Comtech Telecommunications Corp. engages in the design, development, production, and marketing of products, systems, and services for advanced communications solutions in the United States and internationally. It operates in three segments: Telecommunications Transmission, Mobile Data Communications, and RF Microwave Amplifiers. The Telecommunications Transmission segment provides satellite earth station equipment and systems, over-the-horizon microwave systems, and forward error correction technology, which are used in various commercial and government applications, including backhaul of wireless and cellular traffic, broadcasting (including HDTV), IP-based communications traffic, long distance telephony, and secure defense applications. The Mobile Data Communications segment provides mobile satellite transceivers, and computers and satellite earth station network gateways and associated installation, training, and maintenance services; supplies and operates satellite packet data networks, including arranging and providing satellite capacity; and offers microsatellites and related components. The RF Microwave Amplifiers segment designs, develops, manufactures, and markets satellite earth station traveling wave tube amplifiers (TWTA) and broadband amplifiers. Its amplifiers are used in broadcast and broadband satellite communication; defense applications, such as telecommunications systems and electronic warfare systems; and commercial applications comprising oncology treatment systems, as well as to amplify signals carrying voice, video, or data for air-to-satellite-to-ground communications. The company serves satellite systems integrators, wireless and other communication service providers, broadcasters, defense contractors, military, governments, and oil companies. Comtech markets its products through independent representatives and value-added resellers. The company was founded in 1967 and is headquartered in Melville, New York.
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.
Turn the Page. With the appointment of Ken Peterman as CEO and President, Comtech is entering a new chapter, in our view. With a track record of building and creating sustainable, profitable growth, we believe Mr. Peterman will be able to capitalize on the high-growth opportunity set in front of Comtech.
Convergence. A key theme from Mr. Peterman is the belief of a coming “convergence” between the satellite and space communications and terrestrial and wireless communications, or Comtech’s two core markets. With an unsurpassed skill set across both of these areas, we believe Comtech is uniquely positioned to capitalize on this coming convergence.
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.
Gregory Aurand, Senior Research Analyst, Healthcare Services & Medical Devices, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
FQ2 2023 reported for period ending July 31, 2022. As a clinical stage company, ChitogenX reported no revenues in the quarter. Expenses, both G&A and R&D, were lower than our quarter expectations, offset by higher share-based compensation expense. R&D expenses were reduced by a $500,000 (all figures in C$) grant received in May 2022 to advance the meniscus repair indication. The result was a net loss of $1.363 million vs. expected $1.59 million. Loss per share was $0.03 vs. expected loss of $0.03.
ChitogenX is pushing well beyond orthopedics. The rebranding recently instituted was more than a simple name change. The Company is leveraging its chitosan biopolymer technology expertise to attack a much larger global regenerative medicine market, including areas like oncology, neurology, and cardiology. Regenerative medicines have an inherent inability to stick to repair sites and ChitogenX seeks to resolve the problem with their ChitogenX Biopolymer. We expect the Company to establish partnerships, license the technology, or seek grants in these additional markets.
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.
Is Hydrogen, Not Lithium-ion, the Automotive World’s Real Future?
Lithium-ion (Li-ion) batteries provide incredibly functional and versatile storage of electric power for cell phones, laptops, leaf blowers, Bluetooth speakers, and a myriad of other portable electric tools and appliances. But is it the best way to store power to drive the big motors found in a car or tractor-trailer? Hydrogen could provide a lighter, more potent, less environmentally harmful way to store power. And with greater range. Are car companies being steered down an inferior or potentially impossible path?
China plans to have a million hydrogen-powered vehicles on roads by 2035, and Japan, which has a much smaller population, is shooting for 800,000 units by 2030. Perhaps the world’s most abundant element is worth a deeper look before billions are spent on infrastructure to support the Li-ion model.
What’s a Fuel Cell
According to ThoughtCo.com, the most abundant element in the universe is hydrogen, making up about three-quarters of all things. Helium, then oxygen, makes up most of the rest of all matter. By comparison, all of the other elements are rare.
There are combustion engines that run on hydrogen, but it’s fuel cell electric vehicles (FCEVs) that are driven by motors, similar to those now going into Fords, Teslas and Volvos. The FCEV uses a hydrogen fuel cell.
These electric power storing fuel cells consist of a positive (cathode) and a negative electrode (anode), separated by an electrolyte membrane to chemically release electricity. This happens when oxygen from the surrounding air is exposed to the cathode. As liquid hydrogen, which fills the fuel cell in similar quantities that may be required of gas or diesel in a fossil fuel-powered vehicle, accumulates on the anode, they break apart into protons and electrons from the reaction with the electrolyte.
As protons travel through the membrane to the cathode, electrons are forced through a circuit. The circuit includes the electric motor, which releases the power to drive the vehicle down the road, powering an electric motor in the process. The electrons complete the path and reach the protons on the cathode; here, they react with oxygen to create H20 vapor.
Benefits to Cars and Trucks
The emissions of an FCEV, if you can call it that, is pure water. This is the very definition of clean and sustainable for the planet. In fact, the water vapor released is completely recyclable. But with it being composed of two of the most abundant elements, the need to recycle it as a way to store energy doesn’t exist.
Cars and large trucks have a far longer range than battery electric vehicles (BEVs). The fuel cells can convert far more stored hydrogen into electricity than current EV batteries, making their range more in line with what drivers of cars and trucks expect from their vehicles.
The speed of powering up the fuel cell is also similar to refueling a vehicle with petrol. Refilling the fuel cell takes minutes. The combination of longer range and speed to get back on the road makes it a functionally attractive option for drivers.
Downside
Similar to recharging a lithium-ion battery, a power source is needed. Currently, this power source isn’t often wind, solar, or tidal, it’s fossil fuels. Hydrogen produced by coal or oil is seen as having dirty electrons; hydrogen produced by natural gas is called blue hydrogen. Using wind or sun to turn water into its atomic components is possible and does not need to be done in a large refinery in some remote place, but the outlets for this still need to be built.
The main reason is the lack of infrastructure. In order for hydrogen cars to become a viable option, there needs to be a network of refueling stations in place. This is a chicken-and-egg situation as car manufacturers are reluctant to mass-produce FCEVs without the existing infrastructure, and investors are unwilling to build hydrogen refueling stations without strong demand for them. Sales of fuel cell-powered vehicles in the U.S. in 2021 totaled 3,341. There aren’t entrepreneurs or even energy companies racing out to build a hydrogen refilling station when they’re not likely to experience any business.
Take Away
Although hydrogen still isn’t becoming a mainstream option, it is an alternative fuel source that is certainly worth keeping an eye on. With the right infrastructure in place, hydrogen cars could become a viable option for those looking for a clean and sustainable way to power their vehicles — if not now, definitely in the future.
The Organization of Petroleum Exporting Countries (OPEC) and the extended Russia-led allies )making it OPEC+) just agreed to slash two million barrels a day from the global petroleum markets. This is likely to nudge the cost of energy up around the globe. Oil and gas had been trending down in the U.S. in part the result of President Biden’s authorized release of one million barrels a day into the market from the U.S. Strategic Petroleum Reserve back in March.
The move by OPEC+, which counteracts efforts in the U.S. to bring prices down, should have the effect of pushing up global energy prices and benefiting oil-exporting countries such as Russia increase revenue per barrel.
The Russian-Ukraine war has had an impact on crude prices since Russia is a major exporter of the commodity. Prices in the futures market have been falling since June, and are currently near their pre-war levels. The softening in the market price may not be a function of supply, writes Michael Heim, CFA, Senior Research Analyst, at Noble Capital Markets, in his quarterly Energy Industry Report. Heim says they believe, “…recent weakness largely reflects demand concerns and foreign currency changes but is not a condition of oversupply.” Explaining the connection between dollar strength and oil, Heim added, “Historically, oil prices are lower when the dollar is stronger. This is because most oil suppliers, including international suppliers, demand payments in dollars.”
WTI prices peaked at $120 per barrel in the first week of June. According to Heim, since the peak, they have come down as a “response to signs of a global economic slowdown as governments raise interest rates to fight inflation.” Oil on the futures market is down nearly 50% from its 2022 peak.
Oil Prices and Politics
OPEC+ has said they are seeking to prevent price swings rather than to target a particular oil price. Benchmark Brent crude is trading at $92 per barrel after the announcement. “The decision is technical, not political,” United Arab Emirates Energy Minister Suhail al-Mazroui told reporters ahead of the meeting.
The actions announced by OPEC+ may cause the NOPEC Bill (No Oil Producing and Exporting Cartels) that passed the Senate Judiciary Committee back in May to resurface and gain traction. The bipartisan NOPEC bill would change U.S. antitrust law to revoke the sovereign immunity that has long protected OPEC and its national oil companies from lawsuits. Under the Bill, the U.S. attorney general would have the ability to sue the oil cartel or its members, in federal court.
The West has accused Russia of weaponizing energy and orchestrating a crisis in Europe that could trigger rationing power this winter with the potential for gas shortages. This has become a hot issue with humanitarian implications that may help the West paint cartel members in a less than flattering or even adversarial light. While the West is busy accusing Russia of using energy exports in inappropriate ways, Moscow has accused the U.S. and it allies of weaponizing the dollar and financial systems such as SWIFT in retaliation for Russia sending troops into Ukraine in February. SWIFT is a method the U.S. Treasury uses to sanction international suppliers of Russian companies.
While Saudi Arabia has not condemned Moscow’s actions in Ukraine, U.S. officials have said part of the reason Washington wants lower oil prices is to deprive Moscow of oil revenue.
Take Away
Oil will continue to be an interesting sector. The variables impacting price, which have an impact on the broader energy sector include a slowing global economy, ability, and willingness for countries such as the U.S. to tap oil reserves, length of time the Russia and Ukraine war is prolonged, rigs put online, OPEC’s ability to produce at levels targeted, and dollar strength which increases energy costs for those whose native currency is weaker than U.S. petrodollars.
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Grand Opening Event Scheduled for Saturday, October 15th
DENVER, Oct. 4, 2022 /PRNewswire/ – Schwazze, (OTCQX: SHWZ) (NEO: SHWZ) (“Schwazze” or the “Company”), a premier vertically integrated, multi-state operating cannabis company with assets in Colorado and New Mexico, announces the grand opening of its adult-use dispensary, R.Greenleaf, located in Clovis, New Mexico. The new store, located at 2009 Ross Street in Clovis, officially opened its doors for business on Saturday, October 1st. Regular store operating hours are 9a to 8p Sunday through Saturday.
This store opening continues the deliberate expansion throughout the state of New Mexico and comes on the heels of the September 24th store opening in Ruidoso. This brings R.Greenleaf’s number of New Mexico retail dispensaries to 12. All locations serve the needs of medical patients as well as recreational adult-use consumers.
“Schwazze is excited to add our second new retail dispensary in New Mexico within the last week and since adult recreational cannabis was legalized in New Mexico on April 1st,” said Steve Pear, New Mexico Division President for Schwazze. “We are honored to bring our support to the Clovis community. R.Greenleaf offers a wide variety of quality products and is serviced by top-notch, knowledgeable staff.”
Grand opening product specials and promotions are already in full swing with multiple flower pack offers, pre-rolls, gummies, chocolates and distillate vaporizer cartridges. Bundled kits, deals and cannabis product starter packs will be offered to provide patients and recreational customers a variety of product forms and consumption methods based on individual needs and preferences.
A grand opening celebration will be held on Saturday, October 15th beginning at 9a and running until 2p. Swag bags will be available to the first 75 shoppers with one lucky customer receiving a 50% discount coupon. Music will accompany a food truck offering free burritos and tacos to the first 75 customers making a purchase.
Clovis Store Location R.Greenleaf 2009 Ross Street Clovis, New Mexico 88101
Grand Opening Celebration Saturday, October 15th 9a to 2p
Since April 2020, Schwazze has acquired, opened or announced the planned acquisition of 37 cannabis retail dispensaries as well as seven cultivation facilities and two manufacturing plants in Colorado and New Mexico. In May 2021, Schwazze announced its Biosciences division and in August 2021 it commenced home delivery services in Colorado.
About Schwazze
Schwazze (OTCQX: SHWZ) (NEO: SHWZ) is building a premier vertically integrated regional cannabis company with assets in Colorado and New Mexico and will continue to take its operating system to other states where it can develop a differentiated regional leadership position. Schwazze is the parent company of a portfolio of leading cannabis businesses and brands spanning seed to sale. The Company is committed to unlocking the full potential of the cannabis plant to improve the human condition. Schwazze is anchored by a high-performance culture that combines customer-centric thinking and data science to test, measure, and drive decisions and outcomes. The Company’s leadership team has deep expertise in retailing, wholesaling, and building consumer brands at Fortune 500 companies as well as in the cannabis sector. Schwazze is passionate about making a difference in our communities, promoting diversity and inclusion, and doing our part to incorporate climate-conscious best practices.
Medicine Man Technologies, Inc. was Schwazze’s former operating trade name. The corporate entity continues to be named Medicine Man Technologies, Inc. Schwazze derives its name from the pruning technique of a cannabis plant to enhance plant structure and promote healthy growth.
Forward-Looking Statements
This press release contains “forward-looking statements.” Such statements may be preceded by the words “plan,” “will,” “may,” “continue,” “predicts,” or similar words. Forward-looking statements are not guarantees of future events or performance, are based on certain assumptions, and are subject to various known and unknown risks and uncertainties, many of which are beyond the Company’s control and cannot be predicted or quantified. Consequently, actual events and results may differ materially from those expressed or implied by such forward-looking statements. Such risks and uncertainties include, without limitation, risks and uncertainties associated with (i) our inability to manufacture our products and product candidates on a commercial scale on our own or in collaboration with third parties; (ii) difficulties in obtaining financing on commercially reasonable terms; (iii) changes in the size and nature of our competition; (iv) loss of one or more key executives or scientists; (v) difficulties in securing regulatory approval to market our products and product candidates; (vi) our ability to successfully execute our growth strategy in Colorado and outside the state, (vii) our ability to consummate the acquisition described in this press release or to identify and consummate future acquisitions that meet our criteria, (viii) our ability to successfully integrate acquired businesses, including the acquisition described in this press release, and realize synergies therefrom, (ix) the ongoing COVID-19 pandemic, * the timing and extent of governmental stimulus programs, and (xi) the uncertainty in the application of federal, state and local laws to our business, and any changes in such laws. More detailed information about the Company and the risk factors that may affect the realization of forward-looking statements is set forth in the Company’s filings with the Securities and Exchange Commission (SEC), including the Company’s Annual Report on Form 10-K and its Quarterly Reports on Form 10-Q. Investors and security holders are urged to read these documents free of charge on the SEC’s website at http://www.sec.gov. The Company assumes no obligation to publicly update or revise its forward-looking statements as a result of new information, future events or otherwise except as required by law.
CALGARY, AB, Oct. 4, 2022 /CNW/ – Alvopetro Energy Ltd. (TSXV: ALV) (OTCQX: ALVOF). We are pleased to announce drilling results from our 182-C2 well. We completed drilling the 182-C2 well to a total measured depth (“MD”) of 3,185 metres on our 100% owned and operated Block 182 in the Recôncavo basin.
Based on open-hole wireline logs, at 2,607 metres total vertical depth (“TVD”), the well encountered 10.9 metres of potential net hydrocarbon pay in the Agua Grande Formation, with an average porosity of 8.9% and average water saturation of 25.1%, using a 6% porosity cut-off, 50% Vshale cut-off and 50% water saturation cut-off.
The 182-C2 well also encountered a 223.7-metre-thick section in the Sergi Formation with 121.3 metres of sand estimated above 6% porosity in the sand-dominated interval between 2,704.1 and 2,927.8 metres TVD. Caliper logs indicate that a significant amount of the wellbore in the Sergi interval contains washouts from drilling and is out of gauge, making open-hole log analysis challenging. As such, hydrocarbon potential in the Sergi will be validated through formation testing.
Based on these drilling results, we plan to case the well and undertake a multi-zone testing program of the 182-C2 well. This testing will assess the extent, if any, of commercial hydrocarbons associated with the well, the productive capability of the well and will help define the field development plan.
Operational Update
On our Murucututu project, we are completing the commissioning of our 183-1 field production facility and expect to have commercial natural gas and condensate sales from the 183-1 well this month.
We are completing service rig inspection and acceptance testing and expect to commence a multizone production test of our 183-B1 well later this week.
September Sales Volumes
September sales volumes averaged 2,686 boepd, including natural gas sales of 15.4 MMcfpd and associated natural gas liquids sales from condensate of 124 bopd, based on field estimates. Our sales volumes averaged 2,642 boepd in the third quarter of 2022, an increase of 12% from the second quarter of 2022.
Corporate Presentation
Alvopetro’s updated corporate presentation is available on our website at:
Alvopetro Energy Ltd.’svision is to become a leading independent upstream and midstream operator in Brazil. Our strategy is to unlock the on-shore natural gas potential in the state of Bahia in Brazil, building off the development of our Caburé natural gas field and our strategic midstream infrastructure.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.
All amounts contained in this new release are in United States dollars, unless otherwise stated and all tabular amounts are in thousands of United States dollars, except as otherwise noted.
Abbreviations:boepd = barrels of oil equivalent (“boe”) per daybopd = barrels of oil and/or natural gas liquids (condensate) per dayMBOE = thousands of barrels of oil equivalentMMcf = million cubic feetMMcfpd = million cubic feet per day
BOE Disclosure. The term barrels of oil equivalent (“boe”) may be misleading, particularly if used in isolation. A boe conversion ratio of six thousand cubic feet per barrel (6Mcf/bbl) of natural gas to barrels of oil equivalence is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. All boe conversions in this news release are derived from converting gas to oil in the ratio mix of six thousand cubic feet of gas to one barrel of oil.
Testing and Well Results. Data obtained from the 182-C2 well identified in this press release, including hydrocarbon shows, open-hole logging, net pay and porosities, should be considered to be preliminary until testing, detailed analysis and interpretation has been completed. Hydrocarbon shows can be seen during the drilling of a well in numerous circumstances and do not necessarily indicate a commercial discovery or the presence of commercial hydrocarbons in a well. There is no representation by Alvopetro that the data relating to the 182-C2 well contained in this press release is necessarily indicative of long-term performance or ultimate recovery. The reader is cautioned not to unduly rely on such data as such data may not be indicative of future performance of the well or of expected production or operational results for Alvopetro in the future.
Cautionary statements regarding the filing of a Notice of Discovery. We have submitted a Notice of Discovery of Hydrocarbons to the Agência Nacional do Petróleo, Gás Natural e Biocombustíveis (the “ANP”) with respect to the 182-C2 well. All operators in Brazil are required to inform the ANP, through the filing of a Notice of Discovery, of potential hydrocarbon discoveries. A Notice of Discovery is required to be filed with the ANP based on hydrocarbon indications in cuttings, mud logging or by gas detector, in combination with wire-line logging. Based on the results of open-hole logs, we have filed a Notice of Discovery relating to our 182-C2 well. These routine notifications to the ANP are not necessarily indicative of commercial hydrocarbons, potential production, recovery or reserves.
Forward-Looking Statements and Cautionary Language. This news release contains “forward-looking information” within the meaning of applicable securities laws. The use of any of the words “will”, “expect”, “intend” and other similar words or expressions are intended to identify forward-looking information. Forward‐looking statements involve significant risks and uncertainties, should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether or not such results will be achieved. A number of factors could cause actual results to vary significantly from the expectations discussed in the forward-looking statements. These forward-looking statements reflect current assumptions and expectations regarding future events. Accordingly, when relying on forward-looking statements to make decisions, Alvopetro cautions readers not to place undue reliance on these statements, as forward-looking statements involve significant risks and uncertainties. More particularly and without limitation, this news release contains forward-looking information concerning potential hydrocarbon pay in the 183-C2 well, anticipated production commencement on our Murucututu project, exploration and development prospects of Alvopetro and the expected timing of certain of Alvopetro’s testing and operational activities. The forward‐looking statements are based on certain key expectations and assumptions made by Alvopetro, including but not limited to expectations and assumptions concerning testing results of the 183-B1 well and the 182-C2 well, equipment availability, the timing of regulatory licenses and approvals, the success of future drilling, completion, testing, recompletion and development activities, the outlook for commodity markets and ability to access capital markets, the impact of the COVID-19 pandemic, the performance of producing wells and reservoirs, well development and operating performance, foreign exchange rates, general economic and business conditions, weather and access to drilling locations, the availability and cost of labour and services, environmental regulation, including regulation relating to hydraulic fracturing and stimulation, the ability to monetize hydrocarbons discovered, expectations regarding Alvopetro’s working interest and the outcome of any redeterminations, the regulatory and legal environment and other risks associated with oil and gas operations. The reader is cautioned that assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be incorrect. Actual results achieved during the forecast period will vary from the information provided herein as a result of numerous known and unknown risks and uncertainties and other factors. Although Alvopetro believes that the expectations and assumptions on which such forward-looking information is based are reasonable, undue reliance should not be placed on the forward-looking information because Alvopetro can give no assurance that it will prove to be correct. Readers are cautioned that the foregoing list of factors is not exhaustive. Additional information on factors that could affect the operations or financial results of Alvopetro are included in our annual information form which may be accessed on Alvopetro’s SEDAR profile at www.sedar.com. The forward-looking information contained in this news release is made as of the date hereof and Alvopetro undertakes no obligation to update publicly or revise any forward-looking information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.
CARLSBAD, Calif.–(BUSINESS WIRE)–Oct. 4, 2022– Lineage Cell Therapeutics, Inc. (NYSE American and TASE: LCTX), a clinical-stage biotechnology company developing allogeneic cell therapies for unmet medical needs, announced today that Brian M. Culley, Lineage’s Chief Executive Officer, will present at the Alliance for Regenerative Medicine 2022 Cell & Gene Meeting on the Mesa, on October 12th, 2022 at 2:15pm PT / 5:15pm ET at the Park Hyatt Aviara, Carlsbad, CA. Virtual meeting attendance is available and includes a livestream of Lineage’s presentation and the ability to view all conference sessions on-demand. Interested parties can visit the 2022 Cell & Gene Meeting on the Mesa website for full information on the conference, including registration.
The Cell & Gene Meeting on the Mesa is the sector’s foremost annual conference bringing together senior executives and top decision-makers in the industry to advance cutting-edge research into cures. Tackling the commercialization hurdles facing the cell and gene therapy sector today, this meeting covers a wide range of topics from clinical trial design to alternative payment models to scale-up and supply chain platforms for advanced therapies. The program features expert-led panels, extensive partnering capabilities, exclusive networking opportunities, and dedicated presentations by the leading publicly traded and privately held companies in the space. This conference enables key partnerships through more than 3,000 one-on-one meetings while highlighting the significant clinical and commercial progress in the field.
About the Alliance for Regenerative Medicine
The Alliance for Regenerative Medicine (ARM) is the leading international advocacy organization dedicated to realizing the promise of regenerative medicines and advanced therapies. ARM promotes legislative, regulatory, reimbursement and manufacturing initiatives to advance this innovative and transformative sector, which includes cell therapies, gene therapies and tissue-engineered therapies. In its 13-year history, ARM has become the global voice of the sector, representing the interests of 450+ members worldwide, including small and large companies, academic research institutions, major medical centers and patient groups.
About Lineage Cell Therapeutics, Inc.
Lineage Cell Therapeutics is a clinical-stage biotechnology company developing novel cell therapies for unmet medical needs. Lineage’s programs are based on its robust proprietary cell-based therapy platform and associated in-house development and manufacturing capabilities. With this platform Lineage develops and manufactures specialized, terminally differentiated human cells from its pluripotent and progenitor cell starting materials. These differentiated cells are developed to either replace or support cells that are dysfunctional or absent due to degenerative disease or traumatic injury or administered as a means of helping the body mount an effective immune response to cancer. Lineage’s clinical programs are in markets with billion dollar opportunities and include five allogeneic (“off-the-shelf”) product candidates: (i) OpRegen, a retinal pigment epithelial cell therapy in development for the treatment of geographic atrophy secondary to age-related macular degeneration, is being developed under a worldwide collaboration with Roche and Genentech, a member of the Roche Group; (ii) OPC1, an oligodendrocyte progenitor cell therapy in Phase 1/2a development for the treatment of acute spinal cord injuries; (iii) VAC2, a dendritic cell therapy produced from Lineage’s VAC technology platform for immuno-oncology and infectious disease, currently in Phase 1 clinical development for the treatment of non-small cell lung cancer; (iv) ANP1, an auditory neuronal progenitor cell therapy for the potential treatment of auditory neuropathy; and (v) PNC1, a photoreceptor neural cell therapy for the treatment of vision loss due to photoreceptor dysfunction or damage. For more information, please visit www.lineagecell.com or follow the company on Twitter @LineageCell.
PDS Biotech is a clinical-stage immunotherapy company developing a growing pipeline of molecularly targeted cancer and infectious disease immunotherapies based on the Company’s proprietary Versamune® and Infectimune™ T-cell activating technology platforms. Our Versamune®-based products have demonstrated the potential to overcome the limitations of current immunotherapy by inducing in vivo, large quantities of high-quality, highly potent polyfunctional tumor specific CD4+ helper and CD8+ killer T-cells. PDS Biotech has developed multiple therapies, based on combinations of Versamune® and disease-specific antigens, designed to train the immune system to better recognize diseased cells and effectively attack and destroy them. The Company’s pipeline products address various cancers including HPV16-associated cancers (anal, cervical, head and neck, penile, vaginal, vulvar) and breast, colon, lung, prostate and ovarian cancers.
Robert LeBoyer, Vice President, Research Analyst, Life Sciences , Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
PDS Biotech Announces FDA Meeting Results. PDS Biotech announced the outcome of an End-of-Phase 2 meeting with the FDA to determine the clinical development pathway for PDS0101. In the meeting, data from the interim analysis of the VERSATILE-002 trial testing PDS0101 in HPV-positive head-and-neck cancer was evaluated and regulatory guidance provided. Although the trial is still ongoing, the efficacy and safety data will allow moving into a Phase 3 pivotal study ahead of schedule during 2023.
VERSATILE-002 Showed Strong Response Rates. The VERSATILE-002 Phase 2 trial was designed to test PDS0101 in HPV-positive cancer of the head and neck in combination with the checkpoint inhibitor pembrolizumab (Keytruda, from Merck). As discussed in our Research Note reviewing the data at the ASCO conference last May 31, the tumor response rate (shrinkage of 30% or more) was 41.2% (7 out of 17 patients). This compares with published data showing 19% response rate for checkpoint inhibitors alone. Progression-free survival (PFS) at nine months was 55.2% and overall survival (OS) was 87.2%.
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.
Michael Heim, CFA, Senior Research Analyst, Noble Capital Markets, Inc.
Refer to the bottom of the report for important disclosures
Energy stocks, as measured by the XLE Energy Index, were essentially flat during the third quarter rising 0.1%. The performance was impressive given overall market weakness. The S&P Composite Index declined 5.0% during the quarter. What makes the performance even more impressive is the fact that spot oil prices declined 25% during the quarter. We believe energy stocks remain an attractive investment and are an important part of a diversified investment portfolio.
WTI prices peaked at $120 per barrel in the first week of June. Since then, prices have declined in response to signs of a global economic slowdown. Near month oil future contracts are now below $80 per barrel. We believe recent weakness largely reflects demand concerns and foreign currency changes but is not a condition of oversupply. The domestic rig count remains at less than half peak levels. What’s more, rig count has leveled off in recent months in response to the decline in oil prices.
Production has risen to 90% of peak, but it has been done by harvesting the low-hanging fruit. When oil prices began falling early in 2020, there was an increase in Drilled Uncompleted (DUC) wells. When prices rose, drillers focused on completing DUCs. With the number of DUCs having fallen in half, future supply increases will be more difficult. If demand does not decrease in reaction to a slowing economy, domestic production may be hard pressed to meet demand. If worries about a recession are overblown and demand increases, there’s a good chance oil prices will be back at a price of $120 or even higher.
Energy industry fundamentals remain strong. The recent drop in oil prices does not concern us as long-term prices are still above the levels assumed in our financial and valuation models. Energy company cash flow generation is high, and companies are facing the envious position of trying to decide what to do with the cash. Debt levels have been pared down and managements are reluctant to initiate/raise dividends in case the industry goes into a down cycle forcing them to reverse course. Share repurchase remains a viable option especially if energy stocks continue to be weak alongside the overall market.
Energy Stocks
Energy stocks, as measured by the XLE Energy Index, were essentially flat during the third quarter rising 0.1%. The performance was impressive given overall market weakness. The S&P Composite Index declined 5.0% during the quarter. What makes the performance even more impressive is the fact that spot oil prices declined 25% during the quarter. We believe energy stocks remain an attractive investment and are an important part of a diversified investment portfolio.
Oil Prices
Oil prices rose steadily over a two-year period beginning the spring of 2020. WTI prices peaked at $120 per barrel in the first week of June. Since then, prices have declined in response to signs of a global economic slowdown as governments raise interest rates to fight inflation. Near month oil future contracts are now below $80 per barrel.
Figure #1
We believe recent weakness largely reflects demand concerns and foreign currency changes but is not a condition of oversupply. Historically, oil prices are lower when the dollar is stronger. This is because most oil suppliers, including international suppliers, demand payments in dollars.
The domestic rig count remains at less than half peak levels. According to Baker Hughes, there were 764 active rigs as of September 23, 2022, as compared to 1600 in 2015. What’s more, rig count has leveled off in recent months in response to the decline in oil prices.
Figure #2
Rig count is one way to forecast future supply. While only half the peak number of rigs are active, that does not mean that production is half of peak levels. In fact, as the chart below shows, domestic daily production surpassed 2015 peak rig production levels in 2018. Production declined sharply when oil prices fell in 2020 but have recovered to a point where production has reached 90% of peak production. The increased production demonstrates an improved productivity per well as drillers better tailor drilling techniques to individual formations.
Figure #3
But before we chalk up increased production to improved technology, let’s look at one more chart. The chart below shows the number of drilled but uncompleted (DUC) wells against active rigs. The chart shows that the number of uncompleted wells has declined sharply the last two years as the active rig count has grown. When oil prices began falling early in 2020, drillers continued drilling but often did not complete the wells. This led to a large increase in the number of DUC wells. When prices started rising in the summer of 2020, drilling returned. However, drilling was largely focused on completing or reworking wells.
Figure #4
The implication of a declining DUC count is that the industry is running out of low hanging fruit. Future drilling will need to focus on wells that are likely to have a lower production rate per rig than what we have witnessed recently. Declining production could exasperate already low inventory levels (see chart below). Thus, if demand does not decrease in reaction to a slowing economy, domestic production may be hard pressed to meet demand. If worries about a recession are overblown and demand increases, there’s a good chance oil prices will be back at a price of $120 or even higher.
Figure #5
Natural Gas Prices
Natural gas prices tend to track oil prices but with a few distinctions. Natural gas demand and supply is less global than oil. Imports (and now exports) of liquefied natural gas represent a small portion of domestic supply and demand. Secondly, natural gas is used primarily for space heating. That means demand is more seasonal. It also means demand can be affected by weather conditions. On the other hand, natural gas demand is less affected by general economic conditions than oil. As the chart below shows, natural gas prices do not seem to be affected by recession concerns as compared to oil prices.—-
Figure #6
Source: Natural Gas Intelligence
Summer is usually a quiet time for natural gas prices. Wells are producing more gas than is demanded, and gas is put in inventory. As is the case with oil, inventory levels are running below historical averages as we approach the point of withdrawing from inventory. This bodes well for natural gas prices remaining at current historical high levels and perhaps even rising higher.———- page break ———-
Figure #7
Outlook
Energy industry fundamentals remain strong. The recent drop in oil prices does not concern us as long-term prices are still above the levels assumed in our financial and valuation models. Energy company cash flow generation is high, and companies are facing the envious position of trying to decide what to do with the cash. Debt levels have been pared down and managements are reluctant to initiate/raise dividends in case the industry goes into a down cycle forcing them to reverse course. Share repurchase remains a viable option especially if energy stocks continue to be weak alongside the overall market.
We also believe the case for smaller cap energy stocks is strong. Major oil companies are facing increasing pressure to focus on renewable energy. While the majors are increasing drilling, they are doing so in a controlled manner as they also invest in green energy. Smaller cap energy companies are less tethered and often able to acquire and exploit properties being ignored by the majors. If our belief that a world-wide recession is already factored into energy prices is correct, small cap energy companies will be in the best position to take advantage of any price increase.
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ANALYST CREDENTIALS, PROFESSIONAL DESIGNATIONS, AND EXPERIENCE
Senior Equity Analyst focusing on Basic Materials & Mining. 20 years of experience in equity research. BA in Business Administration from Westminster College. MBA with a Finance concentration from the University of Missouri. MA in International Affairs from Washington University in St. Louis. Named WSJ ‘Best on the Street’ Analyst and Forbes/StarMine’s “Best Brokerage Analyst.” FINRA licenses 7, 24, 63, 87
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RESEARCH ANALYST CERTIFICATION
Independence Of View All views expressed in this report accurately reflect my personal views about the subject securities or issuers.
Receipt of Compensation No part of my compensation was, is, or will be directly or indirectly related to any specific recommendations or views expressed in the public appearance and/or research report.
Ownership and Material Conflicts of Interest Neither I nor anybody in my household has a financial interest in the securities of the subject company or any other company mentioned in this report.
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.
Lowering 4Q Projections. We are taking a more conservative view of the fourth quarter given the impact of Ian on Florida. Orion has a number of projects in the area and we expect to see a push back given the need for more humanitarian efforts. We are now forecasting revenue of $165 million for the quarter, down from a prior $168 million estimate, adjusted EBITDA of $8.55 million, down from $10.55 million, and breakeven EPS, down from a prior $0.03 EPS estimate. For the full year, we are now at revenue of $709.5 million and adjusted EBITDA of $28.1 million.
But More Future Work? The devastation wrought by Ian is undeniable, not just in Florida but also in the Carolinas. This unfortunate event, however, could create substantial future work for Orion. While it is way too early yet to determine, typically such storms end up being a net positive in terms of new work.
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.
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.
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.
FFO, NFFO, and AFFO Projections. We modestly adjusted our projections for Funds From Operations, Normalized Funds From Operations, and Adjusted Funds From Operations. Our prior estimates reflected a larger estimate for depreciation and amortization and other than we are now using. We are now projecting third quarter FFO at $0.31 per share, versus a prior $0.36, NFFO of $0.31 versus $0.37, and AFFO of $0.31 versus a prior $0.32.
No Change in Business Outlook. We are not currently expecting any major change in the business environment and our projections for revenue and EPS remain unchanged. ICE ADP has risen from below 20,000 in the spring to nearly 26,000 in September, while Southwest Border encounters exceeded 200,000/mth since March and likely will be up over 32% from the full fiscal year 2021.
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.
Musk Plans to Go Ahead with Original Price of $54.20 a Share
All successful businessmen have their own style of negotiating. Elon Musk is better known as a whiz-kid/idea-man than a wheeler-dealer negotiator. But, he didn’t become the wealthiest person on planet Earth without being a master persuader. There’s no telling how much the on-again, off-again deal to buy Twitter was a “chess match” the entrepreneur was playing to accomplish a goal. Or if he backed himself into a corner that he could not get out of. In the end, Twitter had initially been fighting hard not to be bought for 54.20 a share, Twitter later wound up suing to be taken private for $54.20 a share. Assuming the final deal is near, this is either masterful brilliance or a costly mistake for the entrepreneur.
Will the Musk Twitter Deal Finally be Consummated?
Elon Musk, according to multiple news outlets, wrote to Twitter on Tuesday and offered to follow through with the deal to buy the company. The terms were the same as the original offer by the billionaire. If this is the final chapter of the interplay between Musk, who heads several companies, and Twitter, it will end the seven-month-long legal saga. It will also be the only company Musk owns that he has not built from the ground up.
Not coming to an agreement now would be difficult. Musk and Twitter are scheduled to meet in a Delaware court on October 17 as Twitter is looking to force the billionaire to purchase the company for the same terms Musk is said to have proposed in his letter.
As of 2:30 on Tuesday, the shares of Twitter are up 12.67%. The price is 11.50% below Musk’s per-share offering price.
Key Details
Twitter accepted Musk’s unsolicited takeover bid on April 25, three weeks after the billionaire disclosed he purchased a 9.2% stake in the company. This followed a short period where Twitter employees and a number of advocacy groups with names like Stop the Deal campaigned to prevent the purchase.
Musk is a uses the microblogging social media platform to communicate with his 108 million followers. However, he loathes the platform’s content moderation policy and wishes to change it to a more open, less moderated social media site. This was the reason given to his followers as to why he’d buy Twitter, to “fix it.”
He later said he was backing out of his offer, the reason was his due diligence allegedly uncovered a large number of fake and spam accounts on Twitter. Elon formally requested to be let out of the deal on July 8, using the reason Twitter lowballed the number of bot accounts in its public filings.
Twitter sued Musk four days later and argued his reasons for backing out of the deal were invalid. The company filed at a state court in Delaware to force Musk to buy Twitter at the originally agreed-upon terms. As the trial date drew nearer, more revelations about both Twitter and Musk emerged. One high drama event was Musk’s lawyers suggesting his case was strengthened by a whistleblower complaint from Twitter’s former head of security. The complaint alleged the company knowingly misled regulators and investors about the number of bots on the site.
The suit, if it had proceeded in two weeks, may have gotten messy as Musk’s texts between himself and public figures like Twitter co-founder Jack Dorsey, popular podcaster Joe Rogan, and Florida Governor DeSantis were to be part of the suit.
Other Impacted Stocks
Late afternoon on Tuesday, Tesla (TSLA) stock was trading 2.25% higher on the day but off its highs from before the news. Digital World Acquisition Corp., the SPAC that has agreed to merge with Trump Media and its platform, Truth Social, is down 3.16% on the day, having fallen sharply as word spread about Musk’s plans to buy Twitter.
The Fundamental Reasons the Strength in Precious Metals May Continue
What’s happening with precious metals? Silver has been outshining gold the past few days as the rally in both precious metals (PM) has grabbed the attention of investors and perhaps caught those that were short silver off guard. Why are the metals rising, can the strength last, and what is the longer-term outlook for PM?
Silver reached a six-week high in the first week of October, and gold is at its highest level in three weeks. As financial markets are becoming more uncertain, the two metals are showing they never really lost their safe-haven status. The concerns have just not been high enough for many to rotate out of the investments they were in. The move to what has always been viewed as the highest level of safe, gold and silver. This rotation follows months of movement to $ U.S. dollar-denominated securities. The heightened level of safety was inspired by the media being focused on a potential financial crisis in Europe and discussions of Russia unleashing a nuclear weapon in Putin’s attempt to annex Ukraine.
Silver, Gold and Copper performance since September 1. Source: Koyfin
As if the words “nuclear bomb” aren’t enough to send some investors taking a larger allocation in safe-haven assets, there are rumors circulating that the global investment bank Credit Suisse may be in serious financial trouble. For many market participants, the rumblings about an investment bank having problems are reminiscent of 2007, the rumors of Bear Stearns, and the market troubles that followed. Revisiting the activity of the precious metals market that followed in 2008, silver outperformed copper, which outperformed gold.
As silver and gold rise, many speculators that were comfortable with short positions are finding themselves forced with the decision to decide to purchase to close out their short positions. Active hedge funds and other money managers will often play precious metals against the U.S. dollar. With the dollar at a 20-year high, the sentiment around metals was negative. If this is the beginning of a longer rotation into PM, the rotation could build into a strong short squeeze. Short covering serves to strengthen prices.
Other Fundamentals
Prior to Monday’s 7% increase in the price of silver and the 3% increase in gold, both with strong follow-up on Tuesday, some analysts were becoming more positive on the metals and miners category. In his quarterly Metals & Mining Review and Outlook, released on Channelchek pre-market Monday, Mark Reichmann, Sr. Research Analyst, wrote, “While higher rates and a strong U.S. dollar pose significant headwinds for gold, an inflection point may be reached as investors seek to preserve value amid deteriorating economic conditions, increasing geopolitical uncertainty, and market volatility.”
Reichmann seems to be long-term positive on metals, thinking gold and silver may turn first; he wrote, “Precious metals prices may strengthen in advance of industrial metals. Therefore, investors may desire to lean into precious metals mining names to benefit from a positive shift in investor sentiment.” He continued, “While it may take longer for industrial metals to recover, an eventual return to economic growth could result in strong prices due to potential supply and demand imbalances.”
For a complete list and the most current research reports of producers of precious and industrial metals companies covered by Mark Reichmann, visit his analyst webpage here.
Take Away
The move earlier this year toward U.S. dollar denominated assets, to capture higher yields and low sovereign risk has been an ongoing investment trend since at least March. With the newly recognized potential of additional turmoil entering the market psyche, including Russia and whether they would use the bomb, and whether the recent about-face for England’s monetary policy indicates deep trouble beneath the financial world’s surface has created further allocations to precious metals.
The suddenness of the move may have caught some large investors who have been bearish on silver and gold to make unexpected decisions on short positions they had been carrying. This short-squeeze is likely contributing to the strength of both gold and silver as it plays out.
