enCore Energy and Azarga Uranium Receive Final Court Order Approving Plan of Arrangement and Commence Closing Process enCore Energy announced that Azarga Uranium has received a final order from the Supreme Court of British Columbia Research, News & Market Data on enCore Energy Watch recent presentation from enCore Energy

 

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Staci Bogue-Buchholz Joins Gevo as Site and Process Optimization Leader Gevo announced that Staci Bogue-Buchholz has joined Gevo as Site and Process Optimization Leader at the Luverne, Minnesota facility Research, News & Market Data on Gevo Watch recent presentation from Gevo

Cocrystal Pharma’s COVID-19 Oral and Intranasal/Pulmonary Protease Inhibitors Exhibit Powerful In Vitro Potency Against the SARS-CoV-2 Omicron Variant Cocrystal Pharma announced that in vitro studies demonstrate its oral and intranasal/pulmonary SARS-CoV-2 main protease inhibitors exhibit antiviral potency against the Omicron variant Research, News & Market Data on Cocrystal Pharma Watch recent presentation from Cocrystal Pharma

Harte Hanks Secures a New $25 Million Revolving Line of Credit with Texas Capital Bank Harte Hanks announced that the company has obtained a new $25 million secured revolving line of credit with Texas Capital Bank Research, News & Market Data on Harte Hanks

Schwazze Closes Acquisition of Assets of Smoking Gun, Llc & Smoking Gun Land Company, Llc Schwazze announced that it has closed the acquisition of the assets of Smoking Gun, LLC and Smoking Gun Land Company, LLC Research, News & Market Data on Schwazze Watch recent presentation from Schwazze

 

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	Image Credit: 3126 Fishery (Flickr)

Small-Cap Stocks Could Enter the New Year with a Large Tailwind

 

As measured by the S&P 600, small-cap stocks are trading cheaper than they have since the early 2000s during the burst of the dot.com bubble – at least when compared to large-cap stocks. This could indicate that the investment trend to follow momentum rather than value is providing investors many overlooked opportunities in stocks with lower capitalizations.

The S&P Small-Cap 600 is an index that measures the small-cap segment of U.S. equities. When compared to the more often quoted S&P 500, which measures large-cap companies, the large-cap index stocks are on average far more expensive.  As proof, the S&P 600 price-to-earnings ratio, which was on par five years ago, is now 68% of the S&P 500. The last time the gap had been this wide was 20 years ago, as the tech bubble burst putting small companies out of favor.

 

Source: FactSet

 

As shown in the chart above, the S&P 600 index is now priced at 14.5 times expected earnings over the next year. The valuation is well below historical norms and 21.3 times the large-cap S&P 500 index, which includes FAANG stocks among others.

With smaller U.S. listed companies are priced at a steep discount to larger ones, the small-cap sector could still be considered inexpensive despite the rally they both experienced since April 2020. This disparity begs the question, “when will fund managers with full discretion look for better values?” The answer may be “soon.” It could occur after year-end window dressing subsides and equity managers are less prone to need to show the year’s biggest winners in their holdings.

The other question is, “when will the gap shrink to a more historical norm?” The answer may be, early in the first quarter of next year. The reason is this. Many fund managers are inclined toward holding stocks that have performed well during the year to show those holdings on their year-end statements. This “window dressing” is not at all uncommon in the fund management industry. Once these securities are reported on statements as part of a portfolio’s holdings (after 12/31), the fund manager may feel freer to invest using basic fundamentals and less on appearances.

 

Take-Away

The Price Earnings disparity between large-cap stocks and small-cap stocks (as measured by the S&P indexes) is glaring. The trend toward chasing stocks that have spiked up over the past 18 months, causing them to move even higher, will end one day. That day may be soon as the new year provides a clean slate for fund managers to prove themselves. The playbook that works next year will likely be different from the Covid related trading that worked this year. In the meantime, shares of companies that have done well will look appealing on a fund managers’ year-end holdings reports.

Channelchek is an investor resource for small and microcap stocks. No-cost registration allows users access to premium research and provides daily information straight to their inbox.

Sources:

https://www.macrotrends.net/2577/sp-500-pe-ratio-price-to-earnings-chart

https://www.ft.com/content/a894adff-7ca2-4fdc-bc85-c43bc2c53491

https://www.spglobal.com/spdji/en/indices/equity/sp-600/#overview

 

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	Image credit: Liza Summers (Pexels)

Why Investors and Stock Pickers Watch Russell Index Addition Dates

 

A sudden rise in a stock’s price is almost always demand-related. This could occur if the company beats earnings estimates, announces a breakthrough product, is being considered for acquisition from a larger company, or public policy shifts in their favor. Another reason could be inclusion in a major stock market index.

There are investors that look to determine which companies may be added to an index and which may be removed. Although being right doesn’t always mean huge gains for them, the rewards on average make this a legitimate approach for stock picking. One of the more common family of indexes that investors watch is the FTSE Russell indexes. The reason is these are more transparent than others. Russell actually puts out a calendar each year and shares its methodology for including new companies on its website.

The annual rejiggering of the Russell indexes, known as the Russell Reconstitution, is in late Spring and attracts a lot of attention.  Subscribers to Channelchek can expect to receive our notification and analysis on the small-cap Russell 2000 index reconstitution.

 

Abbreviated History of Impactful Companies Added to the Russell after their IPO

Russell updates its indexes quarterly to include new public companies to best represent the market.

 

In addition to the annual index reconstitution, FTSE Russell also has a quarterly calendar where they look at IPOs that occurred during the quarter and weigh the outcomes against their methodology for inclusion in the broad Russell 3000 index. Once in the 3000, companies may be further segmented into other indexes. These inclusions can alter the demand for the stock both immediately, as fund managers seek to mimic an index and buy the stock, and then over time, as index investor demand for the index funds ebb and flow.

 

 

As a testament to just how impactful these additions may be, a recent example involves a company called Society Pass, Inc. (SOPA). Society Pass went public via an IPO in November. On December 20^th Russell added new IPOs in order to update the indexes to reflect current markets, and SOPA was added both to the Russell 3000 broad index and the Russell 2000. The average daily trading volume for SOPA leading up to the inclusion was 1.3M, on December 20^th, 167.5M shares changed hands. The impact is indicated above in the month-to-date graph (% change). The stock opened at $4.44, traded as high as $13.48, and closed at $11.26. 

 

Opportunity in IPO Additions

Over the last ten years, there have been almost 1500 IPO additions to the Russell Indexes, and the Russell 2000 Small-Cap Index has had the majority of these additions.

 

 

After the Addition

Inclusion in a major index generally results in a higher “base price” for the stock. Further price changes are then more closely tied to fundamentals like company performance.   However, the stock will experience the added transactions that have very little to do with the company and are instead index expectation related. In addition, there should be higher trade volumes and possibly an even higher level of demand because of the company’s increased visibility.

Paul Hoffman

Managing Editor, Channelchek

 

Suggested Reading:

Peter Lynch Echoes Michael Burry’s Warning About Index Investments

The Russell Index Reconstitution, What to Know

Does the Russell Reconstitution Impact Small-Cap Performance During June?

Does Cathie Wood’s ESG Fund Have it Wrong?

 

Sources:

https://content.ftserussell.com/sites/default/files/final_ipo_additions_2021_4_qtr_r3000.pdf

https://www.sec.gov/fast-answers/answersindiceshtm.html

https://budgeting.thenest.com/mutual-funds-safe-against-bad-stock-crash-30572.html

https://content.ftserussell.com/sites/default/files/2021_09_russell_indexes_quarterly_ipo_update.pdf

 

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	Image credit: Liza Summers (Pexels)

Why Investors and Stock Pickers Watch Russell Index Addition Dates

 

A sudden rise in a stock’s price is almost always demand-related. This could occur if the company beats earnings estimates, announces a breakthrough product, is being considered for acquisition from a larger company, or public policy shifts in their favor. Another reason could be inclusion in a major stock market index.

There are investors that look to determine which companies may be added to an index and which may be removed. Although being right doesn’t always mean huge gains for them, the rewards on average make this a legitimate approach for stock picking. One of the more common family of indexes that investors watch is the FTSE Russell indexes. The reason is these are more transparent than others. Russell actually puts out a calendar each year and shares its methodology for including new companies on its website.

The annual rejiggering of the Russell indexes, known as the Russell Reconstitution, is in late Spring and attracts a lot of attention.  Subscribers to Channelchek can expect to receive our notification and analysis on the small-cap Russell 2000 index reconstitution.

 

Abbreviated History of Impactful Companies Added to the Russell after their IPO

Russell updates its indexes quarterly to include new public companies to best represent the market.

 

In addition to the annual index reconstitution, FTSE Russell also has a quarterly calendar where they look at IPOs that occurred during the quarter and weigh the outcomes against their methodology for inclusion in the broad Russell 3000 index. Once in the 3000, companies may be further segmented into other indexes. These inclusions can alter the demand for the stock both immediately, as fund managers seek to mimic an index and buy the stock, and then over time, as index investor demand for the index funds ebb and flow.

 

 

As a testament to just how impactful these additions may be, a recent example involves a company called Society Pass, Inc. (SOPA). Society Pass went public via an IPO in November. On December 20^th Russell added new IPOs in order to update the indexes to reflect current markets, and SOPA was added both to the Russell 3000 broad index and the Russell 2000. The average daily trading volume for SOPA leading up to the inclusion was 1.3M, on December 20^th, 167.5M shares changed hands. The impact is indicated above in the month-to-date graph (% change). The stock opened at $4.44, traded as high as $13.48, and closed at $11.26. 

 

Opportunity in IPO Additions

Over the last ten years, there have been almost 1500 IPO additions to the Russell Indexes, and the Russell 2000 Small-Cap Index has had the majority of these additions.

 

 

After the Addition

Inclusion in a major index generally results in a higher “base price” for the stock. Further price changes are then more closely tied to fundamentals like company performance.   However, the stock will experience the added transactions that have very little to do with the company and are instead index expectation related. In addition, there should be higher trade volumes and possibly an even higher level of demand because of the company’s increased visibility.

Paul Hoffman

Managing Editor, Channelchek

 

Suggested Reading:

Peter Lynch Echoes Michael Burry’s Warning About Index Investments

The Russell Index Reconstitution, What to Know

Does the Russell Reconstitution Impact Small-Cap Performance During June?

Does Cathie Wood’s ESG Fund Have it Wrong?

 

Sources:

https://content.ftserussell.com/sites/default/files/final_ipo_additions_2021_4_qtr_r3000.pdf

https://www.sec.gov/fast-answers/answersindiceshtm.html

https://budgeting.thenest.com/mutual-funds-safe-against-bad-stock-crash-30572.html

https://content.ftserussell.com/sites/default/files/2021_09_russell_indexes_quarterly_ipo_update.pdf

 

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Entravision Raises Over $2.1 Million for Children’s Miracle Network Hospitals Entravision Communications announced that together with Children’s Miracle Network, they successfully raised over $2.1 million in the 14th Annual Radiothon event Research, News & Market Data on Entravision Communications Watch recent presentation from Entravision Communications

Bunker Hill Announces $50 Million Project Finance Package, Mine Purchase, And US EPA Settlement Agreement Amendment Bunker Hill Mining announced the achievement of its key short-term objectives Research, News & Market Data on Bunker Hill Mining

Edward G. Atsinger III Transitions to Executive Chairman of the Board of Salem Media Group; David Santrella to Chief Executive Officer and David Evans to Chief Operating Officer Salem Media Group announces C-Level changes Research, News & Market Data on Salem Media Watch recent presentation from Salem Media

Lisa Walker Joins Gevo as Assistant General Counsel Gevo announced that Lisa Walker has joined Gevo as Assistant General Counsel Research, News & Market Data on Gevo Watch recent presentation from Gevo

BioSig Technologies, Inc. Selects Access Strategy Partners to Accelerate Commercial Sales BioSig Technologies announced that it appointed Access Strategy Partners, Inc. to advise on the next phase of the commercial roll-out News & Market Data on BioSig Technologies Watch recent presentation from BioSig Technologies

Capstone Green Energy (NASDAQ:CGRN) to Provide Its 600kW Energy Efficiency System to Alabama Hospital Capstone Green Energy announced that its central and southern U.S. distributor, Lone Star Power Solutions, has secured a contract to provide a clean energy system to a major hospital in Alabama Research, News & Market Data on Capstone Green Energy Watch recent presentation from Capstone Green Energy

 

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Indonesia Energy Daily Production Rate Increases Over 50% With Recently Completed “Kruh 26” Well Indonesia Energy announced that its daily oil production rate has increased over 50% as a result of the recently completed “Kruh 26” well on its 63,000-acre Kruh Block Research, News & Market Data on Indonesia Energy Watch recent presentation from Indonesia Energy

Lineage Establishes Exclusive Worldwide Collaboration With Genentech for the Development and Commercialization of OpRegen® RPE Cell Therapy for the Treatment of Ocular Disorders Lineage Cell Therapeutics announced that Lineage and its subsidiary, Cell Cure Neurosciences Ltd., have entered into an exclusive worldwide collaboration Research, News & Market Data on Lineage Watch recent presentation from Lineage

Orion Group Holdings, Inc. Announces Contract Awards of Approximately $33 Million Orion Group Holdings announced two contract awards for its Marine segment totaling approximately $33 million Research, News & Market Data on Orion Group Holdings Watch recent presentation from Orion Group Holdings

Voyager Digital Announces Brian Brooks, Former Acting Comptroller of the U.S. Currency, Joins Board of Directors Voyager Digital announced that Brian Brooks has been appointed to Voyager Digital Ltd’s Board of Directors effective immediately Voyager Digital Announces Trading of Common Shares and Variable Voting Shares Under Single Trading Symbol to Commence as of Market Open on TSX on December 23, 2021 Voyager Digital announced that its amended share structure, overwhelmingly approved at the annual general and special meeting of shareholders held on December 14, 2021, will be reflected in trading effective as of the opening of the Market on the Toronto Stock Exchange on Thursday December 23, 2021 Research, News & Market Data on Voyager Digital Watch recent presentation from Voyager Digital

 

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	Image Source: Melania Trump Facebook

Melania Trump Moves into NFT Market to Further “Be Best” Goals

 

Melania Trump announced Thursday (December 16) that she has been eyeballing the NFT art business. She will be offering her first non-fungible token, Melania’s Vision, through December 31st on Solana. Melania joins other celebrities like Tiger Woods, Ellen DeGeneres and Snoop Dogg that have dabbled in this Blockchain medium.

In her official statement, the former first lady said, “I am proud to announce my new NFT endeavor, which embodies my passion for the arts, and will support my ongoing commitment to children through my Be Best initiative.”  She confirmed in her statement that she is starting a platform that will “release NFTs in regular intervals.

 

Trump’s first NFT will be available for purchase until Dec. 31. The NFT, titled “Melania’s Vision,” was first created in watercolor paint and depicts Mrs. Trump’s eyes. It is priced at one SOL, a cryptocurrency that runs on the Solana blockchain, currently valued at around $180. The image will also include an audio recording, a “message of hope” from Melania Trump.

A portion of the proceeds from the NFT sales will “assist children aging out of the foster care system by way of economic empowerment and with expanded access to resources needed to excel in the fields of computer science and technology,” the statement said. The former first lady introduced the Be Best initiative in 2018, during her husband’s term in office. It initially focused on three main “pillars,” well-being, social media use, and opioid abuse among children.

Some of the more high-profile NFTs after Beeple’s The First 5000 Days made headlines include: Jack Dorsey’s digital version of his first tweet, which sold as an NFT for more than $2.9 million, and the viral 2007 video “Charlie Bit My Finger” fetched more than $760,000 in May. Earlier this week, a previously unheard demo track Whitney Houston recorded at age 17, sold as an NFT for $999,999.

 

Suggested Reading:

Trump Media SPAC Merger Details

Tradestation and Trump Media aren’t the Only Hot SPAC Stories

NFT Fractional Ownership and Metaverse Museums

NFT Collectible Marketplace for DRAFTKINGS

 

Sources:

https://melaniatrump.com/eyes-nft

https://explorer.solana.com/address/7CC4YrazfBqr2FMEWEar1fmbP3kULzMfrvW8KDPtfT6W

https://twitter.com/MELANIATRUMP/status/1471468919810670603/photo/1

https://www.lofficielusa.com/pop-culture/celebrities-on-the-crypto-art-craze

https://finance.yahoo.com/news/latest-nft-art-melania-trumps-224641936.html

 

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Helius Medical Technologies, Inc. Partners with the Medical University of South Carolina in Pilot Trial on Stroke Helius Medical Technologies announced its partnership with Dr. Steve Kautz, on an investigator-initiated study, conducted at the Medical University of South Carolina Research, News & Market Data on Helius Medical Watch recent presentation from Helius Medical

 

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	Image Source: Melania Trump Facebook

Melania Trump Moves into NFT Market to Further “Be Best” Goals

 

Melania Trump announced Thursday (December 16) that she has been eyeballing the NFT art business. She will be offering her first non-fungible token, Melania’s Vision, through December 31st on Solana. Melania joins other celebrities like Tiger Woods, Ellen DeGeneres and Snoop Dogg that have dabbled in this Blockchain medium.

In her official statement, the former first lady said, “I am proud to announce my new NFT endeavor, which embodies my passion for the arts, and will support my ongoing commitment to children through my Be Best initiative.”  She confirmed in her statement that she is starting a platform that will “release NFTs in regular intervals.

 

Trump’s first NFT will be available for purchase until Dec. 31. The NFT, titled “Melania’s Vision,” was first created in watercolor paint and depicts Mrs. Trump’s eyes. It is priced at one SOL, a cryptocurrency that runs on the Solana blockchain, currently valued at around $180. The image will also include an audio recording, a “message of hope” from Melania Trump.

A portion of the proceeds from the NFT sales will “assist children aging out of the foster care system by way of economic empowerment and with expanded access to resources needed to excel in the fields of computer science and technology,” the statement said. The former first lady introduced the Be Best initiative in 2018, during her husband’s term in office. It initially focused on three main “pillars,” well-being, social media use, and opioid abuse among children.

Some of the more high-profile NFTs after Beeple’s The First 5000 Days made headlines include: Jack Dorsey’s digital version of his first tweet, which sold as an NFT for more than $2.9 million, and the viral 2007 video “Charlie Bit My Finger” fetched more than $760,000 in May. Earlier this week, a previously unheard demo track Whitney Houston recorded at age 17, sold as an NFT for $999,999.

 

Suggested Reading:

Trump Media SPAC Merger Details

Tradestation and Trump Media aren’t the Only Hot SPAC Stories

NFT Fractional Ownership and Metaverse Museums

NFT Collectible Marketplace for DRAFTKINGS

 

Sources:

https://melaniatrump.com/eyes-nft

https://explorer.solana.com/address/7CC4YrazfBqr2FMEWEar1fmbP3kULzMfrvW8KDPtfT6W

https://twitter.com/MELANIATRUMP/status/1471468919810670603/photo/1

https://www.lofficielusa.com/pop-culture/celebrities-on-the-crypto-art-craze

https://finance.yahoo.com/news/latest-nft-art-melania-trumps-224641936.html

 

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ProMIS Neurosciences Issues Chairman’s Memorandum ProMIS Neurosciences issued a Chairman’s Memorandum commenting on the Company’s progress over the past year and outlook for 2022 Research, News & Market Data on ProMIS Neurosciences

Seanergy Maritime Announces Refinancing of Existing Vessel Resulting in Significant Cashflow and P&L Benefit Seanergy Maritime announced that it has entered into a definitive agreement for the refinancing of a loan facility secured by M/V Geniuship Research, News & Market Data on Seanergy Maritime Watch recent presentation from Seanergy Maritime

Digerati Technologies Reports 143% Revenue Growth to $3.777 Million for First Quarter FY2022 Digerati Technologies announced financial results for the three months ended October 31, 2021, the Company’s first quarter for its Fiscal Year 2022 Research, News & Market Data on Digerati Technologies Watch recent presentation from Digerati Technologies

BioSig Expands Its Clinical Footprint In Florida BioSig Technologies announced that it is installing a PURE EP™ System for an evaluation at the HCA Healthcare-operated Westside Regional Medical Center in Plantation, FL Research, News & Market Data on BioSig

 

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Eagle Bulk Shipping Inc. to Present at Noble’s Virtual Transportation & Logistics Investor Forum Eagle Bulk Shipping announced that its CEO, Gary Vogel, will present at Noble Capital Markets’ Virtual Transportation & Logistics Forum which is to be held on December 16, 2021 at 09:00 EST Research, News & Market Data on Eagle Bulk Shipping Watch recent presentation from Eagle Bulk Shipping

Seanergy to Present at the NobleCon Online Transportation & Logistics Investor Forum Seanergy Maritime Holdings announced its participation at the Transportation & Logistics Virtual Investor Forum, presented by Channelchek.com More info on the Transportation & Logistics Forum Research, News & Market Data on Seanergy Maritime Watch recent presentation from Seanergy Maritime

Energy Fuels Announces Strategic Venture with Nanoscale Powders to Develop Innovative Rare Earth Metal-Making Technology Energy Fuels announced the execution of a Memorandum of Understanding with Nanoscale Powders LLC for the development of a novel technology for the production of rare earth element metals Research, News & Market Data on Energy Fuels Watch recent presentation from Energy Fuels

New Data Suggest COVAXIN™ (BBV152) Vaccine Candidate Generates Robust Immune Memory to COVID-19 and Variants of Concern for At Least Six Months After Vaccination Ocugen, Inc. announced that data analyzing immune response following two doses of the vaccine candidate, COVAXIN™ (BBV152), from a third-party study were published on the preprint server, medRxiv Research, News & Market Data on Ocugen Watch recent presentation from Ocugen

 

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