Tuesday, March 02, 2021

1-800-Flowers.com (FLWS)
In The League Of Leading Ecommerce Companies

1-800-FLOWERS.COM, Inc. is the leading provider of gourmet and floral gifts for all occasions. For nearly 40 years, 1-800-FLOWERS® has been helping deliver smiles for customers with gifts for every occasion, including fresh flowers, premium, gift-quality fruits, and other gourmet items from Harry & David®, popcorn and specialty treats from The Popcorn Factory®; cookies and baked gifts from Cheryl’s®; premium chocolates and confections from Fannie May®; gift baskets and towers from 1-800-Baskets.com®; premium English muffins and other breakfast treats from Wolferman’s; carved fresh fruit arrangements from FruitBouquets.com; and top quality steaks and chops from Stock Yards®. The Company’s BloomNet® international floral wire service provides a broad range of quality products and value-added services designed to help professional florists grow their businesses profitably.

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

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

Upcoming fireside chat. Chris McCann, CEO & President of 1800Flowers.com will be hosting an investor presentation in a fireside chat format on Wednesday, March 3 at 2pm ET. Investors may register here. Chris is expected to cover a range of topics including the recent Texas weather impact, the post Covid environment, market share gains in its consumer floral division, future acquisitions, and more.


Confident in future growth. Management is expected to highlight its expectation to grow revenues and cash flow near double digit rates in spite of the enhanced revenue and cash flow growth it achieved during the Pandemic. Revenue and cash flow growth rates are certain to slow against….

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. 

 

eSports as an Interesting Investment Within a Portfolio

 

One of the guiding principles when making an investment decision is to balance the risks against the potential benefits. So, it’s important to evaluate where you intend to invest. It’s not uncommon for evaluations to exclude newer industries with promise in favor of an industry with stability, such as energy, finance, or manufacturing. That said, when an industry shows that it is viable as an investment, you should consider jumping on the chance before more investors take the lion’s share of the industry profit. eSports may be such an industry.

 

Unprecedented Growth

Over the past decade, eSports has been one of the fastest-growing industries. The growth can be attributed to a number of factors, one of the most important being the growth of technology. Networking advancements, especially the introduction and implementation of 5G technology, cloud computing, and online streaming, are some of the infrastructure changes that have played a significant role in the growth of eSports as an industry. However, the most influential technological advancements are no doubt virtual and augmented realities, which are every gamer’s dream.

 

eSports is a global industry with billions of fans in the Asia-Pacific, European, Australian, and North American regions. For instance, in Canada, the industry is projected to make $23 million by the end of this year. With growth like that, one can expect that in a few years, Canada could compete with China, which rakes in about $27 billion in revenue from online gaming alone, eSports included. The United States has a high percentage of the global market share since most eSports leagues infrastructure is hosted there. Additionally, it has the largest number of eSports leagues in the world. Some of the most popular leagues include PuBG, World of Warcraft, Fortnite, and League of Legends, to name a few. So, how exactly has such a fast growth come about and can we expect the rate of growth to be maintained in the future?

 

Increased Number of
Participants

Over the years, the number of professional video game players, eSports fans, video game companies, and sponsors has increased. In the past, playing video games was rarely seen as a venue to make money. In fact, most of the people who earned money playing games did so through the testing phase of the games or when they discovered bugs in the game. However, thanks to eSports, people started to view playing video games as a source of revenue, which meant an increasing number of players. Of course, the increase in players directly leads to an increase in fans, games, and sponsors in a virtuous cycle. The marked increase in sponsors particularly, is a good reason why you should include eSports in your investment strategy. Is this something we can expect to see in the future? The answer is probably “yes!” As the games grow more sophisticated and the technology advances, there will be more players, fans and sponsors.

 

Increased Access

One of the most significant challenges for eSports is that it is heavily reliant on good internet connectivity. Put another way, 3G was good but not ideal and 4G was great but not efficient enough. 5G is where the real fun begins, and that’s where most gamers are investing. Of course, it is expected that there will be better connectivity in the future, and as the connectivity increases, so too will the growth of eSports.

 

A Viable Alternative to Traditional
Sports

There are millions of people out there who have the love and passion for traditional sports such as basketball and soccer, but cannot play professionally for one reason or the other. That’s where eSports wins. With eSports, you don’t have to meet specific requirements to play. In fact, in most cases, all you need is good internet connectivity, a machine that supports heavy gaming, and a game. Your popularity and subsequent career all depend on how well you play, but you can get started at any time you want to. That means that the market for eSports will always be existent.

 

Affordability

One of the limiting factors for eSports in its early days was the expense. Computers that supported heavy gaming, internet connectivity, and streaming equipment were all unaffordable to most people. However, as technology advances, it also grows more accessible and affordable. Right now it is possible to buy a complete gaming system for $800 to $2,000 or you can look up how to DIY your own gaming system affordably.

 

Take-Away

Before making an investment one should review all the information they can uncover, and review it against other options including cash. More importantly, recognize the potential that eSports companies have and, if a fit, make the move while the segment of the industry is still in the growth phase.

 

Suggested Reading:

Are Meme
Stocks Improving Flawed Markets?

Esports
Entertainment Research Report Released February 17, 2021

Winners
and Losers as Interest rates Shift Investor Focus

 

Virtual Road Show Series – Tomorrow at 2pm EST Join 1-800-FLOWERS.COM, Inc. President & CEO Chris McCann for this exclusive fireside chat with Noble Capital Markets senior research analyst Michael Kupinski, followed by a Q&A session featuring questions taken from the audience. Registration is free and open to all investors, at any level. Register Now  |  View All Upcoming Road Shows

 

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Thursday, February 18, 2021

ACCO Brands Corporation (ACCO)
Post Call Commentary

ACCO Brands Corporation designs, manufactures, sources, markets, and sells office products, academic supplies, and calendar products primarily in the United States, Canada, Northern Europe, Brazil, Australia, and Mexico. It operates through three segments: ACCO Brands North America, ACCO Brands EMEA, and ACCO Brands International. The company offers office products, such as stapling, binding and laminating equipment, and related consumable supplies, as well as shredders and whiteboards; and academic products, including notebooks, folders, decorative calendars, and stationery products. It also provides private label products, as well as business machine maintenance and repair services. The company offers its business, academic, and calendar product lines under the Artline, AT-A-GLANCE, Derwent, Esselte, Five Star, GBC, Hilroy, Leitz, Marbig, Mead, NOBO, Quartet, Rapid, Rexel, Swingline, Tilibra, Wilson Jones, and other brand names. In addition, it designs, sources, distributes, markets, and sells accessories for laptop and desktop computers, and tablets comprising security products; input devices, such as presenters, mice, and trackballs; ergonomic aids, including foot and wrist rests; docking stations; and other personal computers and tablet accessories under the Kensington, Microsaver, and ClickSafe brand names. The company sells its products to consumers and commercial end-users primarily through resellers, including traditional office supply resellers, wholesalers, mass merchandisers, and retailers, as well as directly to consumers through on-line and direct mail. ACCO Brands Corporation is headquartered in Lake Zurich, Illinois.

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

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

More Consumer Facing. We continue to be impressed with ACCO’s transformation to a more consumer products oriented Company. While we believe ACCO will continue to service the commercial products business, the consumer brands strategy should result in higher top line growth over time. The move also has helped strengthen, improve, and diversify its business. Greater geographic, end market, and product diversification is resulting in a business that is more profitable, more resilient, and more immune to shocks that may occur in a particular geography or product line. We believe the Company is well positioned to benefit as worldwide economies improve from the COVID malaise.


As Seen in 2020 Operating Results.  Kensington computer accessories revenues were up strong double digits, while sales of TruSens air purifiers jumped to approximately $20 million in 2020 from $2 million in 2019. In terms of channels, consumer oriented channels such as e-tail, up 17%, and tech specialist, up 31%, showed strength while commercial and B2B channels, were down 25%. Retail and mass …

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. 

Wednesday, February 17, 2021

ACCO Brands Corporation (ACCO)
Fourth Quarter Results In-line with Estimates

ACCO Brands Corporation designs, manufactures, sources, markets, and sells office products, academic supplies, and calendar products primarily in the United States, Canada, Northern Europe, Brazil, Australia, and Mexico. It operates through three segments: ACCO Brands North America, ACCO Brands EMEA, and ACCO Brands International. The company offers office products, such as stapling, binding and laminating equipment, and related consumable supplies, as well as shredders and whiteboards; and academic products, including notebooks, folders, decorative calendars, and stationery products. It also provides private label products, as well as business machine maintenance and repair services. The company offers its business, academic, and calendar product lines under the Artline, AT-A-GLANCE, Derwent, Esselte, Five Star, GBC, Hilroy, Leitz, Marbig, Mead, NOBO, Quartet, Rapid, Rexel, Swingline, Tilibra, Wilson Jones, and other brand names. In addition, it designs, sources, distributes, markets, and sells accessories for laptop and desktop computers, and tablets comprising security products; input devices, such as presenters, mice, and trackballs; ergonomic aids, including foot and wrist rests; docking stations; and other personal computers and tablet accessories under the Kensington, Microsaver, and ClickSafe brand names. The company sells its products to consumers and commercial end-users primarily through resellers, including traditional office supply resellers, wholesalers, mass merchandisers, and retailers, as well as directly to consumers through on-line and direct mail. ACCO Brands Corporation is headquartered in Lake Zurich, Illinois.

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

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

4Q20 Results. ACCO Brands reported fourth quarter revenue of $460 million, down 14% y-o-y. EPS totaled $0.31 versus $0.44 a year ago. Adjusted EPS was $0.32 compared to $0.46 in 4Q19. We had forecast revenue of $456 million, EPS of $0.30 and adjusted EPS of $0.28. For the full year, ACCO reported revenue of $1.66 billion, down 15%, EPS of $0.65 versus $1.06, and adjusted EPS of $0.70 versus $1.20 in 2019. PowerA added $8 million to revenue for the year.


EMEA 4Q Driving Force.  EMEA posted a strong 4Q with net sales of $171.7 million, up 6%, although down 1% on a comparable basis. Since the 2Q20 nadir, EMEA has posted strong sequential top line growth with revenues rising from $88.3 million in 2Q to $136.4 million in Q3 to $171.7 million in Q4. Sell through of computer accessories, shredders, air purifiers, and DIY tools drove the improved …

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. 

Wednesday, February 17, 2021

Esports Entertainment Group, Inc. (GMBL)
Putting The Pieces Together

Esports Entertainment Group Inc is a development-stage online gambling company focused purely on esports. The company’s principal business operations include design, develop and test wagering systems.

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

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

Fiscal Q2 in line. Total revenues of $2.36 million was in line with out estimate of $2.2 million. Adjusted EBITDA of a loss of $3.4 million was slightly better than our $3.8 million loss estimate. The quarter had a lot of noise with a significant amount of professional fees related to recent acquisitions and funding.


Raise fiscal 2021 revenue estimate.  The company plans to close on the Lucky Dino acquisition in late February. As such, it increased full year fiscal 2021 revenue guidance from $13 million to $18 million. Notably, we believe that there is upside surprise potential to that guidance. We are maintaining our fiscal 2022 revenue estimate of $70 million, which is in line with management’s guidance …

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 Biggest Valentine’s Day in its History”

 

Lifestyle adjustments made because of the pandemic have created winners and losers across many business types. On the whole, Internet retailers have benefitted; meanwhile, in-person retail stores, movies, and restaurants have all suffered. Businesses that typically look forward to St. Valentine’s as a high revenue-producing few weeks are experiencing a very different dynamic.

Commerce resulting from Valentine’s Day in the past has followed a similar pattern across the various ways that couples express their appreciation for the other. There had been a growing trend toward gifts being sent to the office rather than the home. This year fewer people are going to the office, so delivered gifts are more likely to arrive where people live. The holiday this year falls on a Sunday, in years when the romantic holiday fell on a Saturday or Sunday, gifts and flowers drew less business as couples would make it a date night. This year Valentine’s falls on a Sunday, and online retailers selling popular romantic gifts such as chocolate or flowers can expect to do better than they might otherwise as many parts of the country still discourage too many patrons at a public place.

An annual survey released by The National Association of Retailers (NAR) found 52% of U.S. adults plan to celebrate Valentine’s Day 2021; it projects the spending to be $21.8 billion, down from $27 billion a year ago. Fewer than a quarter of consumers (24%) plan to spend an evening out, this is the least amount in the survey’s history. Many plan instead on having a special dinner at home instead.

The NRF survey shows an increase in sales of less expensive gifts and greeting cards

 

Source: National Retail Federation

 

Based on the circumstances, Chris McCann, CEO of 1-800-Flowers.com Inc. (FLWS), believes his company will enjoy the biggest Valentine’s Day in its history. McCann shared this with Forbes Magazine, “Coming off a record end-of-year holiday season, we see a continuation of the accelerated momentum that began for us back in 2018, but picked up even more during the pandemic.”

1-800-Flowers.com maintains their own data on Valentine’s Day, Channelchek shares this information each year for the benefit of our readers:

Most popular flowers ordered for Valentine’s Day.

    Roses, lilies, tulips, Gerbera daisies, orchids  

Most popular flower colors ordered. 

    Red, pink, hot pink, purple  

Estimated percentage of flowers (by color) that will be ordered in 2021. 

    Red: 55% 

    Pink (Shades of Pink): 35% 

    Purple: 10% (limited availability in season) 

What do the colors of roses mean?

    Red: I love you

    Pale Pink: I appreciate you

    Purple: I always knew you were the one

    Hot Pink: I’m grateful you’re in my life

What do the other popular flowers mean?

    Lilies: Purity and refined beauty 

    Tulips: Perfect love, charity and royalty

    Daisies: Innocence and joy

    Orchids: Love, fertility, thoughtfulness and charm

How many different types of roses does 1-800-Flowers.com offer?

    90

Total number of stems expected to sell in 2021? 

    22 million  

Number of roses expected to sell in 2021? 

    14 million

Most popular greeting card messages used at 1-800-Flowers.com

    Every year with you is sweeter than the last 

    Happy Valentine’s Day 

    I send a kiss inside the petals of each rose… 

    You take my breath away…today and every day 

    All my love 

    Love and kisses 

    I love you 

    How sweet it is to be loved by you 

    Love you 

Take-Away

Although the economy has not fully recovered, most online retailers have been in a position to benefit from the changed needs of shoppers across the country. The competition for celebrant’s dollars on Valentine’s Day along with Mother’s Day has always included going out versus a heartfelt gift. Although less money will be spent this year, online retail may have its best year as fewer people feel it wise to surround themselves with others in public places. A large percentage of those are choosing to show they care with a gift or a home cooked meal instead. 

Suggested Reading:

Valentines 2020 Article

College Scholarships for Esports Gamers

Investment of Excess Corporate Cash

Source:

1-(800)-FLOWERS

Valentine’s Day Kicks Off A Booming Year For Gifts, Predicts 1-800-Flowers CEO

 

 

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Monday, February 08, 2021

Schwazze (SHWZ)
Adds Two More Star Buds Locations; Five To Go

Medicine Man Technologies, Inc. is now operating under its new trade name, Schwazze. Schwazze is executing its strategy to become a leading vertically integrated cannabis holding company with a portfolio consisting of top-tier licensed brands spanning cultivation, extraction, infused-product manufacturing, dispensary operations, consulting, and a nutrient line. Schwazze leadership includes Colorado cannabis leaders with proven expertise in product and business development as well as top-tier executives from Fortune 500 companies. As a leading platform for vertical integration, Schwazze is strengthening the operational efficiency of the cannabis industry in Colorado and beyond, promoting sustainable growth and increased access to capital, while delivering best-quality service and products to the end consumer. The corporate entity continues to be named Medicine Man Technologies, Inc.

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

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

Two More Star Buds Locations. Schwazze has completed the acquisition of two more Star Buds locations, leaving five more locations to be acquired, which we continue to expect to occur in the first quarter. The two new locations are in Denver, Colorado’s largest cannabis market. Significantly, Star Buds is just the beginning as Schwazze continues to have aggressive expansion plans in other areas of the state.


Terms.  Schwazze paid $9.3 million for the two locations, consisting of $3.5 million in cash, $3.5 million in seller’s notes, and $2.3 million of preferred stock. The acquisition was funded by $6.1 million in proceeds from a private placement with Dye Capital and unaffiliated investors. We are particularly pleased to see Schwazze was able to include unaffiliated investors in this round of capital …

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. 

Thursday, February 04, 2021

Esports Entertainment Group, Inc. (GMBL)
Raising Price Target; Closes In On Acquisitions

Esports Entertainment Group Inc is a development-stage online gambling company focused purely on esports. The company’s principal business operations include design, develop and test wagering systems.

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

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

NobleCon 17 highlights. This report highlights a presentation and Q&A at NobleCon 17 with CEO Grant Johnson. A rebroadcast may be obtained by clicking here. Topics that were discussed included the company’s strategy to create a vertically integrated approach to the esports market, updates on the acquisition timeline, anticipated revenue in fiscal 2022, and future acquisition prospects.


Acquisition timeline.  The EGL acquisition closed the day after the presentation. Lucky Dino is expected to close within the month of February. The bigger transaction, ggCircuit/Helix transaction should close late March or early April, and will be a debt and equity transaction …

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. 

Wednesday, February 03, 2021

Bassett Furniture (BSET)
Furniture on Sale, Initiating Coverage on Bassett Furniture

Bassett Furniture Industries Inc is a manufacturer, importer, and retailer of home furnishings products in the United States. It operates through the following segments: The Wholesale segment focuses on the design, manufacture, sourcing, sale, and distribution of furniture products. The Retail segment consists of company-owned stores. The Logistical Services segment offers shipping, delivery, and warehousing services.

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

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

Initiating coverage of Bassett Furniture Industries. We believe Bassett provides attractive upside from the current price with a very favorable furniture environment, lowered costs due to a 2020 restructuring, and growth initiatives focused around a “Made in America” strategy and expanding e-commerce opportunities.


Leading Custom Furniture Manufacturer and Retailer.  Bassett is one of the largest integrated furniture manufacturers and retailers in the U.S. The Company currently manufactures product in five domestic facilities, producing about 75% of its furniture in the U.S. Bassett operates a 97 store retail network, consisting of 63 corporate owned stores and 34 licensed stores, and sells to over 700 …

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. 

Friday, January 29, 2021

1-800-Flowers.com (FLWS)
At Some Point This Will Happen

1-800-FLOWERS.COM, Inc. is the leading provider of gourmet and floral gifts for all occasions. For nearly 40 years, 1-800-FLOWERS® has been helping deliver smiles for customers with gifts for every occasion, including fresh flowers, premium, gift-quality fruits, and other gourmet items from Harry & David®, popcorn and specialty treats from The Popcorn Factory®; cookies and baked gifts from Cheryl’s®; premium chocolates and confections from Fannie May®; gift baskets and towers from 1-800-Baskets.com®; premium English muffins and other breakfast treats from Wolferman’s; carved fresh fruit arrangements from FruitBouquets.com; and top quality steaks and chops from Stock Yards®. The Company’s BloomNet® international floral wire service provides a broad range of quality products and value-added services designed to help professional florists grow their businesses profitably.

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

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

Significantly beats expectations. Fiscal second quarter revenue of $877.3 million exceeded expectations by 17%, due to stronger than expected performance at its recent acqusition, PersonalizationMall.com. Cash flow, as measured by adjusted EBITDA, exceeded expectations by 19% to $160.5 million.


Fiscal Q3 guidance better than expected.  Fiscal Q3 revenue guidance was better than expected, anticipated to show growth between 45% to 50%, with adjusted EBITDA expected to be between $4 million and $5 million, a quarter that typically reports seasonal losses …

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. 

Monday, January 25, 2021

Schwazze (SHWZ)
Sit Down With CEO Justin Dye

Medicine Man Technologies, Inc. is now operating under its new trade name, Schwazze. Schwazze is executing its strategy to become a leading vertically integrated cannabis holding company with a portfolio consisting of top-tier licensed brands spanning cultivation, extraction, infused-product manufacturing, dispensary operations, consulting, and a nutrient line. Schwazze leadership includes Colorado cannabis leaders with proven expertise in product and business development as well as top-tier executives from Fortune 500 companies. As a leading platform for vertical integration, Schwazze is strengthening the operational efficiency of the cannabis industry in Colorado and beyond, promoting sustainable growth and increased access to capital, while delivering best-quality service and products to the end consumer. The corporate entity continues to be named Medicine Man Technologies, Inc.

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

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

Sit Down With Justin Dye. Last week, we were able to sit down with Schwazze CEO Justin Dye and received his high level views of the Company. As one would expect, Mr. Dye remains very upbeat about the near and long-term prospects of the Company and its ability to build CPG brands. Colorado is just the beginning. Once a solid base is built, Schwazze will look to other states for growth, applying the lessons learned from not only Colorado but the grocery business to be successful.


Star Buds Acquisition.  Mr. Dye continues to expect the remaining Star Buds location to be acquired by the end of the first quarter. Once completed, this will drive the growth engine, in our view. But we believe Star Buds is just the beginning. We continue to believe Schwazze will announce additional acquisitions in its drive to become the largest cannabis player in Colorado …

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.