Category:

Release – Schwazze Announces First Quarter Results

Posted on by Admin



Schwazze Announces First Quarter Results

Research, News, and Market Data on Schwazze

Conference
Call & Webcast Scheduled for Today – 4:30 pm EDT

DENVER, May 16, 2022 /CNW/ – Schwazze, (OTCQX: SHWZ) (NEO: SHWZ) (“Schwazze” or the “Company”), today announced financial results for the first quarter ended March 31, 2022 (“Q1 2022”).

Q1 2022 Financial Summary:

  • Revenues of $31.8 million grew 64% compared to $19.3 million in first quarter ended March 31, 2021 (Q1 2021)
  • Retail sales were $26.5 million up 124% when compared to Q1 2021
  • Gross Margin of $10.9 million was up 34.4% compared to $7.3 million in Q1 2021, both first quarters were affected by purchase accounting
  • Net Loss was ($26.8) million compared to a Net Loss of ($3.6) million for the same period last year
  • Adjusted EBITDA of $7.9 million was 25% of revenue, compared to $5.8 million for the same period last year
  • Colorado two year stacked IDs for Q1 2022 compared to Q1 2021 and 2020 for same store sales(1) were 22.7% and one year IDs(1) were (8.1%) comparing Q1 2022 to Q1 2021
    • Average basket size (1) for Q1 2022 was $59.21 down 1.7% compared to Q1 2021
    • Recorded customer visits (1) for Q1 2022 totaled 415,308 down 6.4%, compared to Q1 2021
  • New Mexico two year stacked IDs for Q1 2022 compared to Q1 2021 and Q1 2020 for same store sales(1) were 37.3% and one year IDs(1) were (1.9%) comparing Q1 2022 to Q1 2021
    • Average basket size (1) for Q1 2022 was $59.94 down 1.6% compared to Q1 2021
    • Recorded customer visits (1) for Q1 2022 totaled 122,913 down slightly at 0.3%, compared to Q1 2021

Accomplishments for Q1 2022
Since December 2021, Schwazze has closed acquisitions adding 14 cannabis dispensaries, 10 in New Mexico and four in Colorado as well as four cultivation facilities in New Mexico and one in Colorado and one manufacturing asset in New Mexico.

Q1 2022

  • Listed Common Stock on the NEO Exchange
  • Signed Definitive Agreement to Acquire Assets of Urban Health & Wellness
  • Closed Acquisition of Brow 2 LLC Assets
  • Closed Acquisition of Emerald Fields
  • Added President of New Mexico Division
  • Closed New Mexico Acquisition, Becoming a Regionally Focused MSO
  • Added to Key Senior Leadership Team
  • Closed Acquisition of Drift Assets

Justin Dye, Chairman and CEO of Schwazze stated
, “as we continued our successful transformation into a Regional
MSO in the first quarter of 2022, we met certain challenges, including the
comparison cycling of an inflated Q1 2021, which was aided by stimulus checks
and COVID lockdowns.  Colorado’s high COVID rates during Q1 2022 also
impacted sales and internal staff. The devastating Marshall Fires in and around
Boulder in January of this year, caused one store to temporarily close and the
store has been further impacted due to a displaced population in and around
Boulder County. Also, overall sales and a decrease in wholesale revenue was
largely impacted by wholesale distillate pricing pressure and over-supply in
the state of Colorado.”

Justin continued, “however, we
remain optimistic regarding our continued growth for the remainder of the year
as we believe that Colorado’s first quarter was impacted by macro events. 
We are starting to see more positive results entering the second quarter. We
are pleased to report that the sales trends in New Mexico, which recently
commenced selling recreational-use cannabis on April 1, have seen positive
results, and we remain confident in the future growth of this market.  Our
revenue continues to grow with a 64% increase overall when comparing Q1 2022 to
Q1 2021, with retail sales growing to $26.5 million for the quarter, a 124%
increase compared to Q1 2021. While basket sales and customer visits for both
Colorado and New Mexico were down quarter over-quarter, attributed to macro
events and previous stimulus spending, we once again outpaced the industry
performance in the state of Colorado for the quarter by 10.2%.  At this
time, we do not have a service that publishes comparable market stats in New
Mexico, therefore we will be working on how to compare our performance in the
near future.”

Q1 2022 Revenue
Revenues for Q1 2022, totaled $31.8 million including (i) retail sales of $26.5 million (ii) wholesale sales of $5.2 million and (iii) other operating revenues of $0.04 million, compared to revenues of $19.3 million including (i) retail sales of $11.8 million (ii) wholesale of $7.4 million, and (iii) other operating revenues of $0.08 million during Q1 2021 and represented an increase of $12.4 million or 64%. Increased sales are due in large part to additional dispensary sales.  In Q1 2022, we acquired fourteen new retail dispensaries. The decrease in wholesale revenue in 2022 was largely due to wholesale distillate pricing pressure and over-supply in the state of Colorado.

Cost of goods and services for Q1 2022, totaled $20.8 million compared to cost of goods and services of $12.1 million during Q1 2021, representing an increase of $8.7 million or 72%. This increase was due to increased sales and growth through acquisition. The cost of goods and services increased at a higher rate than revenue due to the impact of purchase accounting on retail acquisitions made in the each of the first quarters. Q1 2022 had $6.3 million in additional cost of goods and services due to purchase accounting while Q1 2021 had $2.2 million of additional cost of goods and services due to purchase accounting.

Gross profit increased to $10.9 million for Q 1 2022 compared to $7.3 million during the same period in 2021. Gross profit margin declined as a percentage of revenue from 37.5% to 34.4%, although net of purchase accounting, the gross margin increased from 48.7% to 54.1%.  This positive result, net of purchase accounting continues to reflect our consolidated purchasing approach, the implementation of our retail playbook, and vertical product sales in New Mexico.

Operating expenses for Q1 2022, totaled $15.7 million, compared to operating expenses of $8.7 million during Q1 2021, representing an increase of $7 million or 80%. This increase was due to increased selling, general and administrative expenses including acquisition costs, professional service fees related to acquisitions, salaries, benefits and related employment costs mostly related to the increased number of dispensaries.

Other expense, net for Q1 2022, totaled $20.7 million, compared to $1.7 million during Q1 2021. The increase in other expense, net was due to an increase in interest payments due to various loans and by the non-cash loss on derivative liability related to our 13% senior secured convertible notes due 2026.

As a result of the factors discussed above, a net loss was generated for the Q1 2022 of $26.8 million, compared to net loss of $3.6 million during Q1 2021.  This loss includes non-cash charges totaling $16.9 million; this includes derivative liability of $13.4 million, depreciation and amortization of $2.5 million and non-cash compensations of $1.0 million as well as acquisition and capital raise costs associated with the closing of recent acquisitions of $9.1 million, including $6.3 million of purchase accounting costs and $2.8 million of additional related costs.

Adjusted EBITDA for Q1 2022 was $7.9 million representing 25% of revenue, compared to $5.8 million for the same period last year. This is derived from Operating Income and adjusting one-time expenses, merger and acquisition and capital raising costs, non-cash related compensation costs, and depreciation and amortization. See the financial table for Adjusted EBITDA below adjustment for details. 

For Q1 2022, the Company generated net cash provided from operations of $5.8 million compared to $1.7 million for the same period in 2021.  The Company has cash and cash equivalents of $47.1 million at the end of Q1 2022. 

Nancy Huber, CFO for Schwazze commented, “Q1
2022 included four acquisitions in January and February expanding the company
in all areas.  We also found ourselves cycling large numbers from the
previous year and were impacted by COVID as many businesses in Colorado were
similarly affected in January. As we move forward in quarters not complicated
by acquisitions costs, we are targeting to have positive operating
income.  We remain focused on continuing to drive our operating playbook
through all our businesses and plan to outperform the market.  We
delivered positive operating cash flow despite a challenging quarter.  We
will continue to invest that cashflow in growth opportunities both organically
and through acquisitions.”

2022 Guidance
The Company’s guidance, issued for 2022 remains unchanged.  Guidance has been issued for a fourth-quarter 2022 (Q4 2022) annualized run rate, which excludes transactions that are announced but not closed.  Q4 2022 revenue annualized run rate is projected to be approximately $220 Million to $260 Million, and the projected Q4 2022 adjusted EBITDA annualized run rate is projected to be from $70 million to $82 million.  

NOTES:

(1)  Schwazze
did not own all the assets and entities in part of 2021, 2020 and 2019 and is
using unaudited numbers for this comparison.


Adjusted EBITDA represents income (loss) from operations, as reported, before
tax, adjusted to exclude non-recurring items, other non-cash items, including
stock-based compensation expense, depreciation, and amortization, and further
adjusted to remove acquisition and capital raise related costs, and other
one-time expenses, such as severance, retention, and employee relocation. The
Company uses adjusted EBITDA as it believes it better explains the results of
its core business. The Company has not reconciled guidance for adjusted EBITDA
to the corresponding GAAP financial measure because it cannot provide guidance
for the various reconciling items. The Company is unable to provide guidance
for these reconciling items because it cannot determine their probable
significance, as certain items are outside of its control and cannot be
reasonably predicted. Accordingly, a reconciliation to the corresponding GAAP
financial measure is not available without unreasonable effort.

Webcast – May 16, 2022 – 4:30 EDT
Investors and stakeholders may participate in the conference call by dialing 416-764-8650 or by dialing North American toll free 888-664-6383 or listen to the webcast from the Company’s website at https://ir.schwazze.com . The webcast will be available on the Company’s website and on replay until May 23, 2022, and may be accessed by dialing 888-390-0541 / 117902#.

Following their prepared remarks, Chief Executive Officer, Justin Dye and Chief Financial Officer, Nancy Huber will answer investor questions. Investors may submit questions in advance or during the conference call itself through the weblink: https://produceredition.webcasts.com/starthere.jsp?ei=1548621&tp_key=88d9ed2417  This weblink has been posted to the Company’s website and will be archived on the website. All Company SEC filings can also be accessed on the Company website at https://ir.schwazze.com/sec-filings  and on SEDAR at www.sedar.com  

About Schwazze
Schwazze (OTCQX: SHWZ) is building a premier vertically integrated regional cannabis company with assets in Colorado and New Mexico and will continue to take its operating system to other states where it can develop a differentiated regional leadership position. Schwazze is the parent company of a portfolio of leading cannabis businesses and brands spanning seed to sale. The Company is committed to unlocking the full potential of the cannabis plant to improve the human condition. Schwazze is anchored by a high- performance culture that combines customer-centric thinking and data science to test, measure, and drive decisions and outcomes. The Company’s leadership team has deep expertise in retailing, wholesaling, and building consumer brands at Fortune 500 companies as well as in the cannabis sector. Schwazze is passionate about making a difference in our communities, promoting diversity and inclusion, and doing our part to incorporate climate-conscious practices. Medicine Man Technologies, Inc. was Schwazze’s former operating trade name. The corporate entity continues to be named Medicine Man Technologies, Inc. Schwazze derives its name from the pruning technique of a cannabis plant to enhance plant structure and promote healthy growth.

Forward-Looking Statements
This press release contains “forward-looking statements.” Such statements may be preceded by the words “plan,” “will,” “may,” “continue,” “predicts,” “targeting” or similar words. Forward-looking statements include the guidance provided regarding the Company’s Q4 2022 performance and annual capital spending. Forward-looking statements are not guarantees of future events or performance, are based on certain assumptions, and are subject to various known and unknown risks and uncertainties, many of which are beyond the Company’s control and cannot be predicted or quantified. Consequently, actual events and results may differ materially from those expressed or implied by such forward-looking statements. Such risks and uncertainties include, without limitation, risks and uncertainties associated with (i) our inability to manufacture our products and product candidates on a commercial scale on our own or in collaboration with third parties; (ii) difficulties in obtaining financing on commercially reasonable terms; (iii) changes in the size and nature of our competition; (iv) loss of one or more key executives or scientists; (v) difficulties in securing regulatory approval to market our products and product candidates; (vi) our ability to successfully execute our growth strategy in Colorado and New Mexico and outside the states, (vii) our ability to identify and consummate future acquisitions that meet our criteria, (viii) our ability to successfully integrate acquired businesses and realize synergies therefrom, (ix) the ongoing COVID-19 pandemic, (x) the timing and extent of governmental stimulus programs, (xi) the uncertainty in the application of federal, state and local laws to our business, and any changes in such laws, and (xii) our ability to achieve the target metrics, including our annualized revenue and EBIDTA run rates set out in our Q4 2022 guidance. More detailed information about the Company and the risk factors that may affect the realization of forward-looking statements is set forth in the Company’s filings with the Securities and Exchange Commission (SEC), including the Company’s Annual Report on Form 10-K and its Quarterly Reports on Form 10-Q. Investors and security holders are urged to read these documents free of charge on the SEC’s website at http://www.sec.gov. The Company assumes no obligation to publicly update or revise its forward-looking statements as a result of new information, future events or otherwise except as required by law.

MEDICINE MAN
TECHNOLOGIES, INC.
CONSOLIDATED BALANCE SHEETS
For the Three Months
ended March 31, 2022 and 2021
Expressed in U.S. Dollars

March 31,

December 31,

2022

2021

ASSETS

(Unaudited)

(Audited)

Current assets

Cash and cash equivalents

$

47,688,094

$

106,400,216

Accounts receivable, net of allowance for doubtful accounts

4,196,533

3,866,828

Inventory

16,380,765

11,121,997

Note receivable – current, net

107,500

–

Prepaid expenses and other current assets

3,008,326

2,523,214

Total current assets

71,381,218

123,912,255

Non-current assets

Fixed assets, net accumulated depreciation of $2,390,922 and $1,988,973, respectively

16,601,696

10,253,226

Goodwill

118,698,717

43,316,267

Intangible assets, net of accumulated amortization of $9,791,597 and $7,652,750, respectively

95,443,483

97,582,330

Marketable securities, net of unrealized loss of $8,549 and gain of $216,771, respectively

485,004

493,553

Note receivable – noncurrent, net

–

143,333

Accounts receivable – litigation

290,648

303,086

Other noncurrent assets

1,384,863

514,962

Operating lease right of use assets

13,721,007

8,511,780

Total non-current assets

246,625,418

161,118,537

Total assets

$

318,006,636

$

285,030,792

LIABILITIES AND
STOCKHOLDERS’ DEFICIT

Current liabilities

Accounts payable

$

3,106,503

$

2,548,885

Accounts payable – related party

100,128

36,820

Accrued expenses

15,308,676

5,592,222

Derivative liabilities

48,340,485

34,923,013

Notes payable – related party

134,498

134,498

Income taxes payable

3,287,635

2,027,741

Total current liabilities

70,277,925

45,263,179

Long term debt

117,863,486

97,482,468

Lease liabilities

14,082,673

8,715,480

Total long-term liabilities

131,946,159

106,197,948

Total liabilities

202,224,084

151,461,127

Stockholders’ equity

Common stock, $0.001 par value. 250,000,000 shares authorized; 53,484,820 shares issued and 52,746,376 shares outstanding at March 31, 2022 and 45,455,490 shares issued and 44,717,046 shares outstanding as of December 31, 2021.

53,486

45,485

Preferred stock, $0.001 par value. 10,000,000 shares authorized; 86,994 shares issued and 82,594 outstanding at March 31, 2022 and December 31, 2021 and 10,000,000 shares authorized.

87

87

Additional paid-in capital

171,798,685

162,815,097

Accumulated deficit

(54,552,670)

(27,773,968)

Common stock held in treasury, at cost, 517,044 shares held as of March 31, 2022 and December 31, 2021.

(1,517,036)

(1,517,036)

Total stockholders’ equity

115,782,552

133,569,665

Total liabilities and stockholders’ equity

$

318,006,636

$

285,030,792

 

See accompanying notes to the financial statements

 

MEDICINE MAN
TECHNOLOGIES, INC.
CONSOLDIATED STATEMENT OF OPERATIONS AND COMPREHENSIVE LOSS (UNAUDITED)
For the Three Months
ended March 31, 2022 and 2021
Expressed in U.S. Dollars

For the Three Months
Ended

March 31,

2022

2021

(Unaudited)

(Unaudited)

Operating revenues

Retail

$

26,525,716

$

11,816,200

Wholesale

5,207,388

7,446,265

Other

44,450

77,650

Total revenue

31,777,554

19,340,115

Cost of goods and services

Cost of goods and services

20,840,051

12,087,111

Total cost of goods and services

20,840,051

12,087,111

Gross profit

10,937,503

7,253,004

Operating expenses

Selling, general and administrative expenses

6,855,711

3,189,638

Professional services

2,584,472

2,195,108

Salaries

5,296,777

1,869,358

Stock based compensation

991,083

1,483,806

Total operating expenses

15,728,043

8,737,910

Loss from operations

(4,790,540)

(1,484,906)

Other income (expense)

Interest expense, net

(7,302,254)

(961,282)

Unrealized loss on derivative liabilities

(13,417,472)

(1,253,814)

Other expense

7

–

Gain (loss) on sale of assets

–

292,479

Unrealized gain on investments

(8,549)

214,630

Total other expense

(20,728,268)

(1,707,987)

Provision for income taxes

1,259,894

456,614

Net loss

$

(26,778,702)

$

(3,649,507)

Less: Accumulated preferred stock dividends for the period

(1,743,444)

–

Net loss attributable to common stockholders

$

(28,522,146)

$

(3,649,507)

Earnings (loss) per share attributable to common stockholders

Basic earnings (loss) per share

$

(0.61)

$

(0.09)

Weighted average number of shares outstanding – basic

46,841,971

42,616,309

Comprehensive loss

$

(26,778,702)

$

(3,649,507)

 

See accompanying notes to the financial statements

 

MEDICINE MAN
TECHNOLOGIES, INC.
STATEMENT OF CASH FLOWS (UNAUDITED)
For the Three Months
ended March 31, 2022, and 2021
Expressed in U.S. Dollars

For the Three Months Ended

March 31,

2022

2021

Cash flows from operating activities

Net income (loss) for the period

(26,778,702)

(3,649,507)

Adjustments to reconcile net income to cash used in operating activities

Depreciation and amortization

2,540,796

1,790,568

Loss on change in derivative liabilities

13,417,472

1,253,814

(Gain) loss on investment, net

8,549

(214,630)

Stock based compensation

991,083

1,483,806

Changes in operating assets and liabilities (net of acquired amounts):

Accounts receivable

(120,388)

(1,014,189)

Inventory

6,628,634

225,878

Prepaid expenses and other current assets

104,888

(12,816)

Other assets

(867,401)

(371,831)

Operating leases right of use assets and liabilities

157,966

33,334

Accounts payable and other liabilities

8,488,283

2,224,092

Deferred revenue

–

(50,000)

Income taxes payable

1,259,894

–

Net cash provided by operating activities

5,831,074

1,698,519

Cash flows from investing activities:

Cash consideration for acquisition of business

(90,317,153)

(65,109,039)

Purchase of fixed assets

(2,607,567)

(633,114)

Issuance of notes receivable

–

141,680

Net cash used in investing activities

(92,924,719)

(65,600,473)

Cash flows from financing activities:

Proceeds from issuance of debt

18,203,332

39,748,852

Debt issuance and discount costs

2,177,685

599,389

Repayment of notes payable

–

(5,000,000)

Proceeds from issuance of common stock, net of issuance costs

8,000,506

50,282,798

Net cash provided by financing activities

28,381,522

85,631,039

Net (decrease) increase in cash and cash equivalents

(58,712,122)

21,729,085

Cash and cash equivalents at beginning of period

106,400,216

1,231,235

Cash and cash
equivalents at end of period

$

47,688,094

$

22,960,320

Supplemental disclosure of cash flow information:

Cash paid for interest

$

4,722,639

$

897,247

Issuance of stock as payment for acquisitions

8,000,506

20,239,980

 

See accompanying notes to the financial statements

 

MEDICINE MAN
TECHNOLOGIES, INC.
Adjusted EBITDA Reconciliation
Non-GAAP measurement
(UNAUDITED)

Three Months Ended

March 31,

2022

2021

Net income (loss)

$ (26,778,702)

$   (3,649,507)

Interest (income) expense, net

7,302,254

961,282

Provision for income taxes (benefit)

1,259,894

456,614

Other (income) expense

13,426,014

746,705

Depreciation and amortization

2,540,796

1,790,568

Earnings before
interest, taxes, depreciation and

amortization (EBITDA)
(non-GAAP measure)

$   (2,249,744)

$       
305,662

Non-Cash Stock Compensation

991,083

1,483,806

Deal Related Expenses

2,256,934

745,944

Capital Raise Related Expenses

564,320

951,119

Inventory Adjustment to fair market value for purchase accounting

6,260,434

2,164,686

Severance

4,565

16,266

Retention Program Expenses

–

29,688

Employee Relocation Expenses

18,778

20,000

Other non-recurring items

17,911

127,167

Adjusted EBITDA (non-GAAP measure)

$     7,864,281

$     5,844,338

7,864,281

5,844,338

–

–

Revenue

31,777,554

19,340,115

   
 aEBITDA Percent

24.7%

30.2%

 

Cision View original content to download multimedia:https://www.prnewswire.com/news-releases/schwazze-announces-first-quarter-results-301548165.html

SOURCE Schwazze

Released May 16, 2022

Avivagen Inc. (VIVXF) – The China Road Is Now Open

Posted on by Admin

Friday, May 13, 2022

Avivagen Inc. (VIVXF)
The China Road Is Now Open

Avivagen is a life sciences corporation focused on developing and commercializing products for livestock, companion animal and human applications that, by safely supporting immune function, promote general health and performance. It is a public corporation traded on the TSX Venture Exchange under the symbol VIV and is headquartered in Ottawa, Canada, based in partnership facilities of the National Research Council of Canada. For more information, visit www.avivagen.com. The contents of the website are expressly not incorporated by reference in this press release.

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

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

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

China Approval. Avivagen’s oxidized carotenoid-based feed additive, OxC-beta, has received approval for use in China. This is a significant accomplishment for Avivagen and should have a positive impact on operating results going forward. China marks the second key market, along with Vietnam, in which OxC-beta has received approval this year. With China and Vietnam approvals and the land-mark eight-year deal with AB Vista for exclusive distribution of OxC-beta for use with poultry, swine, ruminants (dairy and beef), and aquaculture in the U.S., Brazil, and Thailand, we believe Avivagen is on the cusp of significant revenue growth.

Number 1. China is the world’s largest feed market. According to Alltech Agri-Food Outlook, the country will produce over 261 million metric tons of feed in 2022. In addition, the country also experienced the largest increase in feed production by tonnage during 2021, as the country’s feed industry continues to consolidate and modernize. China has been a leader in efforts to reduce antibiotic use with livestock nationwide, in an effort to reduce antimicrobial-resistance in the region, which plays directly into OxC-beta’s strengths….

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. 

Harte Hanks (HHS) – A Great Start To The Year

Posted on by Admin

Friday, May 13, 2022

Harte Hanks (HHS)
A Great Start To The Year

Harte Hanks (NASDAQ: HHS) is a leading global customer experience company whose mission is to partner with clients to provide them with CX strategy, data-driven analytics and actionable insights combined with seamless program execution to better understand, attract, and engage their customers. Using its unparalleled resources and award-winning talent in the areas of Customer Care, Fulfillment and Logistics, and Marketing Services, Harte Hanks has a proven track record of driving results for some of the world’s premier brands including Bank of America, GlaxoSmithKline, Unilever, Pfizer, HBOMax, Volvo, Ford, FedEx, Midea, Sony, and IBM among others. Headquartered in Chelmsford, Massachusetts , Harte Hanks has over 2,500 employees in offices across the Americas, Europe and Asia Pacific .

Michael Kupinski, Director of Research, Noble Capital Markets, Inc.

Patrick McCann, Research Associate, Noble Capital Markets, Inc.

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

Q1 beats expectations. The company reported Q1 revenue of $49.1 million, a 12.1% increase over the prior year quarter and a solid 7.1% above our estimate of $45.8 million. Adj. EBITDA of $4.8 million, which increased 114% above the prior year quarter, beat our estimate of $2.3 million by 108%.

Fulfillment & Logistics booming. A key driver of the company’s strong quarter was its Fulfillment & Logistics Services segment, which increased revenue 28.4%, a sequential improvement from Q4 at 24.5%. Fulfillment & Logistics will likely be a key revenue driver for the company in 2022, in addition to improving revenue trends in its Marketing Services segment.

…

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. 

Sierra Metals (SMTS) – On the Road to Recovery

Posted on by Admin

Friday, May 13, 2022

Sierra Metals (SMTS)
On the Road to Recovery

Sierra Metals Inc. is a diversified Canadian mining company with Green Metal exposure including increasing copper production and base metal production with precious metals byproduct credits, focused on the production and development of its Yauricocha Mine in Peru, and Bolivar and Cusi Mines in Mexico. The Company is focused on increasing production volume and growing mineral resources. Sierra Metals has recently had several new key discoveries and still has many more exciting brownfield exploration opportunities at all three Mines in Peru and Mexico that are within close proximity to the existing mines. Additionally, the Company also has large land packages at all three mines with several prospective regional targets providing longer-term exploration upside and mineral resource growth potential.

Mark Reichman, Senior Research Analyst, Natural Resources, Noble Capital Markets, Inc.

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

First quarter earnings exceed expectations. Sierra Metals reported first quarter adjusted net income of $5.9 million, or $0.04 per share, compared with $4.7 million, or $0.03 per share, during the prior year period and our estimate of $5.5 million, or $0.03 per share. Adjusted EBITDA amounted to $16.0 million compared to $27.9 million during the prior year period. The company appears well on its way toward achieving its 2022 production guidance in the range of 79.5 million to 89.7 million pounds of copper equivalent.

Updating estimates. We have increased our 2022 EPS and EBITDA estimates to $0.23 and $101.9 from $0.21 and $100.8 million, respectively. We expect steady growth in EBITDA throughout the year as Bolivar ramps up production and the company makes up for lost first quarter production at Yauricocha during the remainder of the year. While Yauricocha and Bolivar cash and all in sustaining costs per copper equivalent pound remained elevated during the first quarter, management expects achieve its 2022 cost guidance based on higher levels of production during the balance of the year….

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. 

Kelly Services (KELYA) – A Productive Start to the Year

Posted on by Admin

Friday, May 13, 2022

Kelly Services (KELYA)
A Productive Start to the Year

Kelly (Nasdaq: KELYA, KELYB) connects talented people to companies in need of their skills in areas including Science, Engineering, Education, Office, Contact Center, Light Industrial, and more. We’re always thinking about what’s next in the evolving world of work, and we help people ditch the script on old ways of thinking and embrace the value of all workstyles in the workplace. We directly employ nearly 350,000 people around the world and connect thousands more with work through our global network of talent suppliers and partners in our outsourcing and consulting practice. Revenue in 2021 was $4.9 billion. Visit kellyservices.com and let us help with what’s next for you.

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

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

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

1Q22. Revenue of $1.296 billion was up 7.5% year-over-year (9% in constant currency). Consensus was $1.26 billion and we were also at $1.26 billion. Kelly reported operating earnings of $23.4 million, compared to $10.6 million a year ago. We were at $11.0 million. GAAP loss per share was $1.23 compared to GAAP net income of $0.64/sh. Adjusted EPS for the first quarter was $0.46 versus $0.12 last year. We had projected adjusted EPS of $0.23.

GP Rate Continues to Improve. Management has done a masterful job of increasing gross profit rate over the years, even in the face of the recent economic hardships, including COVID. GP rate for the quarter was 19.9%, up 220 basis points y-o-y. The improvement has come from a combination of steps to improve organic GP and the addition of higher margin specialty business through recent acquisitions. We believe GP rate can continue to increase….

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. 

Lineage Cell Therapeutics (LCTX) – 1Q22 Reported With Clinical Program Review

Posted on by Admin

Friday, May 13, 2022

Lineage Cell Therapeutics (LCTX)
1Q22 Reported With Clinical Program Review

Lineage Cell Therapeutics is a clinical-stage biotechnology company developing novel cell therapies for unmet medical needs. Lineage’s programs are based on its robust proprietary cell-based therapy platform and associated in-house development and manufacturing capabilities. With this platform Lineage develops and manufactures specialized, terminally differentiated human cells from its pluripotent and progenitor cell starting materials. These differentiated cells are developed to either replace or support cells that are dysfunctional or absent due to degenerative disease or traumatic injury or administered as a means of helping the body mount an effective immune response to cancer. Lineage’s clinical programs are in markets with billion dollar opportunities and include five allogeneic (“off-the-shelf”) product candidates: (i) OpRegen, a retinal pigment epithelial cell therapy in Phase 1/2a development for the treatment of geographic atrophy secondary to age-related macular degeneration; (ii) OPC1, an oligodendrocyte progenitor cell therapy in Phase 1/2a development for the treatment of acute spinal cord injuries; (iii) VAC2, a dendritic cell therapy produced from Lineage’s VAC technology platform for immuno-oncology and infectious disease, currently in Phase 1 clinical development for the treatment of non-small cell lung cancer (iv) ANP1, an auditory neuronal progenitor cell therapy for the potential treatment of auditory neuropathy, and (v) PNC1, a photoreceptor neural cell therapy for the treatment of vision loss due to photoreceptor dysfunction or damage. For more information, please visit www.lineagecell.com or follow the company on Twitter @LineageCell.

Robert LeBoyer, Vice President, Research Analyst, Life Sciences , Noble Capital Markets, Inc.

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

Lineage Reported 1Q22.  Lineage Cell Therapies reported a loss of $7.1 million or $(0.04) per share.  Revenues included recognition of a portion of the payment from the Roche/Genentech collaboration, with revenue to be recognized each quarter as obligations under the agreement are completed. Total Operating Expenses included a $3.5 million accrual for a legal settlement.  Cash at the end of the quarter was $78.1 million.

Payment Under The OpRegen Collaboration Will Be Amortized Over The Course Of The Agreement.  In December 2021, Lineage made a collaborative agreement with Roche/Genentech for development and commercialization of OpRegen, its RPE cell transplant for age-related macular degeneration (dry AMD).  Lineage received $50 million in signing fees in January, with a portion going to its early collaborators and licensors.  Lineage will be recognizing the fee as revenue as its obligations under the agreement are met.  We expect uneven, milestone-driven recognition over the next several quarters….

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. 

Release – Endeavour Silver Announces 2022 Annual General Meeting Voting Results

Posted on by Admin



Endeavour Silver Announces 2022 Annual General Meeting Voting Results

Research, News, and Market Data on Endeavour Silver

VANCOUVER, British Columbia, May 13, 2022 (GLOBE NEWSWIRE)
— Endeavour Silver Corp. (“Endeavour” or the “Company”) (NYSE: EXK; TSX: EDR) is pleased to announce that at the Company’s 2022 Annual General Meeting (“AGM”) held on May 12, 2022 in Vancouver, shareholders voted in favour of all items of business. A total of 74,416,771 votes were cast or represented by proxy at the AGM, representing 43.57% of the outstanding common shares as of the record date. The following is a tabulation of the votes submitted by proxy:

DIRECTORS

NUMBER OF SHARES

PERCENTAGE OF VOTES
CAST

FOR

WITHHELD/
ABSTAIN

FOR

WITHHELD

Margaret M. Beck

44,199,571

1,947,032

95.78%

4.22%

Ricardo M. Campoy

44,287,849

1,858,754

95.97%

4.03%

Bradford J. Cooke

42,952,074

3,194,529

93.08%

6.92%

Daniel Dickson

45,220,569

926,034

97.99%

2.01%

Amy Jacobsen

45,163,634

982,969

97.87%

2.13%

Rex J. McLennan

42,409,137

3,737,465

91.90%

8.10%

Kenneth Pickering

44,867,006

1,279,596

97.23%

2.77%

Mario D. Szotlender

44,085,535

2,061,067

95.53%

4.47%

All director nominees were re-elected.

On a vote by show of hands, shareholders voted in favour of re-appointing KPMG LLP as auditor of the Company and authorized the Board to fix the auditor’s remuneration for the ensuing year.

About Endeavour Silver – Endeavour Silver Corp. is a mid-tier precious metals mining company that operates two high-grade underground silver-gold mines in Mexico. Endeavour is currently advancing the Terronera mine project towards a development decision, pending financing and final permits and exploring its portfolio of exploration and development projects in Mexico, Chile and the United States to facilitate its goal to become a premier senior silver producer.  Our philosophy of corporate social integrity creates value for all stakeholders.

SOURCE Endeavour Silver Corp.

Contact Information
Trish Moran
Interim Head of Investor Relations
Tel: (416) 564-4290
Email: pmoran@edrsilver.com
Website: www.edrsilver.com


Release – QuoteMedia Announces 18% Revenue Growth for Q1 2022

Posted on by Admin



QuoteMedia Announces 18% Revenue Growth for Q1 2022

Research, News, and Market Data on QuoteMedia

PHOENIX, May 13, 2022 (GLOBE NEWSWIRE) — QuoteMedia, Inc. (OTCQB: QMCI), a leading provider of market data and financial applications, announced financial results for the quarter ended March 31, 2022.

QuoteMedia provides banks, brokerage firms, private equity firms, financial planners and sophisticated investors with a more economical, higher quality alternative source of stock market data and related research information. We compete with several larger legacy organizations and a modest community of other smaller companies. QuoteMedia provides comprehensive market data services, including streaming data feeds, on-demand request-based data (XML/JSON), web content solutions (financial content for website integration) and applications such as Quotestream Professional desktop and mobile.

Highlights for Q1 2022 include the following:

  • Quarterly revenue increased to $4,263,796 in Q1 2022 from $3,606,218 in 2021, an increase of $657,578 (18%).
  • Quarter over quarter revenue increased 9% when comparing Q1 2022 to Q4 2021.
  • Net income for Q1 2022 was $204,666 compared to $23,087 in Q1 2021, an improvement in profitability of $181,579.
  • Adjusted EBITDA for Q1 2022 was $680,424 compared to $243,913 in Q1 2021, an improvement of $436,511.

“2021 was a great year for QuoteMedia, and the momentum has carried over into 2022,” said Robert J. Thompson, Chairman of the Board. “We continued to increase our market share, developed important relationships with clients and partners, created new innovative product and service offerings, and we are continuing to explore other opportunities to grow the company. Consistent with our previous forecasts, we experienced very strong revenue growth during the quarter, and we fully expect to maintain this trajectory throughout the remainder of the year and beyond. Based on clients already under contract, or in final stages of negotiations, we anticipate particularly strong revenue growth in the second half of this year, and we remain on track to achieve full year revenue growth of 20% or higher.”

QuoteMedia will host a conference call Friday, May 13, 2022 at 2:00 PM Eastern Time to discuss the Q1 2022 financial results and provide a business update.

Conference Call Details:

Date: May 13, 2022

Time: 2:00 PM Eastern

Dial-in number: 866-342-8591

Conference ID: QUOTEMEDIA

An audio rebroadcast of the call will be available later at: www.quotemedia.com

About QuoteMedia

QuoteMedia is a leading software developer and cloud-based syndicator of financial market information and streaming financial data solutions to media, corporations, online brokerages, and financial services companies. The Company licenses interactive stock research tools such as streaming real-time quotes, market research, news, charting, option chains, filings, corporate financials, insider reports, market indices, portfolio management systems, and data feeds. QuoteMedia provides industry leading market data solutions and financial services for companies such as the Nasdaq Stock Exchange, TMX Group (TSX Stock Exchange), Canadian Securities Exchange (CSE), London Stock Exchange Group, FIS, U.S. Bank, Broadridge Financial Systems, JPMorgan Chase, CI Financial, Canaccord Genuity Corp., Hilltop Securities, HD Vest, Stockhouse, Zacks Investment Research, General Electric, Boeing, Bombardier, Telus International, Business Wire, PR Newswire, FolioFN, Regal Securities, ChoiceTrade, Cetera Financial Group, Dynamic Trend, Inc., Qtrade Financial, CNW Group, IA Private Wealth, Ally Invest, Inc., Suncor, Virtual Brokers, Leede Jones Gable, Firstrade Securities, Charles Schwab, First Financial, Cirano, Equisolve, Stock-Trak, Mergent, Cision, Day Trade Dash, LLC and others. Quotestream®, QModTM and Quotestream ConnectTM are trademarks of QuoteMedia. For more information, please visit 
www.quotemedia.com .

Statements about QuoteMedia’s future expectations, including future revenue, earnings, and transactions, as well as all other statements in this press release other than historical facts are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. QuoteMedia intends that such forward-looking statements be subject to the safe harbors created thereby. These statements involve risks and uncertainties that are identified from time to time in the Company’s SEC reports and filings and are subject to change at any time. QuoteMedia’s actual results and other corporate developments could differ materially from that which has been anticipated in such statements.

Below are the specific forward-looking statements included in this press release:

  • Consistent with our previous forecasts, we experienced very strong revenue growth during the quarter, and we fully expect to maintain this trajectory throughout the remainder of the year and beyond. Based on clients already under contract, or in final stages of negotiations, we anticipate particularly strong revenue growth in the 2nd half of this year, and we remain on track to achieve full year revenue growth of 20% or higher.

QuoteMedia Investor
Relations
Brendan Hopkins
Email: 
investors@quotemedia.com
Call: (407) 645-5295

Note 1 on Non-GAAP
Financial Measures

We believe that Adjusted EBITDA, as a non-GAAP pro forma financial measure, provides meaningful information to investors in terms of enhancing their understanding of our operating performance and results, as it allows investors to more easily compare our financial performance on a consistent basis compared to the prior year periods. This non-GAAP financial measure also corresponds with the way we expect investment analysts to evaluate and compare our results. Any non-GAAP pro forma financial measures should be considered only as supplements to, and not as substitutes for or in isolation from, or superior to, our other measures of financial information prepared in accordance with GAAP, such as net income attributable to QuoteMedia, Inc.

We define and calculate Adjusted EBITDA as net income attributable to QuoteMedia, Inc., plus: 1) depreciation and amortization, 2) stock compensation expense, 3) interest expense, 4) foreign exchange loss (or minus a foreign exchange gain), and 5) income tax expense. We disclose Adjusted EBITDA because we believe it is a useful metric by which to compare the performance of our business from period to period. We understand that measures similar to Adjusted EBITDA are broadly used by analysts, rating agencies, investors and financial institutions in assessing our performance. Accordingly, we believe that the presentation of Adjusted EBITDA provides useful information to investors. The table below provides a reconciliation of Adjusted EBITDA to net income attributable to QuoteMedia, Inc., the most directly comparable GAAP financial measure.

Quotemedia, Inc. Adjusted EBITDA Reconciliation to Net Income

2022

2021

Net income

$

204,666

$

23,087

Depreciation and amortization

487,095

347,788

Stock-based compensation

4,239

6,939

Interest expense

1,224

1,008

Foreign exchange gain

(17,590)

(2,448)

Income tax expense

790

796

PPP loan forgiveness

–

(133,257)

Adjusted EBITDA

$

680,424

$

243,913

 


Release – Garibaldi’s Casper Vein Returns 30 G/T Gold Along Strike To The SE

Posted on by Admin



Casper Vein Returns 30 g/t Gold Along Strike To The South-East

Research, News, and Market Data on Garibaldi Resources

Vancouver, British
Columbia, May 13, 2022 – Garibaldi Resources (TSXV: GGI) (the “Company” or “Garibaldi”) is pleased to announce results from early-stage exploratory drill holes testing multiple mineralized veins and volcanic rock units at the Casper Quartz Gold Vein System (see news release October 31, 2021). Drilling at Casper, 20km north of E&L in the Eskay Camp of Northwestern British Columbia, was completed in late 2021.

  • Five diamond drill holes followed-up the first four holes into the Casper Discovery reported on Feb. 12 2021. Eight of the nine holes have intersected significant gold mineralization, with increasing gold grades towards the southeast.
  • Drill core samples from silicified volcanic rocks containing quartz-carbonate-sulfide veins at a depth of 129.5 m returned 10.15 g/t gold over 4.5 m (CAS-21-05: 129.5-134m), including 29.94 g/t gold over 1.5 m (CAS-21-05: 129.5-131m). This intercept may be continuous with the 4-meter-thick mineralized silicified unit containing visible gold intercepted in 2020, located approximately 65 m to the northwest (see news dated Feb. 12, 2021). This hole validates the exploration concept that gold mineralization is associated with a broad silicified volcanic unit rather than discrete local veins, expanding the potential for a much larger gold-bearing mineral system.
  • Elevated gold abundances along a 260m strike length are confirmed by drilling, and the system remains open with increasing potential to the southeast. Previously reported surface trenching has also exposed the Casper vein for over 120m strike length, and select rock samples exceeding 1.0 g/t Au occur at surface for over 330m, within a 500 m wide zone of anomalous gold concentrations in soil.
  • Fine grained visible gold has been intercepted in both 2021 and 2022 drilling as well as 2022 trenching. Multiple grab samples with visible gold trenched in 2020 from the east side of the main Casper vein returned 249.0, 92.3, 75.3 and 58.4 g/t gold (see news dated Sept. 22, 2020)

Exploration at Casper has identified a continuous zone of gold-rich quartz vein mineralization in association with soil geochemical gold anomalies and extensive rock-chip gold anomalies both along strike and across strike indicating potential for multiple sub-parallel veins of mineralization. The development of silicified country rocks with elevated gold content, and the complex structural relationships evident from the LiDAR data highlight the potential that the results sit on the edge of a much larger gold-bearing mineral system where altered country rocks and quartz veins with elevated gold are controlled by NW-SE and N-S lineaments corresponding to a shear zone. An exciting opportunity exists to expand the footprint of the mineral zone and identify structurally-controlled blow-outs with economically interesting grade and thickness of gold-silver mineralization.

Jeremy Hanson, Garibaldi VP-Exploration, stated: “We are very encouraged by the second round of drilling results at Casper. We are still in the very early stages of this project, but we have confirmed that gold is present in both veins and the silicified host rocks. This verifies that the Casper system could be another gold rich system in the Eskay Camp.”

Steve Regoci, Garibaldi CEO stated “The Casper discovery continues to bolster our impressive Eskay area precious metal prospects. It is the first gold system discovered amongst our numerous gold showings which will be the focus of a separate exploration initiative along with Palm Springs during 2022.

The high-grade Ni-Cu-PGE E&L system at Nickel Mountain is the primary focus along with numerous base metal targets identified from the results of the property wide ZTEM geophysical survey. These new base and precious metal targets will provide additional opportunities for significant discoveries in the Golden Triangle.”

Drill Hole Results Table – CAS-21-05 to CAS-20-09

Drill Hole Coordinates Table

Hole

Easting*

Northing*

Elevation
(MASL)

Azimuth (°)

Dip (°)

Length (m)

CAS-21-05

397432

6284599

432

068

-55

248

CAS-21-06

397380

6284653

426

000

-55

210

CAS-21-07

397382

6284652

426

044

-55

180

CAS-21-08

397303

6284690

431

024

-50

262

CAS-21-09

397301

6284690

432

000

-50

253

* UTM Zone 9N WGS 84

Figure 1 – Drill hole traces from 2021-2022 along showing extent of gold mineralization in core and at surface. Drilling has confirmed gold mineralization is present along strike for over 220m, remains open and increases in grade to the southeast. Which is concurrent with exposed surface mineralization before system extends under cover.

Casper Drilling Plan & Sections Maps

See www.garibaldiresources.com for the latest Casper maps & sections outlining mineralized veins and volcanics units.

Quality Assurance/Quality Control (QA/QC)

Garibaldi Resources has applied a rigorous quality assurance/quality control program at the Casper Project using best industry practice. All core was logged by a geoscientist and selected intervals were sampled. NQ drill core was sawn in half and each sample half was placed in a marked sample bag with a corresponding sample tag then sealed. The remaining half core is retained in core boxes that are stored at a secure facility in Smithers, British Columbia. Chain of custody of samples was recorded and maintained for all samples from the drill to the laboratory. All sample batches included 5% QA/QC samples consisting of certified blanks, standards and field duplicates. Multiple certified assay laboratory standards and one blank standard were used in the process. Samples were prepared by crushing the entire sample to 75% passing 2mm, riffle splitting 250g and pulverizing the split to better than 85% passing 105 microns. Gold was analyzed using a 50-gram fire assay and ICP-AES, or metallic screen for coarse gold. Samples with coarse visible gold are subject to the nugget effect, may be difficult to reproduce or duplicate and may not be indicative of the overall mineralization of the vein. Samples with visible gold were analyzed using the Metallic Screen method where a minimum 500 gram sample is crushed and separated into two batches. A Minus batch with particles less than 106 microns, and a Plus batch with particles greater than 106 microns. Both batches of the sample are analyzed with a fire assay and finished with AAS, ICP-OES or gravimetric depending on grade. A final weighted average is calculated.

Sample 71604 (CAS-21-05 129.5-131m) was submitted for fire assay with gravimetric analysis and returned a value of 27.9 g/t Au. Following this result, two duplicates were prepared at the lab from the initial drill core sample and submitted for metallic screening procedure at 106 um mesh followed by fire assay with gravimetric analysis, and a separate fire assay with gravimetric analysis to confirm the initial result. Metallic screen returned a value of 31.43 g/t Au, with the secondary fire assay and gravimetric analysis returning a value of 30.51 g/t Au for an overall average of 29.94 g/t Au

Qualified Person & Data Verification

Jim Hutter, P.Geo., a qualified person as defined by NI- 43-101, has supervised the preparation of and reviewed and approved of the disclosure of information in this news release. Mr. Hutter has verified the data, including drilling, sampling, test and recovery data, by supervising all of such procedures. There are no known factors that could materially affect the reliability of data collected and verified under his supervision. No quality assurance/quality control issues have been identified to date.

About Garibaldi

Garibaldi Resources Corp. is an active Canadian-based junior exploration company focused on creating shareholder value through discoveries and strategic development of its assets in some of the most prolific mining regions in British Columbia and Mexico.

We seek safe harbor.

GARIBALDI RESOURCES CORP.

Per: “Steve Regoci”
Steve Regoci, President

Neither the TSX Venture Exchange nor its
Regulation Services Provider accepts responsibility for the adequacy or the
accuracy of this release

Protecting Portfolios from Losses While Capturing Gains

Posted on by Admin 


Image Credit: Pixabay (Pexels)


Better Your Risk Management Investing Strategy with Protective Puts

The year 2020 and 2021, despite the coronavirus-related selloff, left most stock market investors with outsized gains. From January 1, 2020, through today (May 13), the S&P is up 20%. So while this year’s moves may be negative, many investors still have gains to either realize or protect. Realizing gains is easy; you pick your spot and sell out of your position. But what may not be easy is the taxes that may accompany those gains or parting with a position that you believe over the long term will excel. If you are confident the best place for your assets is your current position, protecting it with an options strategy may be the best way to protect against your downside, and only curtail your upside potential by the price of the protective options used as insurance.

Hedging Against Downward Moves

If you have unrealized capital gains, you are probably glad but may be an anxious trader or investor. Volatility, as measured by the VIX is at a level that is considered negative for stocks. Yet, if you believe stocks you own still have upside once we get through this period where covid, crypto, low unemployment, higher interest rates, and war can cause the prices on your holdings to swing in an unpredictable fashion, an options strategy may make sense for you.  

One method experienced investors employ is the protective put.


Image: Koyfin

What is a Protective Put?

There are two main types of options: put and call options. The buyer of a call has the right to buy a stock at a set price until the options contract expires. The buyer of a put has the right to sell a stock at a set price until the contract expires.

If you own a stock, a protective put position is created by purchasing put options on the name or something highly correlated to the stock. And, at a quantity that will roughly trade one to one with your position. The put allows the owner to sell the underlying stock at the price predefined in the options contract. This is the mirror trade to a covered call which involves selling the right to buy a stock owned. Investors that are more comfortable with covered call options can think of purchasing a put to protect a long stock position, much like a synthetic long call.

The benefit of a protective put strategy is it helps protect against losses during a price decline in the assets name, while still benefitting from capital appreciation if the stock increases in value. Of course, there is a cost to any insurance against big losses: in the case of a protective put, it is the price of the option. Essentially, if the stock goes up, you have unlimited profit potential (less the cost of the put options), and if the stock goes down, the put goes up in value to offset losses on the stock.

Removing the Mystery

Assume you own 100 shares of ABC Company at $50 per share from April 2020. The cost of this trade was $5,000.

The stock is now trading at $65 per share, and you think it might go to $70 or more. However, you are concerned about stablecoin problems and the Fed putting the kibosh on growth.

A protective put reduces risk if you maintain your position in the stock so you benefit if it reaches your $70 price target. At the same time, the put offers protection in case the market weakens or there is an unforeseen event with the company you own.

Example

Let’s say the stock is trading at $65, and suppose you’re tired of seeing your gains erode so you decide to purchase the 62 ABC Company October put option contract (the underlying asset is ABC Company stock, the exercise price is $62, and the expiration month is November) at $3 per contract (option price) for a total cost of $300 ($3 per contract multiplied by 100 contract shares).

If ABC continues to go up in value, your underlying stock position increases as normal and the put option falls “out of the money” (it can’t be exercised). For instance, if, at the expiration of the put contract, the stock reaches your $70 price target, you might then choose to sell the stock for a pretax profit of $1,700 ($2,000 profit on the underlying stock less the $300 cost of the option) and the option would expire worthless. It the stock went to $74, your overall net would be $2100. And you could realize it without having concerns about a sinking price.

But what if the price did get beaten up? If your fears about the market were realized and the stock was negatively impacted, your capital gains would be protected against a decline by the put.

Here’s how:

Assume ABC Corp. common shares declined from $65 to $55 prior to the option’s expiration. Without owning the put, if you sold the stock at $55, your pretax profit would be just $500 ($5,500 less $5,000). If you purchased the 62 ABC October put, and then sold the stock by exercising the option, your pretax profit would be $900. You could then sell the stock at the (put) exercise price of $62. As a result the profit from the put position would be $900. To calculate, use the $500 profit on the underlying stock, plus the $700 from the in-the-money put profit, less the $300 cost of that option. Compare this with a profit of $500 without the option contract.

The cost of the option doesn’t take much away from upside potential, by it protects against downside losses. If you think your stock price will not move in either direction, a put option may not benefit your strategy.

 

Circumstances to Consider Put Protection

Protective puts can be a useful strategy for traders and investors that expect a short- or intermediate-term decline in the price of a stock they own and have reasons not to sell. The reasons could be tax related, you may be somehow restricted from selling the shares, fierce volatility in the share price, it is exposure to the company you work for and selling is not yet permitted, building the position in thinly traded shares took time, etc.

Any one of these reasons might make it prudent to consider a protective put. Additionally there may be an event such as an earnings report that you expect will drive the price in ne direction or another, and you want to protect against the downside risk of that report.

 

Take -Away

Option protection in the form of puts comes at a cost that the investor needs to factor into their overall strategy. However, in volatile markets, knowing you’ll capture a large part of the upside if your stock moves up, and are protected from profit erosion if the stock declines allow for more overall comfort with the limited risk in the position.

Paul Hoffman

Managing Editor, Channelchek

Suggested Content



SPAC Investors Benefit from the Ability to Exercise Different Options

Finding Tomorrow’s Best Stocks Beneath a Cloak of Invisibility




Can You Gauge the Onset of Market Capitulation?

Managing Investment Portfolio Risk

Sources

https://www.nerdwallet.com/article/investing/put-options

Stay up to date. Follow us:

 

Glucose Fuel Cells Powering Medical Implant Technology

Posted on by Admin 


Image Credit: Kent Dayton (MIT News Office)


Ultrathin Fuel Cell Uses the Body’s Own Sugar to Generate Electricity

Jennifer Chu | MIT News
Office

Glucose is the sugar we absorb from the foods we eat. It is the fuel that powers every cell in our bodies. Could glucose also power tomorrow’s medical implants?

Engineers at MIT and the Technical University of Munich think so. They have designed a new kind of glucose fuel cell that converts glucose directly into electricity. The device is smaller than other proposed glucose fuel cells, measuring just 400 nanometers thick, or about 1/100 the diameter of a human hair. The sugary power source generates about 43 microwatts per square centimeter of electricity, achieving the highest power density of any glucose fuel cell to date under ambient conditions.

The new device is also resilient, able to withstand temperatures up to 600 degrees Celsius. If incorporated into a medical implant, the fuel cell could remain stable through the high-temperature sterilization process required for all implantable devices.

The heart of the new device is made from ceramic, a material that retains its electrochemical properties even at high temperatures and miniature scales. The researchers envision the new design could be made into ultrathin films or coatings and wrapped around implants to passively power electronics, using the body’s abundant glucose supply.

“Glucose is everywhere in the body, and the idea is to harvest this readily available energy and use it to power implantable devices,” says Philipp Simons, who developed the design as part of his PhD thesis in MIT’s Department of Materials Science and Engineering (DMSE). “In our work we show a new glucose fuel cell electrochemistry.”

“Instead of using a battery, which can take up 90 percent of an implant’s volume, you could make a device with a thin film, and you’d have a power source with no volumetric footprint,” says Jennifer L.M. Rupp, Simons’ thesis supervisor and a DMSE visiting professor, who is also an associate professor of solid-state electrolyte chemistry at Technical University Munich in Germany.

 

A “Hard” Separation

The inspiration for the new fuel cell came in 2016, when Rupp, who specializes in ceramics and electrochemical devices, went to take a routine glucose test toward the end of her pregnancy.

“In the doctor’s office, I was a very bored electrochemist, thinking what you could do with sugar and electrochemistry,” Rupp recalls. “Then I realized, it would be good to have a glucose-powered solid state device. And Philipp and I met over coffee and wrote out on a napkin the first drawings.”

The team is not the first to conceive of a glucose fuel cell, which was initially introduced in the 1960s and showed potential for converting glucose’s chemical energy into electrical energy. But glucose fuel cells at the time were based on soft polymers and were quickly eclipsed by lithium-iodide batteries, which would become the standard power source for medical implants, most notably the cardiac pacemaker.

However, batteries have a limit to how small they can be made, as their design requires the physical capacity to store energy.

“Fuel cells directly convert energy rather than storing it in a device, so you don’t need all that volume that’s required to store energy in a battery,” Rupp says.

In recent years, scientists have taken another look at glucose fuel cells as potentially smaller power sources, fueled directly by the body’s abundant glucose.


A glucose fuel cell’s basic design consists of three layers: a top anode, a middle electrolyte, and a bottom cathode. The anode reacts with glucose in bodily fluids, transforming the sugar into gluconic acid. This electrochemical conversion releases a pair of protons and a pair of electrons. The middle electrolyte acts to separate the protons from the electrons, conducting the protons through the fuel cell, where they combine with air to form molecules of water — a harmless byproduct that flows away with the body’s fluid. Meanwhile, the isolated electrons flow to an external circuit, where they can be used to power an electronic device.

The team looked to improve on existing materials and designs by modifying the electrolyte layer, which is often made from polymers. But polymer properties, along with their ability to conduct protons, easily degrade at high temperatures, are difficult to retain when scaled down to the dimension of nanometers, and are hard to sterilize. The researchers wondered if a ceramic — a heat-resistant material which can naturally conduct protons — could be made into an electrolyte for glucose fuel cells.

“When you think of ceramics for such a glucose fuel cell, they have the advantage of long-term stability, small scalability, and silicon chip integration,” Rupp notes. “They’re hard and robust.”

Peak Power

The researchers designed a glucose fuel cell with an electrolyte made from ceria, a ceramic material that possesses high ion conductivity, is mechanically robust, and as such, is widely used as an electrolyte in hydrogen fuel cells. It has also been shown to be biocompatible.

“Ceria is actively studied in the cancer research community,” Simons notes. “It’s also similar to zirconia, which is used in tooth implants, and is biocompatible and safe.”

The team sandwiched the electrolyte with an anode and cathode made of platinum, a stable material that readily reacts with glucose. They fabricated 150 individual glucose fuel cells on a chip, each about 400 nanometers thin, and about 300 micrometers wide (about the width of 30 human hairs). They patterned the cells onto silicon wafers, showing that the devices can be paired with a common semiconductor material. They then measured the current produced by each cell as they flowed a solution of glucose over each wafer in a custom-fabricated test station.

 

They found many cells produced a peak voltage of about 80 millivolts. Given the tiny size of each cell, this output is the highest power density of any existing glucose fuel cell design.

“Excitingly, we are able to draw power and current that’s sufficient to power implantable devices,” Simons says.

“It is the first time that proton conduction in electroceramic materials can be used for glucose-to-power conversion, defining a new type of electrochemstry,” Rupp says. “It extends the material use-cases from hydrogen fuel cells to new, exciting glucose-conversion modes.”

The researchers “have opened a new route to miniature power sources for implanted sensors and maybe other functions,” says Truls Norby, a professor of chemistry at the University of Oslo in Norway, who did not contribute to the work. “The ceramics used are nontoxic, cheap, and not least inert both to the conditions in the body and to conditions of sterilization prior to implantation. The concept and demonstration so far are promising indeed.”

 

 

Reprinted with permission of MIT News (http://news.mit.edu/)


Suggested Reading



Baudax Bio (BXRX) NobleCon18 Presentation Replay

BioSig Technologies (BSGM) NobleCon18 Presentation Replay





Cocrystal Pharma (COCP) NobleCon18 Presentation Replay

Genprex (GNPX) NobleCon18 Presentation Replay

 

Stay up to date. Follow us:

 

Another Clue Consumer Inflation Will Remain Hot

Posted on by Admin 


Image Credit: Shvets Anna (Pexels)


Wholesale Prices are Still Hot and Passing the Cost Increases on to Final Goods

Last Thursday, while the markets were transfixed on watching a so-called stablecoin on its rapid path down to almost $0.00, the Bureau of Labor Statistics (BLS) released the Producer Price Index Report (PPI). If not for the cryptocurrency distraction, the BLS report may have been the most market impactful data made available so far this May. PPI measures the inputs to manufacturing and services and calculates the average change over time of these production costs. It’s often an indicator of where consumer prices are headed.

For April 2022, year-over-year growth in the producer price inflation data came in at 11%. It has been over 10 percent for five consecutive months. PPI experienced a small drop from March’s year-over-year rate of 11.5 percent but continues to scream that costs are rising at a double-digit pace, at least for those manufacturing goods. The monthly figure was a deceleration from March, but the increase is on a growing base.

Year-over-year changes in the PPI have been over 7 percent for 11 months.

Producer Price Index (PPI)

As with the Consumer Price Index (CPI), the expectations just a few months ago were overly optimistic. Analysts forecast that PPI would moderate significantly in April and signal a downward turn. Instead, the April number disappointed those that were looking for signs of a more transitory rise in prices that then quickly moderate.

The report included some signs that price increases have reduced acceleration, but from a surprisingly high level. Despite the tapered increase, prices are still rising at a historically quick pace. Wholesale food costs rose 1.5% during April from March, this one-month increase is extreme. Even more extreme are shipping and warehousing price increases for the month of 3.6%.

What it Could Mean

There are still no indications that inflationary pressures have reached a peak and will move more toward the Fed’s target of 2% to 3%. And from a policy standpoint, there are concerns that neither the Federal Reserve (US Central Bank), Congress, nor the White House have decided to show plans that decisively wage a battle against the purchasing power erosion of US dollars. So the trend may endure for an extended period.

The Federal Reserve which embraced the stimulative position back in 2008 of adding significant liquidity to the US economy and then expanded its efforts during the government’s reaction to the pandemic starting in 2020 has been a significant catalyst to rising prices. Some analysts fear that its tepid steps do little to extinguish the raging price increases.

After nearly a year of historically relevant elevated inflation rates, the Fed has more or less assured us it will decrease its balance sheet. This would take money out of the system of at least $47.5 billion each month. As compared to the size of the overall economy, these Fed held maturities of US Treasuries and Mortgaged Backed Securities reduce money in the system by a like amount and require non-Fed investors to participate in the rolling of this debt. With consumer inflation running above 8% and 10-year US Treasuries only at 3%, history suggests either interest rates will gravitate upward to compensate investors, or inflation needs to come down. The PPI number on Thursday made it clear that the pipeline of costs that lead to consumer prices has not pulled back by much.

Take-Away

The Fed has raised interest rates twice this year. Word is they will continue to move 50 bp for at least one, probably the next two meetings. In the meantime, the pipeline of rising price inputs to consumer goods hasn’t backed off much. Equity investors view stocks as a natural hedge against inflation. What they do however need to watch is the notion that higher interest rates could cause some money that never wanted to take on risk, may leave the stock market. Fewer investors lead to lower prices.

Paul Hoffman

Managing Editor, Channelchek

Suggested Content



Inflation and the Reflation Trade

The Last Time Inflation Was This High Fed Funds Were 14.5%




Deflation Not Inflation is Risk Says Cathie Wood

The Limits of Government Economic Tinkering (July 2020)

Stay up to date. Follow us:

 

Bowlero (BOWL) – Scores Another Big Quarter

Posted on by Admin

Thursday, May 12, 2022

Bowlero (BOWL)
Scores Another Big Quarter

Bowlero Corp. is the worldwide leader in bowling entertainment, media, and events. With more than 300 bowling centers across North America, Bowlero Corp. serves more than 26 million guests each year through a family of brands that includes Bowlero, Bowlmor Lanes, and AMF. In 2019, Bowlero Corp. acquired the Professional Bowlers Association, the major league of bowling, which boasts thousands of members and millions of fans across the globe. For more information on Bowlero Corp., please visit BowleroCorp.com.

Michael Kupinski, Director of Research, Noble Capital Markets, Inc.

Patrick McCann, Research Associate, Noble Capital Markets, Inc.

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

Impressive Q3 results. The company reported fiscal Q3 revenue of $257.8 million, an increase of 130% from the year earlier quarter and a solid 8.3% above our estimate of $238.1 million. Adj. EBITDA was even more impressive at $108.4 million, a 296% increase from the year earlier quarter and a whopping 36.3% higher than our estimate of $79.5 million.

Eased COVID restrictions. Management noted that the strong quarter was boosted by the easing of COVID restrictions in many regions and as the Covid Omicron variant faded. This allowed retail revenue to increase and event revenue to significantly improve. This was evident by a 133% increase in Food & Beverage in the quarter. Notably, revenue was up 25.8% compared with pre-pandemic performance and up 12.2% compared with pre-pandemic on a same-store basis.  

…

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.