ISG to Announce Third-Quarter Financial Results

Research, News, and Market Data on Information Services Group

 

STAMFORD, Conn.–(BUSINESS WIRE)– Information Services Group (ISG) (Nasdaq: III), a leading global technology research and advisory firm, said today it has acquired automated contracting solution Agreemint from its founders. Terms were not disclosed.

The AI-powered contracting platform brings important new capabilities to the market-leading ISG GovernX^® vendor compliance and risk management solution and will be used by ISG to add value to future platform solutions now in development.

“Our SaaS-based GovernX platform has been one of our fastest-growing areas over the last two years, especially as large organizations seek to control costs and mitigate risk from their ever- expanding supplier ecosystems,” said Michael P. Connors, chairman and CEO of ISG. “Our acquisition of Agreemint creates the ultimate platform for enterprises to accelerate time to contract, keeping pace with their speed of technology adoption and partnership formation.”

The acquisition, Connors said, is part of ISG’s overall strategy to develop or acquire innovative SaaS-based platforms to complement its advisory business, bring more value to clients, and achieve consistent, double-digit recurring revenue growth.

Agreemint delivers automated contract authoring through a repository of legal positions to accelerate speed to contract. Its patented AI-powered smart functionality enables clients to negotiate better contracts by suggesting language proven to be legally compliant, governable and agreeable to both parties based upon analysis of previous contracting efforts. The software also anticipates language sticking points and includes a clause library that proposes pre-approved clause alternatives.

ISG has partnered with Agreemint since 2021 on solutions for several blue-chip ISG clients. Connors said the acquisition is a natural extension of that relationship and adding Agreemint software will make the ISG GovernX platform even more valuable for automating the entire contract lifecycle. GovernX has under management more than $60 billion of annual contact value, up 30 percent in the last year, across more than 10,000 client contracts, up 40 percent.

“Getting to ‘yes’ on a contract faster and more efficiently is what Agreemint is all about,” said Agreemint founder Peter Graham, who is joining ISG in an executive role. ”Agreemint’s AI-powered negotiating and contracting tools, coupled with GovernX’s extensive vendor compliance and risk management capabilities, makes GovernX the most complete solution for contract lifecycle management on the market today.”

For more information about ISG GovernX, visit this webpage. Further details about Agreemint can be found at agreemint.com.

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.

Comtech Telecommunications Corp. Responds to Aid Request from The Ukrainian Government

Research, News, and Market Data on Comtech Telecommunications

 

Comtech to Donate Communications Terminals to Support the People of Ukraine

MELVILLE, N.Y.–(BUSINESS WIRE)–Mar. 28, 2022– 
March 28, 2022— 
Comtech Telecommunications Corp. (NASDAQ: CMTL), a leading global provider of next-generation 911 emergency systems and secure wireless communications technologies, announced today that the Company has donated COMET™ troposcatter systems at the request of the Ukrainian government.

Our COMET™ over-the-horizon transportable terminals were specifically requested by the Ukrainian government to support their urgent need for communications that can be relied upon, in any environment, under any conditions. The Comtech COMET™ is the world’s smallest and lightest modular man-packable troposcatter system and is part of a suite of troposcatter systems that provide Beyond-Line-of-Sight (“BLOS”) communications for governmental disaster recovery and commercial industrial applications.

“We share the profound concerns of the global community in the ongoing crisis that is gripping 
Ukraine, and causing untold suffering for its people,” said  Michael Porcelain, President and CEO of 
Comtech. “We know how critically important the ability to communicate is to the brave people living there, and we are proud to be able to support their needs. It is our hope that both parties – 
Russia and 
Ukraine – can find a way toward negotiating a durable and lasting peace.”

Mr. Porcelain further added, “Our customers rely on our 
Failsafe Communications equipment to work no matter where they are, or what’s going on outside – from armed conflict to negotiating a peace agreement. We appreciate that our response is a small contribution in the face of an enormous crisis, but we are honored to have an opportunity to play whatever role we can in helping restore peace to this area of the world.”

Since 2017, 
Comtech has supported multiple communications upgrade and modernization initiatives for the 
Ukrainian Ministry of Defense. Despite the enormous uncertainties enveloping the region, 
Comtech was able to respond to Ukraine’s request to help meet a desperate need for the types of 
Failsafe Communications solutions that 
Comtech can provide.

About Comtech

Comtech Telecommunications Corp. is a leading global provider of next-generation 911 emergency systems and secure wireless communications technologies to commercial and government customers around the world. Headquartered in 
Melville, New York and with a passion for customer success, 
Comtech designs, produces and markets advanced and secure wireless solutions. For more information, please visit www.comtechtel.com (and preview its new web site at www.comtech.com).

Certain information in this press release contains statements that are forward-looking in nature and involve certain significant risks and uncertainties. Actual results could differ materially from such forward-looking information. The Company’s 
Securities and Exchange Commission filings identify many such risks and uncertainties. Any forward-looking information in this press release is qualified in its entirety by the risks and uncertainties described in such 
Securities and Exchange Commission filings.

Comtech Investor Relations:
631-962-7005
investors@comtech.com

Source: 
Comtech Telecommunications Corp.

Nanalysis President & CEO Sean Krakiwsky provides a preview of their upcoming presentation at NobleCon18 NobleCon18 – Noble Capital Markets 18th Annual Small and Microcap Investor Conference – April 19-21, 2022 – Hard Rock, Hollywood, FL 100+ Public Company Presentations | Scheduled Breakouts | Panel Presentations | High-Profile Keynotes | Educational Sessions | Receptions & Networking Events Free Registration Available – More Info News and Advanced Market Data on NSCIF NobleCon18 Presenting Companies About Nanalysis Nanalysis trades on the TSX Venture Exchange (TSXV) in Canada with ticker symbol ‘NSCI’, OTC and the Frankfurt exchange under the ticker symbol ‘1N1’. The company’s business is what we term “MRI and NMR for industry”. The company develops and manufactures portable Nuclear Magnetic Resonance (NMR) spectrometers or analyzers for laboratory and industrial markets. The NMReady-60™ was the first full-feature portable NMR spectrometer in a single compact enclosure requiring no liquid helium or any other cryogens. The company has followed-up that initial offering with new products and continues to have a strong innovation pipeline. Nanalysis recently announced that it has begun selling a 100MHz device in 2020. The Company’s new device will be the most powerful and most advanced compact NMR device ever brought to market.

Information Services Group CEO Michael P. Conners provides a preview of their upcoming presentation at NobleCon18 NobleCon18 – Noble Capital Markets 18th Annual Small and Microcap Investor Conference – April 19-21, 2022 – Hard Rock, Hollywood, FL 100+ Public Company Presentations | Scheduled Breakouts | Panel Presentations | High-Profile Keynotes | Educational Sessions | Receptions & Networking Events Free Registration Available – More Info Research News and Advanced Market Data on III NobleCon18 Presenting Companies About Information Services Group 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.on and UniMás television networks. Entravision also manages 46 primarily Spanish-language radio stations that feature nationally recognized, Emmy award-winning talent. Shares of Entravision Class A Common Stock trade on the NYSE under ticker: EVC.

Comtech Telecommunications Corp. Responds to Aid Request from The Ukrainian Government

Research, News, and Market Data on Comtech Telecommunications

 

Comtech to Donate Communications Terminals to Support the People of Ukraine

MELVILLE, N.Y.–(BUSINESS WIRE)–Mar. 28, 2022– 
March 28, 2022— 
Comtech Telecommunications Corp. (NASDAQ: CMTL), a leading global provider of next-generation 911 emergency systems and secure wireless communications technologies, announced today that the Company has donated COMET™ troposcatter systems at the request of the Ukrainian government.

Our COMET™ over-the-horizon transportable terminals were specifically requested by the Ukrainian government to support their urgent need for communications that can be relied upon, in any environment, under any conditions. The Comtech COMET™ is the world’s smallest and lightest modular man-packable troposcatter system and is part of a suite of troposcatter systems that provide Beyond-Line-of-Sight (“BLOS”) communications for governmental disaster recovery and commercial industrial applications.

“We share the profound concerns of the global community in the ongoing crisis that is gripping 
Ukraine, and causing untold suffering for its people,” said  Michael Porcelain, President and CEO of 
Comtech. “We know how critically important the ability to communicate is to the brave people living there, and we are proud to be able to support their needs. It is our hope that both parties – 
Russia and 
Ukraine – can find a way toward negotiating a durable and lasting peace.”

Mr. Porcelain further added, “Our customers rely on our 
Failsafe Communications equipment to work no matter where they are, or what’s going on outside – from armed conflict to negotiating a peace agreement. We appreciate that our response is a small contribution in the face of an enormous crisis, but we are honored to have an opportunity to play whatever role we can in helping restore peace to this area of the world.”

Since 2017, 
Comtech has supported multiple communications upgrade and modernization initiatives for the 
Ukrainian Ministry of Defense. Despite the enormous uncertainties enveloping the region, 
Comtech was able to respond to Ukraine’s request to help meet a desperate need for the types of 
Failsafe Communications solutions that 
Comtech can provide.

About Comtech

Comtech Telecommunications Corp. is a leading global provider of next-generation 911 emergency systems and secure wireless communications technologies to commercial and government customers around the world. Headquartered in 
Melville, New York and with a passion for customer success, 
Comtech designs, produces and markets advanced and secure wireless solutions. For more information, please visit www.comtechtel.com (and preview its new web site at www.comtech.com).

Certain information in this press release contains statements that are forward-looking in nature and involve certain significant risks and uncertainties. Actual results could differ materially from such forward-looking information. The Company’s 
Securities and Exchange Commission filings identify many such risks and uncertainties. Any forward-looking information in this press release is qualified in its entirety by the risks and uncertainties described in such 
Securities and Exchange Commission filings.

Comtech Investor Relations:
631-962-7005
investors@comtech.com

Source: 
Comtech Telecommunications Corp.

Friday, March 25, 2022

One Stop Systems (OSS)
4Q21: Revenue Beat, Miss On Earnings, But Bright Future

One Stop Systems Inc is US-based company which is principally engaged in designing, manufacturing, marketing high-end systems for high performance computing (HPC) applications. The company offers custom servers, compute accelerators, solid-state storage arrays and system expansion systems. The product line of the company includes GPU Appliances, GPU Expansion, GPUs and co-processors, Flash storage arrays, Flash storage expansion, Servers, Disk Arrays, Desktop computing appliances, accessories and parts. The company delivers high-end technology to customers through the sale of equipment and software for use on their premises or through remote cloud access to secure data centres housing technology.

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

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

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

4Q21 Results. Fourth quarter revenue of $17.8 million, up 28% y-o-y and up 11% sequentially, and above management’s $17.1 million guide. We had forecast $17.1 million. GAAP net loss of $386,000, or $0.02 per share, versus net income of $244,000, or $0.01 per share, last year. Adjusted net income of $71,000, or breakeven, versus $636,000, or $0.04 per share in 4Q20. We had forecast $0.04 and $0.07 respectively.

Too Much Business? During 4Q21 Disguise revenue rose 247% y-o-y and resulted in gross margin declining to 28.3% in the quarter from 34.5% in the same period last year.  Increased operating expenses, driven by Market and Selling costs, with the lower gross margin caused an operating loss for the quarter. We anticipate Disguise business to return to a normal percentage of overall revenue going forward …

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, March 23, 2022

Voyager Digital (VYGVF)(VOYG:CA)
Volumes Below Expectations; Updated Model, Lowering PT to $15

Voyager Digital Ltd through its subsidiary, operates as a crypto asset broker that provides retail and institutional investors with a turnkey solution to trade crypto assets. The company offers investors execution, data, wallet and custody services through its institutional-grade open architecture platform.

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.

Challenging Environment. Cryptocurrency trading volumes continue to decline, as the Russia/Ukraine war, threatened legislation, and a weakening economy have raised concerns among investors in this new asset class. Data from The Block indicate trading volume in January fell to $833.6 billion from $1.04 trillion in December. February came in at $683.1 billion and March to date is just $469.8 billion. March could be the lowest month since December 2020.

Updated Guidance.  As a result of the disappointing volumes, we have lowered our expectations for the second half of fiscal 2022. Revenue for the fiscal third quarter (ending March 31) is now projected at $98 million, down from a prior $113 million, while we reduced fourth quarter revenue to $116 million from $175 million on the assumption current trends do not improve significantly. As a result …

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, March 23, 2022

Voyager Digital (VYGVF)(VOYG:CA)
Volumes Below Expectations; Updated Model, Lowering PT to $15

Voyager Digital Ltd through its subsidiary, operates as a crypto asset broker that provides retail and institutional investors with a turnkey solution to trade crypto assets. The company offers investors execution, data, wallet and custody services through its institutional-grade open architecture platform.

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.

Challenging Environment. Cryptocurrency trading volumes continue to decline, as the Russia/Ukraine war, threatened legislation, and a weakening economy have raised concerns among investors in this new asset class. Data from The Block indicate trading volume in January fell to $833.6 billion from $1.04 trillion in December. February came in at $683.1 billion and March to date is just $469.8 billion. March could be the lowest month since December 2020.

Updated Guidance.  As a result of the disappointing volumes, we have lowered our expectations for the second half of fiscal 2022. Revenue for the fiscal third quarter (ending March 31) is now projected at $98 million, down from a prior $113 million, while we reduced fourth quarter revenue to $116 million from $175 million on the assumption current trends do not improve significantly. As a result …

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. 

 

  Image: Dean Terry (Flickr)

The Metaverse vs Virtual Reality, Two Different Worlds

 

If you’re not entirely sure what the metaverse is or all of its possibilities, don’t feel bad, it’s currently under construction, and there are no blueprints. Virtual reality, which is the closest most people get to understand the many visions of the next generation of the internet, stops very short of the potential of a metaverse that is still barely defined. Or, as undefined as the World Wide Web was in the early 1990s. And it has to be.

Six months ago, Facebook founder Mark Zuckerberg announced that Facebook would be changing its name to Meta. While many companies were moving toward and claiming their own slice of the metaverse before Facebook’s rebranding, this made Meta and metaverse a household word, and a topic discussed on the nightly news.

Defining Virtual Reality

The building blocks to understanding the metaverse vision include virtual reality. In a virtual reality experience, computers are used to simulate an environment and place the user in that simulation. Rather than scrolling through a monitor, users are immersed and able to interact with 3D worlds. It is limited by the designer.  

 

Defining Metaverse

Most of us carry in our pockets a smartphone that allows us access to what was once referred to as the “information superhighway.” Before this online access, we were impressed by how a floppy disk placed in our desktop computer could contain an entire encyclopedia worth of knowledge or how we could store digital pictures on our hard drive or removable storage to share with others. Comprehending that the interconnection of computers could allow us to have access to ongoing updated information from computers/servers throughout the world was almost unfathomable. And since there was no one architect, but instead a capitalistic motivated development surge filling needs people didn’t even know they had, explaining what the internet would become was not possible.

Flash forward a few decades and the expected next version (Web 3.0) is still largely in the designing stage by many unrelated players. The overall expectation is that one can enter the metaverse and be limitless as to where they can travel to. One might move from clothes shopping to changing into what they purchased, to going to a car show or boat dealer and learning about new vehicles, either real-world or meta. Afterward one might attend a concert or conference or just get together with friends in their virtual home setting.  How exactly all this will work and feel, the technology and designers across the planet are working on now. It will evolve based on usage, needs, and competition, just like real-world creation, and just like the internet experienced – do you remember AOL or Netscape Navigator?

 

Who Will Define It?

The shared virtual world will be built by large companies we all know and small companies we have not yet heard of yet. Facebook (now Meta) is a huge company that will surely play an important role in the early development of metaverse growth and direction. But, it is just one player in an expanding market segment.  Other well-known companies that are involved include Microsoft, which recently announced Microsoft Mesh, their version of a mixed-reality platform.

Smaller companies like tokens.com (SMURF) (see
initiation of coverage report by Noble Capital Markets) has what some may view as a “dream team” of experienced managers. Noble Capital Markets Senior Analyst Joe
Gomes defines the company this way,” Tokens.com is a publicly-traded company that invests in Web 3.0 assets linked to the Metaverse, DeFi, NFTs, and Gaming. Tokens.com connects the investing public to the evolving and fast-growing digital universe.” Not unlike other companies, large and small, it is clear SMURF management intends to be nimble both leading and following to earn a slice of what some estimates say will be an $8 trillion market.

 

Take-Away

The most notable difference between virtual reality and the metaverse is that while virtual reality has already been developed, the metaverse is being developed by competing forces and an array of visions even larger than the internet had when private homes first began getting connected.

From here it’s a journey as it gets built out. The metaverse is not expected to replace the traditional internet, but in many ways do what can’t be done under the internet’s current version. As with the early days of the web, there will be opportunities for companies started in someone’s spare bedroom to grow up to be the next Google, and other large companies that completely miss the potential.

Paul Hoffman

Managing Editor, Channelchek

 

Suggested Reading

Metaverse: Five Things to Know – and What it Could Mean for You

Recent Patent Filings Show the Extent that Large Companies are Prepping for Blockchain Profits

COLA Increases for Seniors in 2022 Will Likely Top $68 Billion

Non-Fungible-Tokens Have Become a New Revenue Source for Once Stodgy Institutions

 

Sources

https://www.nytimes.com/2022/01/18/technology/personaltech/metaverse-gaming-definition.html

https://channelchek.vercel.app/companies/SMURF/research-report/3424

https://www2.deloitte.com/us/en/pages/about-deloitte/articles/press-releases/deloitte-launches-unlimited-reality-services.html

 

Stay up to date. Follow us:

  Image: Dean Terry (Flickr)

The Metaverse vs Virtual Reality, Two Different Worlds

 

If you’re not entirely sure what the metaverse is or all of its possibilities, don’t feel bad, it’s currently under construction, and there are no blueprints. Virtual reality, which is the closest most people get to understand the many visions of the next generation of the internet, stops very short of the potential of a metaverse that is still barely defined. Or, as undefined as the World Wide Web was in the early 1990s. And it has to be.

Six months ago, Facebook founder Mark Zuckerberg announced that Facebook would be changing its name to Meta. While many companies were moving toward and claiming their own slice of the metaverse before Facebook’s rebranding, this made Meta and metaverse a household word, and a topic discussed on the nightly news.

Defining Virtual Reality

The building blocks to understanding the metaverse vision include virtual reality. In a virtual reality experience, computers are used to simulate an environment and place the user in that simulation. Rather than scrolling through a monitor, users are immersed and able to interact with 3D worlds. It is limited by the designer.  

 

Defining Metaverse

Most of us carry in our pockets a smartphone that allows us access to what was once referred to as the “information superhighway.” Before this online access, we were impressed by how a floppy disk placed in our desktop computer could contain an entire encyclopedia worth of knowledge or how we could store digital pictures on our hard drive or removable storage to share with others. Comprehending that the interconnection of computers could allow us to have access to ongoing updated information from computers/servers throughout the world was almost unfathomable. And since there was no one architect, but instead a capitalistic motivated development surge filling needs people didn’t even know they had, explaining what the internet would become was not possible.

Flash forward a few decades and the expected next version (Web 3.0) is still largely in the designing stage by many unrelated players. The overall expectation is that one can enter the metaverse and be limitless as to where they can travel to. One might move from clothes shopping to changing into what they purchased, to going to a car show or boat dealer and learning about new vehicles, either real-world or meta. Afterward one might attend a concert or conference or just get together with friends in their virtual home setting.  How exactly all this will work and feel, the technology and designers across the planet are working on now. It will evolve based on usage, needs, and competition, just like real-world creation, and just like the internet experienced – do you remember AOL or Netscape Navigator?

 

Who Will Define It?

The shared virtual world will be built by large companies we all know and small companies we have not yet heard of yet. Facebook (now Meta) is a huge company that will surely play an important role in the early development of metaverse growth and direction. But, it is just one player in an expanding market segment.  Other well-known companies that are involved include Microsoft, which recently announced Microsoft Mesh, their version of a mixed-reality platform.

Smaller companies like tokens.com (SMURF) (see
initiation of coverage report by Noble Capital Markets) has what some may view as a “dream team” of experienced managers. Noble Capital Markets Senior Analyst Joe
Gomes defines the company this way,” Tokens.com is a publicly-traded company that invests in Web 3.0 assets linked to the Metaverse, DeFi, NFTs, and Gaming. Tokens.com connects the investing public to the evolving and fast-growing digital universe.” Not unlike other companies, large and small, it is clear SMURF management intends to be nimble both leading and following to earn a slice of what some estimates say will be an $8 trillion market.

 

Take-Away

The most notable difference between virtual reality and the metaverse is that while virtual reality has already been developed, the metaverse is being developed by competing forces and an array of visions even larger than the internet had when private homes first began getting connected.

From here it’s a journey as it gets built out. The metaverse is not expected to replace the traditional internet, but in many ways do what can’t be done under the internet’s current version. As with the early days of the web, there will be opportunities for companies started in someone’s spare bedroom to grow up to be the next Google, and other large companies that completely miss the potential.

Paul Hoffman

Managing Editor, Channelchek

 

Suggested Reading

Metaverse: Five Things to Know – and What it Could Mean for You

Recent Patent Filings Show the Extent that Large Companies are Prepping for Blockchain Profits

COLA Increases for Seniors in 2022 Will Likely Top $68 Billion

Non-Fungible-Tokens Have Become a New Revenue Source for Once Stodgy Institutions

 

Sources

https://www.nytimes.com/2022/01/18/technology/personaltech/metaverse-gaming-definition.html

https://channelchek.vercel.app/companies/SMURF/research-report/3424

https://www2.deloitte.com/us/en/pages/about-deloitte/articles/press-releases/deloitte-launches-unlimited-reality-services.html

 

Stay up to date. Follow us:

  Image: Diverse Stock Photos (Flickr)

Analyst Believes Tech and Innovation are Severely Oversold

 

On Tuesday, it was reported that Cathie Wood’s Ark Innovation ETF experienced the highest amount of inflows since May of 2021. The fund returned over 10% during the week despite the Fed raising rates and guiding expectations toward continued increases. Does this mark the turnaround in the performance of innovative companies? JP Morgan’s Marko Kolanovic seems to think so.

According to a research note published on Thursday (March 17) from Marko
Kolanovic, the market segment is cheap. The thoughts of the Global Head of Macro Quantitative and Derivatives Research for the investment bank are particularly noteworthy as his recent track record in related sectors is excellent. For example, Kolanovic warned
investors in 2021 about the bubble in innovation stocks, the potential for a commodity supercycle, and even geopolitical risks in 2022. These are eye-opening credentials, considering the AARK Innovation Fund is now down more than 50%, oil is up over 50%, and an unexpected war broke out in Europe.

Here’s Why

As we step into Spring 2022, we find many innovative tech stocks that had rocketed during the pandemic, now well off their highs – some more than 80% below their peak. Stocks that investors were tripping over themselves to buy as they marched higher in late 2020 and 2021 while their businesses caught investor attention are sitting at levels Kolanovic sees as an early turning point.

In his note he indicates that he believes the sell-off overshot to the downside and a turning point will come, even though risks remain in the stock market in general, “Markets may anticipate these turning points sooner, and we think it is time to start adding risk in many areas that overshot on the downside year-to-date,” Kolanovic said.

 

What’s Included in Forecast

JPM’s quant and derivatives head believes some of the collapse has been liquidity-driven. Beaten down sectors like biotech, emerging markets, innovation, and tech were all mentioned as providing opportunities. He pointed out that many of these market segments are trading at “all-time valuation lows (including previous recessions and periods of much higher interest rates).”

Kolanovic expects “great opportunities in high-beta, beaten-down segments that include innovation, tech, biotech, emerging markets.” While investors have been focusing their concerns on inflation and a potential recession, he doesn’t believe the US is headed toward a recession – though he’s not ruling out one in Europe or a further slowdown in the US.

The caution here is that investors need to do their homework, look at professional research and know
the company.  Investors shouldn’t indiscriminately buy beaten-down tech stocks, he cautioned, as “not all assets are cheap” amid rising interest rates and a slowing US economy. “While the commodity supercycle will persist,” the strategist said, “the correction in bubble sectors is now likely finished, and geopolitical risk will likely start abating in a few weeks’ time (while a comprehensive resolution may take a few months),” Kolanovic wrote.

Paul Hoffman

Managing Editor, Channelchek

 

Suggested Reading

Cathie Wood is Even More Positive About Innovative Companies with Global Turmoil

Cathie Wood Thinks if There is No Blood in Your Street, You Should Move

Michael Burry’s Public Investments in SPACs, Prisons, and Electric Hogs

IRA Investments and Small Cap Stocks

 

Sources

https://www.bloomberg.com/news/articles/2022-03-17/jpmorgan-s-kolanovic-says-market-bubble-corrections-almost-done-l0va2ffi

https://www.cnbc.com/2022/03/17/jpmorgans-kolanovic-says-its-time-for-investors-to-start-adding-back-risk-.html

 

Stay up to date. Follow us:

  Image: Diverse Stock Photos (Flickr)

Analyst Believes Tech and Innovation are Severely Oversold

 

On Tuesday, it was reported that Cathie Wood’s Ark Innovation ETF experienced the highest amount of inflows since May of 2021. The fund returned over 10% during the week despite the Fed raising rates and guiding expectations toward continued increases. Does this mark the turnaround in the performance of innovative companies? JP Morgan’s Marko Kolanovic seems to think so.

According to a research note published on Thursday (March 17) from Marko
Kolanovic, the market segment is cheap. The thoughts of the Global Head of Macro Quantitative and Derivatives Research for the investment bank are particularly noteworthy as his recent track record in related sectors is excellent. For example, Kolanovic warned
investors in 2021 about the bubble in innovation stocks, the potential for a commodity supercycle, and even geopolitical risks in 2022. These are eye-opening credentials, considering the AARK Innovation Fund is now down more than 50%, oil is up over 50%, and an unexpected war broke out in Europe.

Here’s Why

As we step into Spring 2022, we find many innovative tech stocks that had rocketed during the pandemic, now well off their highs – some more than 80% below their peak. Stocks that investors were tripping over themselves to buy as they marched higher in late 2020 and 2021 while their businesses caught investor attention are sitting at levels Kolanovic sees as an early turning point.

In his note he indicates that he believes the sell-off overshot to the downside and a turning point will come, even though risks remain in the stock market in general, “Markets may anticipate these turning points sooner, and we think it is time to start adding risk in many areas that overshot on the downside year-to-date,” Kolanovic said.

 

What’s Included in Forecast

JPM’s quant and derivatives head believes some of the collapse has been liquidity-driven. Beaten down sectors like biotech, emerging markets, innovation, and tech were all mentioned as providing opportunities. He pointed out that many of these market segments are trading at “all-time valuation lows (including previous recessions and periods of much higher interest rates).”

Kolanovic expects “great opportunities in high-beta, beaten-down segments that include innovation, tech, biotech, emerging markets.” While investors have been focusing their concerns on inflation and a potential recession, he doesn’t believe the US is headed toward a recession – though he’s not ruling out one in Europe or a further slowdown in the US.

The caution here is that investors need to do their homework, look at professional research and know
the company.  Investors shouldn’t indiscriminately buy beaten-down tech stocks, he cautioned, as “not all assets are cheap” amid rising interest rates and a slowing US economy. “While the commodity supercycle will persist,” the strategist said, “the correction in bubble sectors is now likely finished, and geopolitical risk will likely start abating in a few weeks’ time (while a comprehensive resolution may take a few months),” Kolanovic wrote.

Paul Hoffman

Managing Editor, Channelchek

 

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Sources

https://www.bloomberg.com/news/articles/2022-03-17/jpmorgan-s-kolanovic-says-market-bubble-corrections-almost-done-l0va2ffi

https://www.cnbc.com/2022/03/17/jpmorgans-kolanovic-says-its-time-for-investors-to-start-adding-back-risk-.html

 

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When it Comes to AI, Can We Ditch the Datasets?

 

Adam Zewe | MIT
News Office

 

Huge amounts of data are needed to train machine-learning models to perform image classification tasks, such as identifying damage in satellite photos following a natural disaster. However, these data are not always easy to come by. Datasets may cost millions of dollars to generate, if usable data exist in the first place, and even the best datasets often contain biases that negatively impact a model’s performance.

To circumvent some of the problems presented by datasets, MIT researchers developed a method for training a machine learning model that, rather than using a dataset, uses a special type of machine-learning model to generate extremely realistic synthetic data that can train another model for downstream vision tasks.

Their results show that a contrastive representation learning model trained using only these synthetic data is able to learn visual representations that rival or even outperform those learned from real data.

This special machine-learning model, known as a generative model, requires far less memory to store or share than a dataset. Using synthetic data also has the potential to sidestep some concerns around privacy and usage rights that limit how some real data can be distributed. A generative model could also be edited to remove certain attributes, like race or gender, which could address some biases that exist in traditional datasets.

“We knew that this method should eventually work; we just needed to wait for these generative models to get better and better. But we were especially pleased when we showed that this method sometimes does even better than the real thing,” says Ali Jahanian, a research scientist in the Computer Science and Artificial Intelligence Laboratory (CSAIL) and lead author of the paper.

Jahanian wrote the paper with CSAIL grad students Xavier Puig and Yonglong Tian, and senior author Phillip Isola, an assistant professor in the Department of Electrical Engineering and Computer Science. The research will be presented at the International Conference on Learning Representations.

 

Generating Synthetic Data

Once a generative model has been trained on real data, it can generate synthetic data that are so realistic they are nearly indistinguishable from the real thing. The training process involves showing the generative model millions of images that contain objects in a particular class (like cars or cats), and then it learns what a car or cat looks like so it can generate similar objects.

Essentially by flipping a switch, researchers can use a pre-trained generative model to output a steady stream of unique, realistic images that are based on those in the model’s training dataset, Jahanian says.

But generative models are even more useful because they learn how to transform the underlying data on which they are trained, he says. If the model is trained on images of cars, it can “imagine” how a car would look in different situations — situations it did not see during training — and then output images that show the car in unique poses, colors, or sizes.

Having multiple views of the same image is important for a technique called contrastive learning, where a machine-learning model is shown many unlabeled images to learn which pairs are similar or different.

The researchers connected a pretrained generative model to a contrastive learning model in a way that allowed the two models to work together automatically. The contrastive learner could tell the generative model to produce different views of an object, and then learn to identify that object from multiple angles, Jahanian explains.

“This was like connecting two building blocks. Because the generative model can give us different views of the same thing, it can help the contrastive method to learn better representations,” he says.

 

Even Better Than the Real Thing

The researchers compared their method to several other image classification models that were trained using real data and found that their method performed as well, and sometimes better, than the other models.

One advantage of using a generative model is that it can, in theory, create an infinite number of samples. So, the researchers also studied how the number of samples influenced the model’s performance. They found that, in some instances, generating larger numbers of unique samples led to additional improvements.

“The cool thing about these generative models is that someone else trained them for you. You can find them in online repositories, so everyone can use them. And you don’t need to intervene in the model to get good representations,” Jahanian says.

But he cautions that there are some limitations to using generative models. In some cases, these models can reveal source data, which can pose privacy risks, and they could amplify biases in the datasets they are trained on if they aren’t properly audited.

He and his collaborators plan to address those limitations in future work. Another area they want to explore is using this technique to generate corner cases that could improve machine learning models. Corner cases often can’t be learned from real data. For instance, if researchers are training a computer vision model for a self-driving car, real data wouldn’t contain examples of a dog and his owner running down a highway, so the model would never learn what to do in this situation. Generating that corner case data synthetically could improve the performance of machine learning models in some high-stakes situations.

The researchers also want to continue improving generative models so they can compose images that are even more sophisticated, he says.

 

This research was supported, in part, by the MIT-IBM
Watson AI Lab, the United States Air Force Research Laboratory, and the United
States Air Force Artificial Intelligence Accelerator.

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