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EuroDry (EDRY) – Our Estimates Reflect a Strong Finish to 2024; Rating Remains Outperform

Posted on by cpereira@noblefcm.com


Monday, August 12, 2024

EuroDry Ltd. was formed on January 8, 2018 under the laws of the Republic of the Marshall Islands to consolidate the drybulk fleet of Euroseas Ltd. into a separate listed public company. EuroDry was spun-off from Euroseas Ltd. on May 30, 2018; it trades on the NASDAQ Capital Market under the ticker EDRY. EuroDry operates in the dry cargo, drybulk shipping market. EuroDry’s operations are managed by Eurobulk Ltd., an ISO 9001:2008 and ISO 14001:2004 certified affiliated ship management company and Eurobulk (Far East) Ltd. Inc., which are responsible for the day- to-day commercial and technical management and operations of the vessels. EuroDry employs its vessels on spot and period charters and under pool agreements.

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.

Second quarter financial results. Eurodry Ltd. reported an adjusted second-quarter net loss to controlling shareholders of $447.4 thousand or ($0.17) per share compared to an adjusted net loss of $1.3 million or ($0.48) per share during the prior year period. Adjusted EBITDA increased to $5.0 million compared to $2.5 million during the prior year period. While financial results improved on a year-over-year basis due to higher revenue, driven by an increased average time charter equivalent rate, voyage and drydocking expenses were above our estimates.

Updating estimates. We forecast 2024 EBITDA of $20.7 million and a net loss of ($0.65) per share. The third quarter will be a heavy quarter for drydocking and our revisions are driven primarily by higher drydocking expenses and fewer voyage days. We anticipate the company to post a net loss in the third quarter but finish the year with a strong fourth quarter due, in part, to lighter drydocking activity.


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This Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision. 

CoreCivic, Inc. (CXW) – A Solid Quarter

Posted on by cpereira@noblefcm.com


Monday, August 12, 2024

CoreCivic is a diversified, government-solutions company with the scale and experience needed to solve tough government challenges in flexible, cost-effective ways. We provide a broad range of solutions to government partners that serve the public good through high-quality corrections and detention management, a network of residential and non-residential alternatives to incarceration to help address America’s recidivism crisis, and government real estate solutions. We are the nation’s largest owner of partnership correctional, detention and residential reentry facilities, and believe we are the largest private owner of real estate used by government agencies in the United States. We have been a flexible and dependable partner for government for nearly 40 years. Our employees are driven by a deep sense of service, high standards of professionalism and a responsibility to help government better the public good. Learn more at www.corecivic.com.

Joe Gomes, CFA, Managing Director, Equity Research Analyst, Generalist , 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.

2Q24. Revenue came in at $490.1 million, up from $463.7 million a year ago and above our $482 million estimate. Increased occupancy and per diem rates drove the increase. Adjusted EBITDA was $83.9 million, up from $72.1 million, and our $74.6 million estimate. EPS was $0.17, adjusted EPS $0.20, and NFFO $0.42, compared to $0.13, $0.12, and $0.33, respectively, in 2Q23.

New Contract. In late July, CoreCivic received a Notice of Intent to Award a new management contract from the state of Montana to care for additional residents. The Company expects to receive 120 residents in the 3Q24. If the State needs additional capacity, the State may approve the utilization of any other facility CoreCivic owns or operates.


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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. 

Comstock Inc. (LODE) – Upgrading Our Investment Rating to Outperform from Market Perform

Posted on by cpereira@noblefcm.com


Monday, August 12, 2024

Comstock (NYSE: LODE) innovates technologies that contribute to global decarbonization and circularity by efficiently converting under-utilized natural resources into renewable fuels and electrification products that contribute to balancing global uses and emissions of carbon. The Company intends to achieve exponential growth and extraordinary financial, natural, and social gains by building, owning, and operating a fleet of advanced carbon neutral extraction and refining facilities, by selling an array of complimentary process solutions and related services, and by licensing selected technologies to qualified strategic partners. To learn more, please visit www.comstock.inc.

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.

Proposed transaction with SBC Commerce. Comstock executed an indicative term sheet for $325 million, or $315 million net of transaction fees, in funding through SBC Commerce LLC (SBCC), a U.S. based private equity group. The transaction is contingent on final due diligence and applicable regulatory approvals and is expected to close in tranches over the next two to three months. At this point, we assume the transaction will close successfully within the contemplated time frame.

Infusion of growth capital to accelerate commercialization. The transaction provides a clear valuation marker for each of the company’s fuels, metals, and mining businesses and secures growth capital to accelerate commercialization efforts. SBCC will acquire Comstock’s industrial and commercial real estate and water rights in Nevada for $50 million, or $47 million net of transaction expenses.


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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. 

Release – ZyVersa Therapeutics Reports Second Quarter, 2024 Financial Results and Provides Business Update

Posted on by aweinsoff@channelchek.com

Research News and Market Data on ZVSA

Aug 9, 2024

PDF Version

KEY HIGHLIGHTS

  • Phase 2a clinical trial for Cholesterol Efflux Mediator™ VAR 200 in patients with diabetic kidney disease on track to begin H2-2024.
  • Obesity with related metabolic complications selected as lead indication for Inflammasome ASC Inhibitor IC 100.
    • Supportive data from preclinical study in atherosclerosis, a common obesity-related metabolic complication, is expected to be available H2-2024.
  • IC 100 Investigational New Drug (IND) submission planned for Q4-2024, to be followed by initiation of a Phase 1 clinical trial in obesity with metabolic complications expected to begin Q1-2025.
  • Raised approximately $0.8 million from exercise of investor warrants.

WESTON, Fla., Aug. 09, 2024 (GLOBE NEWSWIRE) — ZyVersa Therapeutics, Inc. (Nasdaq: ZVSA, or “ZyVersa”), a clinical-stage specialty biopharmaceutical company developing first-in-class drugs for the treatment of renal and inflammatory diseases with high unmet medical needs, reports financial results for the quarter ended June 30, 2024, and provides business update.

“We are pleased to announce that ZyVersa remains on track to achieve key development milestones over the next 3 quarters,” stated Stephen C. Glover, ZyVersa’s Co-founder, Chairman, CEO, and President. “Our Phase 2a clinical trial with Cholesterol Efflux Mediator™ VAR 200 in diabetic kidney disease is expected to enroll the first patient(s) within the next few months, with an initial data read-out around the end of the year. In preparation for the planned Q4-2024 IND submission and subsequent phase 1 trial for Inflammasome ASC Inhibitor, a lead indication has been selected, obesity with related metabolic complications. This selection was based on unmet needs and IC 100’s mechanism of action substantiated in its robust preclinical program. By inhibiting ASC, IC 100 targets all four inflammasome pathways associated with obesity and related metabolic complications. Importantly, IC 100 disrupts the structure and function of extracellular ASC specks which perpetuate and spread damaging inflammation leading to obesity-related metabolic complications. We believe our milestone achievement will be a key inflection point for ZyVersa that will drive shareholder value.” 

BUSINESS UPDATE

CHOLESTEROL EFFLUX MEDIATOR™ VAR 200 FOR RENAL DISEASE

  • Phase 2a clinical trial in diabetic kidney disease is on target to begin H2-2024.
    • Clinical trial agreements have been successfully negotiated with both sites
    • Clinical trial Site IRB submissions have been approved for both sites
    • Clinical product and lab kits are ready to ship
    • Site initiation visits are scheduled
    • Enrollment of first patient(s) is expected in the next few months

INFLAMMASOME ASC INHIBITOR IC 100 FOR INFLAMMATORY DISEASES

  • IND submission planned for Q4-2024, to be followed by initiation of a Phase 1 clinical trial in obese patients with metabolic complications expected to begin Q1-2025.
    • IC 100 preclinical study in obesity with associated metabolic complications planned to conclude by year’s end, with a second study evaluating concomitant treatment of IC 100 and a GLP-1 agonist to begin shortly thereafter
    • Supportive data read-out from preclinical study in atherosclerosis expected H2-2024
    • GLP toxicology studies scheduled to begin H2-2024
  • ZyVersa has recruited six top-tiered experts in obesity and related metabolic complications for a scientific advisory board, which will be announced in the next few weeks, to guide clinical development plans for IC 100.
  • Recently published preclinical study demonstrated that IC 100 attenuates retinal inflammation, abnormal retinal vascularization, and retinal thinning, leading to restored retinal function in an animal model of retinopathy of prematurity (ROP).
    • ROP is the sixth indication with preclinical data demonstrating that IC 100 attenuates pathogenic inflammasome signaling pathways resulting in reduced inflammation and improved histopathological and/or functional outcomes
    • The other indications are early Alzheimer’s disease, multiple sclerosis, acute respiratory distress syndrome, spinal cord injury, and traumatic brain injury
  • Recently published preclinical study supports the potential of plasma ASC levels as a biomarker for early stages of cognitive decline, reinforcing the role of inflammasome-induced inflammation in the development of neurodegenerative conditions such as Alzheimer’s and Parkinson’s diseases, and the potential of inhibiting ASC with IC 100 as a treatment option.

SECOND QUARTER FINANCIAL RESULTS

Net losses were approximately $2.8 million for the three months ended June 30, 2024, with an improvement of $75.7 million or 96.5% compared to a net loss of approximately $78.5 million, for the three months ended June 30, 2023. This large improvement is due primarily to no further impact from our one-time impairment in 2023 of in-process research and development and goodwill.

Based on its current operating plan, ZyVersa expects its cash of $0.1 million as of June 30, 2024, will be sufficient to fund its operating expenses and capital expenditure requirements on a month-to-month basis. ZyVersa will need additional financing to support its continuing operations and to meet its stated milestones. ZyVersa will seek to fund its operations and clinical activity through public or private equity or debt financings or other sources, which may include government grants, collaborations with third parties or outstanding warrant exercises.

Research and development expenses were $0.7 million for the three months ended June 30, 2024, a decrease of $0.5 million or 41.9% from $1.2 million for the three months ended June 30, 2023. The decrease is primarily attributable to a decrease of $0.4 million in the costs of manufacturing of IC 100 and a decrease in payroll expenses due to employee attrition of $0.1 million.

General and administrative expenses were $2.0 million for the three months ended June 30, 2024, a decrease of $1.9 million or 48.0% from the three months ended June 30, 2023. The decrease is primarily attributable to a one-time 2023 charge of $1.2 million for common stock granted to certain members of the SPAC merger sponsor in exchange for certain concessions to extend the duration of their holding period. Other reductions include professional fees, marketing costs, director and officer insurance totaling $0.6 million, and a $0.1 million decrease in stock-based compensation as a result of options becoming fully amortized in February 2024.

About ZyVersa Therapeutics, Inc.

ZyVersa (Nasdaq: ZVSA) is a clinical stage specialty biopharmaceutical company leveraging advanced proprietary technologies to develop first-in-class drugs for patients with inflammatory or kidney diseases with high unmet medical needs. We are well positioned in the rapidly emerging inflammasome space with a highly differentiated monoclonal antibody, Inflammasome ASC Inhibitor IC 100, and in kidney disease with phase 2 Cholesterol Efflux Mediator™ VAR 200. The lead indication for IC 100 is obesity and its associated metabolic complications, and for VAR 200, focal segmental glomerulosclerosis (FSGS). Each therapeutic area offers a “pipeline within a product,” with potential for numerous indications. The total accessible market is over $100 billion. For more information, please visit www.zyversa.com.

Cautionary Statement Regarding Forward-Looking Statements

Certain statements contained in this press release regarding matters that are not historical facts, are forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. These include statements regarding management’s intentions, plans, beliefs, expectations, or forecasts for the future, and, therefore, you are cautioned not to place undue reliance on them. No forward-looking statement can be guaranteed, and actual results may differ materially from those projected. ZyVersa Therapeutics, Inc. (“ZyVersa”) uses words such as “anticipates,” “believes,” “plans,” “expects,” “projects,” “future,” “intends,” “may,” “will,” “should,” “could,” “estimates,” “predicts,” “potential,” “continue,” “guidance,” and similar expressions to identify these forward-looking statements that are intended to be covered by the safe-harbor provisions. Such forward-looking statements are based on ZyVersa’s expectations and involve risks and uncertainties; consequently, actual results may differ materially from those expressed or implied in the statements due to a number of factors, including ZyVersa’s plans to develop and commercialize its product candidates, the timing of initiation of ZyVersa’s planned preclinical and clinical trials; the timing of the availability of data from ZyVersa’s preclinical and clinical trials; the timing of any planned investigational new drug application or new drug application; ZyVersa’s plans to research, develop, and commercialize its current and future product candidates; the clinical utility, potential benefits and market acceptance of ZyVersa’s product candidates; ZyVersa’s commercialization, marketing and manufacturing capabilities and strategy; ZyVersa’s ability to protect its intellectual property position; and ZyVersa’s estimates regarding future revenue, expenses, capital requirements and need for additional financing.

New factors emerge from time-to-time, and it is not possible for ZyVersa to predict all such factors, nor can ZyVersa assess the impact of each such factor on the business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. Forward-looking statements included in this press release are based on information available to ZyVersa as of the date of this press release. ZyVersa disclaims any obligation to update such forward-looking statements to reflect events or circumstances after the date of this press release, except as required by applicable law.

This press release does not constitute an offer to sell, or the solicitation of an offer to buy, any securities.

Corporate, Media, IR Contact

Karen Cashmere
Chief Commercial Officer
kcashmere@zyversa.com
786-251-9641        

View full release HERE.

GoHealth, Inc. (GOCO) – Is there a Tailwind in the Forecast?

Posted on by slightbourne@noblecapitalmarkets.com


Friday, August 09, 2024

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

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

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

Q2 results below estimates. The company reported Q2 revenue and adj. EBITDA of $105.9 million and a loss of $12.3 million, respectively, below our estimates. Our revenue and adj. EBITDA estimates were $144.0 million and a loss of $6.3 million, respectively.

Preparing for AEP. The company has been testing Plan Fit Save, an initiative whereby it is compensated by health plan carriers for improving customer retention when GoHealth recommends consumers to keep their existing plans. We believe the combination Plan Fit Save, as well as the prospect for disruption to health plan benefits in the upcoming Annual Enrollment Period, could set the company up for a strong finish to the year.


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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. 

Graham Corp (GHM) – A Deeper Dive into 2Q24 Results and Updated Model

Posted on by slightbourne@noblecapitalmarkets.com


Friday, August 09, 2024

Graham Corporation designs, manufactures and sells critical equipment for the energy, defense and chemical/petrochemical industries. The Company designs and manufactures custom-engineered ejectors, vacuum pumping systems, surface condensers and vacuum systems. It is a nuclear code accredited fabrication and specialty machining company. It supplies components used inside reactor vessels and outside containment vessels of nuclear power facilities. Its equipment is found in applications, such as metal refining, pulp and paper processing, water heating, refrigeration, desalination, food processing, pharmaceutical, heating, ventilating and air conditioning. For the defense industry, its equipment is used in nuclear propulsion power systems for the United States Navy. The Company’s products are used in a range of industrial process applications in energy markets, including petroleum refining, defense, chemical and petrochemical processing, power generation/alternative energy and other.

Joe Gomes, CFA, Managing Director, Equity Research Analyst, Generalist , 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.

2Q24 Results. The improved top and bottom lines reflect Graham’s successful operating strategy, in our view. The first quarter can be characterized by solid growth, consistent improvement, and strengthened profitability. We also would note the expansion of Graham’s defense business has reduced the Company’s economic sensitivity.

New Orders. Graham’s Barber-Nichols segment reported the receipt of three new awards, totaling in excess of $65 million. An extension of work for the MK48 Mod 7 Heavyweight torpedo program, received in the first quarter; a new program for the Columbia-class submarine; and a contract to provide cryogenic recirculation pumps for space vehicles. We believe these awards demonstrate the Company’s capabilities to successfully compete in its key markets.


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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. 

Harte Hanks (HHS) – Investment In Sales Not Yet Kicking In Gear

Posted on by slightbourne@noblecapitalmarkets.com


Friday, August 09, 2024

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, 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.

Mixed Q2 results. Revenues of $45.0 million was slightly below our $47.5 million estimate. In spite of the lighter than expected revenues, the company delivered on adj. EBITDA expectations at $3.6 million, reflecting benefits from its cost efficiency strategy developed last year. Figure #1 Q2 Results highlights the quarter versus our estimates. 

A healthy revenue indicator. Management indicated that its pipeline of business is building and ahead of last year, but that there is a long tail to convert to revenue. We believe that the company’s investment into building its sales infrastructure and culture, which began late last year, has yet to be converted into enhanced revenue. The hoped for impact of the investment may be pushed out a quarter or two.


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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. 

NN Inc (NNBR) – Reports Second Quarter Results

Posted on by slightbourne@noblecapitalmarkets.com


Friday, August 09, 2024

Joe Gomes, CFA, Managing Director, Equity Research Analyst, Generalist , 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.

2Q24. Net sales totaled $123 million, down 1.8% y-o-y. We were at $118 million. Adjusted EBITDA was $13.4 million, up from $10.5 million last year and above our $12.2 million estimate. The second quarter was the fourth consecutive quarter of improved y-o-y performance. NN reported an adjusted net loss of $0.02/sh, compared to an adjusted net loss of $0.08/sh in 2Q23. We were at an adjusted loss of $0.05/sh.

Transformation Program. NN is seeing the benefits of its transformation initiatives, which are yielding observable momentum across key focus areas of profitability enhancement, operational performance, and accelerated new business wins. Notably, on a trailing-twelve-month basis, NN has delivered adjusted EBITDA of  $49.2 million, an improvement of 28.7% y-o-y.


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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. 

Ocugen (OCGN) – 2Q24 Reported With Summary Of Progress In Clinical Trials

Posted on by slightbourne@noblecapitalmarkets.com


Friday, August 09, 2024

Ocugen, Inc. is a biotechnology company focused on developing and commercializing novel gene therapies, biologicals, and vaccines. The lead product in its gene therapy program, OCU400, is in Phase 1/2 clinical trials for retinitis pigmentosa.

Robert LeBoyer, Senior Vice President, Equity Research Analyst, Biotechnology, Noble Capital Markets, Inc.

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

Ocugen reported a 2Q24 loss of $10.3 million or $(0.04) per share. During the quarter, the first patient was treated in the Phase 3 liMeliGhT (pronounced “limelight”) trial for OCU400 in retinitis pigmentosa (RP). Separately, the Phase 1/2 OCU410 trial for geographic atrophy in dry AMD completed dosing of its third cohort and began Phase 2. Cash on June 30 was $15.7 million, excluding $32.6 million raised in a public offering on August 2. Based on our quarterly estimates, we project cash to last until 2H25 with about $40 million in cash at the end of 3Q24.

OCU400 Began The Phase 3 liMeliGht Trial and Expanded Access. During the quarter, the first patient in the Phase 3 liMeliGhT trial testing OCU400 in retinitis pigmentosa (RP) was treated. The trial has one arm testing OCU400 in patients that have the RHO mutation and another arm with any of several gene mutations associated with RP. Each arm will have 75 patients for a total target enrollment of 150 patients.


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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. 

Saga Communications (SGA) – Political A Big Swing Factor

Posted on by slightbourne@noblecapitalmarkets.com


Friday, August 09, 2024

Saga Communications, Inc. is a broadcast company whose business is primarily devoted to acquiring, developing and operating radio stations. Saga currently owns or operates broadcast properties in 27 markets, including 79 FM and 33 AM radio stations. Saga’s strategy is to operate top billing radio stations in mid sized markets, defined as markets ranked (by market revenues) from 20 to 200. Saga’s radio stations employ a myriad of programming formats, including Active Rock, Adult Album Alternative, Adult Contemporary, Country, Classic Country, Classic Hits, Classic Rock, Contemporary Hits Radio, News/Talk, Oldies and Urban Contemporary. In operating its stations, Saga concentrates on the development of strong decentralized local management, which is responsible for the day-to-day operations of the stations in their market area and is compensated based on their financial performance as well as other performance factors that are deemed to effect the long-term ability of the stations to achieve financial objectives. Saga began operations in 1986 and became a publicly traded company in December 1992. The stock trades on NASDAQ under the ticker symbol “SGA”.

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.

Delivers on expectations. The company reported Q2 revenue of $28.7 million and adj. EBITDA of $4.4 million, both of which were in line with our estimates of $28.8 million and $4.6 million, respectively as illustrated in Figure #1 Q2 Results. Notably, the revenue estimate was achieved in spite of weaker than expected Political advertising. 

Pacings appear weak. Management indicated that Q3 revenues are pacing down mid single digits, which, we believe, may be conservative given that there is limited visibility on Political advertising. The weak revenue outlook reflects, however, lackluster core advertising which appears to be impacted by the current macroeconomic headwinds.  


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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. 

Retail Investors Navigate Volatile Markets with Caution and Opportunism

Posted on by slightbourne@noblecapitalmarkets.com
Key Points:
– Retail investors remain net buyers during recent market volatility
– Tech stocks and Treasury ETFs attract individual investor interest
– Mixed signals emerge from different research reports and platforms

The recent turbulence in U.S. stock markets has put a spotlight on the behavior of retail investors, who have emerged as a significant force in shaping market dynamics. As major indexes experienced sharp swings, including a notable sell-off that saw declines of 2.6% to 3.4% in a single day, individual investors have demonstrated both resilience and adaptability. This article delves into the various strategies and trends observed among retail investors during this period of market volatility, drawing insights from multiple research reports and trading platforms. For investors seeking to navigate these complex markets, resources like Channelchek offer valuable research and analysis to inform investment decisions.

Vanda Research, a New York-based market analysis firm, reported that retail investors continued to be net buyers of popular tech stocks such as Nvidia, Intel, and Advanced Micro Devices during the market downturn. Marco Iachini, senior vice president of research at Vanda, noted that “There was no retail capitulation,” emphasizing the persistent “dip-buying spree” among individual investors.

This trend was further corroborated by data from Robinhood Markets, which saw a significant influx of new cash from retail clients. The popular trading platform received $1 billion in the first week of August, with half of that amount deposited during Monday’s sell-off alone. This surge in deposits far exceeded Robinhood’s second-quarter daily average of less than $350 million.

However, the picture is not uniformly bullish. A separate report from JP Morgan analysts suggested that retail investors were “aggressive net sellers” during the first hour of Monday’s trading session. This conflicting data highlights the complex and diverse nature of retail investor behavior during periods of market stress, underscoring the importance of comprehensive research platforms like Channelchek in providing investors with well-rounded insights.

Interestingly, as markets recovered on Tuesday and Wednesday, retail investors showed increased interest in the iShares 20+ Year Treasury Bond ETF. Vanda Research reported that by Thursday morning, this ETF had become the second-most-actively purchased security after Nvidia shares. This shift towards a traditionally safer asset class may indicate growing anxiety among individual investors about the stock market’s outlook.

Further evidence of a cautious approach comes from Alight Solutions, which tracks trading activity in approximately 2 million 401(k) retirement accounts. Rob Austin, head of research at Alight, noted that investors were actively moving assets out of stock funds and into money markets and fixed-income products. While the volume of these shifts was significant – about eight times the average – it represented only a small fraction (0.1%) of the $200 billion in assets tracked by the firm.

The divergent behaviors observed across different platforms and research reports underscore the complexity of retail investor sentiment in the current market environment. While many individual investors continue to see buying opportunities in market dips, particularly in the tech sector, others are beginning to hedge their bets by allocating funds to more conservative investments.

This nuanced approach reflects a growing sophistication among retail investors, who are increasingly able to navigate volatile markets with a combination of opportunism and risk management. As market uncertainties persist, driven by factors such as economic data, earnings reports, and global trade dynamics, the actions of retail investors will likely continue to play a significant role in shaping market trends.

For market observers and professional investors, understanding these retail investor behaviors has become increasingly crucial. The ability of individual investors to quickly mobilize capital and their growing influence on market dynamics make them a force that cannot be ignored in today’s financial landscape.

Algonquin Power & Utilities Corp. Pivots to Pure-Play Utility with $2.5B Renewable Energy Sale

Posted on by slightbourne@noblecapitalmarkets.com
Key Points:
– Algonquin (AQN) to sell renewable energy business to LS Power for up to $2.5 billion
– Transaction aims to transform AQN into a pure-play regulated utility
– Deal expected to close in Q4 2024 or Q1 2025, subject to regulatory approvals

Algonquin Power & Utilities Corp. (AQN) has announced a strategic move to reshape its business model, entering into a definitive agreement to sell its renewable energy business to LS Power for a total consideration of up to $2.5 billion. This transaction marks a significant milestone in AQN’s transformation into a pure-play regulated utility, aligning with the company’s objective to enhance long-term value for both customers and shareholders.

The deal, unanimously approved by AQN’s board of directors, involves the sale of the company’s renewable energy assets, excluding its hydro operations. The transaction structure includes $2.28 billion in cash at closing, subject to certain adjustments, and a potential additional $220 million through an earn-out agreement related to specific wind assets.

Chris Huskilson, CEO of AQN, expressed satisfaction with the outcome of what he described as a “highly competitive strategic sale process.” He emphasized that this transaction, coupled with the previously announced plan to support the sale of AQN’s Atlantica shares, delivers on the company’s strategy to optimize its regulated business activities, strengthen its balance sheet, and improve the quality of its earnings.

The renewable energy business being divested has been a significant part of AQN’s operations for over three decades. Huskilson acknowledged the hard work and dedication of the employees who contributed to building this “compelling and competitive business with scale and strong assets.”

From a financial perspective, AQN expects to receive estimated cash proceeds of approximately $1.6 billion after accounting for the repayment of construction financing, taxes, transaction fees, and other closing adjustments. This influx of capital is expected to play a crucial role in recapitalizing the company’s balance sheet and positioning it for future growth within the regulated utility sector.

The transaction is subject to customary closing conditions, including approvals from the U.S. Federal Energy Regulatory Commission and relevant competition authorities. AQN anticipates the deal will close either in the fourth quarter of 2024 or the first quarter of 2025.

This strategic divestment comes at a time when many energy companies are reevaluating their business models in response to changing market dynamics and regulatory environments. By focusing on its regulated utility operations, AQN aims to provide more predictable earnings and stable returns for investors, while continuing to deliver reliable energy and water solutions to its customer base of over one million connections, primarily in the United States and Canada.

As AQN transitions to a pure-play regulated utility, investors and industry observers will be watching closely to see how this strategic shift impacts the company’s financial performance and market position in the coming years. The move represents a significant change for a company that has long been known for its diversified portfolio of generation, transmission, and distribution assets.

With this transaction, Algonquin Power & Utilities Corp. is betting on the stability and predictability of regulated utility operations to drive its future growth and shareholder value. As the energy landscape continues to evolve, AQN’s strategic pivot may serve as a case study for other companies in the sector considering similar transformations.

Eli Lilly Soars as Diabetes and Weight Loss Drugs Fuel Blowout Results

Posted on by slightbourne@noblecapitalmarkets.com
Key Points:
– Eli Lilly reports blowout Q2 earnings and revenue, crushing analyst estimates
– Strong Mounjaro diabetes and Zepbound weight loss drug sales drive guidance hike
– Company boosts full-year revenue outlook by $3 billion, adjusts earnings higher

Eli Lilly, the pharmaceutical industry leader, has delivered a remarkable performance in the second quarter of 2024, with earnings and revenue results that have easily surpassed Wall Street’s expectations. The driving force behind the company’s stellar Q2 2024 financial figures was the skyrocketing demand for its blockbuster diabetes treatment Mounjaro and weight loss injection Zepbound.

Eli Lilly reported second-quarter earnings per share of $3.92, far exceeding the $2.60 expected by analysts. Revenue for the period came in at $11.30 billion, a 36% increase from the same quarter a year earlier and well above the $9.92 billion consensus estimate. This strong showing prompted the company to significantly raise its full-year revenue outlook, increasing the range by $3 billion to between $45.4 billion and $46.6 billion. Additionally, Eli Lilly hiked its adjusted earnings guidance for 2024 to $16.10 to $16.60 per share, up from the previous range of $13.50 to $14 per share.

The exceptional sales of Mounjaro and Zepbound were the primary drivers behind Eli Lilly’s blowout Q2 2024 results. Mounjaro, the company’s in-demand diabetes drug, generated $3.09 billion in revenue during the second quarter, more than tripling the sales it recorded a year earlier. Meanwhile, Zepbound, Eli Lilly’s weight loss injection, raked in $1.24 billion, significantly exceeding the $922.2 million that analysts had anticipated.

The surging demand for these incretin-based therapies has compelled Eli Lilly to rapidly scale up its production capabilities to meet market needs. The company has built six new manufacturing plants and hired thousands of additional workers to increase its output. CEO David Ricks stated that the company expects incretin drug production in the second half of 2024 to be 50% higher than it was during the same period last year, with further ramp-ups planned for 2025.

Eli Lilly’s ability to quickly adapt and expand its manufacturing capacity has been a key factor in its success. The company’s agility in addressing supply constraints and delivering a steady stream of its in-demand Mounjaro and Zepbound products has resonated with both healthcare providers and patients. As the market for incretin-based treatments continues to grow, Eli Lilly’s strategic investments in production and its relentless focus on meeting demand have positioned the company as a dominant player in the field of metabolic disorder therapies.

Looking ahead, Eli Lilly remains optimistic about the long-term prospects for its diabetes and weight loss drugs. The company is not only working to further increase its manufacturing capabilities but is also developing more convenient weight loss pills, which could help it capitalize on the skyrocketing demand for effective obesity treatments.

For investors, Eli Lilly’s stellar Q2 2024 performance and guidance hike underscore the company’s ability to navigate the evolving healthcare landscape and deliver consistent growth. As the pharmaceutical industry continues to evolve, Eli Lilly’s focus on innovation, agility, and meeting the needs of patients and healthcare providers has solidified its position as a leader in the field of metabolic disorder treatments.