If you didn’t make it to the LIVE event, or even if you did and want to revisit this memorable conference, here’s your opportunity exclusively on Channelchek.
Panels, Special Presentations, and Analyst Takeaways
The NobleCon19 panel discussion moderated by Nathan Cali, investment banker at Noble Capital Markets, on organ transplantation featured prominent figures in the field, including Dr. Karin Hehenberger, an organ transplant patient and founder of Lyfebulb, Dr. David Alexandre Gros, CEO of Eledon Pharmaceuticals, Dr. Muhammed Mohiuddin, director of the cardiac xenotransplantation program at the University of Maryland, and Dr. Pietr Witoski, surgery director of pancreatic and islet tranplant program at the University of Chicago. The discussion delved into their experiences, challenges in the organ transplant landscape, and revolutionary advancements, especially focusing on the concept of xenotransplantation.
Organ transplantation has come a remarkably long way since the first successful procedures in the 1950s and 60s. Yet there remain significant unmet needs and opportunities to further improve patient outcomes, quality of life, and access to these lifesaving procedures. At a presentation during NobleCon19, a panel of experts explored some of the latest breakthroughs and remaining challenges in areas ranging from immunosuppression to cross-species transplantation.
A Complex Treatment Paradigm
As patient-turned-advocate Dr. Karin Hehenberger related from personal experience, undergoing an organ transplant and living with a graft is filled with difficulties. The trauma of the surgery itself and needing immune-suppressing drugs just to avoid rejection deliver blows to physical health and mental wellbeing. This begins with a harrowing wait for a matching donor organ, continues through post-operative complications like infections, and extends for the rest of one’s life.
The panelists agreed the pressure on patients could be significantly reduced through innovation. More targeted immunosuppressants without harmful side effects would greatly improve quality of life after transplant surgery. Some emerging drug candidates like Eledon Pharmaceuticals Tegoprubart show early signs of progress on this front. There is also a global shortage of donor organs trailing far behind demand; new sources through xenotransplantation or regenerative medicine techniques could help resolve this shortage.
“We need a community where transplanted patients can come together, generate data, and advocate for change,” urged Dr. Hehenberger.
The valuable role of patient communities mirrors the interdisciplinary cooperation needed among the surgeons, specialists, social workers, and other caregivers that make organ transplantation successful. As Dr. Hehhenberger explained, the assessment process for transplant eligibility spans physical health, mental fitness, medication compliance, accessible transportation, and financial support. It is complex care with little margin for error.
An Evolving Market Landscape
Currently, the organ transplant market racks up over $5 billion in value each year and continues expanding at a steady pace. Much of this activity centers specifically around kidney transplants, where surgical innovations and public policy initiatives keep pushing the boundaries. As Dr. DA Gros noted, there are now a quarter million Americans living with a functioning kidney graft – proof of concept for an underappreciated treatment paradigm.
And yet, the surface has barely been scratched in terms of serving potential patients. Over half a million more remain tethered to dialysis as a stand-in for natural kidney function, with 125,000 added to this group annually in the U.S. alone. Dialysis generates its own burdens: decreased workplace productivity, infection risks, lower quality of life. From both humanitarian and financial viewpoints, empowering wider transition from dialysis to transplantation promises tremendous upside.
Experts on the panel targeted improved education around organ transplant options as a key opportunity. Many patients lack full information about the benefits transplant procedures can offer, or they confront social stigmas against this route. Policy revisions to widen access and increase support for lower-income patient communities could have an outsized impact as well.
Meanwhile, the business of organ transplantation continuously evolves. Major pharma companies like Bristol Meyers Squib remain heavily invested, yet a series of smaller players also drive momentum through novel immuno-therapy products. Audience members were encouraged to track firms like Aelix and Tacus for the next wave of clinical updates that will shape standard of care.
Pioneering the Future
Homing in on the future, speakers keyed in on barriers still to be conquered in transplantation medicine. While kidney procedures serve as a beachhead, there is a pressing need to expand reliable methods across more organ types while lengthening graft duration at the same time. This is no small task.
It will require rethinking conventional assumptions for a field that has relied predominantly on broad immune suppression since its inception. Some emerging biotech pipelines target specific T and B cell pathways implicated in chronic organ rejection, attempting to avoid toxicity associated with generalized immunosuppression. Early data hints at improved longevity for liver and heart grafts, but longer studies are still needed.
An even more radical solution highlighted by multiple panelists is the concept of xenotransplantation: introducing organs from other species like pigs into human patients. Recent demonstrations of human-pig heart and skin grafts saw patients survive months post-procedure compared to an anticipated span of days or weeks. The results electrified the transplant community given implications for essentially eliminating organ supply constraints.
That said, experts admit there are hurdles left to address before clinical adoption. Ethical quandaries exist around genetically modifying donor animals and infectious disease transmission risks from one species to another. Questions also persist about which immune pathways necessitate targeting for prolonged graft survival and how to refine the anti-rejection pharmaceutical regimens employed.
Signs point to countries with more flexible regulatory regimes as the likely springboards for refining xenotransplant methods and technology in the shorter-term. Yet the longer-term promise seems resoundingly clear. “If allowed, we will solve the organ shortage problem,” declared surgeon Dr. Peter Witoski when asked about outlook for the field.
A Call to Action
In closing the panel presentation, speakers underscored a sense of guarded optimism balanced with persistent unmet needs in transplantation medicine today. Limitations around donor organ supply and chronic graft failure continue exacting a real human toll, even if raw statistics showcase a steady rise in life-saving procedures overall.
It will take coordinated effort from policy makers, researchers, clinicians, investors and patient advocates to push new discoveries over the finish line – where they can impact the maximum number of lives. Key questions around optimal business models for novel therapeutics, data transparency, and equitable access are unlikely to solve themselves.
Yet the convergence of breakthrough technologies and innovative platforms for generating evidence, educating stakeholders and disseminating insights points toward a sea change for what the future may hold in this vital area of healthcare. The experts and audience members left the discussion around organ transplantation feeling energized to play their respective parts in driving that change.
Xcel Brands, Inc. 1333 Broadway 10th Floor New York, NY 10018 United States https:/Sector(s): Consumer Cyclical Industry: Apparel Manufacturing Full Time Employees: 84 Key Executives Name Title Pay Exercised Year Born Mr. Robert W. D’Loren Chairman, Pres & CEO 1.27M N/A 1958 Mr. James F. Haran CFO, Principal Financial & Accou
Michael Kupinski, Director of Research, Equity Research Analyst, Digital, Media & Technology , Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
Noblecon19. On December 5th, management presented at Noblecon19 at Florida Atlantic University (FAU) in Boca Raton, Florida, to the investment community. The presentation conducted by Mr. Robert D’Loren highlighted the company’s transition to a high margin, licensing model, its recent announcement with super model Christy Brinkley, and the upcoming launch of its social commerce app. We believe that the company is well on its way for a transition toward revenue and cash flow growth.
Strategic partnership. The company announced its newly formed joint venture with Christie Brinkley to develop TWRHLL, a lifestyle and apparel brand that will utilize retail and live streaming distribution channels. Christie Brinkley will serve as the face and voice of TWRHLL, which is expected to launch in the spring of 2024.
Equity Research is available at no cost to Registered users of Channelchek. Not a Member? Click ‘Join’ to join the Channelchek Community. There is no cost to register, and we never collect credit card information.
This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).
*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.
The Economic Perspectives Panel’s discussions at the recent NobleCon19 emerging growth conference not only provided valuable insights into various sectors and the broader economic landscape but also served as a comprehensive analysis that captivated the audience’s attention. The panel, featuring a diverse range of experts from industry leaders to economists, offered nuanced perspectives on the challenges that have characterized markets since 2021 and identified potential opportunities, notably emphasizing the potential for undervalued small-cap investments.
The conference kicked off with an Economic Outlook Panel, expertly moderated by Michael Williams, a seasoned News Anchor at WPTV/NBC in West Palm Beach. Williams adeptly steered the discussions through key topics, leveraging the wealth of knowledge from panelists such as Lisa Knutson, COO of E.W. Scripps;Cary Marshall, CFO of Alliance Resource Partners; Jose Torres, Senior Economist at Interactive Brokers; Shanoop Kothari, Co-CEO of LuxUrban Hotels; and Dan Thelen, Managing Director of Small/Mid Caps at Ancora.
A prevailing sentiment among the panelists was the intriguing possibility of 2024 mirroring the economic resurgence experienced in 1990, a year that followed a challenging period. Notably, the consensus was that small-cap investments tend to outperform larger companies during economic recoveries due to their inherent agility and greater potential for growth. The panel expressed cautious optimism, suggesting that the Russell 2000 index might pleasantly surprise investors in the upcoming year.
The discussion also spotlighted sectors of particular interest, with media and advertising taking center stage. The anticipation of heavy political ad spending, estimated at an impressive $10-12 billion leading up to the 2024 election, captured the attention of the panel. Additionally, the oil and gas markets were under scrutiny, with a notable supply response identified as a contributing factor in curbing recent inflation concerns. Projections indicated a forecasted addition of 2.2 million extra barrels per day in the US in 2023, with prices already having experienced a 17% drop from their earlier peak in the year.
Delving into broader economic discussions, the panel highlighted the resilience observed in 2023 to date, supported by a robust labor market and excess pandemic savings fueling consumption. However, the panel cautioned against undue optimism, pointing to expectations of a potential slowdown in 2024, particularly as the Federal Reserve eases interest rates and government spending recedes. The acceptance of a 3-3.5% baseline inflation in the long term was posited as a necessary acknowledgment, notwithstanding the official 2% target.
While acknowledging potential risks in the commercial real estate sector, the panel expressed confidence that forward-thinking companies were actively engaged in cost-cutting measures and prudent inventory management. The overarching expectation was that stock returns would follow a trajectory reminiscent of the positive trends witnessed in 1990, thereby making small-cap investments an attractive prospect for investors keen on capitalizing on emerging opportunities.
Addressing the transformative impact of artificial intelligence (AI) on various facets of business and society, the panel collectively agreed that AI is not just a passing trend but a transformative force that is here to stay. Cary Marshall went as far as declaring, “AI is the electrification of this country.” While recognizing the potential for AI to reduce labor costs, the panelists cautioned that widespread adoption might take longer than initially anticipated. Jose Torres added a nuanced perspective, suggesting that AI could lead to shorter workdays but expressed concerns about the potential erosion of interpersonal skills critical for persuasion and influence.
In conclusion, the panel emphasized the indispensable need for mental toughness, emotion management, and discipline in navigating the inevitable cycles of the markets. Despite the multifaceted challenges, the prevailing sentiment was one of guarded optimism for the road ahead. As markets continue to evolve and present new dynamics, these key takeaways from the Economic Perspectives Panel offer invaluable insights for investors seeking to navigate the intricate landscape of emerging growth and economic recovery, providing a robust foundation for strategic decision-making in the ever-changing financial environment.
The Russell 2000 index has been an overlooked area of the stock market this year, dominated by the headlines and volatility of mega-cap tech and blue chips. However, a seismic shift occurred last Wednesday when the Russell 2000 rallied over 6% for its best day since March, turning positive for 2023.
This index of approximately 2,000 small-cap stocks just made Wall Street wake up and take notice thanks to this violent swing. Now is the time for investors to understand what’s driving the resurgence and how to capitalize in small caps.
What is the Russell 2000 and Why Does It Matter?
The Russell 2000 index measures the performance of U.S. small-cap stocks with market caps below $3.7 billion. Weights are assigned by market cap, so the index serves as a benchmark for bonafide smaller firms. These companies tend to be younger with higher volatility and growth prospects.
As a result, the Russell 2000 provides a barometer of investor sentiment towards risk assets. Turning points in the index can indicate shifts in the overall stock market as traders move towards or away from speculation.
The recent 6%+ rally last Wednesday jolted the Russell 2000 into positive return territory for the year so far, now up 4% year-to-date. This signals a potential appetite for risk returning to markets, with traders betting on outsized returns potential in small caps after a prolonged lull.
Why Invest in Small Caps?
Investing in Russell 2000 companies over other stocks has compelling advantages if timed appropriately in the market cycle. First, smaller firms have lower visibility and coverage, so mispricings are more common. This creates pockets of opportunities for above-average returns compared to efficient larger cap markets.
Finally, identifying world-changing new products and innovations is easier in earlier stage small caps not yet on the main stage. Getting in early on the next Roku, Tesla, or Shake Shack while still qualifying for the 2000 index can deliver truly explosive portfolio growth.
What Investors Should Watch Next
Markets are now intently watching the Russell 2000 to see if last week’s awakening of small-cap animal spirits has true staying power. Traders want confirmation that the breakout can lead to a sustained run versus just being a short-lived dead cat bounce.
If the rally holds, it solidifies the thesis of rotating back towards risk—and earlier stage small names often lead the way in such environments. Savvy investors will use this volatility to start building positions in promising small caps with expanding growth prospects.
The secret is identifying the next crop of disruptors poised to multiply before the herd catches on. By getting ahead of the crowd now eyeing the Russell 2000’s surge, spectacular returns await those able to time the next leg up.
Bargain Hunting for Small Caps at NobleCon
One of the most effective ways to identify the small caps destined to drive the next market boom is to connect directly with leadership at the source. The annual NobleCon investor conference gives the opportunity for exactly that.
On December 3-5 in Boca Raton, Florida, small-cap firms will present their latest innovations, opportunities, and reasons to invest. Attendees gain first look access to fast-growing startups and tomorrow’s giants while they still qualify for the Russell 2000. Now in its 19th year, NobleCon19 promises to uncover the next crop of small cap innovators during the multi-day conference.
For investors looking to capitalize on the Russell 2000’s resurgence, NobleCon19 provides the direct pipeline to target ideas perfectly positioned to ride the reawakening wave in small caps. To learn more and register, visit www.noblecon19.com before discounted early bird rates expire.
BOCA RATON, Fla., Nov. 09, 2023 (GLOBE NEWSWIRE) — via InvestorWire — Noble Capital Markets, Inc. (“Noble”) today announces that Seeking Alpha (https://seekingalpha.com/), the world’s leading investing community, will be a prominent sponsor at NobleCon19 (NobleCon19.com), Noble’s 19th Annual Emerging Growth Equity Conference, to be held at Florida Atlantic University, College of Business, Executive Education, Dec. 3-5, 2023, in Boca Raton, Florida. NobleCon19 will feature 200 public company executives, corporate presentations, breakouts, 1×1 meetings with qualified attendees, provocative panels, and a keynote fireside chat featuring the 43rd President of the United States, George W. Bush, moderated by Noble’s Director of Research, Michael Kupinski.
As a sponsor, Seeking Alpha will play a significant role in enhancing the conference experience for attendees. Participants can look forward to engaging discussions, expert insights, and valuable networking opportunities facilitated by Seeking Alpha’s presence. The company’s participation underscores its dedication to empowering investors with high-quality, actionable research and analysis. As part of the sponsorship, Steven Cress, Seeking Alpha’s Head of Quantitative Strategies, will dive deeper into Seeking Alpha’s Quant System and its top picks for 2024, in a presentation preceding the George W. Bush keynote.
“We are thrilled to have Seeking Alpha on board as a sponsor for NobleCon19,” said Nico P. Pronk, CEO of Noble Capital Markets, the host of NobleCon19. “Their research and analysis tools and resources for the investment community align perfectly with the objectives of our conference. We believe their involvement will enhance the overall event, providing attendees with valuable perspectives and knowledge.”
During the conference, Seeking Alpha representatives will be available at their booth, which will also be the official NobleCon19 coffee station, to interact with attendees, demonstrate their platform’s capabilities, and discuss the latest trends in investment research. Attendees are encouraged to visit the Seeking Alpha booth to learn more about their innovative solutions and how they can benefit individual investors, financial professionals and institutions alike.
“We are excited to sponsor NobleCon19 and engage with industry experts, investors and thought leaders,” said Mayer Reich, Vice President of Marketing at Seeking Alpha. “This conference represents an excellent opportunity for us to connect with our community and share insights. We look forward to productive discussions and meaningful interactions throughout the event.”
To register to attend NobleCon19: NobleCon19.com. To receive NobleCon agenda updates and registration opportunities, join Channelchek.com, Noble’s online investment community, listing more than 6,000 public emerging growth companies. This is an open-access site with no cost (ever) to join. Companies with market capitalization of $3 billion or less wishing to learn more about presenting at NobleCon19 can Inquire Here.
About Seeking Alpha: Seeking Alpha is the world’s leading investing community, where investors connect daily to discover and share new investing ideas, discuss the latest news, debate the merits of stocks, and make informed investment decisions. Seeking Alpha’s content has unparalleled breadth and depth: from stocks, ETFs and mutual funds to commodities and cryptocurrency. Seeking Alpha gives investors access to professional-caliber research tools – including factor grades and quant ratings that summarize each stock’s characteristics. Seeking Alpha empowers investors to make the absolute best investing decisions by leveraging independent and balanced stock research, fundamental analysis tools, crowdsourced debate, news and actionable market data. Seeking Alpha is not a licensed securities dealer, broker or U.S. investment adviser or investment bank.
About Noble Capital Markets: Noble Capital Markets, Inc. was incorporated in 1984 as a full-service SEC / FINRA registered broker-dealer, dedicated exclusively to serving underfollowed emerging growth companies through investment banking, wealth management, trading & execution, and equity research activities. Over the past 39 years, Noble has raised billions of dollars for companies and published more than 45,000 equity research reports. www.noblecapitalmarkets.com contact@noblecapitalmarkets.com.
Noblecon19 is Noble Capital Markets’ 19th Annual Emerging Growth Equity Conference. This year, and for the first time, it will be held at Florida Atlantic University College of Business, Executive Education complex in Boca Raton, Florida. If a school environment comes to mind – wooden tables and hard chairs – you’re in for a huge surprise. This spectacular new 52,000 square foot building features the most technologically advanced presentation rooms on the North American Conference circuit with massive screens and tiered seating, all wired for worldwide broadcast. Oh, and the chairs are ergonomic memory foam.
Enough about the facilities (except to mention there are 800 free covered parking spots), it’s what will go on inside that is making NobleCon19 among the most anticipated events in South Florida this winter. Over 200 public company executive guest speakers (CEO, CFO, COO, that level), The 2023 NCAA Men’s Basketball Coach of the Year, Dusty May, on motivational team building. “The World is Hot” panel of experts covering everything from the global economy to the daunting influence of AI. And the 43rd President of the United States, George W. Bush. Only 46 people have ascended to that position, so that’s about as exclusive as it gets.
Let’s go back to those public company executives. The true stars of the show. Emerging growth companies are synonymous with innovation. They represent breakthroughs in science, technology, and medicine. Even though that breakthrough may be right around the corner, these are lesser known companies, so it’s a hands-on way to explore and discover what the future may hold, and you’re hearing it from the c-suites of the organizations. And if you’re looking for investments with exponential growth opportunity, NobleCon will certainly help begin your due diligence. If you’re looking for the next apple, this truly is your orchard.
The agenda offers a wide range of ways to meet these executives. Each company will have a formal presentation, an informal breakout, and one-on-one meetings arranged with qualified investors. The corridors will be filled with them so a little badge-watching can lead to some great dialogue. And then there’s “The After.” It’s a networking event (party) the evening after the first day of meetings. Noble has become known for The After, perhaps even legendary. This year it’s at the Privaira Aviation hangar at the Boca Raton Airport. The theme is a throwback to 1923 – It’s also the 19th NobleCon in ‘23. Here’s the billing for the event: “Mingle with munchies, music, magic, motors, and high-flying antics – a nostalgic extravaganza.“ Noble believes that the best bits of business are done in these more casual, fun environments, so to make sure that they are very well attended, they go, as they say, all out.
NobleCon is open for anyone to attend. So who should attend? Besides the obvious – institutional investors, brokers, equity analysts, RIAs, family offices – simply, anyone who has a love for business and wants to meet and mesh with the leaders of these emerging companies. The companies themselves help subsidize the lofty cost of hosting an event of this size and caliber, so the cost to attend all events is only $399. And until October 15, if you are a registered guest of Channelchek, (here’s the real exclusive part) it’s less than half at $149! This offer is limited to the first 250 attendees. To put that in perspective, a ticket for the best seat in the house for the George W. Bush fireside chat alone (moderated by Noble’s Director of Research, Michael Kupinski) is $350. If you’re looking for the ultimate adventure in capitalism, this is it!
NobleCon19 at Florida Atlantic University, College of Business, Executive Education
IF YOU REPRESENT A PUBLIC COMPANY AND WOULD LIKE TO BE CONSIDERED AS A PRESENTER AT NOBLECON19 CLICK HERE
Please note that lawyers, accountants, corporate consultants, investor relations, and other service providers do not qualify for the Channelchek discount.
FAU COLLEGE OF BUSINESS EXECUTIVE EDUCATION | KAYE PERFORMING ARTS AUDITORIUM
FEATURING MODERATED FIRESIDE CHAT WITH THE 43rd PRESIDENT OF THE UNITED STATES, GEORGE W. BUSH
SUNDAY DECEMBER 3
Official Kickoff / Early Registration – FAU College of Business Executive Education
Dusty May, NCAA Men’s Basketball; Coach of the Year – FAU Owls
Nico Pronk, President & CEO, Noble Capital Markets, Inc.
Cocktails and hors d’oeuvres
MONDAY DECEMBER 4
~60 public company executive team presentations, breakouts, one-and-ones – FAU College of Business Executive Education
The World is HOT – Impact of National and Global Events – Panel Presentation
Food and beverage throughout the day
“The After” evening networking event – Celebrate Noble’s 19th After in ‘23. Mingle with music, magic, motors, munchies, and high-flying antics. A vintage experience like no other! – Privaira Private Aviation Hangar, Boca Raton Airport
TUESDAY DECEMBER 5
~50 public company executive team presentations, breakouts, one-and-ones – FAU College of Business Executive Education
43rd President of the United States, George W. Bush, moderated fireside chat – Kaye Performing Arts Auditorium at FAU (ticket included with registration)
Food and beverage throughout the day
Conference closing remarks, Noble and FAU representatives (TBA)
WHO SHOULD ATTEND?
Individuals who are interested in meeting and networking with the executives who lead the companies that may shape our future
Individuals who are looking for early-stage investments in companies that can represent significant growth
Family offices, investment clubs and organizations, brokers and equity analysts, financial industry representatives
Institutional investors, hedge & mutual fund portfolio managers, private equity
Florida Atlantic University students, faculty, alumni
EARLY REGISTRATION (before September 15, 2023)
General Registration for all events: $399
Registration for all events PLUS VIP-best-in-house seating for President Bush (BVIP) $599 (ticket value alone, $350)
Discounted Registration for Investment groups/clubs and FINRA-licensed RRs, General $149 / BVIP $299
Each class of registration available in limited quantities. Pricing may increase and/or be discontinued at any time, without notice. Investment groups/clubs must be approved by Noble prior to offering member discounts. Ask your group/club leadership if they have applied for approval from Noble. Registered representatives must have current CRD #. Service providers do not qualify for rates shown above, regardless of class affiliation.
Avoiding a Hurricane May Mean Adjusting Your Portfolio
Like most people that live in Florida, I usually first learn of approaching hurricanes from concerned family members up North. My reaction is probably different than others. My first thoughts on rare news events is to ask myself, “is this bullish or bearish?” When it comes to hurricanes, there is an answer – like most events that impact stocks, the answer is, “it depends.” Getting out of the way of a hurricane could also mean a slight adjustment to holdings.
I will mention that the toll on life and property of natural disasters, or any travesty, is not lost on me. But as investors, we must control the risks that we can and look for the rainbow in situations we have no control over.
Economic Damage
Dubravko Lakos-Bujas, JP Morgan’s head of U.S. equity and quantitative strategy, shared insights on the economic impact of hurricanes a couple of years before hurricane Ian struck Naples Florida. But the value of the information has not changed. “Major U.S. hurricane landfalls have had less significant impact on aggregate market performance (~2% decline) given the subsequent pick-up in disaster-induced public and private spending,” Mr. Lakos-Bujas said. “The most significant impact on equity performance is seen at the stock and sub-industry level.”
Money May Grow on Trees
Does your portfolio contain Orange Growers? Gulf Coast REITS? Companies that operate in the affected area of the storm see a loss in production as they close up and, at the same time, a jump in costs as they make repairs. These stocks are most likely to underperform. For those companies in the repair business, for example, lumber and roofing supplies, they could generate business whether a storm actually makes landfall or not. The rebuilding effort will cost insurance companies with a concentration of insured properties in the path of a storm.
Lakos-Bujas warned, “The underperformance should be concentrated in insurance (i.e. property loss coverage), and companies with Hotels, Restaurants, Leisure, & Airlines (i.e. based on occupancy/traffic, rising commodity costs), Telecom and Cable (i.e. capital expenditure tied to repair and potentially lower revenue per unit), and Industrials (i.e. rising input costs, disruption in production and transportation) depending on geographic footprint.”
Solutions tend to gravitate toward problems, even if those problems include damage and destruction. This is a good thing, it is capitalism working in a way that helps others. This help is profitable and could make some sectors outperformers. “The largest outperformers include industries tied to replacing and/or repairing existing capital stock (i.e. Energy Equipment & Services, Communication Equipment, Autos), transportation and logistics (i.e. Distribution, Air Freight, Trading Companies), and construction (Basic Materials and Engineering),” Lakos-Bujas’ said.
The analysis of the JP Morgan equity strategist is based on a study of 31 hurricanes between 1965 and 2014, which had a combined cost of $520 billion. Two o the large storms, Irma and Harvey, represent a high percentage of the total cost.
“Based on current unofficial damage estimates for hurricanes Harvey and Irma, losses this year are expected to exceed 50% of combined costs over the last 50 years,” he said. “These outsized losses could currently drive more pronounced moves at the stock and sub-industry levels than historically.”
So, a person may live across the country or around the globe from the storm and still feel an impact. For historical context, the S&P 500 (^GSPC) has seen an average decline of 2% in the week following a hurricane’s passing.
Rebuilding Benefits Stockholdings Differently
Much of the backstop in the economy and the markets is based on the idea that rebuilding after a storm is stimulative. Households and businesses suddenly jam work that needed to be done into a short time span and spend much more on what could’ve been routine maintenance. Economists say that the near-term impact on GDP is a net positive once the hurricanes pass. A lasting positive impact occurs if a natural disaster brings about rebuilding that improves on the existing structures or facilities instead of just restoring them to their previous state.”
One caveat is that labor markets have been tight. Most other years, roofers and builders flocked to the highest bidders and the flow of money helped speed the rebuilding process. If there are currently not sufficient human resources, this will push costs up more than they otherwise would have. Unfortunately, there continue to be reports of labor shortages in many industries, including construction. Fox Business News reported on August 28, 2023, “America’s shortage of skilled workers is impacting the ability of businesses in the construction and manufacturing industries to staff their businesses and complete jobs on time.” This situation could certainly slow any needed rebuild.
As wildfires in Hawaii have shown us, funds for rebuilding efforts are further complicated by politics. Three of the Floridian candidates for president, including the governor, are from a party that is not in power
Take Away
Opportunity comes in all forms. This includes opportunity to avoid a dip in some of your holdings, and an opportunity to capitalize on increased company profits this includes disasters of all types. Weather events can impact stock performance of individual companies and industry subsets. At roughly a negative 2% average, the overall market could impact investors over the following 30 days at a rate that feels like normal monthly swings.
As a positive thought, after the storm clears, come join Channelchek, Noble Capital Markets and an expected 150 public companies companies all converging on South Florida in early December for NobleCon19, the investment conference where you’ll discover actionable investment ideas inspired directly from company management. Learn more here.
How the Popularity of Parlay Betting is Helping the Major Players
The business of gambling keeps growing as more types of wagers become popular and a friendlier legal environment encourages major players like DraftKings (DKNG) and FanDuel (PDYPF), as well as smaller online sites. A new online betting trend has been particularly profitable for companies who include it in their product line-up. Although specific financials remain undisclosed, parlay betting has dramatically added to the bottom line of some sportsbooks.
While not public, an analysis published in Barron’s of state gambling regulatory data shows the average amount the house keeps from the wagers is around 20% for parlay bets. This compares quite favorably to the 5% kept by conventional individual outcome wagers.
What is a Parlay Bet?
A parlay bet is a type of sports bet where you combine two or more individual bets into one single all-or-nothing bet. The payout for a parlay bet is much higher than for a single bet, but the probability of winning is much lower.
For example, let’s say you want to bet on the following three NFL games:
The Dallas Cowboys to beat the New York Giants
The Tampa Bay Buccaneers to beat the Philadelphia Eagles
The Miami Dolphins to beat the New York Jets
You could place three separate bets on these games, but you would only win a small amount of money if all three bets won. Instead, you could place a parlay bet on all three games. If you win the parlay bet, you will win a much larger amount.
The payout for a parlay bet is calculated by multiplying the odds of each individual bet together. So, if the odds of the Cowboys winning are 1.50, the odds of the Buccaneers winning are 2.00, and the odds of the Dolphins winning are 1.75, the odds of the parlay bet winning would be 1.50 x 2.00 x 1.75 = 5.25.
This means that if you bet $100 on the parlay bet, you would win $525 if all three bets won.
Gambling companies emphasize that parlays are no gimmick. The odds aren’t skewed in the company’s favor or anything shifty; rather, parlays introduce higher odds against bettors due to the cumulative impact of various outcomes. Betting on multiple events, even up to 10, compounds the odds of each event’s success. This is how the casinos’ 4% to 5% edge evolves into a substantial 20%.
Margins are Better for Companies
The increase in earnings from these bets has helped lift stock values much higher than the overall market.
The growing popularity of parlay bets has also served to increase the appetite in the U.S. for sports betting. In 2018 a Supreme Court’s ruling opened the doors for sports gambling, leaving the decision to legalize it to individual states. Since then, 38 states and Washington, D.C. have legalized sports betting, with online betting approved in 24 of them. The operators amassed a gross revenue of $7.5 billion in 2022, as per the American Gaming Association, and numerous analysts speculate that further state legalization and innovative trends such as parlays could propel the market up to $30 billion or more.
The big two, DraftKings and Flutter/FanDuel dominate the market after spending heavily for years on advertising. Their state-of-the-art technology and popular parlays have helped increase market share. The companies are now veering away from over-the-top marketing, as evidenced by the 49% dip in TV ad spending by online sports betting firms in Q2, and DraftKings’ 10% reduction in marketing expenditures in established markets during the latest quarter.
Regardless of market dominance, parlays are poised to proliferate due to their popularity and profitability. While Las Vegas has long capitalized on the attractiveness of quick riches, the advent of online companies’ represents a distinct shift in the dynamics. Unlike casinos that can’t dramatically boost their own profitability in games like blackjack, the digital platforms can reach the masses electronically and digitally.
As mentioned, this surge in parlays resonates with the penchant for sudden riches, and can be witnessed far beyond Las Vegas. The recent Mega-Millions $1.55 billion prize had players lined up in the summer heat to pay for an almost impossible chance of winning. Platforms like Robinhood appealed to the high-risk high-return nature of many and amassed more brokerage customers in a year than any other company in history.
Parlays effectively tap into and profit handsomely off the mentality of all-or-nothing large gains. A mere $10 parlay could translate into thousands in winnings, mirroring the “got to be in it to win it” feeling of the lottery. But here, the bettor can feel more in control.
Take Away
The overall stock market performance is reported each trading day in popular indexes, but there are individual sectors that rise, or fall separately and at a different pace than each index. Index funds and ETF buyers are beginning to realize that a portion of their portfolio invested in industries and companies that are showing more strength than the S&P, Dow, or Nasdaq indexes may allow for enhanced performance. Many keep the largest allocation in an indexed fund or ETF to still maintain the diversification that prompted the indexed fund investment to begin with.
This December hundreds of investors will be attending NobleCon19 in order to discover actionable ideas they can invest in. The investment conference is the place where both professional and self-directed market participants go to become familiar with less mainstream companies and management. You’re invited – go here for all the information you will need to join us in Florida later this year.
Image: The author attending a stylish financial industry event in Boca Raton, FL
The Emerging Financial Centers and the Brain Drain from Other Cities are Changing Where Deals Get Done
They used to call it “god’s waiting room,” now they call it home.
If you haven’t guessed, I’m talking about Florida, and more specifically, the big-name financial firms that have either moved their headquarters to “Wall Street South” or have built a much larger presence in West Palm Beach, Miami, Fort Lauderdale, or the Tampa area. I made the move myself some years back after more than 20 years managing large funds for some of the most prestigious firms in NYC – now, some of those very firms are discovering what I have learned, that the weather, costs, and culture make both living and working a lot easier.
Each investment company that chooses South Florida as a region to grow its firm, brings even more sophisticated investors and dealmakers to those already in the state —face-to-face networking is now high caliber and done with ease. Everyone in the industry is benefitting from the closer proximity to each other and being able to meet and make introductions in an environment that, in my opinion, is much more conducive to making acquaintances, building trust, and even having some fun.
Florida is a Disruptor
My old firm, Goldman Sachs, just built out 35,000 feet of office space in the Miami, Brickell area. This is on top of their ongoing presence in Miami and West Palm Beach. They aren’t alone, the absence of a state income tax, coupled with a government that is business-friendly helped prompt hedge fund billionaires and native New Yorkers Paul Singer and Carl Icahn to relocate their firms to Florida.
Other prestigious firms have done the same; Blackstone opened an office in Downtown Miami in 2021. Citadel, relocated its headquarters from Chicago to Miami in 2021. D1 Capital Partners, a hedge fund, announced plans to relocate to South Florida in 2022. Merrill Lynch expanded its presence within Florida a bit sooner, 2020. Hedge fund, Tiger Global Management, announced plans to relocate to South Florida in 2022. In November of 2022, fund manager Ark Invest founded by Cathie Wood moved its headquarters out of NYC to St. Petersburg, FL. And the list goes on, and is growing.
In addition to lower costs of business, the areas these companies are moving to offer an educated base and a financially astute talent pool from which to hire.
And the financially savvy populous is getting deeper as professionals looking to relocate out of colder, high tax states, are moving down and becoming part of the already strong ecosystem. The ever-increasing depth of players include experienced attorneys, accountants, bankers, consultants, insurers, IT experts, and others with which to conduct world-class business dealings.
The other ingredients are here as well. Asset managers require convenient public and private executive airports. Local officials must also be conversant enough in their industry to regulate it intelligently, S. Florida checks both of those boxes too. It takes more than one large asset management firm to generate a demand for services sufficient to build the critical mass necessary to sustain an ecosystem. Florida has passed the tipping point and has already been labeled “Wall Street South.”
Florida Infrastructure
The ecosystem also includes facilities for tradeshows, networking events, and conferences. As an example, this coming December 3-5, Noble Capital Markets, a boutique investment bank located in Boca Raton, FL, will hold its massive, 19th annual investment conference, NobleCon19, at the 52,000 square foot, state-of-the art facility just opened on the Florida Atlantic University campus (FAU), in Boca Raton.
Noble’s 19th Annual Small-cap Investor Conference has been the “must-go” event in the area for 19 years. In 2023 the Noble can now expand this annual event into a facility that boasts the latest technology and conference facilities. This means investors and presenters at NobleCon19 will have an ideal setting to discover new opportunities and more room to welcome and network with the areas new financial executive neighbors, along with other attendees from across the globe.
From Good to Great
There are three defining factors that have helped the S. Florida region grow from an area with many small and mid-size financial firms to a strong and expanding financial center.
In no particular order, these include:
Greater reliance on virtual teams now makes physical proximity to key players less important . Even as many firms reel staff back into the office, companies are far more comfortable reaching team members virtually.
More associated professionals are moving to the emerging centers. When major investors and financial services giants such as Goldman Sachs, Blackstone, Citadel,Ark Invest, and Icahn Enterprises set up shop in a location, expertise follows. This is almost a requirement in sectors such as private equity, where deals are paved by personal relationships, social networks and professional networks.
The major cities in Florida already have existing professional and educational infrastructures. Of course, if the firms leadership is from out of town, it will naturally have a bias in favor of the schools they attended or are familiar with. But it is becoming easier to lose that bias when they learn that, for instance, in Palm County, Florida Atlantic University College of Business’ Executive Education just earned a prestigious global endorsement in the 2023 Financial Times rankings for open enrollment professional education programs – FAU ranked No. 2 in the United States.
Home Life
As one might imagine, with thousands of highly paid professionals looking for homes and “their new favorite restaurants” that real estate values are increasing and entire neighborhoods are becoming wealthier at every level. This growth feeds on itself and the improvements draw more top talent that then call South Florida the place they live and work.
Take Away
South Florida lost its reputation as a large retirement home where Grandma lives, and is now seen as an emerging financial powerhouse where big and small financial firms want to be to do business, grow their network, and live a better life.
With modern infrastructure, lower costs, top professionals, entertainment, and state of the art conference facilities, the trend is likely to continue.
On the heels of the announcement that NobleCon19, Noble Capital Markets 19th Annual Emerging Growth Equity Conference, will be held at FAU, and the achievement of the Owls basketball team making it to the Final Four, Florida Atlantic University College of Business’ Executive Education program earned a prestigious global endorsement in the 2023 Financial Times rankings for open enrollment professional education programs.
FAU ranked No. 2 in the United States and was the only university in Florida and one of only seven in the U.S. to be honored. The rankings are considered the gold standard for executive education coursework across the globe.
“It’s clear that we are making a difference in the professional advancement of all our students,” said Daniel Gropper, Ph.D., dean of FAU’s College of Business. “I am very proud of our students, faculty and staff for making this possible.”
FAU also ranked No. 1 in the U.S. and No. 4 in the world for female participation and No. 17 globally for overall satisfaction. Financial Times establishes the rankings using student feedback, course design, faculty, teaching methods and facilities.
FAU’s high-quality offerings include the most diversified selection of more than 60 national and international certification and professional development programs, said Vegar Wiik, executive director of FAU Executive Education. He added that a new state-of-the-art building, the Schmidt Family Complex for Academic and Athletic Excellence, is equipped with the latest technology that allows FAU to offer top-notch programs and corporate training. “We are thrilled that this December the facility will transform into NobleCon19, with 100+ public company executive teams and the large audience expected to learn more about them,” Wiik said. “And with the early announcement that the 43rd President of the United States, George W. Bush will headline, the excitement continues to build.”
In addition to hosting NobleCon19, FAU’s Edu-Vantage Partner Program, which works with businesses, corporations and organizations to provide a high-quality educational strategy for fulfilling their employee education packages, established partnerships with JM Family Enterprises and NextEra Energy, parent company of Florida Power & Light, to offer full-time associates full tuition for both undergraduate and graduate degrees and certifications.
NobleCon19 is scheduled for December 3-5, 2023, at FAU College of Business, Executive Education in Boca Raton, Florida. Although institutional investors, licensed brokers and accredited investors will be in attendance, NobleCon19 is open to all individuals and organizations interested in learning more about these companies.
To receive NobleCon agenda updates and registration opportunities, join Channelchek.com, Companies with market capitalization of $3 billion or less wishing to learn more about presenting at NobleCon19 can Inquire Here.
About Noble Capital Markets
Noble Capital Markets, Inc. was incorporated in 1984 as a full-service SEC / FINRA registered broker-dealer, dedicated exclusively to serving underfollowed emerging growth companies through investment banking, wealth management, trading & execution, and equity research activities. Over the past 39 years, Noble has raised billions of dollars for companies and published more than 45,000 equity research reports. For more information, visit www.noblecapitalmarkets.com or email contact@noblecapitalmarkets.com.
About Florida Atlantic University Florida Atlantic University, established in 1961, officially opened its doors in 1964 as the fifth public university in Florida. Today, the University serves more than 30,000 undergraduate and graduate students across six campuses located along the southeast Florida coast. In recent years, the University has doubled its research expenditures and outpaced its peers in student achievement rates. Through the coexistence of access and excellence, FAU embodies an innovative model where traditional achievement gaps vanish. FAU is designated a Hispanic-serving institution, ranked as a top public university by U.S. News & World Report and a High Research Activity institution by the Carnegie Foundation for the Advancement of Teaching. For more information, visit www.fau.edu.
