The GEO Group (GEO) – A USMS Contract Renewal

Tuesday, July 05, 2022

The GEO Group (GEO)
A USMS Contract Renewal

The GEO Group, Inc. (NYSE: GEO) is a leading diversified government service provider, specializing in design, financing, development, and support services for secure facilities, processing centers, and community reentry centers in the United States, Australia, South Africa, and the United Kingdom. GEO’s diversified services include enhanced in-custody rehabilitation and post-release support through the award-winning GEO Continuum of Care®, secure transportation, electronic monitoring, community-based programs, and correctional health and mental health care. GEO’s worldwide operations include the ownership and/or delivery of support services for 103 facilities totaling approximately 83,000 beds, including idle facilities and projects under development, with a workforce of up to approximately 18,000 employees.

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.

USMS Renewal. On Thursday, GEO reported that the U.S. Marshals Service has exercised the current contract option period to continue to utilize the 770-bed Western Region Detention Facility in San Diego, California, which is effective through September 30, 2023. The existing contract also has two additional two-year contract option periods, which if exercised by the USMS, would be effective through September 30, 2025 and September 30, 2027, respectively. GEO’s Western Region Detention Facility contract with the USMS had been operating under a 90-day contract extension which was scheduled to end on June 30, 2022.

A Precedent? Western was under a direct contract with the USMS. It was renewed in spite of the Executive Order given the lack of alternatives in the region, in our opinion. GEO has two additional direct contracts with the USMS, both expiring in 2023. Its possible we could see the same outcome at renewal, although it is too early to tell.

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. 

Bassett Furniture (BSET) – Bests 2Q22 Consensus, But What About Going Forward?

Tuesday, July 05, 2022

Bassett Furniture (BSET)
Bests 2Q22 Consensus, But What About Going Forward?

Bassett Furniture Industries, Incorporated manufactures, markets, and retails home furnishings in the United States. The company operates in three segments: Wholesale, Retail, and Logistical Services. It is involved in the design, manufacture, sourcing, sale, and distribution of furniture products to a network of company-owned and licensee-owned Bassett Home Furnishings (BHF) retail stores, as well as independent furniture retailers; and wood and upholstery operations. As of September 16, 2017, the company operated a network of 91 company-and licensee-owned stores. It also provides shipping, delivery, and warehousing services to customers in the furniture industry. In addition, the company owns and leases retail store properties. It also distributes its products through other multi-line furniture stores, Bassett galleries or design centers, specialty stores, and mass merchants. Bassett Furniture Industries was founded in 1902 and is based in Bassett, Virginia.

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.

2Q22 Results. Revenue for the fiscal second quarter ended May 28th was $128.7 million, up 17.0% over the prior year period and up from $117.1 million in the fiscal first quarter. Wholesale revenue rose 15.3% to $87.5 million, while Retail revenue rose 21.0% to $75.6 million. Bassett reported net income from continuing operations of $7.7 million, or $0.81 per share, compared to net income from continuing operations of $5.1 million, or $0.51 per share, in the prior year. We had forecast revenue of $116 million and EPS from continuing operations of $0.46.

Record Retail. The second quarter was an all-time record sales and profitability performance for the Retail segment. Basset continues to refine it’s store network and the move to open regional fulfillment centers should expand the addressable market as consumers seeking an “immediate” option will now be able to shop Bassett….

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 outlook for energy stocks remains favorable – Energy Industry Report

Tuesday, July 5, 2022

Energy Industry Report

The outlook for energy stocks remains favorable

Michael Heim, CFA, Senior Research Analyst, Noble Capital Markets, Inc.

Refer to end of report for Analyst Certification & Disclosures

  • Energy stocks finally cooled off after five consecutive quarters of gains. The energy stock index declined 6.4% in the June quarter due to weakness in the overall market. The S&P Composite Index declined 16.4% during the quarter.
  • Oil prices continued the climb begun in the spring of 2020 rising 5.5% in the quarter. The climb may have come to an end, however, with WTI prices peaking at $120 per barrel in the first week of June before settling at current levels near $108 per barrel. Supply concerns associated with the Ukraine conflict have been replaced by worries that economic tightening will lead to a slowdown in the world economy. OPEC announced production increases right at the end of the quarter, further putting pressure on prices. Active rigs have almost tripled in the last two years but remain below pre-pandemic levels and are only one-third of peak levels in 2015.
  • Like oil prices, natural gas prices were strong in April and May but fell sharply in June. For the quarter, spot gas prices declined 3.9%. Gas in storage remains near the bottom of historical levels as the industry begins to refill storage fields
  • Energy industry fundamentals remain strong. The recent drop in oil and gas prices does not concern us as prices are still well above the levels assumed in our financial and valuation models. Companies able to expand drilling efforts are doing so at a very high return on equity. Cash flow generation is high, and companies are facing the envious situation of trying to decide what to do with the cash. We maintain our positive bias on the group and favor small cap energy stocks with the ability to expand operations.

Energy Stocks

Energy stocks, as measured by the XLE Energy Index, finally cooled off after five consecutive quarters of gains. The XLE declined 6.4% in the June quarter. The decline was largely due to weakness in the overall market as oil and natural gas prices were largely unchanged. The S&P Composite Index declined 16.4% during the quarter. Looking at the XLE performance, it is interesting to note that the index’s performance was up sharply until hitting a peak on June 8th and then declining 15% in the last three weeks of the quarter.

Oil Prices

Oil prices continued the climb begun in the spring of 2020. The climb may have come to an end with WTI prices peaking at $120 per barrel in the first week of June before settling at current levels near $108 per barrel. Supply concerns associated with the Ukraine conflict have been replaced by worries that economic tightening will lead to a slowdown in the world economy. OPEC announced production increases right at the end of the quarter, further putting pressure on prices. The gap between Brent and WTI pricing has grown with Brent oil prices now commanding a $7/bbl. premium. Oil future prices are currently backward declining a few dollars each month and falling below $100 by yearend. Drillers are beginning to react to higher oil prices, but the response has been slow. Active rigs have almost tripled in the last two years but remain below pre-pandemic levels and are only one-third of peak levels in 2015. As the chart below shows, there has been a disconnect between the oil rig count and oil prices in recent years that has become only more exaggerated in recent months with oil prices rising above $100.

Figure #1

 

 

Source: Baker-Hughes

 

Natural Gas Prices

Like oil prices, natural gas prices were strong in April and May but fell sharply in June. For the quarter, spot gas prices declined 3.9%. Gas in storage remains near the bottom of historical levels as the industry begins to refill storage fields. Gas storage is about 300 billion cubic feet or 12% below the trailing five-year average. This will most likely keep natural gas prices at elevated levels until the injections season ends in November.

 

Figure #2

 

 

 

 

Outlook

Energy industry fundamentals remain strong. The recent drop in oil and gas prices does not concern us as prices are still well above the levels assumed in our financial and valuation models. Companies able to expand drilling efforts are doing so at a very high return on equity. Cash flow generation is high, and companies are facing the envious situation of trying to decide what to do with the cash. Debt levels have been pared down and managements are reluctant to initiate/raise above in case the industry goes into a down cycle forcing them to reverse course. Share repurchase remains a viable option especially if energy stocks continue to be weak alongside the overall market. We maintain our positive bias on the group and favor small cap energy stocks with the ability to expand operations.

GENERAL DISCLAIMERS

All statements or opinions contained herein that include the words “we”, “us”, or “our” are solely the responsibility of Noble Capital Markets, Inc. (“Noble”) and do not necessarily reflect statements or opinions expressed by any person or party affiliated with the company mentioned in this report. Any opinions expressed herein are subject to change without notice. All information provided herein is based on public and non-public information believed to be accurate and reliable, but is not necessarily complete and cannot be guaranteed. No judgment is hereby expressed or should be implied as to the suitability of any security described herein for any specific investor or any specific investment portfolio. The decision to undertake any investment regarding the security mentioned herein should be made by each reader of this publication based on its own appraisal of the implications and risks of such decision.

This publication is intended for information purposes only and shall not constitute an offer to buy/sell or the solicitation of an offer to buy/sell any security mentioned in this report, nor shall there be any sale of the security herein in any state or domicile in which said offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or domicile. This publication and all information, comments, statements or opinions contained or expressed herein are applicable only as of the date of this publication and subject to change without prior notice. Past performance is not indicative of future results.

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IMPORTANT DISCLOSURES

This publication is confidential for the information of the addressee only and may not be reproduced in whole or in part, copies circulated, or discussed to another party, without the written consent of Noble Capital Markets, Inc. (“Noble”). Noble seeks to update its research as appropriate, but may be unable to do so based upon various regulatory constraints. Research reports are not published at regular intervals; publication times and dates are based upon the analyst’s judgement. Noble professionals including traders, salespeople and investment bankers may provide written or oral market commentary, or discuss trading strategies to Noble clients and the Noble proprietary trading desk that reflect opinions that are contrary to the opinions expressed in this research report.

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Noble is not a market maker in any of the companies mentioned in this report. Noble intends to seek compensation for investment banking services and noninvestment banking services (securities and non-securities related) with any or all of the companies mentioned in this report within the next 3 months.

ANALYST CREDENTIALS, PROFESSIONAL DESIGNATIONS, AND EXPERIENCE

Senior Equity Analyst focusing on energy and utility stocks. 24 years of experience as an analyst. Chartered Financial Analyst©. MBA from Washington University in St. Louis and BA in Economics from Carleton College in Minnesota. Named WSJ ‘Best on the Street’ Analyst four times. Named Forbes/StarMine’s “Best Brokerage Analyst” three times. FINRA licenses 7, 63, 86, 87.

WARNING

This report is intended to provide general securities advice, and does not purport to make any recommendation that any securities transaction is appropriate for any recipient particular investment objectives, financial situation or particular needs. Prior to making any investment decision, recipients should assess, or seek advice from their advisors, on whether any relevant part of this report is appropriate to their individual circumstances. If a recipient was referred to by an investment advisor, that advisor may receive a benefit in respect of transactions effected on the recipients behalf, details of which will be available on request in regard to a transaction that involves a personalized securities recommendation. Additional risks associated with the security mentioned in this report that might impede achievement of the target can be found in its initial report issued by . This report may not be reproduced, distributed or published for any purpose unless authorized by.

RESEARCH ANALYST CERTIFICATION

Independence Of View

All views expressed in this report accurately reflect my personal views about the subject securities or issuers.

Receipt of Compensation

No part of my compensation was, is, or will be directly or indirectly related to any specific recommendations or views expressed in the public appearance and/or research report.

Ownership and Material Conflicts of Interest

Neither I nor anybody in my household has a financial interest in the securities of the subject company or any other company mentioned in this report.

NOBLE RATINGS DEFINITIONS % OF SECURITIES COVERED % IB CLIENTS
Outperform: potential return is >15% above the current price 95% 28%
Market Perform: potential return is -15% to 15% of the current price 5% 2%
Underperform: potential return is >15% below the current price 0% 0%

NOTE: On August 20, 2018, Noble Capital Markets, Inc. changed the terminology of its ratings (as shown above) from “Buy” to “Outperform”, from “Hold” to “Market Perform” and from “Sell” to “Underperform.” The percentage relationships, as compared to current price (definitions), have remained the same.

Additional information is available upon request. Any recipient of this report that wishes further information regarding the subject company or the disclosure information mentioned herein, should contact Noble Capital Markets, Inc. by mail or phone.

Noble Capital Markets, Inc.
150 East Palmetto Park Rd., Suite 110
Boca Raton, FL 33432
561-994-1191

Noble Capital Markets, Inc. is a FINRA (Financial Industry Regulatory Authority) registered broker/dealer.
Noble Capital Markets, Inc. is an MSRB (Municipal Securities Rulemaking Board) registered broker/dealer.
Member – SIPC (Securities Investor Protection Corporation)

Report ID: 24648

When the History of Bitcoin is Written, This Story Will be in the Book



Image Credit: fdecomite (Flickr)


Was MicroStrategy Trying to Cause Bitcoin’s Price to Change Direction?

With Bitcoin trading at $19,000, is it a buy? This is the big question crypto-traders and crypto-investors are asking themselves. While others are staring at their screens wondering, software company MicroStrategy (MSTR), the company that stared down a possible margin call on its $3.97 billion bitcoin stake a few weeks back, just put an additional 480 bitcoin (BTC.X) on the company books. 

The CEO, with board approval, holds an inordinate amount of bitcoins. The analytics software company with a $1.93 billion market cap owns so many that its stock trades in tandem with the price of the cryptocurrency.

On Wednesday (June 29), the company reported that it had purchased an additional 480 bitcoins for about $10 million at an average price of $20,817 per coin from early May to June 28. The updated position brings the company holdings to 129,699 bitcoins (BTC.X). Its average cost is $30,664 for a total acquisition cost of $3.98 billion. At $19,100. Per coin, the company holdings are worth approximately $2.477 billion.

During bitcoin’s latest leg down to the $18,000-$21,000 range, there was a lot of talk about whether MicroStrategy may begin to face margin calls. The company CEO Michael Saylor dismissed the chatter and indicated the company would purchase additional bitcoins as cash flow allowed.

In a recent Channelchek article titled, Cowboys
and Cryptocurrency
the question was asked, is the founder of this successful company a “cowboy” willing to take risks for the thrill of the ride. The new addition of even more bitcoin after the challenges his company was rumored to have faced a few weeks back, coupled with the overall dark clouds over crypto, might cause one to answer “yes,” he may have a penchant for risk-taking. But perennial “Gold Bug” Peter Schiff offers a different theory surrounding Saylor’s more recent $10 million bitcoin purchase.

Peter Schiff is a well-known critic of bitcoin. He has suggested that the MicroStrategy purchase was an attempt to cause a rally on the news. After the widespread rumors of MicroStrategy’s potential margin call, a strong show of support for the cryptocurrency, even if only $10 million, by Saylor, could have served as the push bitcoin needed to trade higher.

Bitcoin is down 60% year-to-date. This is double the losses in the tech-heavy Nasdaq which is down 29%. A sign of support from a big advocate and large holder had the potential to get something going, except the headwinds for many assets are strong.

Take Away

It would seem MicroStrategy and its founder are unrelenting in believing in the potential of bitcoin as sound money, and despite its loss of close to $10,000 per BTC on its total holdings, the firm is optimistic that the currency will prove itself superior. Once proven, it will pave the way for a bullish run. Or they could be wrong, and the company may eventually trade on other fundamentals.

Paul Hoffman

Managing Editor, Channelchek

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Microstrategy’s Bitcoin Position and the Past, Present, and Future of Crypto



From Tulips and Scrips to Bitcoin and Meme Stocks – How the Act of Speculating Became a Financial Mania




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The Metaverse, Panel Presentation – NobleCon18


Sources

https://www.youtube.com/watch?v=v7_DJKkijLo

https://twitter.com/PeterSchiff/status/1542164209995337734

https://mises.org/power-market/3-common-criticisms-crypto-and-why-theyre-wrong

https://www.coindesk.com/podcasts/coindesks-money-reimagined/terraform-labs-ust-stablecoin-broke-the-buck/#:~:text=How%20the%20naysayers%20were%20right,why%20it%20matters%20for%20investors.


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There’s Still a Swift Current Helping Some Infrastructure Related Companies



Image Credit: Chris Bentley (Flickr)


A 132-Year-Old Infrastructure Company Uniquely Positioned to Build the Future

While the markets have washed out most categories of stocks during the first half of 2022, an astute investor will sift through those that should not have gone down with the overall tide – reviewing companies that have actually gained ground in their business or ancillary businesses. One seemingly well-grounded company, in business for 132 years, was just interviewed by Noble Capital Markets Senior Analyst  Joe Gomes. The conversation with the infrastructure service provider seemed to reconfirm that there is still forward movement in many industries and companies that are possibly value-priced courtesy of the downturn. This notion grew as management highlighted, during the interview, the company’s key role in old business lines and in the coming wave of energy production.

In the recorded C-Suite
interview
, Great Lakes Dredge & Dock (GLDD), the largest provider of dredging services in the U.S. and only publicly-traded company providing this type of infrastructure improvement, explains GLDDs new division helping to construct offshore wind farms. U.S. offshore wind electric production has been accelerating with the administration’s plans to provide 30 gigawatts of electricity by 2050. To help them lead in this effort, Great Lakes Dredge and Dock has ordered a $197 million high-tech boat. This will be the first U.S.-flagged, Jones Act compliant subsea rock installation vessel for the construction of windmills. The ship will specialize in meticulously placing large rocks around the foundations of the offshore mills to protect them. Each offshore wind farm is expected to have at least 100 mills, or more pertinent to GLDD investors, 100 foundations.

No other company has announced procuring such a vessel; if demand requires, GLDD has a contractual option to order a second ship. The first will not be operational until late 2024. A second, if ordered, available sometime in 2027.

Great Lakes is in a unique position as offshore wind farm construction in the U.S. adheres to the Jones Act. This requires a US-flagged ship to be used, GLDD will have the first of its kind when delivered.


Source:
Koyfin 

GLDD experienced a sharp selloff in January along with the rest of the market. Performance since late January has been well ahead of the broader indexes, and prospects for the future appear to be lining up well.

Great Lakes is currently involved with Empire Offshore Wind, a joint venture between Equinor (NYSE: EQNR) and BP (NYSE: BP). Empire Offshore Wind has chosen Great Lakes in consortium with Van Oord to perform the subsea rock installation work for the Empire Wind I and II wind farms in the East Coast of the United States. Empire Wind I and II are expected to provide over 2 Gigawatts of electric power to the State of New York.

To learn more about Great Lakes Dredge and Dock and their current business as well as their new division, watch the full C-Suite Interview, and review the most recent research report by one of the few equity analysts specializing in the name.

Paul Hoffman

Managing Editor, Channelchek

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C-Suite Interview with Great Lakes Dredge & Dock (GLDD) June 16, 2022


Sources

Channelchek C-Suite Interview Podcast (GLDD)

https://www.whitehouse.gov/briefing-room/statements-releases/2021/03/29/fact-sheet-biden-administration-jumpstarts-offshore-wind-energy-projects-to-create-jobs/

https://gldd.com/leadership/#

https://gldd.com/great-lakes-dredge-dock-corporation-awarded-large-scale-u-s-offshore-wind-rock-installation-project/


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Release – ISG – U.S. Public Sector, Facing Major Changes, Shifts to the Cloud


U.S. Public Sector, Facing Major Changes, Shifts to the Cloud

6/30/2022

Government agencies are breaking out of aging IT infrastructure and methods with managed hosting and managed services, ISG Provider Lens™ report says

Public sector organizations in the U.S. are responding to major changes in work and technology by shifting IT operations to private or hybrid clouds, according to a new research report published today by Information Services Group (ISG) (Nasdaq: III), a leading global technology research and advisory firm.

The 2022 ISG Provider Lens™ Next-Gen Private/Hybrid Cloud — Data Center Services and Solutions report for the U.S. Public Sector finds the rise of remote work during the COVID-19 pandemic is only one of several trends affecting the IT operations of government agencies. Increased cybersecurity threats, a growing need for edge computing, staff shortages and server systems reaching their end of life are also changing public sector IT needs. For many agencies, the answer is to shift more IT functions to cloud service providers.

“Public sector agencies have maintained legacy IT estates well beyond their end of life. This is an unsustainable strategy that is no longer keeping pace with stakeholder demands,” said Nathan Frey, partner, ISG Public Sector. “Private and hybrid clouds offer a way to modernize IT within the government’s budget and staffing limits.”

The public sector is grappling with the same trends other industries face, along with its own specific challenges, the report says. The pandemic forced agencies to connect with employees and constituents online and triggered the “great resignation,” which has included many retiring public-sector IT employees. Some emerging public-sector applications, such as environmental monitoring and roadside systems that communicate wirelessly with vehicles, require the knowledge and expertise to roll out new edge computing technologies.

More than in the private sector, many public sector organizations in the U.S. still use aging mainframes based on computer languages that few working programmers know, the report says. With mainframe experts retiring, agencies have few choices other than outsourcing their work to service providers or migrating mainframe applications to new, cloud-native platforms.

The U.S. public sector is at a disadvantage when hiring staff for new technologies, because private companies are better able to pay the premium for talent in today’s tight labor market, ISG says.

“Service providers are often better able to support special IT needs because they can hire one expert to serve multiple clients,” said Jan Erik Aase, partner and global leader, ISG Provider Lens Research.

The 2022 ISG Provider Lens™ Next-Gen Private/Hybrid Cloud — Data Center Services and Solutions report for the U.S. Public Sector evaluates the capabilities of 24 providers across two quadrants: Managed Services and Managed Hosting.

The report names Rackspace Technology and Unisys as Leaders in both quadrants. It names Accenture, Ensono, Infosys, Lumen, NTT Ltd., TCS and Wipro as Leaders in one quadrant each.

In addition, Lumen is named a Rising Star — a company with a “promising portfolio” and “high future potential” by ISG’s definition — in Managed Services.

A customized version of the report is available Unisys.

The 2022 ISG Provider Lens™ Next-Gen Private/Hybrid Cloud — Data Center Services and Solutions report for the U.S. Public Sector is available to subscribers or for one-time purchase on this webpage.

About ISG Provider Lens™ Research

The ISG Provider Lens™ Quadrant research series is the only service provider evaluation of its kind to combine empirical, data-driven research and market analysis with the real-world experience and observations of ISG’s global advisory team. Enterprises will find a wealth of detailed data and market analysis to help guide their selection of appropriate sourcing partners, while ISG advisors use the reports to validate their own market knowledge and make recommendations to ISG’s enterprise clients. The research currently covers providers offering their services globally, across Europe, as well as in the U.S., Canada, Brazil, the U.K., France, Benelux, Germany, Switzerland, the Nordics, Australia and Singapore/Malaysia, with additional markets to be added in the future. For more information about ISG Provider Lens research, please visit this webpage.

A companion research series, the ISG Provider Lens Archetype reports, offer a first-of-its-kind evaluation of providers from the perspective of specific buyer types.

About ISG

ISG (Information Services Group) (Nasdaq: III) is a leading global technology research and advisory firm. A trusted business partner to more than 800 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 more information, visit www.isg-one.com.

Source: Information Services Group, Inc.

Release – ISG Awarded $10M Digital Transformation Governance Contract by Italian Government


6/30/2022

Award will help Italian Public Administration reach its digital transformation objectives

Information Services Group (ISG) (Nasdaq: III), a leading global technology research and advisory firm, today announced it has been awarded a three-year US $10 million (€9.4 million) agreement by the Italian government to help manage and oversee the government’s digital transformation program.

“This is a significant win for ISG, underscoring our strong track record of supporting digital modernization efforts for our clients,” said Michael P. Connors, chairman and CEO of ISG. “We are proud to be a part of Italy’s program to leverage technology to improve the accessibility and efficiency of government services for the Italian people, and to build a stronger, more resilient Italy, post-pandemic.”

Under the new framework contract awarded by Consip, the Italian Public Administration’s central IT purchasing body, ISG will provide governance services for various digital transformation initiatives in support of Italy’s “Three-Year Plan for Information Technology in the Public Administration” prepared by two government entities: AgID (Agenzia per I’Italia Digitale – Agency for Digital Italy) and MITD (Ministero per l’Innovazione Tecnoligica e la Transizione Digitale – Ministry for Innovation Technology and Digital Transition).

ISG will work closely with AgID, Consip and MITD to govern a broad set of initiatives aimed at developing and improving Italy’s digital services, including helping the Public Administration’s control bodies verify the initiatives are delivering expected value in terms of digitization KPIs and achieving their targets under the three-year plan.

ISG has supported the Italian public sector for more than a decade, including governing ICT contracts for the Ministry of the Interior in a relationship that dates back to 2010. The firm also has provided Consip with benchmarking services related to framework agreements for the Public Administration; analysis of cloud strategy scenarios for AgID, and contract monitoring services for INAIL (Istituto Nazionale per l’Assicurazione contro gli Infortuni sul Lavoro – the National Institute for Insurance against Accidents at Work).

About ISG

ISG (Information Services Group) (Nasdaq: III) is a leading global technology research and advisory firm. A trusted business partner to more than 800 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 more information, visit www.isg-one.com.

Source: Information Services Group, Inc.

BioSig Technologies (BSGM) – BioSig Closes Common Share Offering

Thursday, June 30, 2022

BioSig Technologies (BSGM)
BioSig Closes Common Share Offering

BioSig Technologies is a medical technology company commercializing a proprietary biomedical signal processing platform designed to improve signal fidelity and uncover the full range of ECG and intra-cardiac signals (www.biosig.com). The Company’s first product, PURE EP(TM) System is a computerized system intended for acquiring, digitizing, amplifying, filtering, measuring and calculating, displaying, recording and storing of electrocardiographic and intracardiac signals for patients undergoing electrophysiology (EP) procedures in an EP laboratory.

Gregory Aurand, Senior Research Analyst, Healthcare Services & Medical Devices, Noble Capital Markets, Inc.

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

Offering priced. Last Friday, June 24, 2022, BioSig Technologies priced a public offering of common shares on a “best efforts” basis.  The offering was for up to 4.666667 million shares at a price of $0.75 per share. The offering closed on June 29, 2022 with 4.341667 million shares sold, and proceeds to the company of around $2.9 million. 

A bit unexpected, timing-wise, but supports PURE EP commercialization.  BioSig had filed an ATM agreement for up to $10 million May 17, 2022 but chose an alternative “best efforts” offering instead.  While we expected funding needs in the third quarter, we are bit surprised the Company raised funds now. That said, BioSig is ramping up commercial activities as they shift to a national strategy….

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. 

Salem Media Group (SALM) – Transforming The Way You Think About Salem (Corrected Copy, $5.25 PT)

Thursday, June 30, 2022

Salem Media Group (SALM)
Transforming The Way You Think About Salem (Corrected Copy, $5.25 PT)

Salem Media Group is America’s leading multimedia company specializing in Christian and conservative content, with media properties comprising radio, digital media and book and newsletter publishing. Each day Salem serves a loyal and dedicated audience of listeners and readers numbering in the millions nationally. With its unique programming focus, Salem provides compelling content, fresh commentary and relevant information from some of the most respected figures across the Christian and conservative media landscape.

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.

Solid 1st quarter. The company reported Q1 revenue of $62.9 million, 1.8% above our estimate of $61.5 million. Adj. EBITDA of $6.85 million was virtually in line with our forecast of $6.9 million, deviating by just 0.8%.

Block programming looking strong. Block programming revenue was up 10%, which consists of 3% growth in local and 13% growth in national. This was due in part to the addition of two large ministries in the quarter. Notably, Salem has a 95%+ renewal rate with block programming….

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 upo

Labrador Gold Corp. (NKOSF) – Discovering Gold Along the Appleton Fault in Newfoundland

Thursday, June 30, 2022

Labrador Gold Corp. (NKOSF)
Discovering Gold Along the Appleton Fault in Newfoundland

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

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

Initiating coverage with an Outperform rating. Labrador Gold is advancing its flagship Kingsway gold project in the Central Newfoundland Gold Belt. The company is nearly midway through a 100,000-meter drilling program targeting high-grade gold mineralization along a 12-kilometer section of the Appleton Fault Zone. The company’s portfolio also includes the Hopedale project that covers much of the Florence Lake Greenstone Belt in Labrador, the Borden Lake Extension in Ontario which consists of 219 claims that are 100% owned by Labrador Gold, and the Scotch property which consists of 25 claims encompassing an area of 61 square kilometers near New Brunswick.

Drilling program yielding promising results. Holes have been drilled at the Big Vein, Pristine, Midway, and Golden Glove targets. All four targets have produced impressive assay results. The company recently started drilling a fifth target, CSAMT, and expects to drill a total of ten holes. At Big Vein, near surface high-grade gold intersections include 276.56 grams of gold per tonne over 0.5 meters, 44.08 grams of gold over 4.28 meters, and 128.51 grams of gold over 1.12 meters. Exploration along the Appleton Fault continues to generate new targets….

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. 

No Signs of Moderation on Home Price Increases


Image: PhotoMIX Company


What Will It Take to End Rampant Home-Price Inflation?

Real wages are falling, inflation is at a forty-year high, and the Atlanta Fed predicts we’ll find GDP (gross domestic product) growth at zero for the second quarter. Meanwhile, both the yield curve and money supply growth point to recession.

But when it comes to the latest data on home prices, there’s still no sign of any deflation or even moderation. For example, the latest Case-Shiller home price data shows home prices surged above 20 percent year over year in April, marking yet another month of historic highs in-home price growth. It’s now abundantly clear that a decade of easy money, followed by two years of covid-induced helicopter money, has pushed home price growth to levels that dwarf even the pre-2008 housing bubble. This continues to make housing less affordable for potential first-time home buyers and for renters. Unfortunately, the options for “doing something” are limited, and probably require a recession.

But in the meantime, those who are already lucky enough to be property owners continue to see some big gains. According to the latest Case-Shiller home price report, released Tuesday (June 28):


Source: Case Schiller Home Report

According to the index, year-over-year changes have exceeded 18 percent for each month since June 2021, a rate well in excess of the growth rates experienced during the housing bubble leading up to the financial crisis of 2008. This growth is also reflected in month-over-month growth, which has not fallen below 1 percent in twenty-one months. In other words, as of April, there was still no sign at all that price inflation and declining real wages were doing much to dampen demand for home purchases.


Image: Case Schiller

The reader may remember that price inflation began to surge well above the Fed’s target 2 percent rate as early as April 2021. Price inflation hit forty-year highs of more than 8 percent during early 2022. Moreover, April of this year was the thirteenth month in a row in which price inflation outpaced growth in average earnings.

Housing Is Less Affordable, But There Are Plenty of Buyers

People are getting poorer in real terms, so it’s not surprising that April data also shows historic imbalances between disposable income and home prices. As of April 2022, the Census Bureau’s estimate for the average sale price of new houses sold reached 10.3 times the size of disposable personal income per capita. The average home sale price has been more than nine times disposable income for the past six months of available data. In recent decades, home prices have only been this unaffordable in periods leading up to recessions and financial crises—i.e., 1980, 1991, and 2007. April’s home-price-to-income ratio is higher than in any other period in more than forty-five years.


Image: Case Schiller

One reason the April data showed no sign of declining home prices is that employment data—a lagging economic indicator—still showed a relatively strong job market. Although total nonfarm employment remained below 2019 precovid levels, job growth was strong enough to combine with monetary inflation and fuel big growth in prices—an ongoing trend. Moreover, as of April, mortgage rates had not yet climbed out of very-low-rate territory. The average thirty-year fixed rate did not even reach 5 percent until mid-April. This, combined with continued job growth, helped keep demand high. (As of mid-June, however, the average thirty-year fixed rate is 5.8 percent, a thirteen-year high.)

So What Will it Take Before We Begin to See Any Real Reductions in Home Prices?

Unfortunately, the only real way out is probably a recession. This is thanks to a mixture of the regime’s fiscal and monetary policies. After so many months of reckless monetary inflation fueling out-of-control demand, all that newly created money continues to chase relatively stagnant supply. Supply has been hobbled by lockdown-induced logistical bottlenecks, US sanctions on Russia, and rising energy prices due to the regime’s war on fossil fuels. Thus, consumers can’t benefit from the sort of supply-driven disinflationary forces that helped keep price inflation at manageable levels during many periods in the past. Now, we’re just left with surging demand fueled by new money, without the market freedom necessary to provide breathing room through supply growth.

Will the Fed Tighten Enough?

Fed chairman Jerome Powell denied at this month’s Federal Open Market Committee meeting that the Fed is trying to bring about a recession to rein in price growth. But whether or not that is the intent, even the Fed’s very mild tightening has already accelerated the US economy’s slide toward recession—or at least toward job losses. For instance, there is growing evidence of sporadic mass layoff events. JP Morgan announced last week “that it was laying off hundreds of employees due to rising mortgage rates amid a troubling housing market plagued by inflation.” Redfin last week announced layoffs for 470 workers. Hiring freezes and mass layoffs are a growing concern in Silicon Valley.

If the US is indeed headed toward job losses and recession, the danger now is of the Fed not backing off monetary inflation long enough and hard enough to actually allow the economy to clean out the malinvestments and bubbles created by the monetary inflation of the past decade. The danger of too-weak tightening has been evident before. For example, the Fed moderately reined in monetary inflation from 1972 to 1974. But these measures proved to be too little to really end the inflationary boom. Thus, malinvestment and price inflation piled up until the early 1980s, when more tightening finally brought inflation under control.

So the question now is this: Will the Fed pull its foot off the easy-money accelerator only long enough to get a few flat months in price inflation and then return to the same old inflationary stimulus policies? That could win a brief reprieve for first-time home buyers and renters in terms of housing prices. But more than a brief reprieve is greatly needed. Of course, what the Fed should do is completely sell off its portfolio and stop manipulating interest rates altogether. But failing that, it needs to at least allow interest rates to rise enough—and shrink its portfolio enough—to allow for some real modicum of “normalization” in the financial sector.

In any case, real deflation—both monetary inflation and price inflation—is necessary, and that can only be accomplished if the Fed can resist the temptation to keep doing what it’s been doing since 2008 with “nontraditional monetary policy” including quantitative easing, financial repression, and bubble creation.

About the Author:

Ryan McMaken (@ryanmcmaken) is a senior editor at the Mises Institute. Ryan has a bachelor’s degree in economics and a master’s degree in public policy and international relations from the University of Colorado. He was a housing economist for the State of Colorado. He is the author of Commie
Cowboys: The Bourgeoisie and the Nation-State in the Western Genre
.


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Virtual Roadshow Replay – Schwazze (SHWZ) CEO Justin Dye and CFO Nancy Huber


Schwazze CEO Justin Dye and CFO Nancy Huber make a formal corporate presentation. Afterwards they are joined by Noble Capital Markets Senior Research Analyst Joe Gomes for a Q & A session.

Research, News, and Advanced Market Data on SHWZ


Information on upcoming live virtual roadshows


Schwazze (OTCQX: SHWZ) is building the premier vertically integrated cannabis company in Colorado and plans to take its operating system to other states where it can develop a differentiated 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. 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.

Release – ISG – U.S Firms Embrace Hybrid Clouds — While Watching Costs


U.S. Firms Embrace Hybrid Clouds — While Watching Costs

STAMFORD, Conn.–(BUSINESS WIRE)– Enterprises in the U.S. are accelerating their migration to private and hybrid clouds, while also acting to rein in their cloud costs, according to a new research report published today by Information Services Group (ISG) (Nasdaq: III), a leading global technology research and advisory firm.

The 2022 ISG Provider Lens™ Next-Gen Private/Hybrid Cloud Data Center Services and Solutions report for the U.S. finds that distributing IT resources across hybrid clouds is becoming the norm for U.S. enterprises. Facing the growing cost and complexity of operating on-premises IT infrastructure, most organizations are outsourcing their data centers or migrating applications to public and private clouds.

To use the cloud more intelligently, many advanced enterprises are also adopting frameworks to track and optimize cloud computing activity throughout their organizations, the report says. These frameworks are based on the principles of FinOps, a way of looking at cloud-based operations through a financial lens, which is fast gaining traction. FinOps is designed to reduce cloud costs, which in some cases have ballooned as different departments pursued separate cloud initiatives.

“Private and hybrid clouds can make enterprises more efficient, but to maximize return on investment, companies need to coordinate and optimize their cloud strategy,” said Bernie Hoecker, ISG partner, Enterprise Cloud. “FinOps offers a way to do this, helping to dramatically reduce cloud costs.”

A FinOps framework provides a holistic view of cloud implementations across an organization and is a way for each department to justify and optimize its own cloud use, the report says. This helps identify and remove inefficiencies, such as by consolidating small, departmental Microsoft 365 implementations.

Many U.S. enterprises see hybrid clouds as a way to generate new sources of revenue, the report says. For example, cloud-based platforms can help companies better analyze customer information for more effective marketing. This strategy is particularly popular in the U.S., where enterprises face fewer constraints on the use of customer data than in other regions, such as Europe.

“Moving to the cloud makes it easier for companies to implement next-generation data analytics platforms,” said Jan Erik Aase, partner and global leader, ISG Provider Lens Research. “This agility is essential to remaining competitive.”

The report also quantifies the growth of managed cloud services in the Americas and examines several other trends, including the increasing importance of agile security capabilities and edge computing.

The 2022 ISG Provider Lens™ Next-Gen Private/Hybrid Cloud Data Center Services and Solutions report for the U.S. evaluates the capabilities of 58 providers across four quadrants: Managed Services for Large Accounts, Managed Services for Midmarket, Managed Hosting, and Colocation Services.

The report names Ensono, Kyndryl and Rackspace Technology as Leaders in two quadrants. It names Accenture, Capgemini, Cognizant, CoreSite, CyrusOne, Cyxtera, DataBank, Digital Realty, Equinix, HCL, Hexaware, Infosys, LTI, Lumen, Mphasis, NTT Ltd., QTS, TCS, Unisys, Wipro and Zensar as Leaders in one quadrant each.

In addition, Navisite, NTT Ltd. and Unisys are named as Rising Stars — companies with a “promising portfolio” and “high future potential” by ISG’s definition — in one quadrant each.

Customized versions of the report are available from Hexaware and Unisys.

The 2022 ISG Provider Lens™ Next-Gen Private/Hybrid Cloud Data Center Services and Solutions report for the U.S. is available to subscribers or for one-time purchase on this webpage.

About
ISG Provider Lens™ Research

The ISG Provider Lens™ Quadrant research series is the only service provider evaluation of its kind to combine empirical, data-driven research and market analysis with the real-world experience and observations of ISG’s global advisory team. Enterprises will find a wealth of detailed data and market analysis to help guide their selection of appropriate sourcing partners, while ISG advisors use the reports to validate their own market knowledge and make recommendations to ISG’s enterprise clients. The research currently covers providers offering their services globally, across Europe, as well as in the U.S., Canada, Brazil, the U.K., France, Benelux, Germany, Switzerland, the Nordics, Australia and Singapore/Malaysia, with additional markets to be added in the future. For more information about ISG Provider Lens research, please visit this webpage.

A companion research series, the ISG Provider Lens Archetype reports, offer a first-of-its-kind evaluation of providers from the perspective of specific buyer types.

About
ISG

ISG (Information Services Group) (Nasdaq: III) is a leading global technology research and advisory firm. A trusted business partner to more than 800 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 more information, visit www.isg-one.com.