The March FOMC Minutes Show the Fed is Less Aligned
We may be entering a period when we have a Federal Reserve that is split on the direction of monetary policy. This could be the case as early as the May 2-3 FOMC meeting. At least, that is one indication that arose from the just-released minutes of the Committee from the March 21-22 meeting. U.S. economic activity was strong leading up to the meeting, then the collapse of two banks occurred. The concerns that followed prompted several Federal Reserve officials to consider whether the central bank should pause its aggressive pace of hiking interest rates.
Split Federal Reserve
The minutes offer insight into what may follow this year. Over the past ten sessions, the FOMC minutes showed the central bank’s focus has been on quickly tightening policy to squelch persistent inflation. Now after nine consecutive interest-rate hikes and quantitative tightening, the conversation has shifted from wondering how fast they can move to whether and when the Fed should pause. At least, it has for some of the Committee members. Soft landings are seldom successfully orchestrated by monetary policy changes; more often, they set the stage for a recession.
In public addresses since the March meeting, Fed officials have appeared to be somewhat split on the way forward. Chicago Fed President Austan Goolsbee, for example, said on April 11 that the Fed needs to be cautious. “We should gather further data and be careful about raising rates too aggressively until we see how much work the headwinds are doing for us in getting down inflation,” Goolsbee said.
Less concerned about a recession and more concerned about winning the war on inflation, Cleveland Fed President Loretta Mester said last week she believes the correct move is for the Fed to continue tightening “a little bit higher” before pausing as the economy and inflation adjusts.
Bank Failure Considerations
The March monetary policy meeting was surrounded by uncertainty for both Fed watchers and some FOMC members. The meeting took place only days after the collapse of Silicon Valley Bank and Signature Bank. Other indicators of a strong economy pointed to an aggressive move from the voting members. But, with the banking sector wounded or perhaps worse, it remained a nailbiter up until 2 pm on March 22 when the Federal Open Market Committee announced a quarter-point interest-rate hike.
While all has since been quiet related to U.S. banks, at the time, the extent of the problem was far from known. The potential economic impact it could have, led Fed staff to project a mild recession starting later in 2023, according to the minutes. This tells financial markets and others impacted by Fed moves that some Fed officials were seriously considering holding steady on rates.
The minutes show, the combination of “slower-than-expected progress on disinflation,” a tight labor market, and the view that the new emergency lending programs had stabilized the financial sector, allowed the central bank to again raise rates. The minutes indicated, “Many participants remarked that the incoming data before the onset of the banking sector stresses had led them to see the appropriate path for the federal funds rate as somewhat higher than their assessment at the time of the December meeting.” Reading on, the minutes said, “After incorporating the banking-sector developments, participants indicated that their policy rate projections were now about unchanged from December.”
Take Away
Although they are released several weeks after each meeting, the Fed minutes are always closely watched for clues as to how central-bank officials are feeling and where monetary policy is likely heading over the next several weeks or months. The indication from these minutes, behind a backdrop of Fed regional president addresses, indicate a less than unified Fed. Unless there is a good deal of unexpected trouble within the banking sector or economy or a clear tick up in economic measures such as employment, the May 3 post-meeting announcement on policy will be tough to forecast.
Short Changing Investment Returns By Ignoring Time Horizon
Time horizon is part of every investor’s buy decision, or at least it ought to be. For example, in 2022 the 60/40 investment portfolio had its worst performance since 2008. This is despite a 5.3% increase in value during the fourth quarter of that year. Many headlines had read that the classic 60% stocks and 40% bonds portfolio is “broken.” After it’s stellar performance during Q4 2022, the first quarter of 2023 brought even higher performance – again compounding by an additional 5.9%. This example can highlight that time horizon is dependent on the investment goals proving 60/40 probably is not dead after all. The 60/40 diversification is considered conservative, it’s often implemented for retirement portfolios, typically portfolios with a lot of lead time to achieve its goal of historical returns. Goals should dictate investment strategy and they should include a realistic time horizon.
To Be Patient or Not to Be Patient
Entering the second quarter of 2023, economic trends, including commodity prices, interest rates, political power, inflation, and even peace between nations, all seem to be sending off mixed signals on future trends. A clear market read is far more difficult today than most years. This leaves a lot of questions on what to do with one’s money. If you leave it in the bank, inflation is likely to erode your purchasing power. If you move it to the U.S. government-backed treasury market, a rise in rates (as promised by the Fed) can leave you hurting like a few banks that saw their assets value plummet. Should stocks take a leading role – even if holdings wind up moving sideways or even down for the rest of this year?
As mentioned, this depends on your goal. If you can be patient and have a time horizon to achieve performance of more than a year, the tendency for reversion to mean suggests the answer is probably yes. However, if during the next six to 12 months, this money may need to be deployed for a purchase, it may be best to continually roll treasuries maturing in under a year.
For investments expected to be held longer than a year, there is the lazy way and a more hands-on approach that takes a little more digging. The lazy way says you plop a large percentage of your portfolio in an index fund and earn market returns. A more involved management approach of one’s portfolio would suggest that you’d prefer to avoid stocks considered overvalued or in a weakening industry. If, instead, one can achieve adequate diversity by owning many companies in different industries, and do enough evaluation (i.e., exploring trusted research) to have a sense of whether holding them would suit your needed time horizon, then the stocks selected as your holdings may avoid expected dogs weighing it down. It would make sense that this argues for patience, with expectations that not only will stocks follow history and go up over time, but your holdings have a reasonable expectation to outperform the market.
Time Horizon
Time horizon is a critical factor in investing. It refers to the length of time an investor is willing to hold onto their investments. The time horizon can range from a few months to several decades, depending on an investor’s goals, risk tolerance, and investment strategy. Most benchmarks are viewed daily, quarterly, and monthly. If your time horizon is five years, the quarterly or even annual returns should be a low consideration. Cathie Wood, CEO and founder of Ark Invest, says she invests on a five-year time horizon, considering the speculative growth names her funds have invested in, such as Tesla (TSLA), Roku (ROKU), Zoom Video Communications (ZM), Exact Sciences (EXAS), etc. she could not manage her funds properly if she looked shorter in term.
At least each quarter Portfolio Manager Chuck Royce and Co-CIO Francis Gannon of Royce Funds publish text of a “conversation” between the two. The subject is usually past market performance, expectations of the future, and even stocks that they believe, with the appropriate time horizon, will pay off.
In the discussion between the two, Francis Gannon covered the case for more extended time horizon investors to explore the small-cap sector. His expectation is that various sectors (viewed by market cap) will fall in line with historical performance averages. “The stocks that performed best under the previous decade’s regime of zero interest rates, low inflation, and low nominal growth—which were mega-caps and small-cap growth—are unlikely to lead going forward, regardless of what direction the U.S. economy ultimately takes. Conversely, those areas of the equity market that lagged during this long period are likely, in our view, to capture long-term leadership,” said Gannon. This is when Chuck Ross very clearly explained the importance of knowing one’s time horizon for maximum potential gain.
“We think small cap is ready to roll and expect the next three to five years to be strong on both an absolute and relative basis.” Said Mr. Royce. He explained that rising rates could help companies that can that don’t need to borrow from the outside. “Equally important, the Russell 2000’s valuation remained near its lowest rate in 20 years compared to the Russell 1000’s, based on our preferred valuation metric of the median last 12 months’ enterprise value to earnings before taxes (LTM EV/EBIT).” Royce explained.
The chart above shows that the 20-year performance of small-cap stocks averages 102.9% above that of large-cap equities. The underperformance began five years ago, and the current 20-year low in relative performance in small-caps could play out to be a long lag. With a long enough time horizon, one might expect that small-cap investors get rewarded for the additional risk and reduced liquidity in the sector.
Investment Strategy
While not everyone has five years or more to wait for performance to improve, intentional stock selection among small-caps could help those who do. A recent Barron’s article argued that “Small-Cap Stocks Look Ready to Rally,” the investment publication also believed that stock selection within the sector could pay off. The author wrote that as of March 31, “the Russell 2000 was at 44% of the S&P 500’s level, a ratio the index touched in early 2020 when the advent of Covid-19 had left the economy in perilous waters.” The publication then reported that the level is a technical low point, a support that wasn’t even breached with pandemic concerns and skyrocketing large-cap tech stocks. Expressed in the within the April 3 article was to a methodology of filtering stocks by reviewing companies with market caps of at least $200 million and free cash flow minimum of 4.5% of the share price. This would put them in line with the overall Russell 2000.
Then look at the consensus earnings forecasts among analyst, have they risen? A high short interest in the stock could also be part of the screening process for possible buys.
Take Away
The importance of time horizon in investing lies in the fact that different investment opportunities have different risk and return profiles over different time periods. Short-term investments tend to have lower risk but lower returns, while long-term investments tend to have higher risk but potentially higher returns. By understanding your time horizon, you can choose investments that align with your investment goals and risk tolerance.
For investors that can span many years holding and waiting for scenarios to play out, but don’t, perhaps are leaving long-term return on the table by investing as though their time horizon is short. Investible cash sitting in a bank will be eroded by inflation, the Fed with its deep pockets has said it is resolved to instigate a further bear market in bonds. Longer term, stocks outperform, what’s more, well-selected companies can outperform stock indixes that only promise to match the average of good and bad companies.
If you aren’t receiving equity research in your daily email, sign up here now.
VIRGINIA CITY, NEVADA,April 11, 2023 – Comstock Inc. (NYSE: LODE) (“Comstock” and the “Company”) today announced the board of directors of Comstock Inc. nominated and appointed Dr. Güez Salinas, as a new independent director to the Company’s Board of Directors and appointed Mr. Walter “Del” Marting as the Chairman of the Company’s Audit and Finance Committee. The Company also announced the resignation of Mr. Judd Merrill as a director of the company, all effective as of April 5, 2023.
Dr. Salinas has over 30 years of professional experience in the areas of engineering, strategy, finance, corporate management, and business development, with a primary focus on cyber-security and artificial intelligence policy and is currently an international cyber security expert at the Pacific Council on International Policy. Dr. Salinas has also been advising Quantum Generative Materials LLC (“GenMat”) on strategy and commercialization.
Dr. Salinas also founded and serves as the Director Emeritus of The Polymathic Academy for the Teaching of the Humanities & Sciences (“The PATH”) where he mentors and develops students’ multidisciplinary entrepreneurial pursuits. He also co-founded and serves as the Executive Director for The Law Enforcement Work Inquiry System (“LEWIS”), where, in partnership with Microsoft Corporation, serves as a touchpoint between peace officers and the community. Dr. Salinas, a U.S. Marine, also held positions in banking and private equity.
“We are honored to welcome Dr. Salinas and his perspective on the commercialization and rapidly growing positive impacts of generative artificial intelligence, and the security thereof, on our markets and society overall,” stated Mr. Corrado De Gasperis, Comstock’s executive chairman and chief executive officer. “His direct work with GenMat has forged an alignment and productivity that complements the current competencies of our Board.”
Mr. Marting was elected to the board of directors of Comstock in April of 2018. He is the Founder and Managing Member of CereCare, LLC, D/B/A Brain Health Restoration since March 2017, a firm focused on providing breakthrough rehabilitation treatment for individuals, including numerous veterans, suffering from brain disease, traumatic brain injury and related substance use disorders, most commonly alcoholism and opioid addictions.
Mr. Marting is also a deeply experienced mining, financial, capital markets, transactional and corporate governance executive. Mr. Marting graduated from Yale University in 1969, with a BA in English and holds an MBA from Harvard Business School. Mr. Marting is a Navy veteran, including service with US Navy SEAL Team Two.
“Del’s experience and counsel has been invaluable over the past five years, including his long tenure as a member of our Audit Committee, which he will now lead,” continued Mr. Corrado De Gasperis, Comstock’s executive chairman and chief executive officer. “We are sorry to see Judd step down and could not be more appreciative of his contributions and leadership on our board. I consider him one of the most reliable, professional, trustworthy and productive professionals I have ever worked with. We wish him nothing but success in his future endeavors.”
About Comstock
Comstock (NYSE: LODE) commercializes innovative technologies that contribute to global decarbonization by efficiently converting under-utilized natural resources, primarily, woody biomass into net zero renewable fuels, end of life metal extraction, and generative AI-enabled advanced materials synthesis and mineral discovery.
This press release and any related calls or discussions may include forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical facts, are forward-looking statements. The words “believe,” “expect,” “anticipate,” “estimate,” “project,” “plan,” “should,” “intend,” “may,” “will,” “would,” “potential” and similar expressions identify forward-looking statements but are not the exclusive means of doing so. Forward-looking statements include statements about matters such as: future industry market conditions; future explorations or acquisitions; future changes in our exploration activities; future prices and sales of, and demand for, our products; land entitlements and uses; permits; production capacity and operations; operating and overhead costs; future capital expenditures and their impact on us; operational and management changes (including changes in the Board of Directors); changes in business strategies, planning and tactics; future employment and contributions of personnel, including consultants; future land sales; investments, acquisitions, joint ventures, strategic alliances, business combinations, operational, tax, financial and restructuring initiatives, including the nature, timing and accounting for restructuring charges, derivative assets and liabilities and the impact thereof; contingencies; litigation, administrative or arbitration proceedings; environmental compliance and changes in the regulatory environment; offerings, limitations on sales or offering of equity or debt securities, including asset sales and associated costs; and future working capital, costs, revenues, business opportunities, debt levels, cash flows, margins, taxes, earnings and growth. These statements are based on assumptions and assessments made by our management considering their experience and their perception of historical and current trends, current conditions, possible future developments, and other factors they believe to be appropriate. Forward-looking statements are not guarantees, representations or warranties and are subject to risks and uncertainties, many of which are unforeseeable and beyond our control and could cause actual results, developments, and business decisions to differ materially from those contemplated by such forward-looking statements. Some of those risks and uncertainties include the risk factors set forth in our filings with the SEC and the following: adverse effects of climate changes or natural disasters; adverse effects of global or regional pandemic disease spread or other crises; global economic and capital market uncertainties; the speculative nature of gold or mineral exploration, and lithium, nickel and cobalt recycling, including risks of diminishing quantities or grades of qualified resources; metal recycling, processing or mining activities; costs, hazards and uncertainties associated with precious metal based activities, including environmentally friendly and economically enhancing clean mining and processing technologies, precious metal exploration, resource development, economic feasibility assessment and cash generating mineral production; costs, hazards and uncertainties associated with metal recycling, processing or mining activities; contests over our title to properties; potential dilution to our stockholders from our stock issuances, recapitalization and balance sheet restructuring activities; potential inability to comply with applicable government regulations or law; adoption of or changes in legislation or regulations adversely affecting our businesses; permitting constraints or delays; ability to achieve the benefits of business opportunities that may be presented to, or pursued by, us, including those involving battery technology, quantum computing and advanced materials development, and development of cellulosic technology in bio-fuels and related carbon-based material production; ability to successfully identify, finance, complete and integrate acquisitions, joint ventures, strategic alliances, business combinations, asset sales, and investments that we may be party to in the future; changes in the United States or other monetary or fiscal policies or regulations; interruptions in our production capabilities due to capital constraints; equipment failures; fluctuation of prices for gold or certain other commodities (such as silver, zinc, lithium, nickel, cobalt, cyanide, water, diesel, gasoline and alternative fuels and electricity); changes in generally accepted accounting principles; adverse effects of war, mass shooting, terrorism and geopolitical events; potential inability to implement our business strategies; potential inability to grow revenues; potential inability to attract and retain key personnel; interruptions in delivery of critical supplies, equipment and raw materials due to credit or other limitations imposed by vendors; assertion of claims, lawsuits and proceedings against us; potential inability to satisfy debt and lease obligations; potential inability to maintain an effective system of internal controls over financial reporting; potential inability or failure to timely file periodic reports with the Securities and Exchange Commission; potential inability to list our securities on any securities exchange or market or maintain the listing of our securities; and work stoppages or other labor difficulties. Occurrence of such events or circumstances could have a material adverse effect on our business, financial condition, results of operations or cash flows, or the market price of our securities. All subsequent written and oral forward-looking statements by or attributable to us or persons acting on our behalf are expressly qualified in their entirety by these factors. Except as may be required by securities or other law, we undertake no obligation to publicly update or revise any forward-looking statements, whether because of new information, future events, or otherwise.
Neither this press release nor any related calls or discussions constitutes an offer to sell, the solicitation of an offer to buy or a recommendation with respect to any securities of the Company, the fund, or any other issuer.
Contact information:
Comstock Inc. P.O. Box 1118 Virginia City, NV 89440 www.comstock.inc
Joe Gomes, Managing Director – Generalist 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.
FY22 Results. Lifeway reported record full year revenue of $141.6 million for 2022, up 18.9% y-o-y. Higher volumes of drinkable kefir, increased pricing, and a full year of Glen Oaks drove the increased top line. Gross margin of 18.9% was constrained due to increased raw material costs. Lifeway reported full year net income of $0.9 million, or EPS of $0.06, down from $3.3 million, or EPS of $0.21, for 2021.
4Q22. The fourth quarter was the 13th straight quarter of y-o-y net sales growth. Revenues came in at $35.8 million, up 15.7% y-o-y, but modestly below our $39 million projection. Lifeway generated $716,000 of net income, or EPS of $0.05, in the quarter, compared to a loss of $93,000, or a loss of $0.01/sh, in 4Q21. We were at net income of $1.1 million, or $0.07/sh.
Equity Research is available at no cost to Registered users of Channelchek. Not a Member? Click ‘Join’ to join the Channelchek Community. There is no cost to register, and we never collect credit card information.
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.
Blackboxstocks, Inc. is a financial technology and social media hybrid platform offering real-time proprietary analytics and news for stock and options traders of all levels. Our web-based software employs “predictive technology” enhanced by artificial intelligence to find volatility and unusual market activity that may result in the rapid change in the price of a stock or option. Blackbox continuously scans the NASDAQ, New York Stock Exchange, CBOE, and all other options markets, analyzing over 10,000 stocks and up to 1,500,000 options contracts multiple times per second. We provide our users with a fully interactive social media platform that is integrated into our dashboard, enabling our users to exchange information and ideas quickly and efficiently through a common network. We recently introduced a live audio/video feature that allows our members to broadcast on their own channels to share trade strategies and market insight within the Blackbox community. Blackbox is a SaaS company with a growing base of users that spans 42 countries; current subscription fees are $99.97 per month or $959.00 annually. For more information, go to: www.blackboxstocks.com .
Joe Gomes, Managing Director – Generalist 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.
A Ratio Set. Yesterday, Blackboxstocks announced that the Company has filed an amendment to the Company’s articles of incorporation with the Nevada Secretary of State to set a Reverse Stock Split ratio of one-for-four. The amendment took effect on April 10, 2023 at 4:01 p.m. Eastern Daylight Time, and split-adjusted basis trading begins on April 11, 2023. The exchange agent for the split will be Securities Transfer Corporation.
The Process. The amendment process to the articles was started last month when the Board of Directors of the Company adopted resolutions advising and recommending to stockholders to approve a reverse stock split of one-for-seven. The stockholders voted to approve the split and amendment in the same month. The Board later approved the split ratio to be at one-to-four on April 7, 2023.
Equity Research is available at no cost to Registered users of Channelchek. Not a Member? Click ‘Join’ to join the Channelchek Community. There is no cost to register, and we never collect credit card information.
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.
How Should Brokers Be Compensated for Investment Research?
Most U.S. investors have not heard of the European Unions Markets in Financial Instruments Directive, referred to as MiFID or MiFID II. But the large U.S. brokers and investment banks certainly have, and they are bumping up against a July end to a “no-action” relief letter from the SEC. At issue is that the directive, which came into effect in January of 2018 in the E.U., doesn’t synch with how brokerage business is conducted in the U.S. The U.S.-based brokers have been provided time, but over five years, there is very little evidence of movement to comply.
Background
If U.S. broker-dealers (BDs) continue their business model of providing investment research to clients that is now “bundled” with other services, not charged as a separate service, they are in compliance with U.S. security regulations and don’t risk their status as a BD. However, if they follow MiFID with their international clients in order to be in compliance with Europe, they would be acting, under U.S. rules, as an Investment Advisor (the Advisers Act). This is because if they are subject to E.U. jurisdiction, under MiFID II, unless an exemption is met, research that investment managers receive from brokers is considered a prohibited “inducement.”
Research distribution in the U.S. by BDs has historically relied on a definition of “Investment Adviser” under the Advisers Act (related to research distribution). This definition looks to the condition that the investment advice is incidental to the firm’s broker-dealer business and (that the broker-dealer is not receiving “special compensation.” Hard dollar payments in exchange for investment research is considered “special compensation” for investment advice (ie., equity research). A 2017 dated SEC no-action letter and then another in July 2022 provided a window of relief from this conflict. It provided time to sort through what is allowed under different business types for those falling under both U.S. regulation and MiFID II oversight.
With fewer than three months until the SEC “no action” July 3 deadline, Wall Street firms are quiet on how and whether they may adjust their businesses. The choices would seem to be to either not provide the service of bond and equity research as part of the bundled service by acting strictly as a BD (compliance with MiFID II), or to register as an Investment Adviser that then subjects traditional U.S. brokers to additional rules and licenses.
Where We Are Now
The SEC no-action letter has allowed U.S.-based BDs to accept payments from clients where MiFID applies. This protection will soon end. If they continue the practice, they will be violating the Advisers Act, as they are not Investment Advisers.
Come July 3, they face a choice of registering, moving research teams into registered affiliates, or even cutting off clients subject to MiFID regulations from any research produced in the U.S.
In March, SEC Chair Gary Gensler and senior staff met bank representatives and industry associations to discuss the issue. But the SEC ultimately refused to alter its long-held stance, on the Advisers Act.
Take Away
Broker-dealers in the U.S. have less than three months to adjust their position on compensation methods of clients bound by MiFID II. The clock is ticking, and they are now staring down the barrel of a difficult decision. Should they transition to Investment Adviser status and charge separately for research, or should they stop providing research to affected clients altogether?
How Decision-Making and Market Impact is Shifting for Retail Investors
Retail investors’ preferences change over time. This impacts sector strength and the overall direction of markets. Even the methods of interacting with exchanges change as newer products like trading apps, artificial intelligence, and exchange-traded products (ETP) become available.
The influence retail has is growing, and anecdotally shifting preferences happen more quickly. Within this category, there are self-directed investors with different knowledge bases and at different stages of their lives. As people move through different stages, their concerns, outlooks, and risk tolerances adjust. Nasdaq just published its second annual survey of retail investors to measure how their interests are changing and what impact that may have. The survey of 2,000 investors from Gen Z to Baby Boomers uncovered some surprising trends in decision-making, fears, comfort zones, and asset class preferences.
Generational Groupings
There were a number of commonalities exposed by the Nasdaq survey between the different generations. They all listed their greatest concerns to be inflation and recession, but while the youngest (Gen Z, born 1997 – 2012) found housing and real estate a deep concern, the oldest group (Baby Boomers, born 1946 – 1964) are more concerned about tax rate changes. The generations in the middle (Gen X born 1965 –1980) and (Millennials born 1981 – 1996) show a greater concern over interest rate changes.
The survey question sought to understand how much time investors in each generation spent researching buy and sell investment decisions. Of Gen Z, on average 48% spent less than an hour, while 3% of these younger adults evaluated the transaction for at least a month. The next age category, Millennials, spent a bit more time on diligence. Only 28% would buy or sell with less than an hour of thought put into the transaction. Of this group, 4% took a month or longer to decide. This trend toward more time researching research continued as the survey reveals the Gen X greater propensity to spend more time evaluating before a purchase. Only 15% would press the buy or sell button with less than an hour spent understanding the investment – 7% of Gen X investors say they take a month or longer.
A big difference between the youngest and the oldest, is that among the Gen Z investors, although almost half said they spend fewer than 60 minutes researching, 0% said they did not research at all. Of the Baby Boomers surveyed, 24% indicated they spend no time researching before they buy or sell. It’s unclear if this is because the older group is less tech savvy, hires a professional to do the research, or believes they have the knowledge to move without digging deeper.
Overlap in Generational Preferences
Data Sources: Nasdaq
Other Trends
Despite their top concerns listed as recession and inflation, 71% of Gen Z and 50% of Millennials say they are investing more aggressively. This is in stark difference to the 9% of Boomers and 20% of Gen X describing their strategies as more aggressive than the previous year.
The influence of Twitter, Facebook and even TikTok keeps expanding. 73% of Gen Z use TikTok as a source for investment information. This is an 18% increase from the prior year. Baby boomer TikTok investment use rose by 16% to its current 25%.
The investment themes from year-to-year show ESG and crypto interest sinking, while robotics and other autonomous technology is where the focus has increased most. Younger investors are more active in their investments than before, and more frequently conducting their own research ahead of transacting. Investors of all ages are more likely to consider alternative options than they had before, these could include options, cryptocurrencies, exchange traded products, etc.
Competition among brokerage platforms is as fierce as it is in any innovative, tech heavy industry. The availability of advanced technology and commission-free trading have made investing more accessible, especially for the younger investors.
Take Away
The second annual survey conducted by Nasdaq indicates that the retail investor growth and power we’ve experienced in recent years was not a fad, it is growing and becoming more sophisticated. They are more influential and should be understood as they are here to stay. This is expected to continue to disrupt and influence markets dramatically.
As retail trends take a higher position of importance in defining the day-to-day challenges of investing and mapping the markets’ future, these self-directed investors are finding more services to accommodate them. One source is the Channelchek platform where retail and institutional investors, of all ages can review research reports, absorb video discussions with management of interesting opportunities, expand understanding through daily articles, and, if relevant, attend a roadshow to meet a particular company’s management.
Mark Reichman, Senior Research Analyst, Natural Resources, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
Telbel drilling results are pending. The goal of exploration and drilling along the past-producing Eagle-Telbel mine trend is to define high-grade zones of gold mineralization and additional mineral resources to complement the established resource at Douay. Maple Gold has completed more than 21,500 meters of drilling across the four-kilometer Eagle-Telbel Mine trend, with 14,720 meters at Maple’s 100%-owned Eagle mine property and more than 7,000 meters of joint venture drilling at the Telbel Mine area of the Joutel Project, which is held by a 50/50 joint venture between Maple and Agnico Eagle Mines Limited. Assay results associated with the drilling at Telbel are pending.
Last of the 2022 Eagle results released. Maple recently released remaining assay results from ~20% of the 14,720 meters of drilling at Eagle. To date, the company’s drilling at Eagle has confirmed that gold mineralization is not limited to the Eagle-Telbel Mine Horizon, a narrow stratigraphic interval, but instead covers a significantly broader stratigraphic interval of over 100 meters straddling the Harricana Deformation Zone. Drill core observations support Maple Gold’s concept of a significant structural component to gold mineralization in the form of an orogenic gold overprint.
Equity Research is available at no cost to Registered users of Channelchek. Not a Member? Click ‘Join’ to join the Channelchek Community. There is no cost to register, and we never collect credit card information.
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.
Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS) develops and fields transformative, affordable technology, platforms, and systems for United States National Security related customers, allies, and commercial enterprises. Kratos is changing the way breakthrough technologies for these industries are rapidly brought to market through proven commercial and venture capital backed approaches, including proactive research, and streamlined development processes. At Kratos, affordability is a technology, and we specialize in unmanned systems, satellite communications, cyber security/warfare, microwave electronics, missile defense, hypersonic systems, training and combat systems and next generation turbo jet and turbo fan engine development. For more information go to www.kratosdefense.com.
Joe Gomes, Managing Director – Generalist 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.
New Award. On Friday, the Department of Defense, through its daily contract award release, announced Kratos Unmanned Aerial Systems has been awarded a shared $400 million ceiling, indefinite-delivery/indefinite-quantity contract for research and development for the Advanced Aerospace Systems Technology Research (AASTR) program. This contract has multiple awardees to be awarded at different dates. Work under the contract is expected to be complete by April 7, 2030.
What is AASTR? The primary objective of the program is to conduct research toward the development, demonstration, integration, and transition of new aerospace vehicle technologies, designs, and integrated systems that will provide advanced capabilities to the Department of the Air Force. The program will support the Aerospace Systems Directorate’s core competency areas of Aerospace Vehicles; Control Sciences; High Speed Systems; Turbine Engines; and Systems Integration and Flight Test.
Equity Research is available at no cost to Registered users of Channelchek. Not a Member? Click ‘Join’ to join the Channelchek Community. There is no cost to register, and we never collect credit card information.
This 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.
Pictured: The FAU Owls celebrating their trip to the Final Four | The College of Business, Executive Education at Florida Atlantic University
When Noble Capital Markets (Noble) released the December dates for its 19th Annual Investor Conference to be held at Florida Atlantic University, many had the question, “FAU, who?” Well, that’s all changed, big time. The unlikely trek of the FAU Owls to the NCAA men’s basketball Final Four has just about everyone talking. NBA icon Magic Johnson tweeted “When the 64 teams were announced, nobody could have picked Florida Atlantic to go to the Final Four. I think this has been the most unbelievable NCAA Tournament I’ve ever seen.” Former Miami Heat star Dwayne Wade told ESPN, “No one believed in them… they’re playing with so much toughness, so much focus, so much confidence.” Even their heartbreaking loss to San Diego State, by one point at the buzzer, has not stopped the accolades. And the team remains proud of their accomplishments on and off the court. FAU guard Nick Boyd told reporters, “I’m happy for our team. I mean, we put FAU on the map. That’s most important to me.”
While that map of awareness certainly has been broadened by the Owls Final Four run, FAU is far from unknown, at least in Florida. Since opening its doors in 1964, enrollment has steadily grown, now with more than 30,000 undergraduate and graduate students (and more that 184,000 alumni) across six campuses, with its main campus in the heart of Boca Raton, FL. FAU has nationally ranked programs in business, engineering, computer science, nursing, and online education. It is ranked as a top university by U.S. News and World Report. It’s number one in Florida for ethnic diversity. FAU is home to the FAU Stiles-Nicholson Brain Institute on the Jupiter campus, a hub of neuroscience activity. And, it has partnered with the world renowned Max Planck Florida Institute for Neuroscience on the FAU High School – Jupiter Campus, the FAU Max Planck Honors Program, the Integrative Biology-Neuroscience program, and the International Max Planck Research School for Synapses & Circuits to offer high school, undergraduate and graduate students transformational experiences not found anywhere else in the world.
The accomplishments of Florida Atlantic are nothing new to Noble. They have worked with the university for more than a decade and were instrumental in the development of the Equity Research Analyst program. Noble has employed several FAU graduates and sponsored enrolled students through intern programs. It was always the goal of Noble to hold its annual investor conference at FAU, but until recently it was logistically impossible. That’s where the College of Business, Executive Education, newly christened, 52,000 square foot complex comes in. It propels NobleCon to the most technically superior conference experience on the circuit. “World Class” is an understatement, particularly when compared to traditional hotel-based conferences. Each presentation room is equipped with multi-screen viewing options, complete soundproofing, full recording, and worldwide webcasting capabilities, even memory foam seating. Add to that the university’s centralized South Florida location is right next to the Boca Raton Airport and less than a mile from Interstate 95. The complex’s 800 (free) covered parking spots complete the picture.
The presentation rooms at the College of Business, Executive Education at Florida Atlantic University
Because of Channelchek’s affiliation with Noble, we’ll be updating guests on all developments leading up to NobleCon19, December 3-5, including keynotes, participating companies, sponsors, and entertainment. Anyone who is registered for Channelchek can attend. So, while there may be many more questions to be answered about NobleCon, we don’t think that “FAU, who?” will be one of them. The Owls have established a new definition for FAU: Fantastic, Awesome, Unbelievable. Congratulations on your remarkable run!
Are Balaji Srinivasan and Cathie Wood Right About the Future Value of Bitcoin?
The former Chief Technology Officer (CTO) of Coinbase, is either extremely bullish on Bitcoin, or has other reasons for his tweet that had set off a huge price jump in the cryptocurrency. Balaji Srinivasan is a very influential investor, especially in the tech space. He confirmed last Friday, belief in a bet he made in March that within 90 days, bitcoin would reach $1 million in value per token. At stake in the bet is $2 million. For crypto investors trying to understand the strong conviction going into the wager, they may first need to understand the person behind the tweet.
Who is Balaji Srinivasan
The Indian-born, U.S. raised, tech entrepreneur, investor, and academic has a Ph.D. in Electrical Engineering and an MS in Chemical Engineering from the Massachusetts Institute of Technology (MIT). Srinivasan co-founded a number of startups, including Earn.com which is blockchain payments platform, and the genomics company Counsyl. He has worked as a General Partner at a prominent Silicon Valley venture capital firm, and as the Chief Technology Officer at the crypto exchange, Coinbase.
Srinivasan has a large following as a commentator on the subject of technology and its social and political implications. Popular topics of his numerous articles and talks include the future of technology, the rise of decentralized systems, and the potential impact of emerging technologies on society. The tech guru has lectured at Stanford University and has served as an advisor to the FDA and the World Economic Forum.
Twitter: @balajis
What is Behind this Forecast?
In an ARK Invest podcast last Friday (April 6), Srinivasan explained bitcoin has good momentum and that he still believes it will reach $ 1 million within a three-month time horizon. He cited the concerns over the regional banking crisis that he believes will destabilize the dollar and cause the Fed to dump more dollars into the system. Fear and inflation in the coming months is the driver. Cathie Wood agreed with the direction and potential for bitcoin to hit $1 million, but her reasons were a bit different. She believes fear will be one driver, but reiterated her call for deflation. “We are very positive about Bitcoin as well. But your forecast was in the context of hyperinflation associated with fiat currencies. Our optimism is more of a function of fears of deflation and counter-party risk. Both of those should accrue to Bitcoin’s benefit,” Wood explained in her company’s podcast.
The bet and the likelihood that bitcoin-will-hit-$1-million-by-summer prediction seems on the surface to be highly improbable. It would take immense capital flows into the cryptocurrency and there is doubt the exchanges would be able to handle the migration of assets. Also, the question of what would prompt the run from traditional currency to cause a skyrocketing bitcoin, has still not been satisfactorily defined.
The one-hour and 17-minute podcast available at the link below under “Sources” is nonetheless thought provoking. These are two well-regarded tech analysts, standing behind something that sounds outlandish.
Another possible explanation for his outward conviction is that this isn’t a risky bet for Balaji. He’s presumed to own a considerable amount of bitcoin. The tick up on news of his bet (bitcoin is up near 25% since his tweet) could more than offset a $2 million loss on the wager. The timing of the value increase in BTC makes it appear that any loss could be self-funded by the attention it may have given the cryptocurrency.
Take Away
Bitcoin is higher than it had been when tech guru Balaji Srinivasan placed his public wager. However, at $28,500 it would still have to rise by $971,500. over the next few months. Supporting the idea that bitcoin is going up substantially, are two tech and disruption gurus whose thoughts are worth considering alongside your own observations.
Will the CPI Number or Fed Minutes Change the Market Direction this Week?
Market-moving economic reports are likely this week. Those with the highest chance to move markets are March CPI data on Wednesday, then FOMC minutes from the meeting just after last month’s bank failures, and the Producer Price Index on Thursday.
The minutes of the March 21-22 FOMC meeting will be released at 2:00 PM Wednesday, this highly watched information coincides with the half-fiscal year Budget Report from the U.S. Treasury. The FOMC minutes will get a lot of attention, but the U.S. Budget Deficit is likely to receive renewed focus as we approach summer and begin to bump up against the Treasury’s borrowing ceiling.
Monday 4/10
10:00 AM ET, Wholesale Inventories’ second estimate for February is expected to show a 0.2 percent build up; this would be unchanged from the first estimate.
Tuesday 4/11
6:00 AM ET, Small Business Optimism Index has been below the historical average of 98 for 14 months in a row. March’s consensus is 89.0 versus 90.9 in February. The direction of the health of small businesses can foreshadow changes in the stock market.
1:30 PM ET, Austan Goolsbee, President of the Federal Reserve Bank of Chicago will be speaking at a luncheon at the Economic Club of Chicago.
Wednesday 4/12
8:30 AM ET, The Consumer Price Index (CPI) core prices for March are expected to have risen by 0.4 percent versus February’s sharp and higher-than-expected increase of 0.5 percent. Overall, headline inflation prices are expected to have increased 0.3 percent after February’s 0.4 percent rise. Annual rates, which in February were 6.0 percent overall and 5.5 percent for the core, are expected to show 5.2 and 5.6 percent.
9:10 AM ET, Thomas Barkin, President of the Federal Reserve Bank of Richmond will be speaking. He spoke on April 3, indicating his expectations are that low unemployment rates will continue to support the belief that the economy is not at risk of a recession. Inflation, however, is not going away anytime soon, according to Barkin.
10:30 AM ET, The Energy Information Administration (EIA) will provide its weekly information on petroleum inventories in the U.S., whether produced here or abroad. The level of inventories helps determine prices for petroleum products. Markets will be paying close attention after OPEC+ cut production one week ago.
2:00 PM ET, FOMC minutes from the March 21-22 meeting will be released. This report will have two areas that investors will focus on. These are conversations surrounding U.S. bank health, and those discussions related to inflation and interest rates.
2:00 PM ET, the Treasury Statement related to the budget deficit are expected to report a $253.0 billion deficit in March. This would compare with a $192.7 billion deficit in March a year-ago and a deficit in February this year of $262.4 billion. March is the halfway point into the U.S government’s fiscal year.
Thursday 4/13
8:30 AM ET, Producer Price Index (PPI), After dropping 0.1 percent lower on the month in February, this inflation index on the producer level in March is expected to be unchanged. March’s ex-food ex-energy rate is seen up 0.3 percent versus February’s no change.
4:30 PM ET, the Federal Reserve’s Balance Sheet has been receiving heightened attention. After the Silicon Valley Bank collapse the Fed institutes a new method for banks to get assistance, markets will watch to see if this has grown. Also, as interest rates have risen, the fixed income securities held by the Fed have repriced billions lower, Fed watchers are beginning to comment on how dramatic this drop in value has been. The last line investors will focus on is quantitative easing. Specifically, investors will look to see if the Fed is on track with its letting securities mature off its books without reinvestment – this reduces U.S. dollars in circulation.
Friday 4/14
8:30 PM ET, March Retail Sales are expected to have fallen 0.4 percent for a second month in a row. Excluding autos, a 0.4 percent decline is also expected.
9:15 AM ET, Industrial Production is expected to rise 0.3 percent in March after being unchanged in February.
10:00 AM ET, Business Inventories for February are expected to have risen 0.3 percent following a 0.1 percent draw in January.
10:00 AM ET, Consumer Sentiment, which sank five full points in March to 62.0, is expected to improve to 62.7 in the first reading for April.
What Else
Taxes are due April 18 this year. This typically creates a wave of new IRA deposits. On April 13, in NYC there will be a luncheon roadshow with PDS Biotechnology. Noble Capital Markets organize the event, more details are available on Channelchek by clicking here.
NEWTOWN, Pa., April 06, 2023 (GLOBE NEWSWIRE) — Onconova Therapeutics, Inc. (NASDAQ: ONTX), (“Onconova” or “the Company”), a clinical-stage biopharmaceutical company focused on discovering and developing novel products for patients with cancer, today announced that its Chief Medical Officer (CMO) Mark Gelder, M.D., recently passed away unexpectedly. Michael Saunders, M.D., has been appointed the interim Chief Medical Officer of the Company.
“The entire Onconova family is deeply saddened by the loss of our beloved friend and colleague,” said Steven M. Fruchtman, M.D., President and Chief Executive Officer of Onconova. “Dr. Gelder dedicated his career to caring for and improving the treatment options available to patients with cancer and his thought leadership and scientific passion will be sorely missed by the oncology community. Mark trained and worked as a gyn oncologist. Because of that experience, he was dedicated to advancing the care of women with reproductive tract cancers. Our goal is to complete the mission Mark started by advancing our trial in endometrial cancer and other cancers as well. We are immensely grateful for his many contributions to Onconova and express our deepest condolences to his family, friends, and colleagues during this difficult time. May he rest in peace.”
Dr. Gelder served as Onconova’s CMO since June 2021. He was an accomplished industry leader with more than 35 years of experience in clinical development, medical affairs, and medical marketing. His previously held the role of CMO at Elevar Therapeutics, Pierian Biosciences (formerly DiaTech Oncology), Accelovance, Inc., and Heron Therapeutics, Inc. Dr. Gelder also had extensive experience at large pharmaceutical companies including Pfizer, Wyeth, and Bayer. He earned his M.D. from the University of Virginia School of Medicine, completed a fellowship in gynecologic oncology, and was a Fellow of the American College of Physicians and the American College of Obstetrics and Gynecology.
Onconova’s Board of Directors will convene at an appropriate time to appoint a new CMO. A search is currently underway by the Company. Onconova does not expect any material impact to the stated timelines associated with its ongoing or planned clinical trials due to this sad news. The Company notes that Dr. Michael Saunders, a noted drug developer and colleague, has been working with Onconova as a consultant and is thus well acquainted with the Company’s compounds in development.
About Onconova Therapeutics, Inc.
Onconova Therapeutics is a clinical-stage biopharmaceutical company focused on discovering and developing novel products for patients with cancer. The Company has proprietary targeted anti-cancer agents designed to disrupt specific cellular pathways that are important for cancer cell proliferation.
Onconova’s novel, proprietary multi-kinase inhibitor narazaciclib (formerly ON 123300) is being evaluated in two separate and complementary Phase 1 dose escalation and expansion studies. These trials are currently underway in the United States and China. Based on preclinical and clinical studies of CDK 4/6 inhibitors, Onconova is also planning a combination trial of narazaciclib with estrogen blockade in advanced endometrial cancer, as well as its clinical study in additional indications.
Onconova’s product candidate rigosertib is being studied in multiple investigator-sponsored studies, including a dose-escalation and expansion Phase 1/2a study of oral rigosertib in combination with nivolumab in patients with KRAS+ non-small cell lung cancer, and a Phase 2 program evaluating rigosertib monotherapy in advanced squamous cell carcinoma complicating recessive dystrophic epidermolysis bullosa (RDEB-associated SCC).
Some of the statements in this release are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995, and involve risks and uncertainties. These statements relate to Onconova’s expectations regarding its clinical development and trials, its product candidates, its business and financial position. Onconova has attempted to identify forward-looking statements by terminology including “believes,” “estimates,” “anticipates,” “expects,” “plans,” “intends,” “may,” “could,” “might,” “will,” “should,” “preliminary,” “encouraging,” “approximately” or other words that convey uncertainty of future events or outcomes. Although Onconova believes that the expectations reflected in such forward-looking statements are reasonable as of the date made, expectations may prove to have been materially different from the results expressed or implied by such forward-looking statements. These statements are only predictions and involve known and unknown risks, uncertainties, and other factors, including the success and timing of Onconova’s clinical trials, investigator-initiated trials and regulatory agency and institutional review board approvals of protocols, Onconova’s collaborations, market conditions and those discussed under the heading “Risk Factors” in Onconova’s most recent Annual Report on Form 10-K and quarterly reports on Form 10-Q. Any forward-looking statements contained in this release speak only as of its date. Onconova undertakes no obligation to update any forward-looking statements contained in this release to reflect events or circumstances occurring after its date or to reflect the occurrence of unanticipated events.
