ISG (Information Services Group) (Nasdaq: III) is a leading global technology research and advisory firm. A trusted business partner to more than 700 clients, including more than 75 of the world’s top 100 enterprises, ISG is committed to helping corporations, public sector organizations, and service and technology providers achieve operational excellence and faster growth. The firm specializes in digital transformation services, including automation, cloud and data analytics; sourcing advisory; managed governance and risk services; network carrier services; strategy and operations design; change management; market intelligence and technology research and analysis. Founded in 2006, and based in Stamford, Conn., ISG employs more than 1,300 digital-ready professionals operating in more than 20 countries—a global team known for its innovative thinking, market influence, deep industry and technology expertise, and world-class research and analytical capabilities based on the industry’s most comprehensive marketplace data. For additional information, visit www.ISG-One.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.
NobleCon20. Information Services Group CEO Michael Connors and CFO Michael Sherrick presented at NobleCon20. Management highlighted the opportunity in AI, including ISG Tango, and driving recurring revenue. A rebroadcast is available at https://www.channelchek.com/videos/information-services-group-noblecon20-replay.
Growth in AI. The opportunity in AI for ISG is prevalent, as management noted that 55% of large enterprises are focused on developing an AI roadmap today. This focus translates into a roughly 3 times increase in projected enterprise AI spending through 2025. ISG has two services in AI Advisory and Research that companies can utilize for the application of AI and to be informed on the best use cases. In our view, ISG is well-equipped to handle increased demand through its services.
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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.
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.
NobleCon20. Graham CFO Chris Thome and Vice President Matt Malone presented at NobleCon20. Highlights included the growth potential in U.S. Navy contracts, revenue diversification in the Space Segment, and M&A strategy. A rebroadcast is available at https://www.channelchek.com/videos/graham-corporation-noblecon20-replay.
Potential in U.S. Navy. The Navy’s Ford Class Carrier and Virginia and Columbia Class Submarines represent $1.2 to $1.4 billion in revenue potential based on planned projects. These project build timelines are expected to be completed as early as 2035 to as late as 2058, providing visibility and recurring revenue. With investments from defense customers to expand capacity and 80% of its defense revenue sole sourced, we believe Graham is uniquely positioned to expand its relationship with the Navy and other defense customers.
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.
GeoVax Labs, Inc. is a clinical-stage biotechnology company developing novel therapies and vaccines for solid tumor cancers and many of the world’s most threatening infectious diseases. The company’s lead program in oncology is a novel oncolytic solid tumor gene-directed therapy, Gedeptin®, presently in a multicenter Phase 1/2 clinical trial for advanced head and neck cancers. GeoVax’s lead infectious disease candidate is GEO-CM04S1, a next-generation COVID-19 vaccine targeting high-risk immunocompromised patient populations. Currently in three Phase 2 clinical trials, GEO-CM04S1 is being evaluated as a primary vaccine for immunocompromised patients such as those suffering from hematologic cancers and other patient populations for whom the current authorized COVID-19 vaccines are insufficient, and as a booster vaccine in patients with chronic lymphocytic leukemia (CLL). In addition, GEO-CM04S1 is in a Phase 2 clinical trial evaluating the vaccine as a more robust, durable COVID-19 booster among healthy patients who previously received the mRNA vaccines. GeoVax has a leadership team who have driven significant value creation across multiple life science companies over the past several decades.
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.
Intellectual Property Estate Is Expanding. GeoVax announced that the US Patent and Trademark Office has issued a Notice of Allowance for its patent application covering the expression of antigens in virus-like particles delivered with a viral vector. This is a mechanism used to stimulate an immune response from the GeoVax MVA-based vaccines. The patent allowance is the final step in the USPTO application process, and the patent will be issued after payment of fees.
The Application Covers Expression Of Immune Stimulation Antigens. The patent titled “Vaccinia Viral Vectors Encoding Chimeric Virus Like Particles” includes claims for expressing a tumor associated antigen (TAA) in virus-like particles (VLPs) from a recombinant Modified Vaccinia Ankara (MVA) viral vector. This covers vaccines that use the MVA as a vector to deliver DNA that assembles into non-infectious virus-like constructs to simulate an immune response against the targeted virus. This mechanism is used in the MVA MUC-1 (cancer) and infectious disease vaccines. A detailed description of the MVA platform and VLPs begins on page 7 of our Initiation of Coverage report.
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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.
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.
NobleCon20. On December 3rd, management presented to the investment community at NobleCon20, held at Florida Atlantic University (FAU) in Boca Raton, Florida. The presentation was conducted by Alexander Karavaev, chief financial officer, and Roman Safiyulin, chief corporate development officer. The duo highlighted the company’s dynamic growth prospects and the prospective swing toward growth in bookings. A replay of the presentation can be viewed by clicking here.
Dynamic business model. The company focuses on live-service games, meaning that the games have a continuous lifespan and are updated on an ongoing basis. This allows for a stable revenue base that grows over time, unlike many gaming companies with a “lumpier” revenue profile that oscillates based on game release schedules.
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.
The E.W. Scripps Company (NASDAQ: SSP) is a diversified media company focused on creating a better-informed world. As one of the nation’s largest local TV broadcasters, Scripps serves communities with quality, objective local journalism and operates a portfolio of 61 stations in 41 markets. The Scripps Networks reach nearly every American through the national news outlets Court TV and Newsy and popular entertainment brands ION, Bounce, Defy TV, Grit, ION Mystery, Laff and TrueReal. Scripps is the nation’s largest holder of broadcast spectrum. Scripps runs an award-winning investigative reporting newsroom in Washington, D.C., and is the longtime steward of the Scripps National Spelling Bee. Founded in 1878, Scripps has held for decades to the motto, “Give light and the people will find their own way.”
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.
NobleCon20. On December 3rd, management presented to the investment community at NobleCon20, held at Florida Atlantic University (FAU) in Boca Raton, Florida. The fireside chat presentation with Jason Combs, Chief Financial Officer, highlighted the company’s strategy regarding Scripps Sports, retransmission revenue, political revenue and debt reduction. A replay of the presentation can be viewed by clicking here.
Favorable sports model. Scripps Sports employs a unique model that offers sports teams wider viewership than the traditional Regional Sports Networks (RSNs) model, which is failing. Notably, the company has local broadcasting rights for the Las Vegas Golden Knights, Florida Panthers, and the Arizona Coyotes. Furthermore, the company has the national broadcast rights for the WNBA, which has seen a significant increase in viewership this season.
Equity Research is available at no cost to Registered users of Channelchek. Not a Member? Click ‘Join’ to join the Channelchek Community. There is no cost to register, and we never collect credit card information.
This Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).
*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.
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.
HPC and AI. As of November 30, 2024, Bit Digital had 266 servers actively generating revenue and earned approximately $4.3 million of total unaudited GPU Cloud revenue during the month. At Enovum’s data center, the Company had 13 customers actively generating revenue with colocation revenue of approximately $503,500. We believe the Boosteroid agreement, along with the two MSAs signed in the third quarter should expand revenue in the coming months.
Mining Side. The Company produced 44.9 BTC in the month, a 14.0% decrease from 52.2 BTC in October. The active hash rate was 2.51 EH/s, a slight increase from 2.43 EH/s last month. Bit Digital’s hosting provider, Coinmint, being acquired resulted in the termination of hosting contracts. Management has signed term sheets for the lost hosting capacity and is replacing energy inefficient miners, with a 3.0 EH/s active hash rate expected by the first half of 2025.
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.
DLH delivers improved health and readiness solutions for federal programs through research, development, and innovative care processes. The Company’s experts in public health, performance evaluation, and health operations solve the complex problems faced by civilian and military customers alike, leveraging digital transformation, artificial intelligence, advanced analytics, cloud-based applications, telehealth systems, and more. With over 2,300 employees dedicated to the idea that “Your Mission is Our Passion,” DLH brings a unique combination of government sector experience, proven methodology, and unwavering commitment to public health to improve the lives of millions. For more information, visit www.DLHcorp.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.
4Q Results. Reported revenue was $96.4 million compared to $101.5 million from last year and below our $101 million estimate. Net income for the quarter was $2.3 million, or $0.16/sh, compared to a net loss of $2.6 million, or $0.18/sh, last year. Adjusted EBITDA was $10.7 million, down from $12.1 million last year but above our estimate of $10.5 million.
CMOP. Management noted that the Company’s CMOP portfolio is under new task orders that go into the second quarter of 2025. Significantly, the Company has not continued its joint venture bids for specific locations, citing performance dilution. We expect DLH to bid on fewer CMOP contracts, resulting in lower CMOP revenue, likely once past the current extension.
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.
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, 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.
New Authorization. Kelly’s Board of Directors approved a new share repurchase program, authorizing the Company to purchase up to $50 million of its Class A common stock. The authorization expires on December 2, 2026. Shares under the authorization may be purchased from time to time in the open market, in privately negotiated transactions, or by other means.
Size. The $50 million authorization represents approximately 10% of Kelly’s current Class A market capitalization. We believe any potential share repurchases will be balanced against continued paydown of debt, additional M&A opportunities, and re-investment in the business to drive organic growth.
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.
Schwazze (OTCQX:SHWZ, NEO: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 best practices.
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.
Update. Schwazze, in conjunction with its new auditors, has determined that its financial statements for the two fiscal years ended December 31, 2023, will be restated due to the identification of certain accounting adjustments needed primarily relating to technical accounting areas. The Company filed an 8-k describing the necessary adjustments.
Impact. Although mostly related to technical accounting areas, the Company has concluded that the impact of these corrections is material and, therefore, worthy of restatement. However, Schwazze does not currently believe that the foregoing corrections will have any negative material impact on the Company’s revenue, adjusted EBITDA, cash from operations, or cash position.
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.
This past week, NobleCon20 brought an electrifying wave of innovation and inspiration to Boca Raton. Hosted by Noble Capital Markets, the event marked its 20th year of connecting growth-oriented companies with forward-thinking investors, entrepreneurs, and thought leaders. Over two days, attendees were treated to dynamic presentations, exciting competitions, and unparalleled networking opportunities, making this year’s NobleCon an unforgettable experience.
Day 1: AI Takes Center Stage and a Disco-Themed Hangar Party
Artificial Intelligence was one of the central themes of NobleCon20, setting the tone for what the future holds for businesses and industries. The day kicked off with an awe-inspiring keynote by Zack Kass, who delved into the transformative power of AI in sectors like healthcare, finance, and consumer goods. His insights into ethical considerations and practical opportunities left attendees eager to harness AI-driven innovation in their fields.
The AI panel, moderated by Noble Capital Markets’ Director of Research, Michael Kupinski, further explored the topic with industry leaders Jon Cohen (ServiceNow), Vin Singh (Bullfrog AI), and Elycia Morris (Synergist). Their engaging discussion covered challenges in AI adoption, emerging trends, and its impact across industries. The diverse perspectives of these experts left attendees with actionable insights to apply within their own organizations.
Throughout the day, the action continued with presentations from over 80 public companies, each showcasing their growth strategies and innovations to intrigued investors eager to learn about new opportunities. These sessions offered a unique chance to connect directly with industry leaders and gain insights into emerging investment trends.
As Day 1 came to a close, the energy shifted to the disco-themed hangar party. Set in a unique aviation venue, the event brought attendees together for a vibrant evening of celebration and networking. With lively music, fantastic food, and a dazzling disco atmosphere, the hangar party was a highlight of the conference, offering a perfect mix of fun and meaningful connections.
Day 2: Shark Tank Stars and Closing the Conference with a Bang
The excitement carried over into Day 2, where the packed schedule continued with more company presentations that kept investors captivated. Each session provided an in-depth look into growth sectors, helping attendees discover potential opportunities in an increasingly dynamic market.
The conference culminated in a grand finale: the Shark Live Pitch Competition. Entrepreneurs took the stage to pitch their innovative startups to the iconic Sharks from Shark Tank—Daymond John, Robert Herjavec, and Kevin O’Leary. The room was electrified as the Sharks asked incisive questions, provided candid feedback, and negotiated deals live. Audience participation added to the excitement, making it a thrilling end to an extraordinary event. The competition highlighted the incredible talent of participating entrepreneurs and underscored the Sharks’ unmatched expertise.
Looking Back at NobleCon20
NobleCon20 delivered on every front, from cutting-edge discussions about AI to thrilling live pitch competitions and unforgettable networking events. It was a celebration of innovation, entrepreneurial spirit, and collaboration, reinforcing Noble Capital Markets’ commitment to fostering growth and success in emerging industries.
Stay tuned for more updates and opportunities from the Noble Capital Markets team as we continue to connect, innovate, and inspire.
Key Points: – All-cash transaction creates leading food and beverage packaging manufacturer – Combines 250+ brands and 39,000 SKUs across diverse packaging substrates – 49% premium to Pactiv Evergreen’s pre-announcement stock price
Novolex and Pactiv Evergreen have announced a transformative $6.7 billion merger that will create a leading manufacturer in food and beverage packaging. The all-cash transaction, valued at $18.00 per Pactiv Evergreen share, represents a 49% premium to the company’s recent trading price.
The strategic combination brings together two complementary businesses, establishing an extensive packaging solutions provider with a comprehensive North American manufacturing and distribution network. By merging their portfolios, the companies will offer more than 250 brands and 39,000 product SKUs across multiple packaging substrates, including fiber, resin, and post-consumer recycled content.
Stan Bikulege, Novolex’s Chairman and CEO, emphasized the strategic rationale, highlighting the merger’s potential to create an innovative, sustainable, and customer-focused company. The transaction aims to accelerate product innovation, improve customer service, and enhance sustainability efforts through combined research and development capabilities.
The deal is backed by funds managed by Apollo and Canada Pension Plan Investment Board (CPP Investments), which will contribute approximately $1 billion and become a significant minority shareholder. Upon completion, expected in mid-2025, Pactiv Evergreen will become a privately held company.
Key strategic benefits include expanded service capabilities across the U.S., Canada, and Mexico, and increased resources for developing recyclable, compostable, and reusable packaging. The merger positions the combined entity to better meet evolving customer demands in grocery, retail, restaurant, and foodservice markets.
Michael King, Pactiv Evergreen’s President and CEO, described the transaction as a milestone that maximizes shareholder value and represents the next exciting chapter for the company. The merger builds on both companies’ recent operational improvements and focus on product innovation.
The transaction has received approval from Pactiv Evergreen’s Board of Directors and is subject to regulatory approvals and customary closing conditions. Upon completion, Novolex’s leadership will guide the combined organization, leveraging the strengths of both companies to create a packaging industry leader.
SAN DIEGO, Dec. 05, 2024 (GLOBE NEWSWIRE) — Kratos Defense & Security Solutions, Inc. (Nasdaq: KTOS), a Technology Company in the Defense, National Security and Global Markets and an industry-leading provider of high-performance, jet-powered unmanned aerial systems, today announced the successful performance of a recent series of flight tests of the United States Marine Corps’ XQ-58A Valkyrie, manufactured by Kratos. These flights and exercises were conducted jointly earlier this year by Kratos, Northrop Grumman Corporation, Autodyne, the United States Marine Corps (USMC), the United States Navy, and the United States Air Force (USAF).
Kratos’ XQ-58A Flies in Joint Emerald Flag Exercise
The test was conducted as a part of Emerald Flag 2024—a multiservice and multi-domain training exercise. During this milestone event, the USMC demonstrated cooperative kill chain closure between crewed and uncrewed strike platforms, specifically Kratos’ XQ-58A Valkyrie, for the first time in a large-force exercise.
The USMC kill chain closure demonstration, hosted in a joint force environment, showcased collaborative electronic warfare (EW) operations in addition to newly added tactical data link capabilities. These tests mark the first time the Department of Defense (DoD) controlled an XQ-58 using expeditionary methods. Initial results indicate the system met threshold requirements for autonomously exchanging relevant tactical information. These capabilities significantly enhance the Marine Air-Ground Task Force’s ability to conduct integrated and joint operations, contributing to the USMC’s mission to deter conflict and, when necessary, defeat enemies in complex and evolving scenarios.
These flights were conducted in partnership with the Office of the Under Secretary of Defense for Research and Engineering, the Naval Air Warfare Center Aircraft Division (NAWCAD) AIRWorks, and industry partners. Flight test support was provided by the 40th Flight Test Squadron, the 46th Test Squadron, the 96th Test Wing, and the Marine Operational Test & Evaluation Squadron 1 (VMX-1).
The latest event was witnessed by the USMC Deputy Commandant of Aviation, Lt. Gen. Bradford Gering, as well as officers and civilians from the Marine Corps Cunningham Group, Marine Corps Warfighting Laboratory, Naval Air Systems Command (NAVAIR) Expeditionary and Maritime Aviation-Advanced Development Team (XMA-ADT), and the Office of the Secretary of Defense (OSD).
As the USMC advances towards the operational fielding of a new uncrewed system, Kratos is at the vanguard of technological advancement to ensure the Marines have the best tactical asset to complement their fleet of F-35B aircraft.
Flying alongside four USMC F-35B aircraft from the Marine Fighter Attack Squadron 214 (VMFA-214) and two USAF F-15E/EX aircraft from the 40th Flight Test Squadron, the USMC XQ-58A operated under vehicle-level autonomy to perform maneuvers in a simulated threat environment. The Valkyrie’s on-board sensors identified and geolocated relevant threats, and simultaneously passed targeting data to collaborating air and ground platforms over tactical networks.
During the exercise, the XQ-58A was also flown by a USMC aviator, and control was passed between air and ground control methods which can command multiple Valkyries simultaneously. This demonstration of the XQ-58A’s ability to support crewed-uncrewed teaming and Expeditionary Advanced Base Operations (EABO) marks a significant milestone in the Marine Air-Ground Task Force Unmanned Aerial System Expeditionary (MUX) Tactical Aircraft (TACAIR) development.
Steve Fendley, President of Kratos Unmanned Systems Division, said, “We’re proud to be leading the industry effort to demonstrate and deliver this critical collaborative uncrewed aircraft capability. The mission capability demonstrated during the latest exercise – enabling Marine Corps pilots to lead a strike package of multiple Valkyries seamlessly transferring C2 between crewed aircraft and expeditionary ground control stations, to autonomously accomplish the mission while reducing risk exposure – will be a force multiplier. Our integrated, autonomous collaborative platform, jet-powered aircraft systems truly validate the DoD’s goal of achieving effective, survivable, affordable mass.”
Flying since 2019, the Kratos XQ-58A Valkyrie is a high-performance, runway-flexible tactical unmanned aerial vehicle capable of long-range flights at high-subsonic speeds. The Valkyrie can serve as a loyal wingman, conduct single unmanned aircraft system operations, or operate in swarms. Combining affordability, survivability, long-range, high-subsonic speeds, maneuverability, and ability to carry flexible mission kit configurations and mix of lethal weapons from its internal weapons bay and wing stations, the XQ-58A provides unmatched operational flexibility at an affordable price for multiple DoD customers.
About Kratos Defense & Security Solutions Kratos Defense & Security Solutions, Inc. (NASDAQ: KTOS) is a technology, products, system and software company addressing the defense, national security, and commercial markets. Kratos makes true internally funded research, development, capital and other investments, to rapidly develop, produce and field solutions that address our customers’ mission critical needs and requirements. At Kratos, affordability is a technology, and we seek to utilize proven, leading-edge approaches and technology, not unproven bleeding edge approaches or technology, with Kratos’ approach designed to reduce cost, schedule and risk, enabling us to be first to market with cost effective solutions. We believe that Kratos is known as an innovative disruptive change agent in the industry, a company that is an expert in designing products and systems up front for successful rapid, large quantity, low-cost future manufacturing which is a value add competitive differentiator for our large traditional prime system integrator partners and also to our government and commercial customers. Kratos intends to pursue program and contract opportunities as the prime or lead contractor when we believe that our probability of win (PWin) is high and any investment required by Kratos is within our capital resource comfort level. We intend to partner and team with a large, traditional system integrator when our assessment of PWin is greater or required investment is beyond Kratos’ comfort level. Kratos’ primary business areas include virtualized ground systems for satellites and space vehicles including software for command & control (C2) and telemetry, tracking and control (TT&C), jet powered unmanned aerial drone systems, hypersonic vehicles and rocket systems, propulsion systems for drones, missiles, loitering munitions, supersonic systems, space craft and launch systems, C5ISR and microwave electronic products for missile, radar, missile defense, space, satellite, counter UAS, directed energy, communication and other systems, and virtual & augmented reality training systems for the warfighter. For more information, visit www.KratosDefense.com.
Notice Regarding Forward-Looking Statements Certain statements in this press release may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are made on the basis of the current beliefs, expectations and assumptions of the management of Kratos and are subject to significant risks and uncertainty. Investors are cautioned not to place undue reliance on any such forward-looking statements. All such forward-looking statements speak only as of the date they are made, and Kratos undertakes no obligation to update or revise these statements, whether as a result of new information, future events or otherwise. Although Kratos believes that the expectations reflected in these forward-looking statements are reasonable, these statements involve many risks and uncertainties that may cause actual results to differ materially from what may be expressed or implied in these forward-looking statements. For a further discussion of risks and uncertainties that could cause actual results to differ from those expressed in these forward-looking statements, as well as risks relating to the business of Kratos in general, see the risk disclosures in the Annual Report on Form 10-K of Kratos for the year ended December 31, 2023, and in subsequent reports on Forms 10-Q and 8-K and other filings made with the SEC by Kratos.
In the weeks following the U.S. elections, a clear market leader has emerged: the Russell 2000. This index of small-cap stocks has outpaced major benchmarks such as the S&P 500, Dow Jones, and Nasdaq, signaling a rotation in investor sentiment toward higher growth opportunities. As investors search for areas with the most potential, small-cap stocks are standing out as a prime destination for future growth.
Since November 6, the Russell 2000 has demonstrated a significant recovery, outpacing its larger-cap peers by a notable margin. Historically, small-cap stocks have been among the biggest beneficiaries of economic optimism, thanks to their reliance on U.S. domestic growth and their ability to adapt to changing market conditions.
Index
Performance (Nov 6 – Nov 29)
Russell 2000 (RTY)
+12.5%
S&P 500 (SPX)
+6.8%
Dow Jones (INDU)
+7.2%
Nasdaq Composite (CCMP)
+5.9%
Why Investors Are Turning to Small Caps
Small-cap stocks are poised for the most growth in the current market environment. Here’s why they’re becoming a key focus for investors:
Explosive Growth Potential: Smaller companies typically have more room to expand, making them attractive to investors seeking high returns during periods of economic recovery.
Policy Favorability: Market participants are betting on pro-business policies, which are expected to stimulate domestic-focused companies.
Valuation Advantages: After years of underperformance compared to large-cap tech stocks, many small-cap stocks are trading at attractive valuations, creating opportunities for long-term gains.
Sector Diversity: The Russell 2000 spans a variety of sectors, including financials, energy, and consumer services, which are positioned to benefit from economic resilience.
The outperformance of the Russell 2000 reflects a broader trend: small caps are not only catching up but are also laying the groundwork for sustained growth. With the U.S. economy showing signs of stabilization and a renewed focus on innovation and entrepreneurship, small-cap stocks offer investors a rare chance to capitalize on their agility and growth prospects.
For investors looking to explore the potential of small-cap stocks and connect with the companies leading this charge, Noble Capital Markets is hosting its flagship event, NobleCon20, this week.
Starting tomorrow, December 2, NobleCon20 will bring together industry leaders, small-cap innovators, and investors for a one-of-a-kind event. Held over three days, the conference will feature:
Live Panels: Including a must-see AI panel headlined by Zack Kass, who will delve into cutting-edge advancements in artificial intelligence and their impact on markets.
A Shark Tank Experience: A live pitch competition judged by the ‘Sharks,’ offering insight into innovative small-cap ventures.
Networking Opportunities: Connect with executives, investors, and thought leaders from a range of industries.
Whether you’re a seasoned investor or just starting to diversify your portfolio, NobleCon20 provides an invaluable opportunity to gain insights into small-cap growth stories and identify market-leading opportunities.
Registration is still open for NobleCon20, and attendance is free for qualified investors. Don’t miss your chance to engage with small-cap executives and industry professionals who are shaping the future of the market.
Register now at NobleCon20.com to secure your spot at the premier small-cap event of the year.
As the Russell 2000’s recent performance demonstrates, small caps are positioned for growth in the current economic and market landscape. Investors looking to capitalize on this momentum should pay attention to the opportunities in this space.
With NobleCon20 starting tomorrow, now is the perfect time to immerse yourself in the small-cap story and discover the companies driving innovation and expansion. Join us and take the first step toward seizing the opportunities in this exciting segment of the market.
