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Singular Research Midwestern Values 2018 Conference Web Call Access

Singular Research Midwestern Values 2018 Dallas

You are cordially invited to request access to the Singular Research Midwestern Values Dallas Conference Webcast Investment Conference from September 20th, 2018

“RAW LIVE” 

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Singular Research Director’s Letter : August 2018

An Unheralded Record

Singular list tops S&P 500 but lags Russell 2000 in August.


SINGULAR MONTHLY PERFORMANCE STATISTICS

 

Last Month

YTD

Trailing 12 Mo’s

SINGULAR LIST

2.88%

2.83%

10.45%

S&P 500

2.69%

7.59%

16.38%

RUSSELL 2000

3.75%

11.89%

22.26%

 

 

 

 

 

 



Meanwhile, the S&P 500 set a record for duration of a bull market exceeding 10 years. In August, measured from its lows at 666 this represents an eye-popping 330 % return.
However, if you were among the unfortunate whom invested in the tech bubble in the year 2000 when the S&P 500 floated at the 1500 level your returns are a much less impressive + 90%. Or a price appreciation of about 4% per year.

Despite near-record optimism and employment on top of a record bull market, professional money managers believe this is the peak. More than 58% of them believe that 2019 will be a down year. 
Many seem to be underestimating the earnings power that has been unleashed by tax cuts and deregulation.


TOP 5 PERFORMERS FOR THE MONTH

 
Symbol Rating Target Month Return Comment
CTRL BUY  $30.00

27.5%

 Beat & raise, provides year end guidance
NVEE BUY  $ 52.00

17.5%

 Beat & raise, raises year end guidance
QNST BUY  $ 16.75

14.4%

 Rebound from post eps report sell-off
EBS BUY  $60.00

14.1%

 Makes announcement of large acquisition
HBP BUY  $ 9.75

7.7%

 Better than expected revenues

In August, our top performer was Control 4 (CTRL) + 27.4%  an emerging leader in smart home technology topped earnings forecasts and guided for solid numbers into 2019. NV5 (NVEE), popped + 17.5%. NV5, an environmental and energy Focused E&C firm topped expectations and guided higher. NVEE, one of our top picks over the last two years nearly tripling. New initiation, Quinstreet, a leader in digital marketing (QNST) ticked up 14.4%.


WORST 5 PERFORMERS FOR THE MONTH
 
Symbol Rating Target Month Return Comment
SALM BUY  $ 9.00

-22.2%

 Gives back prior month’s gain on weak earnings report
BLX BUY  $33.65

-13.0%

 Misses estimates ,higher than expected costs
HNNA BUY  $23.75

-7.4%

 Aum outflows offset small acquisition
DAKT BUY  $12.00

-5.6%

 Lower backlogs projected
GASS BUY  $ 6.00

-5.6%

 Profit taking

 
Salem Media (SALM) lead to the downside falling – 22.2%, reversing much of the gains from the previous two months as earnings disappointed again. Banco Latino Americano (BLX) was off 13% as lower spreads from higher interest rates hurt net income. HNNA fell 7.4% as continued Capital outflows pressured earnings.

Please join us September 20th in Dallas for our Midwestern values conference where will be focusing on several of the names mentioned above and other under covered, under followed and misunderstood situations that we believe can perform exceptionally well over the next 12 months. Visit www.singularresearch.com

At singular research we wish to thank our clients and followers for their continued commitment and support of our unbiased Independence research.

Singular Research Staff

Earnings Surprises and Disappointments – Q2 2018

Top Three Surprises

  1. JMP Group LLC (JMP) +256%
  • Had record investment banking revenues
  • Increased accumulation of loans leading up to the CLO V pricing
  • Had a favorable exit from a principal investment
  • Investment banking revenues were up 49.3% yoy and asset management revenues were up 29.5% yoy

 

  1. Anika Therapeutics (ANIK) +106%
  • Maintained the #1 overall position in the U.S. viscosupplementation market
  • S. viscosupplement franchise grew 12% in Q2
  • Completed an accelerated share repurchase program from May to July, with ~800,000 shares repurchased
  • Product gross margin improved by 10% on a sequential basis

 

  1. Olympia Financial Group (OLY) +99%
  • Earnings before income tax increased 61% to $3.72 million from $2.31 million.
  • Total revenue, including interest earned as trustee and interest, increased 28% to $13.18 million from $10.26 million. The increase is due to an increase in service revenue in the Foreign Exchange division and Registered Plans division and interest earned as trustee in the Registered Plans division.  
  • Service revenue increased 25% to $10.31 million from $8.28 million due to an increase in trade volume and transaction sizes in the Foreign Exchange division and fees charged in connection with the restructuring of an exempt market issuer in the Registered Plans division.
  • Interest revenue on monies held in trust and interest on Olympia’s own cash increased 45% to $2.87 million from $1.98 million due to increases in the Canadian prime rate.

 

Top 3 Disappointments

  1. Full House Resorts (FLL) -433%
  • Net Revenue Grew 2.8%, Net Loss Improved 56.6%, and Adjusted EBITDA Increased 19.7%
  • Ferry Boat Christened at Rising Star Casino Resort; Anticipate Commencing Ferry Service This Quarter
  • Silver Slipper Casino & Hotel Preparing for Launch of Sports Betting Within the Next Few Weeks
  • Development Agreement for Expansion of Bronco Billy’s Casino & Hotel Approved; Currently Finalizing Construction Contracts for Phase One of the Expansion
  • Submitted Letter of Intent to Participate in New Mexico Racing Commission’s Competitive Process for State’s Sixth Racing License
  1. Daktronics (DAKT) -280%
  • Reported net sales of $154.2 million, operating income of $4.0 million, and net income of $4.6 million, or $0.10 per diluted share, compared to net sales of $172.7 million, operating income of $11.7 million, and net income of $8.4 million, or $0.19 per diluted share, for the first quarter of fiscal 2018. 
  • Fiscal 2019 first quarter orders were $159.6 million, compared to $153.1 million for the first quarter of fiscal 2018.
  • Product order backlog at the end of the fiscal 2019 first quarter was $177 million, compared to a backlog of $184 million a year earlier and $171 million at the end of the fourth quarter of fiscal 2018. 
  • Reece Kurtenbach, chairman, president and chief executive officer stated, “As expected, first quarter sales were less than the first quarter of 2018 and reflect the financial fluctuations caused by the timing of large projects. Year to date orders have increased over last year, and we achieved a respectable gross profit margin on this level of business. During the quarter, we installed several of the new generation of narrow pixel pitch products for high resolution indoor applications. We continue to invest in broadening our narrow pixel pitch product line and control solutions. Our pipeline of innovative new products and technologies is poised to meet the growing market demand for digital canvases.” 

 

  1. A-Mark Precious Metals (AMRK) -250%
  • Revenues for the three months ended December 31, 2017 decreased 21% to $1.68 billion from $2.13 billion for the three months ended December 31, 2016 and decreased 22% from $2.16 billion for the three months ended September 30, 2017
  • Gross profit for the three months ended December 31, 2017 decreased 10% to $8.9 million from $9.9 million for the three months ended December 31, 2016 and increased 22% from $7.3 million for the three months ended September 30, 2017
  • Net loss for the three months ended December 31, 2017 totaled $0.2 million or $(0.03) per diluted share (which includes $0.3 million of additional tax expense as a result of the recently enacted Tax Cuts and Jobs Act), as compared to net income of $2.8 million or $0.39 per diluted share for the three months ended December 31, 2016 and net income of $0.5 million or $0.07 per diluted share for the three months ended September 30, 2017

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Singular Research Dallas Midwestern Values Conference 2018

Register for the Singular Midwestern Values 2018 Conference

September 20th, 2018

The Westin Dallas Downtown
1201 Main Street, Dallas, TX 75202
Dallas, TX 75202

“The only performance-based conference in the small and micro-cap space – 

supported by unbiased research since 2004.”

 

Click here for hotel reservation info.

 

Please fill out the following Pre-Registration Form. Comments or questions are welcome.

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Singular Research Dallas Conference Booklet

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Singular Research Director’s Letter : July 2018

EARNINGS Trump Tariff Talk

The singular coverage list nudged ahead beating the benchmark in July.
The Singular coverage list was up 2.13 % vs. 1.50% for the Russell 2000 and 3.39% for the S&P 500 as big caps led driven by strong earnings reports.

SINGULAR MONTHLY PERFORMANCE STATISTICS
  Last Month YTD Trailing 12 Mo’s  
SINGULAR LIST 2.13% -0.05% 7.38%  
S&P 500 3.39% 4.77% 13.39%  
RUSSELL 2000 1.50% 7.85% 16.20%  

 

Trump continues to talk tough on trade, calling out China, Europe, Mexico, and Canada recently. The market doesn’t seem too disturbed, taking it all in stride and to the dismay of a mainstream media which is decrying the dire circumstances these tariffs will create for the global economy.
Most investors see this as Trump technique, with an initial extreme position taken, then moving towards the center, in pursuit of a positive outcome for U.S economic objectives.

Earnings continue to impress

With the second quarter nearly in the books, eps surprises have been dominate as
79% of S&P 500 companies have beaten the estimates. This will mark one of the highest beat ratios since the year 2000. Top EPS beaters for Singular include:  Anika Therapeutics (ANIK), +105%, Control 4 (CTRL) +29% and Emergent Bio solutions (EBS) + 21% above  Street consensus estimates.

                                                    

 Cracks in the dynasty

Facebook (FB), Netflix NFLX, and Twitter (TWTR) all disappointed on MAU growth and offered disappointing guidance.  Is the possible plateauing of this metric a harbinger of flattening growth ahead? These social media glamour heroes have been knocked down nearly 20% as of late. The strategy of buy the FAANG and go away, may be losing luster and coming to an end which would bode favorably for the rest of the market as investors seek out other stock plays to provide Alpha.

 

Top winners and losers.

National mortgage insurance Holdings (NMIH) was top performer, driven by strong earnings and a debt capital raise that increased earnings capacity. EVIO Inc.
(EVIO), was the weakest performer as capital was reallocated to larger caps with stronger near term fundamentals.

 

TOP 5 PERFORMERS FOR THE MONTH

 

Symbol Rating Target Month Return Comment
NMIH BUY  $  17.50 28.2% strong eps and guidance
ANIK BUY  $  60.00 25.1% relief rally from oversold condition on better than expected eps
TRNS BUY  $  20.00 20.9% strong eps beat . Higher margins from cost reductions
NVEE BUY  $  52.00 8.7%  
EBS BUY  $  60.00 7.7%  
         
         
 

WORST 5 PERFORMERS FOR THE MONTH

Symbol Rating Target Month Return Comment
EVIO BUY  $2.00                -22.0% continued decline from disappointing near term execution
HNNA BUY  $  23.75 -9.8% profit talking on in line quarter
LYTS BUY  $9.80                -8.4% C-level departs creating selling pressures
QNST BUY  $  16.75 -7.7%  
GASS BUY  $6.00                -5.3%  

New initiations

We launched coverage on Internet marketing specialist Quinstreet Inc. (QNST), a firm that is well positioned to capitalize on the ongoing shift from traditional to digital ad spending, and also on Geospace Technologies Corp. (GEOS), a leading manufacturer of seismic equipment for the oil and gas exploration industry which we believe is in the beginning stages of a significant turnaround.

At Singular Research we wish to thank our clients and followers for their continued commitment and support of our unbiased, independence research model as we strive to consistently deliver Alpha generated from the lack of coverage outperformance anomaly.

 

Sincerely,

Singular Research

Summer Solstice 2018 Conference NYC Webcast

Summer Solstice 2018 Conference
July 19th, 2018

Company   Webcast
Emergent BioSolutions (EBS)  Click Here to view
SWK Holdings (SWKH)  Click Here to view
Genprex Inc. (GNPX)  Click Here to view
InMed Pharma (IMLFF)  Click Here to view
Cytrx Corp. (CYTR)  Click Here to view
Kulicke & Soffa Industries (KLIC)  Click Here to view
Cordoba Minerals Corp (CDB)  Click Here to view
Cytodyn Inc (CYDY)  Click Here to view
Acme United (ACU)  Click Here to view
Singular Research: Why Small CAPS  Click Here to view

 

Singular Research 2018 NYC Booklet

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Singular Research Summer Solstice 2018 Conference Web Call Access

Singular Research Summer Solstice 2018 New York City

You are cordially invited to request access to the Singular Research Summer Solstice NYC Conference Webcast Investment Conference from July 19th, 2018

“RAW LIVE” 

To enter you must be a client of Singular Research and/or an accredited investor:

You will be forwarded to the segment you are interested in.

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Singular Research Director’s Letter : June 2018

Steady in June despite trade war rumblings and another rate hike

Despite headwinds from the specter of a looming trade War with China, a hike in interest rates and domestic political fervor over immigration policies, US markets, in what is historically a flat month, managed to eke out a slight gain in June, +48 basis points for the S & P 500. Many of these elements are negatives for large caps but could serve to benefit the performance of domestic small caps. The Singular Research coverage list performed in line with major domestic equity indices for the month of June.

Our top performers for June were: 1) Salem Media +35.5% bolstered from The District Court ruling clearing the humungous At&t- Time Warner merger. 2) Harvard Biosciences (HBIO) drawing renewed investor interest with analyst’s increased estimates for 2019, and 3) NV 5 Inc. (NVEE) benefiting from and improving outlook for domestic engineering & construction activity in 2018.

Our worst performers for June were: 1) Anika Therapeutics (ANIK) which received a setback from results in clinical tests on its Cingal product, 2) Wisdom Tree Investments ( WETF) suffering from market perceptions possible continuing outflows from its currency sensitive funds that are negatively correlated with the dollar, since this is a short call it is actually a positive refund for investors and : 3) Huttig Building Products ( HBP) disappointing investors hoping for a quicker resolution to its search for a new CFO.

In June we dropped coverage on : 1) Gray TV ( GTN) as its acquisition announcement of Raycom created a huge move up in price that nearly equally our 12-month target and : 2) Stamps.com (STMP) which reached out price target of $275 . Thus it has appreciated over 300% since we incepted coverage nearly 3 years ago.

Finally, we want to thank our loyal clients for their strong support and confidence over the last twelve years.

Sincerely,

Singular Research Staff