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The Rise of Generative AI: Unlocking New Investment Frontiers

Posted on by slightbourne@noblecapitalmarkets.com

As the S&P 500 continues its remarkable ascent, hitting fresh record highs, investors are actively seeking the next frontier of growth opportunities. And according to experts, the answer may lie in the rapidly evolving realm of generative artificial intelligence (AI).

During the recent CNBC Financial Advisor Summit, industry leaders shed light on the transformative potential of generative AI and its impact on the investment landscape. Savita Subramanian, head of U.S. equity strategy and U.S. quantitative strategy at Bank of America, boldly proclaimed, “Generative AI is a game-changer.”

The implications of this disruptive technology are far-reaching, with Subramanian predicting that within the next decade, S&P 500 companies will become increasingly efficient and labor-light as they harness the power of generative AI tools. Industries ranging from call centers and financial services to legal services and Hollywood are poised to experience profound changes, opening up new avenues for investment.

But the key lies in identifying the companies and management teams that are best equipped to capitalize on this technological revolution. “What you want to do is figure out which management teams are going to harness the strength and the power of a lot of these new tools and do it first and do it well,” Subramanian advises.

The anticipation surrounding the generative AI revolution is further amplified by the upcoming earnings release from Nvidia, a leading player in the AI space. As a prominent provider of chips for AI applications, Nvidia’s performance and guidance will serve as a bellwether for the entire sector.

Investors eagerly await Nvidia’s report, seeking insights into the demand and growth prospects for AI technologies, as well as the company’s strategies and investments in the generative AI domain. A positive earnings surprise or optimistic outlook from Nvidia could catalyze a surge of investor interest in the AI sector, potentially driving valuations higher for companies at the forefront of this technological wave.

While the Magnificent Seven companies – Apple, Microsoft, Alphabet, Amazon, Nvidia, Tesla, and Meta Platforms – are expected to continue dominating growth, experts like Tim Seymour, founder and chief investment officer at Seymour Asset Management, highlight the opportunities in sectors such as healthcare, industrials, energy, and utilities. Subramanian further emphasizes the importance of a “stock picker’s market,” where investors must carefully evaluate individual companies’ strengths and potential growth drivers.

In this rapidly evolving landscape, diversification and thorough research into individual companies’ AI strategies and capabilities will be crucial for investors seeking to capitalize on the generative AI revolution. As the world stands on the cusp of a technological transformation, those who can identify the trailblazers and early adopters of generative AI may unlock a new frontier of investment opportunities.

The convergence of record market highs, the rise of generative AI, and the imminent earnings release from Nvidia has created a perfect storm for investors to reassess their portfolios and position themselves for the next wave of growth. As the saying goes, “The future belongs to those who prepare for it today.”

Small Cap Stocks Could Soar Next – Here’s Why the Russell Rally May Be Imminent

Posted on by slightbourne@noblecapitalmarkets.com

The major U.S. stock indexes have been on a tear in 2024, with the S&P 500 and Nasdaq Composite recently locking in fresh 52-week highs. However, one area of the market that has yet to fully participate in the rally is small-cap stocks, as represented by the Russell 2000 index. While the Russell 2000 is still up around 4% year-to-date, it has significantly lagged the double-digit gains of its large-cap counterparts.

This underperformance from smaller companies may seem perplexing given the robust economic growth and strong corporate earnings that have powered stocks higher. However, there are a couple potential factors holding small caps back for now.

First, investor sentiment remains somewhat cautious after the banking turmoil of 2023. While the systemic crisis was averted, tighter lending standards could disproportionately impact smaller businesses that rely more heavily on bank financing. Recent upticks in loan activity provide some optimism that credit conditions may be thawing.

The other overhang for small caps has been the aggressive interest rate hiking cycle by the Federal Reserve to combat inflation. Higher borrowing costs weigh more heavily on smaller companies compared to their large-cap peers. However, the Fed is now expected to pivot towards rate cuts later in 2024 once inflation is tamed, providing a potential catalyst for small-cap outperformance.

Historically, small caps have tended to lead coming out of economic downturns and in the early stages of new bull markets. Their higher growth orientation allows them to capitalize more quickly on an inflection in the business cycle. A timely Fed pivot to lower rates could be the rocket fuel that allows the Russell 2000 to start playing catch-up in the second half of 2024.

For investors, any near-term consolidation in small caps may present opportunistic entry points in this economically-sensitive segment of the market. While volatility should be expected, the lofty valuations of large-cap tech and momentum plays leave less room for further upside. Well-managed small caps with pricing power and secure funding could offer asymmetric upside as the economic landscape becomes more hospitable in the latter part of the year.

For long-term investors, any potential small-cap rebound could be particularly compelling given the cyclical nature of small versus large-cap performance. Over decades of market history, there has been a tendency for leadership to rotate between the two size segments. After large caps dominated the past decade, buoyed by the tech titans and slow-growth environment, the economic restart could allow small caps to regain leadership.

From a portfolio construction standpoint, maintaining exposure to both small and large caps can provide important diversification benefits. The low correlation between the size segments helps smooth out overall equity volatility. And for investors already overweight large caps after years of outperformance, trimming some of those positions to reallocate towards small caps could prove timely.

While major indexes continue grinding higher, prudent investors should avoid complacency and think about positioning for what could be a new market regime. Small caps have historically possessed a robust return premium over large caps. As the economic backdrops evolves, 2024 may mark the start of small caps returning to form as drivers of broad market returns once again.

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Release – Tonix Pharmaceuticals Announces Key Findings from Initial Phase of EVERSANA Market Opportunity Analysis for Tonmya™ for the Management of Fibromyalgia

Posted on by aweinsoff@channelchek.com

Research News and Market Data on TNXP

CHATHAM, N.J., May 21, 2024 (GLOBE NEWSWIRE) —  Tonix Pharmaceuticals Holding Corp. (Nasdaq: TNXP) (Tonix or the Company), a fully-integrated biopharmaceutical company with marketed products and a pipeline of development candidates, announced today that EVERSANA® Life Science Services, LLC, a leading provider of commercialization services to the global life sciences industry, completed the initial phase of an assessment of the U.S market opportunity for TonmyaTM (also known as TNX-102 SL, cyclobenzaprine HCl sublingual tablets), a potential new first line therapy for the management of fibromyalgia. Tonix previously announced that EVERSANA was selected to support the launch strategy and commercial planning of Tonmya. Specifically, EVERSANA is working with Tonix to assess the fibromyalgia landscape and help plan an efficient go-to-market (GTM) strategy.

“The primary research and analysis conducted by EVERSANA provides valuable insights and informs the vision for the commercialization of Tonmya,” said Seth Lederman, M.D., Chief Executive Officer of Tonix Pharmaceuticals. “We are excited to refine our business strategy for the anticipated launch of Tonmya in 2025. It has been approximately fifteen years since patients suffering with fibromyalgia have been provided a new therapeutic option. The market research conducted by EVERSANA with physicians indicates a continued high unmet need, with the need ranked > 4.0 on a 5-point scale.”

Dr. Lederman continued, “We were surprised to learn that opioids dominate the fibromyalgia prescription market, despite the well-known risks of dependency. Opioids are prescribed to more patients following fibromyalgia diagnosis than all the FDA-approved fibromyalgia drugs combined. If approved, we believe that Tonmya can provide a non-opioid, centrally-acting solution for fibromyalgia patients. This is corroborated by EVERSANA’s primary market research in which physicians indicated median interest of 4.0 on a 5-point scale and intended use of Tomya in 40% of their fibromyalgia patients, upon approval.1 We look forward to submitting the NDA for Tonmya in the second half of this year and expect an FDA decision on approval in 2025.”

EVERSANA’s analysis of the market size was based on medical claims databases and epidemiological studies on prevalence and diagnosis2. Primary research with physicians was conducted to test the potential adoption of Tonmya based on its activity and tolerability.  

Key findings from claims data analyses2:

  • ~2.7 million adults in the U.S. currently diagnosed and treated for fibromyalgia.
    • ~90 percent of patients diagnosed with fibromyalgia are female.
  • Percentage of fibromyalgia patients who were prescribed certain drugs3:
    • FDA-approved fibromyalgia drug prescriptions:
      1. Duloxetine (generic Cymbalta®): 23%, pregabalin (generic Lyrica®): 13%, and Savella® (milnacipran): 1%
    • Off-label drug prescriptions:
      1. Gabapentin: 26%, hydroxycodone: 20%, cyclobenzaprine: 18%, oxycodone: 19%, tramadol: 13%, meloxicam: 12%, and amitriptyline: 6%
    • Off-label opioids prescriptions:
      1. Hydroxycodone: 20%, oxycodone: 19%, and tramadol: 13%
  • Targeted prescriber strategy for launch.
    • High prescribers are rheumatologists, pain medicine specialists, primary care physicians, neurologists, and psychiatrists.
  • ~50 percent of diagnosed fibromyalgia patients are covered by Medicare.
    • Medicare population stands to benefit from a decrease in out-of-pocket prescription drug liability to $2,000 per year when the changes from the Inflation Reduction Act are enacted in 2025.

Key findings from primary physician research4:

  • High level of dissatisfaction with currently prescribed drugs.
    • Physicians interviewed estimate that 85% of their patients fail first-line therapy due to efficacy and tolerability issues and 79% of their patients are on multiple therapies.
    • Prescribers indicate high unmet need in fibromyalgia, ranked >4.0 on a 5-point scale.
  • High level of interest in Tonmya from physicians interviewed as a potential new treatment option based on favorable activity and tolerability profile observed in Tonmya fibromyalgia clinical studies.
    • Median interest in Tonmya of 4 on a 5-point scale.
    • Physicians indicated intended use of Tonmya in 40% of their fibromyalgia patients.1

Tonmya is a centrally acting, non-opioid medication. As previously announced, Tonix’s second statistically significant Phase 3 study, RESILIENT, met its pre-specified primary endpoint, significantly reducing daily pain compared to placebo (p=0.00005) in participants with fibromyalgia. Statistically significant and clinically meaningful results (p=0.001 or better) were also seen in all key secondary endpoints related to improving sleep quality, reducing fatigue, and improving overall fibromyalgia symptoms and function.

Tonix plans to submit an NDA to the U.S. Food and Drug Administration (FDA) in the second half of 2024 for Tonmya for the management of fibromyalgia and has scheduled a Type B pre-NDA meeting with FDA for the second quarter of 2024.

1 40% was the median preference share among physicians interviewed, assuming no market access barriers.
2 EVERSANA analysis of claims database, May 2024; commissioned by Tonix
3Note: the total number of patients is greater than 100% because of switching between medications and polypharmacy.
4 EVERSANA primary physician research, May 2024; commissioned by Tonix

About Tonmya* (also known as TNX-102 SL)

Tonmya is a centrally acting, non-opioid, non-addictive, bedtime medication. The tablet is a patented sublingual formulation of cyclobenzaprine hydrochloride developed for the management of fibromyalgia. In December 2023, the company announced highly statistically significant and clinically meaningful topline results in RESILIENT, a second positive Phase 3 clinical trial of Tonmya for the management of fibromyalgia. In the study, Tonmya met its pre-specified primary endpoint, significantly reducing daily pain compared to placebo (p=0.00005) in participants with fibromyalgia. Statistically significant and clinically meaningful results were also seen in all key secondary endpoints related to improving sleep quality, reducing fatigue and improving overall fibromyalgia symptoms and function. RELIEF, the first positive Phase 3 trial of Tonmya in fibromyalgia, was completed in December 2020. It met its pre-specified primary endpoint of daily pain reduction compared to placebo (p=0.010) and showed activity in key secondary endpoints.

*Tonmya™ is conditionally accepted by the U.S. Food and Drug Administration (FDA) as the tradename for TNX-102 SL for the management of fibromyalgia. Tonmya has not been approved for any indication.

About EVERSANA®

EVERSANA® is a leading independent provider of global services to the life sciences industry. The company’s integrated solutions are rooted in the patient experience and span all stages of the product life cycle to deliver long-term, sustainable value for patients, prescribers, channel partners and payers. The company serves more than 650 organizations, including innovative start-ups and established pharmaceutical companies, to advance life sciences solutions for a healthier world. To learn more about EVERSANA, visit eversana.com or connect through LinkedIn and X.

Tonix Pharmaceuticals Holding Corp.*

Tonix is a fully-integrated biopharmaceutical company focused on developing, licensing and commercializing therapeutics to treat and prevent human disease and alleviate suffering. Tonix’s development portfolio is focused on central nervous system (CNS) disorders. Tonix’s priority is to submit a New Drug Application (NDA) to the FDA in the second half of 2024 for Tonmya, a product candidate for which two positive Phase 3 studies have been completed for the management of fibromyalgia. TNX-102 SL is also being developed to treat acute stress reaction as well as fibromyalgia-type Long COVID. Tonix’s CNS portfolio includes TNX-1300 (cocaine esterase) a biologic designed to treat cocaine intoxication with Breakthrough Therapy designation. Tonix’s immunology development portfolio consists of biologics to address organ transplant rejection, autoimmunity and cancer, including TNX-1500, which is a humanized monoclonal antibody targeting CD40-ligand (CD40L or CD154) being developed for the prevention of allograft rejection and for the treatment of autoimmune diseases. Tonix also has product candidates in development in the areas of rare disease and infectious disease. Tonix Medicines, our commercial subsidiary, markets Zembrace® SymTouch® (sumatriptan injection) 3 mg and Tosymra® (sumatriptan nasal spray) 10 mg for the treatment of acute migraine with or without aura in adults.

*Tonix’s product development candidates are investigational new drugs or biologics and have not been approved for any indication.

Zembrace SymTouch and Tosymra are registered trademarks of Tonix Medicines. All other marks are property of their respective owners.

This press release and further information about Tonix can be found at www.tonixpharma.com.

Forward-Looking Statements

Certain statements in this press release are forward-looking within the meaning of the Private Securities Litigation Reform Act of 1995. These statements may be identified by the use of forward-looking words such as “anticipate,” “believe,” “forecast,” “estimate,” “expect,” and “intend,” among others. These forward-looking statements are based on Tonix’s current expectations and actual results could differ materially. There are a number of factors that could cause actual events to differ materially from those indicated by such forward-looking statements. These factors include, but are not limited to, risks related to the failure to obtain FDA clearances or approvals and noncompliance with FDA regulations; risks related to the failure to successfully commercialize any of our products; risks related to the timing and progress of clinical development of our product candidates; our need for additional financing; uncertainties of patent protection and litigation; uncertainties of government or third party payor reimbursement; limited research and development efforts and dependence upon third parties; and substantial competition. As with any pharmaceutical under development, there are significant risks in the development, regulatory approval and commercialization of new products. Tonix does not undertake an obligation to update or revise any forward-looking statement. Investors should read the risk factors set forth in the Annual Report on Form 10-K for the year ended December 31, 2023, as filed with the Securities and Exchange Commission (the “SEC”) on April 1, 2024, and periodic reports filed with the SEC on or after the date thereof. All of Tonix’s forward-looking statements are expressly qualified by all such risk factors and other cautionary statements. The information set forth herein speaks only as of the date thereof.

Investor Contact

Jessica Morris
Tonix Pharmaceuticals
investor.relations@tonixpharma.com
(862) 904-8182

Peter Vozzo
ICR Westwicke
peter.vozzo@westwicke.com
(443) 213-0505

Media Contact

Katie Dodge
LaVoieHealthScience
kdodge@lavoiehealthscience.com
(978) 360-3151

Matt Braun
EVERSANA
Matt.braun@eversana.com

Source: Tonix Pharmaceuticals Holding Corp.

Released May 21, 2024

Xcel Brands (XELB) – Revenue Momentum Appears To Be Building

Posted on by cpereira@noblefcm.com


Tuesday, May 21, 2024

Xcel Brands, Inc. 1333 Broadway 10th Floor New York, NY 10018 United States https:/Sector(s): Consumer Cyclical Industry: Apparel Manufacturing Full Time Employees: 84 Key Executives Name Title Pay Exercised Year Born Mr. Robert W. D’Loren Chairman, Pres & CEO 1.27M N/A 1958 Mr. James F. Haran CFO, Principal Financial & Accou

Michael Kupinski, Director of Research, Equity Research Analyst, Digital, Media & Technology , Noble Capital Markets, Inc.

Jacob Mutchler, Research Associate, Noble Capital Markets, Inc.

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

Weak start to the year, largely expected. Q1 revenues declined 63% to $2.2 million, in line with our expectations. The revenue decline reflected the absence of merchandise sales as the company shifted toward a capital light, licensing model. The full benefits of this shift is expected to be reflected in second half results. Adj. EBITDA loss of $1.6 million was a little heavier than our $1.1 million loss estimate. 

Let go of the LOGO? The soft licensing revenue, which was down 1.7% yoy to $2.2 million reflected, in part, challenged revenue at LOGO by Lori Goldstein. LOGO sales have struggled, flat yoy in the quarter, as the popular talent has had scheduling issues and has not returned to regular studio production. Management indicated that it is exploring the disposition of the brand. 


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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. 

Codere Online (CDRO) – Full Year Profitability on the Horizon: Raising Price Target

Posted on by cpereira@noblefcm.com


Tuesday, May 21, 2024

Codere Online refers, collectively, to Codere Online Luxembourg, S.A. and its subsidiaries. Codere Online launched in 2014 as part of the renowned casino operator Codere Group. Codere Online offers online sports betting and online casino through its state-of-the art website and mobile application. Codere currently operates in its core markets of Spain, Italy, Mexico, Colombia, Panama and the City of Buenos Aires (Argentina). Codere Online’s online business is complemented by Codere Group’s physical presence throughout Latin America, forming the foundation of the leading omnichannel gaming and casino presence in the region.

Michael Kupinski, Director of Research, Equity Research Analyst, Digital, Media & Technology , Noble Capital Markets, Inc.

Patrick McCann, CFA, Research Analyst, Noble Capital Markets, Inc.

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

Solid Q1 results. The company reported Q1 revenue of €53.0 million, beating our estimate of €45.0 million by 17.8%. Adj. EBITDA in the quarter was positive €1.7 million, which beat our estimate of a loss of €1.0 million. Notably, the company grew revenue by 34% from the comparable prior year quarter.

Momentum in Mexico and Spain. Strong revenue growth in Mexico (+51%) and Spain (+21%) fueled the revenue outperformance. Some significant developments; the company grew its total active customer base by 25% in both markets and it obtained regulatory approval for operations in the province of Mendoza, Argentina. In our view, the company is poised to carry strong revenue momentum through 2024 and should swing toward positive cash flow on a full-year basis.


Get the Full Report

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. 

Billion-Dollar Bidding War Leads to Largest Shipping Deal of the Year So Far

Posted on by slightbourne@noblecapitalmarkets.com

In a transaction that could reshape the landscape of domestic energy transportation, private transportation titan Saltchuk Resources is acquiring publicly-traded Overseas Shipholding Group (OSG) for $950 million. The deal will see OSG, one of the leading providers of liquid bulk transportation services for crude oil and petroleum products in the U.S., become a subsidiary of the diversified Saltchuk group.

The acquisition crowns months of corporate maneuvering and deal-making. It began in late January when Saltchuk, already a significant OSG shareholder, made public its non-binding indication of interest to buy the shipowner outright at $6.25 per share. OSG’s board undertook a review of strategic alternatives, engaging with not just Saltchuk but other potential suitors.

That process culminated in Saltchuk’s winning bid of $8.50 per share – a hefty 61% premium to OSG’s price before word of Saltchuk’s initial approach leaked out. Unanimously approved by both companies’ boards, the cash tender offer values OSG’s equity at $653 million.

For Saltchuk, the deal represents a lucrative double down on the Jones Act shipping sector that ensures American crew, boats and resources are utilized for shipping between U.S. ports. OSG boasts a sizable fleet of U.S.-flagged vessels including shuttle tankers, ATBs, and Suezmax crude carriers serving energy industry customers.


“OSG, our nation’s leading domestic marine transporter of energy, has a strong cultural fit with Saltchuk and shares our commitment to operational safety, reliability, and environmental stewardship,” remarked Mark Tabbutt, Saltchuk’s Chairman.

Acquiring OSG significantly expands Saltchuk’s marine services footprint to complement its existing freight transportation and energy distribution operations under brands like TOTE Maritime, Foss Maritime, NorCal Van & Stor, and Hawaii Petroleum. With over $5 billion in consolidated annual revenues, the private Seattle-based holding company gains increased exposure to the lucrative end markets for moving and handling oil, gas and refined products.

From OSG’s perspective, the sale unlocks a premium acquisition price while providing long-term operational stability by tucking into Saltchuk’s family of companies. OSG President and CEO Sam Norton expressed enthusiasm about “soon joining the Saltchuk family of companies” and gaining access to its resources.

However, the deal must first clear customary closing conditions and regulatory approvals. The tender offer is expected to be completed within the next few months, after which any remaining shares will be acquired in a second-step merger. While the acquisition enjoys board support, OSG shareholders will ultimately determine whether to tender their stakes.

If successful, the combination of OSG’s expertise in Jones Act petroleum shipping with Saltchuk’s scale and diversification could create a new domestic energy shipping powerhouse. But questions remain whether the lofty valuation and integration will pay off for the private buyers in an industry facing headwinds from the transition to cleaner fuels. Regardless, this megadeal indicates the importance both parties place on securing reliable domestic shipping services to keep U.S. energy production on the move.

AI Supremacy: Nvidia Reigns as ChatGPT 4.0 Intensifies the Chip Wars

Posted on by slightbourne@noblecapitalmarkets.com

The release of ChatGPT 4.0 by Anthropic has sent shockwaves through the tech world, with the AI model boasting unprecedented “human-level performance” across professional exams like the bar exam, SAT reading, and SAT math tests. As generative AI pioneers like OpenAI double down, one company has emerged as the indispensable force – Nvidia.

Nvidia’s cutting-edge GPUs provided the colossal computing power to train ChatGPT 4.0, which OpenAI hails as a seminal leap showcasing “more reliable, creative” intelligence than prior versions. The startup, backed by billions from Microsoft, turned to Microsoft Azure’s Nvidia-accelerated infrastructure to create what it calls the “largest” language model yet.

This scaling up of ever-larger foundational models at staggering financial costs is widely seen as key to recent AI breakthroughs. And Nvidia has established itself as the premier supplier of the high-performance parallelized hardware and software stack underpinning this generative AI revolution.

Major tech titans like Google, Microsoft, Meta, and Amazon are all tapping Nvidia’s specialized AI acceleration capabilities. At Google’s latest conference, CEO Sundar Pichai highlighted their “longstanding Nvidia partnership”, with Google Cloud adopting Nvidia’s forthcoming Blackwell GPUs in 2025. Microsoft is expected to unveil Nvidia-powered AI advancements at its Build event this week.

The AI chip wars are white-hot as legacy CPU makers desperately try dislodging Nvidia’s pole position. However, the chipmaker’s first-mover innovations like its ubiquitous CUDA platform have cemented its technological lead. Nvidia’s co-founder and CEO Jensen Huang encapsulated this preeminence, proudly declaring Nvidia brought “the most advanced” chips for OpenAI’s milestone AI demo.

With the AI accelerator market projected to swell into the hundreds of billions, Nvidia is squarely at the center of an infrastructure arms race. Hyperscalers are spending billions building out global AI-optimized data centers, with Meta alone deploying 350,000 Nvidia GPUs. Each breakthrough like GPT-4.0’s human-level exam performance reinforces Nvidia’s mission-critical role.

For investors, Nvidia’s lofty valuation and triple-digit stock gains are underpinned by blistering financial performance riding the generative AI wave. With transformative, open-domain AI models like GPT-4.0 being commercialized, Nvidia’s high-margin GPU cycles will remain in insatiable demand at the vanguard of the AI big bang.

Competitive headwinds will persist, but Nvidia has executed flawlessly to become the catalyzing force powering the most remarkable AI achievements today. As GPT-4.0 showcases tantalizing human-level abilities, Nvidia’s unbridled prowess in the AI chip arena shows no signs of waning.

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This $1.2 Trillion Investment Is Transforming America (And Making Investors Rich)

Posted on by slightbourne@noblecapitalmarkets.com

They said it would never happen – that partisan gridlock would prevent any major infrastructure overhaul. But against all odds, the Infrastructure Investment and Jobs Act of 2021 was signed into law, unleashing a $1.2 trillion torrent of funding to rebuild America’s crumbling roads, bridges, and waterways. Now, savvy investors are pouring money into the companies at the forefront of this generational construction boom. Are you positioned to profit from this massive infrastructure revival?

The Infrastructure Investment and Jobs Act of 2021, signed into law by President Biden in November 2021, represents a major step forward in addressing the nation’s aging infrastructure. With a price tag of $1.2 trillion, the bipartisan legislation aims to rebuild and modernize America’s transportation systems, water infrastructure, broadband networks, and more.

One of the key beneficiaries of this historic investment is the construction industry, which is poised to receive a significant boost from the influx of funding for infrastructure projects. Companies like NV5 Global (NVEE), a provider of professional and technical engineering services, Sterling Infrastructure (STRL), a leading heavy civil construction firm, and Construction Partners Inc. (ROAD), a civil infrastructure company focused on road construction and repair, are well-positioned to capitalize on the opportunities presented by the Infrastructure Act.

Sterling Infrastructure specializes in the construction and reconstruction of transportation and water infrastructure systems, making it a prime candidate for many of the projects funded by the act. With a focus on the southern United States, the Rocky Mountain, and Mid-Atlantic regions, the company is likely to see an uptick in demand for its services as states and municipalities work to upgrade their roads, bridges, and water systems.

Another sector that stands to benefit significantly from the Infrastructure Act is the dredging industry. Great Lakes Dredge & Dock Corporation (GLDD), the largest provider of dredging services in the United States, is poised to benefit from the increased investment in coastal protection projects, port deepening, and land reclamation efforts.

Dredging plays a crucial role in maintaining and improving navigable waterways, ensuring the efficient movement of goods and supporting coastal communities. With the Infrastructure Act allocating funds for port infrastructure and coastal resilience initiatives, GLDD’s expertise in these areas will be in high demand.

The Infrastructure Act not only provides a financial boost to these industries but also represents a commitment to addressing long-standing infrastructure challenges. For decades, the United States has underinvested in its infrastructure, leading to a backlog of repair and maintenance needs. The act aims to tackle this issue head-on, with funding allocated for projects ranging from highway rehabilitation and bridge replacements to the modernization of public transit systems and the expansion of broadband access.

The impacts of the Infrastructure Act are expected to extend beyond the construction and dredging industries. The revitalization of the nation’s infrastructure is anticipated to create numerous job opportunities, stimulate economic growth, and enhance the overall competitiveness of American businesses. Furthermore, the act’s emphasis on sustainability and resilience aims to ensure that the infrastructure investments made today will withstand the challenges of tomorrow, including the effects of climate change and natural disasters.

As the implementation of the Infrastructure Act progresses, companies are well-positioned to play a pivotal role in shaping the future of America’s infrastructure landscape. Their expertise and capabilities will be instrumental in transforming the nation’s transportation networks, water systems, and coastal defenses, ensuring that they are modernized and resilient for generations to come.

The Infrastructure Investment and Jobs Act of 2021 represents a significant milestone in addressing the nation’s infrastructure needs. By providing substantial funding and a strategic framework, the act has the potential to catalyze economic growth, enhance public safety, and improve the overall quality of life for millions of Americans.


Continuing Impact and Investment Opportunities

Nearly two years since its passage, the Infrastructure Act continues to ripple through the markets and infrastructure sector. As funding is disbursed and projects progress, companies involved in construction, engineering, and related services are experiencing heightened demand and growth opportunities.

Beyond individual stocks, investors seeking exposure to the infrastructure boom may consider investing in sector-specific ETFs or mutual funds. These vehicles offer diversified exposure to a basket of companies poised to benefit from the Infrastructure Act’s initiatives.

However, it’s essential for investors to conduct thorough research and due diligence before making any investment decisions. While the Infrastructure Act presents significant opportunities, the success of individual companies and projects may vary, and unforeseen challenges or delays could impact their performance.

Additionally, as the implementation of the act progresses, new opportunities may arise for companies operating in adjacent sectors or providing specialized services. For instance, companies specializing in sustainable construction practices or cutting-edge technologies like smart infrastructure solutions could potentially benefit from the act’s emphasis on resilience and innovation.

As the nation embarks on this ambitious infrastructure overhaul, the investment landscape is likely to evolve, presenting both challenges and opportunities for savvy investors. Those who can identify and capitalize on the emerging trends and companies poised for growth may be well-positioned to benefit from the transformative impact of the Infrastructure Investment and Jobs Act of 2021.

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Release – V2X Sites Earn Top Honors by Defense Information Systems Agency

Posted on by dburczyk@noblecapitalmarkets.com

Research News and Market Data on VVX

MCLEAN, Va., May 20, 2024 /PRNewswire/ — V2X, Inc. (NYSE: VVX) is proud to announce that multiple sites under its operations within the Department of Defense Information Network have been named Facility of the Year by the Defense Information Systems Agency (DISA). These awards recognize exceptional performance across all aspects of the programs.

The DISA Defense Information Systems Network (DISN) Facility of the Year recognizes outstanding DISN facilities for exemplary accomplishments, performance, and contributions made to enhance the effectiveness in which the Department of Defense Information Network is operated, secured, and managed.

Three V2X locations emerged as winners with an additional four earning recognition as runners-up. The three V2X locations were chosen as winners support the Operations, Maintenance and Supply-Europe (OPMAS-E) program, the Enterprise Legacy Voice and Information System (ELVIS) program and the Operations, Maintenance and Defense of Army Communications (OMDAC) program.  

“We are deeply honored by the recognition of multiple V2X locations and remain committed to our ongoing commitment to provide enhanced reliability and protection of vital DoD networks across the globe,” said Ken Shreves, Senior Vice President of Global Mission Solutions and Chief Service Delivery and Growth Officer at V2X. “The contributions of OPMAS, OMDAC, and ELVIS to the DISA mission are paramount, and we take great pride in their steadfast dedication to delivering around the clock mission critical IT and communications support in over 10 countries.”  

The Facility of the Year winners include:

  • Europe Red Switch (ELVIS)
  • Europe Facility Control Office (OPMAS-E)
  • DISA CENT Large Transmission (OMDAC)

The Facility of Year Runners-Up are:

  • Europe Small Ankara (ELVIS)
  • Europe Medium Mildenhall (ELVIS)
  • Europe Large Landstuhl (OPMAS-E)
  • Europe Red Switch Patch Barracks (OPMAS-E)

DISA is a combat support agency of the Department of Defense (DoD) and provides, operates, and assures command and control and information-sharing capabilities and a globally accessible enterprise information infrastructure in direct support to joint warfighters, national level leaders, and other mission and coalition partners across the full spectrum of military operations.

About V2X

V2X builds smart solutions designed to integrate physical and digital infrastructure – by aligning people, actions, and outputs. Our lifecycle solutions improve security, streamline logistics, and enhance readiness. The Company delivers a comprehensive suite of integrated solutions across the operations and logistics, aerospace, training, and technology markets to national security, defense, civilian and international clients. Our global team of approximately 16,000 employees brings innovation to every point in the mission lifecycle, from preparation to operations, to sustainment, as it tackles the most complex challenges with agility, grit, and dedication.

Media Contact
Angelica Spanos Deoudes
Director, Corporate Communications
Angelica.Deoudes@goV2X.com
571-338-5195

Investor Contact
Mike Smith, CFA
Vice President, Treasury, Corporate Development and Investor Relations
IR@goV2X.com
719-637-5773

Cision View original content to download multimedia:https://www.prnewswire.com/news-releases/v2x-sites-earn-top-honors-by-defense-information-systems-agency-302149793.html

SOURCE V2X, Inc.

Release – The GEO Group Announces Funding Extension for Adelanto ICE Processing Center Contract

Posted on by dburczyk@noblecapitalmarkets.com

Research News and Market Data on GEO

BOCA RATON, Fla.–(BUSINESS WIRE)–May 20, 2024– The GEO Group (NYSE: GEO) (“GEO”) announced today that U.S. Immigration and Customs Enforcement (“ICE”) announced that it plans to issue a task order for the GEO-owned 1,940-bed Adelanto ICE Processing Center in California (the “Adelanto Center”), which provides for continued funding through September 30, 2024.

GEO previously filed motions, on January 4, 2024, with the U.S. District Court, Central District of California, in the case of Roman v. Wolf, to Intervene and to Vacate several injunction orders (collectively the “Orders”) including an intake prohibition order issued more than three years ago, limiting the use of the Adelanto Center based on then-prevailing COVID-19 conditions. GEO was joined in its filings by three unions (collectively the “Unions”) representing over 350 employees at the Adelanto Center. Subsequently, on April 22, 2024, GEO and the Unions filed a renewed motion with the U.S. Court of Appeals for the Ninth Circuit to intervene in the case of Roman v. Wolf, with a proposed motion to stay the Orders. GEO and the Unions will continue to pursue legal action to protect GEO’s and the Unions’ interests, which include the Adelanto Center contract’s annualized revenues and the potential loss of jobs by 350-plus employees.

ICE and GEO entered into a 15-year contract on December 19, 2019, for the provision of secure residential housing and care at the Adelanto Center, consisting of a 5-year base period, ending on December 19, 2024, followed by two 5-year option periods. The Adelanto Center contract generates approximately $85 million in annualized revenues for GEO.

About The GEO Group

The GEO Group, Inc. (NYSE: GEO) is a leading diversified government service provider, specializing in design, financing, development, and support services for secure facilities, processing centers, and community reentry centers in the United States, Australia, South Africa, and the United Kingdom. GEO’s diversified services include enhanced in-custody rehabilitation and post-release support through the award-winning GEO Continuum of Care®, secure transportation, electronic monitoring, community-based programs, and correctional health and mental health care. GEO’s worldwide operations include the ownership and/or delivery of support services for 100 facilities totaling approximately 81,000 beds, including idle facilities and projects under development, with a workforce of up to approximately 18,000 employees.

Use of forward-looking statements

This news release may contain “forward-looking statements” within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and the U.S. Private Securities Litigation Reform Act of 1995. Readers are cautioned not to place undue reliance on these forward-looking statements and any such forward-looking statements are qualified in their entirety by reference to the following cautionary statements. All forward-looking statements speak only as of the date of this news release and are based on current expectations and involve a number of assumptions, risks and uncertainties that could cause the actual results to differ materially from such forward-looking statements, including statements regarding GEO’s filings in the case of Roman v. Wolf,statements regarding the Orders, and statements regarding the Adelanto Center contract. Risks and uncertainties that could cause actual results to vary from current expectations and forward-looking statements contained in this press release include, but are not limited to, risk factors contained in GEO’s filings with the U.S. Securities and Exchange Commission, including its Form 10-K, 10-Q, and 8-K reports. GEO disclaims any obligation to update or revise any forward-looking statements.

Pablo E. Paez (866) 301 4436
Executive Vice President, Corporate Relations

Source: The GEO Group, Inc.

Snail (SNAL) – Patiently Waiting for the ARK

Posted on by cpereira@noblefcm.com


Monday, May 20, 2024

Snail is a leading, global independent developer and publisher of interactive digital entertainment for consumers around the world, with a premier portfolio of premium games designed for use on a variety of platforms, including consoles, PCs and mobile devices.

Michael Kupinski, Director of Research, Equity Research Analyst, Digital, Media & Technology , Noble Capital Markets, Inc.

Patrick McCann, CFA, Research Analyst, Noble Capital Markets, Inc.

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

Q1 results. The company reported Q1 revenue of $14.1 million, and adj. EBITDA loss of $1.9 million, both of which were lower than our estimates of $24.0 million and $2.8 million, respectively. Notably, the company deferred $5.5 million of revenue in the quarter, which contributed to the shortfall. We expect revenue deferrals and the technology gap to cause some noise in operating results during 2024.

Technology gap. Importantly, we believe there is a technology gap between ASA and some of the user base’s PC equipment, which dampened sales of the game. We believe the closing of the technology gap could also lead to a more steady sales profile of the game over a longer period of time as users upgrade their hardware and migrate to ASA.


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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. 

Alliance Resource Partners (ARLP) – An Interesting Turn of Events

Posted on by cpereira@noblefcm.com


Monday, May 20, 2024

ARLP is a diversified natural resource company that generates operating and royalty income from coal produced by its mining complexes and royalty income from mineral interests it owns in strategic oil & gas producing regions in the United States, primarily the Permian, Anadarko and Williston basins. ARLP currently produces coal from seven mining complexes its subsidiaries operate in Illinois, Indiana, Kentucky, Maryland and West Virginia. ARLP also operates a coal loading terminal on the Ohio River at Mount Vernon, Indiana. ARLP markets its coal production to major domestic and international utilities and industrial users and is currently the second largest coal producer in the eastern United States. In addition, ARLP is positioning itself as an energy provider for the future by leveraging its core technology and operating competencies to make strategic investments in the fast growing energy and infrastructure transition.

Mark Reichman, Managing Director, Equity Research Analyst, Natural Resources, Noble Capital Markets, Inc.

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

Location, location. Alliance is the largest coal producer in the eastern U.S. with operations in the Illinois Basin and Appalachia. The partnership produces a diverse range of thermal coals with high heat content and benefits from access to both domestic and export markets. With demand for electricity expected to grow, Alliance is well-positioned to increase its market share despite efforts to curb coal-fired generation and coal’s declining share of the electricity generation market. Closure dates for coal-fired power plants are being delayed due to growing energy demand and reliability concerns.

Trouble brewing in the Powder River Basin (PRB)? Last week the Bureau of Land Management (BLM) proposed ending federal coal leasing in the Powder River Basin. The PRB includes Wyoming and Montana and accounted for 44% of the coal produced in the United States in 2022. The Bureau expects coal production in Wyoming to continue through 2041 under existing leases. While we expect the ruling to be challenged, it underscores the uncertainty and challenges facing coal mining operations on federally leased lands. The BLM manages public land in the western United States. In our view, coal could turn into an increasingly scarce resource in the United States which could be supportive of pricing.


Get the Full Report

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. 

Dow Smashes Through 40,000 as Unstoppable Rally Reaches New Heights

Posted on by slightbourne@noblecapitalmarkets.com

In a feat cementing the relentless momentum of the historic bull market, the Dow Jones Industrial Average has obliterated the 40,000 milestone for the first time ever. The blue-chip index’s new record high represents the culmination of a stupendous 15-month surge, defying fears of an economic downturn while leaving skeptics grasping for explanations.

The Dow’s ascension through 40,000 highlights the astounding resilience fueling U.S. equities. Robust corporate profits, rapidly cooling inflation, and rising optimism over the Federal Reserve’s ability to orchestrate a “soft landing” have emboldened investors. Propelling the rally, expectations have solidified that the central bank is nearing the conclusion of its aggressive rate hiking campaign to subdue elevated prices.

Market pricing now reflects two quarter-point interest rate cuts likely by year-end, with overwhelming odds of the first reduction materializing as soon as September. The dovish pivot aligns with this week’s cooler-than-anticipated consumer price data, relieving pressure on the Fed to maintain its hawkish posture.

The Dow’s remarkable feat has been powered by heroic gains among its elite constituents throughout 2023. Semiconductor titan Nvidia has skyrocketed 94% higher amid the AI frenzy. Industrial titans like 3M, Salesforce, Boeing and Walgreens Boots Alliance have all tacked on over 20%. Even beleaguered First Republic Bank remains up 17% year-to-date despite its recent turmoil.

For investors, the Dow’s breach of 40,000 represents the proverbial pot of gold at the end of the rainbow. The milestone solidifies the “Goldilocks” scenario playing out of moderating inflation and resilient growth, providing a springboard for further gains as concerns over economic overheating fade. While risks remain of a potential inflationary resurgence, excessively tight labor conditions forcing more Fed hawkishness, or a hard landing, the prevailing mood is overwhelmingly bullish.

Stretched valuations, with the S&P 500 trading north of 20x forward earnings, represent a valid concern. But traders and Wall Street strategists remain steadfastly focused on embracing the upside, brushing aside such worries amid a torrent of positive price momentum and fundamentals. The Dow’s coronation at 40,000 is emblematic of this euphoric mindset.

For the record books, the Dow ultimately settled the session at 39,869.38, up over 19% year-to-date after reaching an intraday record of 40,038.87 before paring gains. While symbolic, the new milestone supremely underscores the dynamism and strength across Corporate America’s boardrooms and C-suites. With earnings continuing to impress amid the rate cutting pivot, many on Wall Street expect the stock market’s electrifying run to continue regaling investors.

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