Analyst’s Call – HNNA

Singular Research Analyst’s Call – September 11, 2017, 9 am San Francisco Time 24 minutes:

Hennessy Advisors Inc.

Streaming recording link: http://hsquaresolution.com/2017_9_11_SR_Initation_HNNA.html

 

Chicago Midwestern Values 2017 Conference

September 20th, 2017
W Hotel City Center
172 W Adams St,
Chicago, Il 60603

 

Midwestern Values 2017 Registration

Chicago Midwestern Values 2017 Conference

September 20th, 2017

 W Hotel City Center
172 W Adams St.
Chicago, IL 60603

( click here to make Hotel reservations )

 

Note the event is complimentary to Singular Research clients (pre-registered and approved).
Non-client conference registration is subject to final approval and confirmation by Singular Research.

*Lunch Served from 12:00 to 1:00

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

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Summer Solstice Boston Webcast Confirm

Singular Research Summer Solstice Boston Conference

From July 13, 2017

 

Register below for access to Webcast Audio.

 

You are cordially invited to tune into the Singular Research Summer Solstice Boston Conference Webcast Investment Conference, July 13th, 2017

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Singular Research Director’s Letter : June 2017

Is This Equity Market Getting Frothy?

The US equity markets have an underlying bullishness that has been absent for several years. Even in the face of rising interest rates this year, the averages keep inching higher. Despite the self-induced political challenges from the new US administration, any market setback is temporary. Whatever happened to the era of healthy corrections? Will the equity markets obliterate the old adage of ‘sell in May and go away’?

Our takeaway on this equity market advance is that it would be normal for some corrective pressures or at least a sideways movement for a while. Small and micro cap indices have underperformed this year and this is a typical warning sign for the broader market. As anticipated, the manufacturing sector has shown recent strength after weakness in Q1, but surprisingly consumers are, overall, spending less than anticipated. The remnants of the Great Recession are still in the aggregate consumer psyche. The positive employment metrics lead us to anticipate a healthy consumer appetite, even if not as robust as in previous expansions. This economic cycle and bull market has much further to go before it peaks out, but some corrective pressures are normal and the higher interest rate environment may be the catalyst for some temporary weakness in the equity markets.

For the top performing companies in May on the Singular Research coverage list, most have reported a good Q1, while others are rebounding after recent weakness. Stamps.com (STMP) was the strongest performer in May. The company provides online postage services and reported a Q1 that was far better than expected and increased guidance. State National (SNC) provides property and casualty coverage and has other ancillary businesses. Revenues and EPS both beat our analysts’ expectations and the price target was raised. Control4 Corp (CTRL) provides smart home and business solutions that integrates audio, video, lighting, temperature, security, and communications. The company was a recent new initiation and has consistently been beating estimates. Multi-Color Corp. (LABL) makes labels for consumer products, and our analyst has increased estimates after the strong Q1 that was above expectations. Lakeland Industries (LAKE) makes safety garments for industrial and public protective clothing markets. The company reported a mixed Q1 with good unit volume growth and healthy gross margins, but exchange rates were detrimental. Our analyst remains positive on the stock.

The worst performing group of the Singular Research coverage list during May have several hidden gems that we anticipate will perform well in the next year, some of which are moving through a product transition. The worst performing stock of the coverage list was New York Times (NYT) as a short. Our analyst has labelled the recent good fundamental performance as a temporary ‘Trump Bump’ while high legacy pension costs and the decline in print product persists. Iridex (IRIX), posted a disappointing Q1 despite double digit growth in the new product platform. Although estimates were lowered, our analyst still expects strong earnings growth over the next two years. Gray Television Networks (GTN) owns television stations and digital assets in many US markets. GTN reported stronger than expected revenue and EPS in Q1:17, and the stock is correcting after a multi-month run. Biolase (BIOL) makes laser dental products that are very patient friendly, and recently introduced two new products in Q1. Supreme Industries (STS) had a weak Q1 due to delays in customer supplied chassis.

We initiated coverage on one new company in May. We initiated coverage of Gladstone Land Corp. (LAND) with a BUY rating. Gladstone owns farmland and leases it out to producers that focus on high-value crops. The company has a solid pipeline of additional acquisitions along with adequate financing in place. The amount of available land for high-value produce is declining and the company has demonstrated strong growth in cash flows since the IPO in 2013.

We continue to work on new ideas in the small and micro cap space. At Singular Research, we continue to seek out investment ideas that have minimal to no Wall Street coverage. We thank our clients for your support of independent equity research.

 

Sincerely,

 

Singular Research

Marcum Microcap Conference June 15-16, 2017

Marcum Microcap Conference

Date: June 15-16, 2017

Place: Grand Hyatt New York, 109 E. 42 Street at Grand Central Terminal, NY 10017

Registration: The conference is free for investors and analysts. There will be a $695. fee for all non-sponsoring industry professionals and all non-registered attendees/walk-ins.

Panel Topics:

  • How Liquidity Impacts the Value of a Microcap Stock
  • Embracing Diversity: How to Make Diversity Part of Your Company’s DNA
  • Identifying Breakthrough Opportunities in Life Sciences

Keynote Speakers:

DAY ONE: June 15, 2017 | 12:45 pm – 1:45 pm
James Carville & Mary Matalin

DAY TWO: June 16, 2017 | 8:30 – 9:15 am
Lawrence Kudlow

Singular Research Contact:
Robert Maltbie
Research@SingularResearch.com
Ph: 626 405-0242

 

“Singular Research Uncovered Values & Special Situation” Spring 2017 Webinar Meeting

 

Please join us May 17th, 2017 
for our
“Singular Research Uncovered Values & Special Situation” 

Spring 2017 Webinar Meetings

Pacific Standard Time (San Francisco, GMT-08:00)

CLICK HERE TO REGISTER FOR WEB CALL ACCESS

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Webcast Agenda (All Pacific Times) 

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Newtek Business Services Corp. (NEWT)

May 17th, 2017

8:00 AM PT

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Presenter:

Mr. Barry Sloane CEO

Style: High Yield


 

BIOLASE, Inc. (BIOL)

May 17th, 2017

9:00 AM PT

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Presenter:

Mr. Harold C. Flynn Jr., CEO

Style: Growth


A-Mark Precious Metals, Inc. (AMRK)

May 17th, 2017

10:00 AM PT

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Presenter:

Greg Roberts, CEO

Style: GARP


General Finance Corporation (GFN)

May 17th, 2017

11:00 AM PT

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Presenter:

Chuck Barrantes CFO

Style: Value


Banco Latinoamericano de Comercio Exterior, S.A (BLX)

May 17th, 2017

12:00 Noon PT
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Presenter:

Christopher Schech, CFO

Style: Value


CLICK HERE TO REGISTER FOR WEB CALL ACCESS

Please join my meeting from your computer, tablet or smartphone.


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Singular Research Director’s Letter : May 2017

Is Economic Growth Slowing – Is This Bull Market About to End?

US economic growth was expected to improve in 2017 but the initial release of the first quarter GDP was less than stellar. And bond yields declined recently – is this a forewarning of a weaker economy and what are the impacts on the equity markets? Our perception of the weaker than anticipated Q1:17 GDP growth is that it fits a pattern of the last several years where the first or second quarter has been the low point of the year. Any concerns about consumer spending which was weak in Q1:17? Our view is the lull in consumer spending is temporary – the data is preliminary and will likely be revised upwards. We anticipate the trends of lower productivity growth and higher labor costs of the past few years are at the point to drive increasing capital investments for greater productivity, and continued job growth. These major trends will support GDP growth for the next few years. In the process there may be lulls and sparks, but we are not close to the top of this economic cycle or the end of this Bull market, in our opinion.

For the top performing companies in April on the Singular Research coverage list, several have forecasts of consistent revenue and earnings growth while others are rebounding after recent weakness. Control4 Corp (CTRL) was the strongest performer in April. The company provides smart home and business solutions that integrates audio, video, lighting, temperature, security, and communications. The company has consistently been beating estimates. Century Casinos (CNTY) has casino operations in a diverse set of venues including cruise ships and horse racing. CNTY reported a strong Q4 with adjusted EBITDA up 40%. Arotech (ARTX) provides innovative defense and security solutions for government agencies and commercial users. The stock is rebounding from a recent dip. Multi-Color Corp. (LABL) makes labels for consumer products, and our analyst is forecasting consistent revenue and earnings growth in the next year. The stock is rebounding from a recent dip. Anika Therapeutics (ANIK) provides treatments for early stage osteoarthritic joints with its innovative products. The company has been consistently gaining share in the viscosupplement market.

 

The worst performing group of the Singular Research coverage list during April have several hidden gems that we anticipate will perform well in the next year, some of which are moving through a product transition. The worst performing stock of the coverage list, Stealthgass (GASS) provides seaborne transportation for LPG. The company reported an uptick in contract rates for its vessels. There are very few industry builds coming online in the next two years which will likely lead to higher dayrates. Stamps.com (STMP) provides online postage services and after reporting a strong Q4:16, the stock is consolidating recent gains. Harvard Bioscience (HBIO) provides scientific equipment and consumables to the research markets. Our analyst expects the company to have consistent earnings growth in the next year, but concerns over NIH funding is having a negative impact on the stock. Seabridge Gold (SA) is a development stage company that explores and acquires gold properties. The company announced a resource expansion as a result of recent drilling and also made an acquisition. Iridex (IRIX), posted a loss in Q4:16 driven by higher expenses associated with a new product platform. Our analyst expects strong revenue and earnings growth over the next two years.

We initiated coverage on two new companies in April. We initiated coverage of Biolase (BIOL) with a BUY rating. BIOL is a leader in laser dental products, which reduces pain, trauma, and bleeding for patients. The company has installed over 33,000 lasers in 90 countries, and has recently had improving international success. The cash burn has declined significantly and the addressable market is very large. We initiated coverage on Control4 Corp. (CTRL) with a BUY rating. CTRL provides smart home and business systems that integrate many functional items including audio, video, lighting, temperature, security, communications, and network management. The company integrates its proprietary software with its chip designs. Thousands of devices are “enabled” on the CTRL system, the company has a strong intellectual property portfolio, and markets primarily through independent dealers.

We continue to work on new ideas in the small and micro cap space. At Singular Research, we continue to seek out investment ideas that have minimal to no Wall Street coverage. We thank our clients for your support of independent equity research.

Sincerely,

 

Singular Research

Singular Research Director’s Letter : April 2017

All Rallies Come to an End

The US equity markets have been on a consistent bullish run since the early November 2016 lows. It is normal to have a correction after such a run and in the face of rising interest rates during 2016, we are happy this equity market is taking a breather. We expect some digestion of recent gains in the coming months. Our read of the economic signposts point to slightly expanding GDP growth in 2017 that can easily withstand higher interest rates.

For the top performing companies in March on the Singular Research coverage list, a common theme is strong revenue and earnings growth in recently reported quarters. Century Casinos (CNTY) was the strongest performer in March. The company has casino operations in a diverse set of venues including cruise ships and horse racing. CNTY reported a strong Q4 with adjusted EBITDA up 40%. Acme United (ACU) provides innovative cutting devices, measuring instruments and safety devices for the school, home and industrial markets. The company reported a strong Q4:16 with much higher than anticipated revenues. Lakeland Industries (LAKE) makes safety garments for industrial and public protective clothing markets. The company is performing well, and the stock rebounded from a recent dip. Gray Television Networks (GTN) owns television stations and digital assets in many US markets. GTN reported stronger than expected revenue growth and the stock has been on a rebound since the November lows. Seabridge Gold (SA) is a development stage company that explores and acquires gold properties. The company announced a resource expansion as a result of recent drilling and also made an acquisition.

The worst performing group of the Singular coverage list during March have several hidden gems that we anticipate will perform well in the next year. The worst performing stock of the coverage list, Iridex (IRIX), posted a loss in Q4:16 driven by higher expenses associated with a new product platform. Our analyst expects strong revenue and earnings growth over the next two years. Arotech (ARTX) provides innovative defense and security solutions for government agencies and commercial users. The company reported lower than expected revenues in Q4:16. ClearOne (CLRO) provides audio/video conferencing tools for Fortune 500 companies. The company has developed new products that are expected to drive growth in 2017, but during the product transition Q4:16 was below expectations. IntelGenx Technologies (IRIX) reported a strong Q4:16 and has favorable licensing opportunities. Stealthgass (GASS) provides seaborne transportation for LPG. The company reported an uptick in contract rates for its vessels. There are very few industry builds coming online in the next two years which will likely lead to higher day rates.

We initiated coverage on one new company, and dropped coverage on another in March. We initiated coverage of Arotech (ARTX) with a BUY rating. ARTX operates two divisions to serve the defense and security markets. The Training and Simulation division provides simulation equipment and services for the military and law enforcement markets. The Power Systems division provides portable energy solutions for the military, aerospace and industrial customers. ARTX customer list includes Boeing, Raytheon, other defense and aerospace companies, and the US military. The company signed new multi-year contracts in 2016, and our analyst expects the increasing need for highly trained security personnel worldwide will support revenue growth. We dropped coverage of Nova Measuring Instruments (NVMI) because the stock had reached its target valuation. We may revisit NVMI at another time if the valuation parameters become favorable.
We continue to work on new ideas in the small and micro cap space. At Singular Research, we continue to seek out investment ideas that have minimal to no Wall Street coverage. We thank our clients for your support of independent equity research.