Singular Research's Summer Solstice Webinar

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Thu, Jun 24, 2021 at 6:15 AM PDT

 

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Please join us for our Summer Solstice Webinar on Thursday, June 24 starting at 6:15 AM PDT. The presentation schedule is listed below. All times are in PDT.

(PDT)

  • 6:15 AM Seabridge Gold, Inc. Rudi Fronk, CEO
  • 7:00 AM Luna Innovations, Inc. Scott Graeff, CEO
  • 7:45 AM Nanotech Security Corp Troy Bullock, CEO
  • 8:30 AM Riot Blockchain, Inc. Jason Les, CEO
  • 9:15 AM Voyager Digital, LTD Steve Ehrlich, CEO
  • 10:00 AM BIGG Digital Assets, Inc. Mark Binns, CEO
  • 10:45 AM Action Calls Chris Sakai, CFA
  • 11:30 AM NV5 Global, Inc. Alexander A. Hockman, COO
  • 12:15 PM Acme United Corporation Walter C. Johnsen, CEO
  • 1:00 PM Harvard Bioscience, Inc. James W. Green, CEO
  • 1:45 PM Comtech Telecommunications Corp Michael D. Porcelain, COO
  • 2:30 PM Socket Mobile, Inc. Kevin J. Mills, CEO
  • 3:15 PM TBD

After registering, you will receive a confirmation email containing information about joining the webinar.

Singular Research's Private Client call with Olympic Steel ( ZEUS)

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Thu, Jun 10, 2021 at 9:00 AM PDT

 

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Join us for one of the most timely and compelling calls of the year with CEO Richard Marabito & CFO Richard Manson of Olympic Steel (ZEUS) as we dissect the current state of the global steel industry, analyze the impact of shortages, and extend a view into 2022. There will also be a discussion as to when we may see a more "normal" environment for the steel industry and its impact on Olympic Steel.

Q4:20 earnings were strong as led by improving market conditions. Volumes have rebounded to pre-COVID levels and the outlook for 2021 is strong. Q4:20 revenues were $331.5 million, up ~3.7% from Q4:19, due to higher volumes (+3% YOY). All three segments - Carbon Flat (+0.9% YOY), Special Metals Flat (+9.0% YOY) and Tubular & Pipe Products (+4.7% YOY) reported higher sales. Operating income was $5.3 million in Q4:20 versus operating income of $1.0 million in Q4:19. Adjusted EBITDA was $9.8 million in Q4:20, versus $3.4 million in Q4:19. All three segments delivered positive EBITDA for the quarter. Excluding LIFO income and restructuring charges, adjusted EPS was $0.14 in Q4:20 compared to ($0.23) in Q4:19. Management noted that it expects favorable market conditions to continue in 2021.

Singular Research's Spring Select Webinar 5/27 6:15am - 5:30pm PDT

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Thu, May 27, 2021 9:15 PM - Fri, May 28, 2021 8:30 AM AWST

 

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Please join us for our Spring Select Webinar on Thursday, May 27 starting at 6:15 AM PDT. Presenting companies are listed below.

Presenting Companies Include:

Times PDT:
615AM PDT IEC Electronics Corp. (IEC)
700Am PDT Luna Innovations Inc. (LUNA)
745AM PDT Emergent BioSolutions Inc. (EBS)
830AM PDT Salem Media Group Inc. (SALM)
915AM PDT Seabridge Gold Inc. (SA)
1000AM PDT Bigg Digital Assets Inc. (BBKCF)
1045AM PDT Iradimed Corp. (IRMD)
1130AM PDT Good Natured Products Inc. (GDNP.V)
1215PM PDT Giga-tronics Inc. (GIGA)
100PM PDT Esports Entertainment Group Inc. (GMBL)
145PM PDT Canasil Resources Inc. (CLZ.V)
230PM PDT Banco Latinoamericano (BLX)
315PM PDT Dynasty Gold Corp. (DGDCF)
400PM PDT Graphite One Inc. (GPHOF)

Singular Research April 2021 Director's Letter

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Singular Research’s April 2021 Director’s Letter

 

In April, stocks hit record highs from strong economic data, robust earnings reports, a strong vaccination campaign, and further support from the Federal Reserve. Total vaccinations in the U.S. surpassed 100 million which is providing hope for a return to normalcy sooner rather than later. As a result of this pandemic-ending view, large cap growth stocks led the month as the Russell 1000 Growth index returned 6.8%. The Federal Reserve indicated that they would keep rates near zero to support economic recovery; however, inflation has come to question as the March CPI registered 2.6%, the fastest year-over-year increase since August 2018. With just over 60% of the companies in the S&P 500 that have reported, 87% of those companies had an earnings surprise with an average beat of 23%. It appears we are well underway to a return to normalcy, but there are still many questions of what normalcy will look like in the future.

The April Purchasing Managers Index® (PMI) registered 60.7 percent, a decrease of 4.0 percentage points from the March reading of 64.7 percent. Similarly, the Conference Board Leading Economic Index® (LEI) increased 1.3 percent in March to 111.6 (2016 = 100), following a 0.1 percent decrease in February and a 0.5 percent increase in January. The April PMI reading indicates economic expansion for the 11th consecutive month. The unemployment rate remained at 6.0% in April (6.0% in March) as businesses have started the rehiring process.

 

singular month performance stat 05 2021

 

For the month of April, the Singular coverage list underperformed the S&P 500 and Russell 2000 by 575 and 275 basis points, respectively. Over the last twelve months, the Singular coverage list outperformed the S&P 500 and Russell 2000 by 7,137 and 4,309 basis points, respectively. Since our 2004 inception, the Singular coverage list has outperformed the S&P 500 and Russell 2000 by an annualized 540 and 474 basis points, respectively.

 

top 5 performers 5 2021

 

For April, DMYD (GENI) had a great month as the company reported quarterly revenue that increased 27.6% year-over-year. BBKCF also had a stellar month as the firm continued to post record monthly growth metrics. Similarly, ACU posted a strong quarter with a 22 and 44% increase in sales and EPS, respectively.

 

worst 5 performers may 2021

 

SALM was our worst performer for the month as the firm filed an offering to sell $15 million of its common stock. VIVO was not far behind as investors sold off on worries of pending lawsuit news. GMBL and RSI were mainly affected by an overall downtrend in online sports gaming. GEOS had a decline because of negative sentiment from the Biden administration.

For the month, we initiated coverage on SCR. SCR operates sports media, online sports betting, and iGaming in the U.S. and Canada under the Score brand. SCR is a unique player in the North American online gaming market where its ability to directly integrate sports media consumption with sports betting is a unique opportunity in the industry.

april new initiation 2021

 

We wish to thank our clients for their support and belief in our process. To learn more about Singular Research and register for a 14-day trial offer, please follow the link below.

Complimentary Trial Offer

 

 

Thank You

Robert Maltbie, CFA
Singular Research, President
818-222-6234(office)
This email address is being protected from spambots. You need JavaScript enabled to view it.

 

 

Private client call with Seabridge Gold (SA) Buy rated $30 PT

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Private client call with Seabridge Gold (SA) Buy rated $30 PT

Join us for a webinar on Apr 29, 2021 at 9:00 AM PDT.

 

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Join CEO Rudi Fronk for an important update on Seabridge Gold (SA) and state of the Gold market .

Seabridge Gold recently closed the acquisition of the Snowfield Property, a large gold resource immediately adjacent to Seabridge’s100%-owned KSM gold-copper project. The acquisition could have a significant positive impact on project economics at KSM. We maintain our BUY rating and price target of $30.00 in the short term based on bullion prices.

After registering, you will receive a confirmation email containing information about joining the webinar.

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Singular Research March 2021 Director's Letter

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Singular Research’s March 2021 Director’s Letter

 

In March, there was greater than expected fiscal stimulus and vaccine rollout progress. In the last week of the month, nearly 2.8 million doses were administered every day. The stimulus at the end of 2020 ($900 billion) and the relief package signed in early March ($1.4 trillion) make up nearly 14% of U.S. GDP. The American Jobs Plan, signed on the last day in March, proposes fiscal spending of $2.25 trillion aimed at improving America’s transportation, communication, and infrastructure. With this news combined, markets moved higher despite fears of inflation; value outperformed growth by 420 basis points. The recovery path ahead may be bumpy, but a greater-than-expected vaccine rollout and fiscal stimulus should further support equity markets.

The March Purchasing Managers Index® (PMI) registered 64.7 percent, an increase of 3.9 percentage points from the February reading of 60.8 percent. Similarly, the Conference Board Leading Economic Index® (LEI) increased 0.2 percent in February to 110.5 (2016 = 100), following a 0.5 percent increase in January and a 0.4 percent increase in December. Both the PMI and LEI increased which suggests investors and businesses are encouraged by vaccinations and reopening plans. The unemployment rate dropped to 6.0% in March (6.2% in February) as businesses have started the rehiring process.

singular monthly performance march 2021

For the month of March, the Singular coverage list continued to outperform the S&P 500 and Russell 2000 by 311 and 619 basis points, respectively. Over the last twelve months, the Singular coverage list outperformed the S&P 500 and Russell 2000 by 9,458 and 5,719 basis points, respectively. Since our 2004 inception, the Singular coverage list has outperformed the S&P 500 and Russell 2000 by an annualized 580 and 495 basis points, respectively.

top 5 worst performers march 2021

For March, VYGVF was our leader for the second consecutive month. VYGVF had a great month as their AUM and February preliminary revenue surpassed $1.7 billion and $20 million, respectively. ZEUS also had a stellar month as the firm is mainly expected to benefit from the American Jobs Plan and economic reopening. Similarly, EBIX rebounded from February lows as investors believed the stock may have been oversold. Investors cheered AMRK as they closed their recent acquisition of JM Bullion.

march 2021 top 5 worst performers

NAK was our worst performer for the month largely from investors’ disappointment that NAK’s request for appeal on their Pebble Project will take longer than expected. As growth-oriented stocks, ROKU, GDNP.V, QNST, and ZM were all hit hard in March from inflation and rising interest rate fears. In fact, ZM reported great earnings at the beginning of the month with fourth quarter revenue up 369% year-over-year.

For the month, we initiated coverage on RSI, BBKCF, and DMYD. RSI operates online gaming and sports betting in the U.S. under the Rivers, SugarHouse, and Rush Street brands. BBKCF owns and operates cryptocurrency related businesses. The firm owns two operating companies: Netcoins, a cryptocurrency brokerage, and Blockchain Intelligence Group, a suite of forensic and analytic solutions to mitigate risks associated with cryptocurrency transactions. DMYD (Genius Sports Group) is the official data, technology, and commercial partner that powers the global ecosystem connecting sports, betting, and media.

march 2021 new initiation

 

We wish to thank our clients for their support and belief in our process. To learn more about Singular Research and register for a 14-day trial offer, please follow the link below. 

 Complimentary Trial Offer

 

Thank You

Robert Maltbie, CFA
Singular Research, President
818-222-6234(office)
This email address is being protected from spambots. You need JavaScript enabled to view it.

 

Private Client call & 1 on 1s with Adams Resources & Energy (AE) Wednesday, April 14 9am-12 PDT

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Private Client call & 1 on 1s with Adams Resources & Energy (AE) Wednesday, April 14 9am-12 PDT

 

Join us for a webinar on Apr 14, 2021 at 9:00 AM PDT.

 

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Please join us for a private client call and 1 on 1s with CEO Kevin Roycraft of Adams Resources & Energy, Inc. (AE) on Wednesday, April 14 at 9 am PDT. Individual 1 on 1s will take place from 10 am to 12 pm PDT.

Adams Resources & Energy, Inc. (AE) is primarily engaged in the business of crude oil marketing, transportation, and storage and tank truck transportation of liquid chemicals and dry bulk through its two wholly owned subsidiaries GulfMark Energy, Inc. and Service Transport Company.

Adams Resources & Energy Inc is a play on the improving outlook for crude oil prices as vaccine rollouts increase optimism on a global economic recovery. We believe both AE’s businesses, supported by two recent acquisitions, are well-positioned for growth heading into 2021. We are bullish on AE's growth prospects and our price target is $39.75.

After registering, you will receive a confirmation email containing information about joining the webinar.

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Vegas Ready To Recover From Pandemic: Now It's A Stock Picker's Game

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Vegas Ready To Recover From Pandemic: Now It's A Stock Picker's Game

Singular Research: Staff

 

Summary

  • Our gaming index imploded, but it then bounced back to the record-setting territory.
  • Pent-up demand from many Americans has caused the gaming industry to see an uptick in customer demand.
  • with 20 U.S. jurisdictions open to sports betting, aggressive marketing efforts are sure to continue converting customers to betting online.

 

vegas airport

(Airline traffic has steadily increased at McCarran International Airport in Las Vegas.)

 

It's only a five-mile stretch of Las Vegas Boulevard, but when the Strip shut down for the coronavirus pandemic in March 2020, it was as if the entire city had turned out the lights. The party's over.

Normally packed with tourists and traffic, Las Vegas' resort corridor - developed with $40 billion of casino infrastructure - looked more like the ghost towns that dot Nevada's historic mining landscape.

Our gaming index imploded, but it has since bounced back to record territory.

COVID-19 exacted a heavy toll on U.S. commercial gaming revenue, which plunged 31 percent in 2020, the first market contraction since 2014, according to the American Gaming Association.

The industry managed to survive by partially reopening casinos and getting a boost from legalized sports betting. Some gaming analysts are optimistic that the worm has turned.

Strip-exposed equities such as MGM Resorts (MGM) and Caesars Entertainment (CZR) have fully recovered and surpassed 52-week highs. MGM is up 18.9 percent from a year ago at $37.48 a share, and Caesars is more impressive, up 26.8 percent at $93.78, as of March 10.

Local favorites Boyd Gaming (BYD) and Red Rock Resorts (RRR) also have recovered, up 36 percent and 25.6 percent, respectively.

Las Vegas Sands (LVS) and Wynn Resorts (WYNN), which generate a considerable amount of revenue from Macau, have both undergone recent changes in leadership, and linger 30-40 percent below pre-pandemic highs.

Penn National (PENN), with its oversized investments in the spread of legalized sports gambling and iGaming, leads the pack, up nearly 200 percent from pre-pandemic highs.

 

Optimistic outlook

With the nationwide rollout of COVID-19 vaccinations and declining cases, deaths and hospitalization rates, the gaming industry is beginning to see an uptick in customer demand, the pent-up demand that many Americans have been waiting to unleash.

"The leisure customer will return to Las Vegas in a shorter time period than the business customer as we continue to emerge from the Great Shutdown," says Brendan Bussmann, government affairs director at Las Vegas-based Global Market Advisors.

"One of the keys to this, though, will be keeping good (airline) lift into the market because the leisure customer is still looking for deals and capacity is somewhat still constrained as airlines try to recoup losses."

Passenger traffic at McCarran International Airport, a key economic indicator for Las Vegas, dropped precipitously from 3.8 million in February 2020 to 152,470 in April 2020, then steadily climbed back to almost 2 million in October. January's count was 1.5 million.

Bill Miller, chief executive officer of AGA, feels upbeat about the second half of this year. "As vaccines roll out, people will be excited to travel, hungry for entertainment, and desperate to get out and have fun again. That's an environment where gaming will thrive."

Recovery of the gaming index confirms his view. Even as visitor growth flattened in Las Vegas before the pandemic, tourists were still interested in traveling to the city, though they may not have made the trip.

 

Betting app converts

While Las Vegas casinos took a major blow in 2020, online sports betting, Internet casino games and esports blossomed and show no signs of withering, even as casinos reopen around the country.

DraftKings (DKNG) and Fan Duel have flooded TV airwaves with app advertisements in states that legalized sports betting, and newcomers such as BetMGM, Skillz and Barstool are knocking on the door offering new products that enhance and advance the betting experience.

With some 20 U.S. jurisdictions open to sports betting, aggressive marketing efforts will continue to dominate the scene as operators compete for market share, Global Market's Bussmann said. Sports books across the country are converting customers to betting online.

"While these (apps) will win over the local market, there is still nothing that replaces the experience that Las Vegas offers during sporting events," he asserts. "The experience will never be lost even as sports betting spreads across the U.S."

Bally's Corp. (BALY) seeks a larger stake in the burgeoning esports segment, offering $100 million to acquire Allied Esports Entertainment, which follows last year's "skin" partnership with Esports Entertainment Group (GMBL).

Other than HyperX Esports Arena at Luxor hotel, esports has yet to gain traction in Las Vegas. Still, Bussmann sees the industry growing in terms of exposure, sponsorship, fan engagement and eventually wagering.

"While we have not seen as strong success as some would like in esports with casinos, we will eventually start to see a better blend as some of these esports are allowed to have wagers placed on them, depending on the jurisdiction," the gaming analyst said.

 

Stock Picking But With The Houses Edge

Esports has exploded in popularity over the past decade and is predicted to continue growing at an explosive growth partially from COVID-19 lockdown fears. Now here comes the houses edge, Esports Entertainment Group (GMBL) is the only eSports-focused wagering platform.

While Esports Entertainment Group has a huge focus on eSports, this isn't to say management is naïve. Management actually has a well thought-out business strategy to eventually branch into all areas of online gambling. From these factors and many others, we have a current price target of $20 a share.

 

If the houses edge wasn't good enough, what about being able to count cards?

Less metaphorically speaking here, another great beneficiary in the online gambling arena is Golden Nugget Online Gaming (GNOG). For starters, Golden Nugget Online Gaming is majority owned by Tilman Fertitta, one of the best jocks as a CEO one could ask for.

Not only does Golden Nugget Online Gaming benefit from having access to the Golden Nugget Casino database but also to the entire Landry's restaurant network. Over 600 restaurants around the United States will be miniature billboards for Golden Nugget Online Gaming.

One could argue these miniature billboards are not effective but simply put, Golden Nugget Online Gaming has almost 3x the average customer lifetime value as DraftKings. From these and other factors, we consider a fair value for Golden Nugget Online Gaming to be $24 a share.

 

202002 gaming index

Source: Singular Research Estimates

 

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