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

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. 

 

Voyager Digital (VYGVF)(VOYG:CA) – Volumes Below Expectations Updated Model Lowering PT

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. 

 

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

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. 

 

The Metaverse is Under Construction Here’s What is Known



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:

 

The Metaverse is Under Construction, Here’s What is Known



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:

 

Is Cathie Woods Innovation Fund Getting a ReBoot



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:

 

Is Cathie Wood’s Innovation Fund Getting a ReBoot?



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:

 

Generating Synthetic Data to Speed AI




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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Metaverse Vacations are Latest Use of this Technology



Image: Genoa Roofs, Shocking Wonder (Flickr)


Publisher Embraces Technology that Allows Travel Experiences Regardless of Global Restrictions

 

Vacation travelers have been kept home the past few years, and from the looks of things, if a world tour was on their bucket list, they are likely to remain frustrated. However, technology has an answer to this frustration, and a 22-year-old company has worked with its partner to develop a solution. The company is a subscription-based travel company that sees the opportunity to embrace technology, as they did with the internet back when founded – and in a way that allows them to broaden customer base and serve current users better.

Travelzoo (TZOO) is a US based company that has published “real-world” travel and entertainment packages since 1998. Since then, management has successfully grown and navigated through a changing world. The most recent addition to their travel deals is metaverse based, this puts them at the forefront of metaverse-travel access.

The announcement by the company yesterday (March 14) that they have created a metaverse division and plan to launch Travelzoo META in a few weeks adds an entirely new and exciting dimension to its business. Travelzoo
META
is a paid subscription-based service that provides members with exclusive access to metaverse travel and unique metaverse vacation experiences.

 

 

About the Meta Division

Travelzoo has been building a team of Metaverse travel experience scouts in collaboration with a business partner. Similar to its other travel services, TZOO doesn’t plan to produce or organize the experiences, they will be the conduit that allows subscribers access to unique travel experiences.

“We believe that Metaverse spaces and its future destinations provide completely new and different experiences that consumers want to see,” said Holger Bartel, Global CEO of Travelzoo. “The Metaverse is disruptive and abundant with lucrative opportunities for innovative companies that are willing to be the first movers.”

The build-out of the new business is expected to be funded from annual membership fees to be paid by Travelzoo META members.

About Travelzoo

Travelzoo boasts 30 million members throughout Asia Pacific, Europe, and North America, as well as millions of website users. It has provided for decades what it considers the best travel, entertainment, and local deals available from various companies that advertise through Travelzoo’s service. Most of the company’s revenue is derived from North America.

One of the four research analysts that publishes reports on TZOO is Mike
Kupinski,
Director of Research – Senior Research Analyst, Media & Entertainment at Noble Capital Markets. Mr. Kupinski’s most
recent report
on Travelzoo was published on March 4, 2022. The report titled Why
Investors Should Not Look In The Rearview Mirror
 includes a price target and earnings numbers, along with the analyst’s current rating.

The new META division is in addition to the ongoing real-world travel and entertainment deals the company publishes. 

Travelzoo plans to host an investor conference call at the end of April to provide an update.

Take-Away

As new technology becomes available, successful companies pivot, adapt, and find creative ways to recognize where they can add more value. While businesses are looking for ways to enhance their own businesses with new technology, the late April conference call planned by Travelzoo is on my to-do list. 

Paul Hoffman

Managing Editor, Channelchek

 

Suggested Reading



Why the Metaverse Matters



What Does this Blockchain Crypto-Asset Stuff Have to do With the Metaverse?





Why Web3 is a True Collaboration Between Young and Old



Workcations Add a New class of Traveller (Aug 2020)

 

Sources

https://www.prnewswire.com/news-releases/travelzoo-creates-metaverse-division-301501692.html

https://channelchek.vercel.app/companies/TZOO/research-report/3364

 

Stay up to date. Follow us:

 

Why Web3 is a True Collaboration Between Young and Old



Image Credit: Genies


Why Robert Iger is Putting His Money and Time in the Metaverse

 

Robert Iger is arguably Disney’s (DIS) greatest leader since Walt Disney himself. While Iger is in his 70s after his contract with Disney ran out in 2021, no one expected him to remain idle. It was rumored the former Disney CEO was lobbying President Biden to be named U.S. Ambassador to China. People can now stop speculating because he has set a new direction, and the path makes as much sense as it is surprising. For the next scene of his life, the former “Mouse House” boss is backing a start-up that celebrities and others use to create avatars for the metaverse.

Mr. Iger was chief executive of Disney from 2005 until early 2020 and continued as executive chairman after that until late last year. According to a press release from Genies, a private start-up, Iger invested in and joined Genies’ board of directors. This is one of five small tech companies he has recently backed.

 

About Genies

A 29-year-old by the name of Akash Nigam founded Genies in 2017. The company, which has been able to raise $100 million in funding, has developed tools for making virtual characters, clothing, and accessories backed by nonfungible tokens. Genies now has over 100 employees. NFTs are considered an integral part of what many see as the next iteration of the web, an expected technological growth dubbed Web 3.0 or Web3.

Genies now operates an NFT marketplace where users can sell their primary creations or secondary collection for a 5% fee. In 2021 the company signed partnerships with Universal Music Group NV and Warner Music Group Corp. Artists associated with these labels include Rihanna, Justin Bieber, and Cardi B.

“We believe that avatar ecosystems are going to be the mobile apps of web3. An ambitious vision calls for rare mindshare and I can’t think of a better creative and product thinker than Bob to collaborate with in bringing this all to reality,” said Akash Nigam, CEO of Genies.

 

Iger’s Thoughts

The 71-year-old Mr. Iger, met with about two dozen start-up executives before making his investments and becoming one of five directors on Genies’ board, according to the Wall Street Journal. “I’ve always been drawn to the intersection between technology and art, and Genies provides unique and compelling opportunities to harness the power of that combination to enable new forms of creativity, expression and communication,” said Bob Iger. “After spending the last few months getting to know Akash and learning more about Genies, I am very excited about his vision and how it will be fulfilled, and I look forward to working with the entire team.”

Iger said he was attracted to Genies because he believes the ability for anyone to easily create and sell virtual goods be key to the metaverse business and alter the entertainment industry. The freedom to use existing intellectual property, for example, customizing a Mickey Mouse avatar, was particularly appealing.

NFTs are a lucrative component of the metaverse. They serve to certify ownership of unique virtual goods through blockchain technology. While still in its infancy, NFT’s popularity has grown over the past year. Collectors are buying characters, clothing for the characters, artwork, and more; often using cryptocurrency. There has been massive growth in the business, $17 billion in 2021 up from less than $100 million in 2020.

Take-Away

The metaverse has gotten a huge vote of confidence from the addition of a former CEO of an entertainment giant. Growth in the business and ancillary businesses is almost beyond comparison.

As with most new technologies, growth related to “web3” is almost assured. But discovering which companies have better products, better plans, comfortable financial positions, and superior marketing is not assured. This is why Channelchek is a sponsor of NobleCon18. This is the 18th year Noble Capital Markets will be inspiring investors of all levels with the latest innovations, actionable ideas, and live presentations from the companies’ CEOs. There is no cost for investors, here
is more information.

Paul Hoffman

Managing Editor, Channelchek

 

Suggested Reading



Walmart’s Metaverse, NFT, and Crypto Plans



Attend Paris Hilton’s Metaverse NYE Party





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



NFTs Explained, What They Are, Why the Excitement

Sources

https://www.prnewswire.com/news-releases/bob-iger-former-disney-ceo-invests-and-joins-genies-board-of-directors-301501537.html

https://variety.com/exec/robert-iger/

https://www.wsj.com/articles/after-walt-disney-robert-iger-heads-to-the-metaverse-11647259201

https://nonfungible.com/news/corporate/yearly-nft-market-report-2021


 

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Information Services (III) – Post Call Commentary and Updated Models

Monday, March 14, 2022

Information Services (III)
Post Call Commentary and Updated Models

ISG (Information Services Group) (Nasdaq: III) is a leading global technology research and advisory firm. A trusted business partner to more than 700 clients, including more than 70 of the top 100 enterprises in the world, 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

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.

    Well Positioned for 2022. ISG posted record performance in 2021 and is well positioned for a continuation into 2022, in our view. The ISG NEXT model is growing revenue, clients, and higher profitability and trends continue to move in ISG’s favor as companies adapt to all things digital.

    Russia/Ukraine.  While ISG does not have operations or people in Ukraine, its clients do and depending on how the situation unfolds, it could become a headwind. We note revenue from operations in Germany accounted for 55% of overall European business. If the conflict begins to widen, it could begin to have a greater impact on ISG …


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. 

Information Services (III) – Strong 4Q Gives ISG More Momentum for 2022

Friday, March 11, 2022

Information Services (III)
Strong 4Q Gives ISG More Momentum for 2022

ISG (Information Services Group) (Nasdaq: III) is a leading global technology research and advisory firm. A trusted business partner to more than 700 clients, including more than 70 of the top 100 enterprises in the world, 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

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.

    Record 4Q21 Results: ISG’s management announced record 4Q revenue of $69.6 million, up 5% year-over-year and exceeding consensus of $67.96 million and our estimate of $68 million. Net Income was reported at $3.6 million, or an EPS of $0.07, versus $1.4 million or $0.03 last year. Adjusted EPS was at $0.10 and adjusted EBITDA was at a record $10.2 million (11% over last year). We forecasted Net Income to be $4.3 million, EPS of $0.08, adjusted EPS of $0.11, and adjusted EBITDA of $9.3 million. Consensus estimate for EPS was $0.06.

    Continuing Momentum into 2022: The quarter highlights the continuation of the momentum across ISG’s markets.  Enterprises are powering through the headwinds of the ongoing pandemic, inflation, and supply chain disruptions through ramping up investments into the digital and cloud technologies, both being specialties of ISG …


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. 

Comtech (CMTL) – Near-Term Bumps Obscuring Long-term Potential

Friday, March 11, 2022

Comtech (CMTL)
Near-Term Bumps Obscuring Long-term Potential

Comtech Telecommunications Corp. engages in the design, development, production, and marketing of products, systems, and services for advanced communications solutions in the United States and internationally. It operates in three segments: Telecommunications Transmission, Mobile Data Communications, and RF Microwave Amplifiers. The Telecommunications Transmission segment provides satellite earth station equipment and systems, over-the-horizon microwave systems, and forward error correction technology, which are used in various commercial and government applications, including backhaul of wireless and cellular traffic, broadcasting (including HDTV), IP-based communications traffic, long distance telephony, and secure defense applications. The Mobile Data Communications segment provides mobile satellite transceivers, and computers and satellite earth station network gateways and associated installation, training, and maintenance services; supplies and operates satellite packet data networks, including arranging and providing satellite capacity; and offers microsatellites and related components. The RF Microwave Amplifiers segment designs, develops, manufactures, and markets satellite earth station traveling wave tube amplifiers (TWTA) and broadband amplifiers. Its amplifiers are used in broadcast and broadband satellite communication; defense applications, such as telecommunications systems and electronic warfare systems; and commercial applications comprising oncology treatment systems, as well as to amplify signals carrying voice, video, or data for air-to-satellite-to-ground communications. The company serves satellite systems integrators, wireless and other communication service providers, broadcasters, defense contractors, military, governments, and oil companies. Comtech markets its products through independent representatives and value-added resellers. The company was founded in 1967 and is headquartered in Melville, New York.

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 of $120.4 million, down 25.4% y-o-y, but was up 3.1% sequentially. We had forecast $125 million, same as consensus. Adjusted EBITDA was $9.8 million, or an 8.1% margin, down from $18.1 million and 11.2% last year. GAAP loss was $23.5 million, or $0.89 per share versus net income of $4.2 million, or $0.17 per share in 2Q21. Non GAAP EPS loss was $0.03 versus Non-GAAP EPS of $0.27 last year. We had forecast a GAAP loss of $3.5 million, or $0.13 per share.

    More Bumps in the Road.  The operating environment continues to be challenging. The latest is Russia’s invasion of the Ukraine. Not only is this pushing out a major troposcatter contract with the Ukraine, but other governments around the world are moving to purchasing war making equipment rather than Comtech’s products …


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.