%. As a result, the net share of those who say their household income is significantly higher than it was 12 months ago increased 1 percentage point month over month.

Take-Away

Economic activity impacts stock prices. Stock prices impact households’ views on their wealth and whether they should open their pocketbooks and stimulate the economy or retrench. Consumers’ views on their home values or ability to buy or rent impact spending patterns and economic activity as well. Real Estate investors are right to watch the bond market for clues related to interest rates that impact mortgage lending. For the same reason, stock market investors should keep aware of what is going on in both the fixed income sector and housing market.

 

Paul Hoffman

Managing Editor, Channelchek

 

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Sources

https://www.fanniemae.com/media/43251/display

 

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Twitter Gets a New Board Member Who Instantly Causes Stock to Rocket

 

Elon Musk, known to be one of the most innovative CEOs of this generation, has been causing the SEC to become more innovative just to keep him from violating
disclosure rules and other regulations. Some of his more public SEC problems are with what he
posts on Twitter as the CEO of Tesla. On Monday, he filed the wrong regulatory paperwork, and filed it late. The report disclosed a huge stake in Twitter. On Tuesday, he refiled.

 

Background

On Monday (March 4), Elon Musk disclosed that he bought a 9.2% stake in the social media platform Twitter. This made him the company’s largest shareholder and set off a rally in its shares of more than 27%. US securities law requires that within ten days of acquiring 5% or more of a company, a report must be filed reporting the event. The filing said that March 14, 2022, is the date of the event that required the disclosure. Under this timeline, March 24 would have been the day the ownership report should have been filed. The penalty for this is determined per violation and could amount to $207,183, according to Urska Velikonja, a law professor at Georgetown University Law Center.

Based on the 27% increase in Twitter’s stock price, on $3 billion invested, the civil penalty wouldn’t be felt at all. But there is concern the SEC could look into market manipulation allegations regarding the Twitter stock purchase, and seek harsher sanctions in a previous and ongoing SEC problem regarding a sale he made in Tesla (TSLA) stock to raise money to pay
$11 billion in taxes.

Edit Button on SEC Reports

Do-over. Elon Musk has taken the step to refile his disclosure, placing himself in the category of an active investor. The old filing (form 13G classified him as a passive investor). The new disclosure (form 13D) categorizes Musk as an active investor. It shows he had been acquiring Twitter shares almost daily between January 31 and April 1. The price range was $32.80 to $40.30. Twitter closed Tuesday at $50.98.

Board Seat

Elon Musk has been involved in such diverse companies as Paypal (PYPL), SpaceX, Tesla (TSLA), The Boring Company, and even the Dogecoin
Foundation. No doubt, he recognizes the power of social media or micro-blogging. He is also, in his own words a, “free speech absolutist.” So, for Musk to be in the position of being the largest shareholder and have a seat in the boardroom as the company decides the best road to take for its shareholders, is considered a positive for Twitter. The company has lost significant share price this year as users have become disheartened with management’s policies regarding Tweet rules and behind the scene elevation of some discussions over others.

Take-Away

On March 25, Musk tweeted a poll: “Free speech is essential to a functioning democracy. Do you believe Twitter rigorously adheres to this principle?” The next day he Tweeted he was giving “serious thought” to building a new social media platform.  This week he moved in that direction.

His public concern is that Twitter is not an open forum. The serial entrepreneur is likely to put his mark on the company as a board member and as a significant shareholder. Investors have reacted positively to the news.

 

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Sources

https://www.nasdaq.com/articles/analysis-teslas-musk-may-add-to-sec-ire-with-late-report-about-twitter-stake

www.finance.yahoo.com/news/musk-refiles-disclosure-show-221958940.html

 

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Tuesday, April 05, 2022

CoreCivic, Inc. (CXW)
What Can End of Title 42 Mean?

CoreCivic is a diversified government solutions company with the scale and experience needed to solve tough government challenges in flexible, cost-effective ways. We provide a broad range of solutions to government partners that serve the public good through corrections and detention management, a growing network of residential reentry centers to help address America’s recidivism crisis, and government real estate solutions. We are a publicly traded real estate investment trust and the nation’s largest owner of partnership correctional, detention and residential reentry facilities. We also believe we are the largest private owner of real estate used by U.S. government agencies. The Company has been a flexible and dependable partner for government for more than 35 years. Our employees are driven by a deep sense of service, high standards of professionalism and a responsibility to help government better the public good.

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

Joshua Zoepfel, Research Associate, Noble Capital Markets, Inc.

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

Title 42 to End? The Biden Administration has stated the enforcement of Title 42 to expel immigrants will end May 23rd. First authorized in March 2020 during the COVID crisis, Title 42 continued to be enforced by the Biden Administration over the past year as a key tool to stop the spread of the virus in border facilities, but with the decline in COVID cases, the Administration will end the use of Title 42.

Poised for a Surge? In the first five months of the government fiscal year, monthly Southwest border encounters are averaging nearly 170,000 and are on pace to top two million for the year.  Some reports suggest the number of people crossing once the restriction is lifted could triple to 18,000 per day, or more than double the current monthly encounter amount …

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. 

 

Tuesday, April 05, 2022

The GEO Group, Inc. (GEO)
What Can End of Title 42 Mean?

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.

Joshua Zoepfel, Research Associate, Noble Capital Markets, Inc.

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

Title 42 to End? The Biden Administration has stated the enforcement of Title 42 to expel immigrants will end May 23rd. First authorized in March 2020 during the COVID crisis, Title 42 continued to be enforced by the Biden Administration over the past year as a key tool to stop the spread of the virus in border facilities, but with the decline in COVID cases, the Administration will end the use of Title 42.

Poised for a Surge? In the first five months of the government fiscal year, monthly Southwest border encounters are averaging nearly 170,000 and are on pace to top two million for the year.  Some reports suggest the number of people crossing once the restriction is lifted could triple to 18,000 per day, or more than double the current monthly encounter amount …

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.