Singular Research Director’s Letter: July performance 2020

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Singular Research Director’s Letter: July performance 2020

 

In July, the Corona virus continued its rampant spread in the areas and states that tried to reopen too early. Specifically, in California, Florida, and Texas, new cases per day surged recklessly out of control as governors and mayors who once had grand reopening plans had to curtail those ideas. On July 10, the United States reported 63,247 new cases, the country’s largest one day advance during the pandemic. Soon after on July 12, Florida reported 15,300 new cases, the largest one-day increase for any state. With testing averaging more than 600,000 new tests per day and with more testing performed on those younger than fifty, positivity rates have increased, but mortality rates have declined, suggesting a new chapter in the Corona virus pandemic; however, it appears the media continues to fuel widespread fear by failing to recognize the lower mortality rates in the younger age groups.

By the end of July, there were positive results for Covid vaccines that have encouraged many investors to look to a brighter day when we can all have a facemask free lifestyle. However, the path towards that day will not be trouble-free as millions of Americans are still out of work with the $600 dollar per week unemployment additional benefit expiring at the end of the month. Globally, the United States, Brazil, and India are the top three countries for new Corona virus cases and growth of these new cases does not appear to be slowing any time soon.

The July Purchasing Managers Index® (PMI) rebounded to expansion territory, registering 54.2 percent, an increase of 1.6 percentage points from the June reading of 52.6 percent. Similarly, the Conference Board Leading Economic Index® (LEI) increased 2.0 percent in June to 102.0 (2016 = 100), following a 3.2 percent decrease in May and a 6.3 percent decline in April. Both the PMI and LEI gained strength from June and investors saw optimism in the results. The unemployment rate fell to 10.2% (11.1% in June) as businesses have started the rehiring process.

singular montly performance july 2020

 

For the month of July, the Singular coverage list underperformed the S&P 500 and the Russell 2000 by 286 and 11 basis points, respectively. Year-to-date, the Singular coverage list has underperformed the S&P 500 and the Russell 2000 by 1,245 and 23 basis points, respectively. Over the last twelve months, the Singular coverage list has underperformed the S&P 500 and outperformed the Russell 2000 by 1,325 and 211 basis points, respectively. As new Corona virus cases grew both domestically and globally and as several vaccine candidates showed promising signs, investors were overall enthusiastic that an end to the pandemic was on the horizon, but still favored companies that would not be as affected from future Corona virus turmoil.

july 2020 top 5 performers

 

For July, SALM had a great month as one of Salem’s Radio Hosts, Dr. Sebastian Gorka, was appointed to the National Security Education Board. SALM also had one of its talk show hosts, Larry Elder, be nominated for induction into the Radio Hall of Fame. Similarly, ROKU had a strong month as the Peloton app launched on their platform. ROKU also released a study that found one in three households now have cut the cord. Finally, AMRK had another great month as the price of gold is at alltime highs and continues to increase because of inflationary fears.

july 2020 top 5 worst performers

EHTH was our worst performer for the month as the company reported strong earnings, but a higher Medicare Advantage plan churn rate than compared to historical observations. ZEUS trended lower as fears of an economic slowdown and lower prices of steel hurt investor sentiment. MGNI had a negative month as the company is in the early stages of a large merger, thus creating some unknown for investors.

For July, we initiated coverage on Silvercrest Asset Management Group (SAMG). SAMG is a fullservice wealth management firm focused on providing financial advisory and related family office services to ultra-high net worth individuals and institutional investors.

july 2020 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.  

14-Day 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.

 

Sports Betting Future

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US Sports Gaming Industry Ready To Roll. Century Casinos, Inc (CNTY) & Draft Kings Inc (DKNG) Well Positioned For Growth

 

Sports betting future img 1

The 44-story Circa Las Vegas hotel and casino, scheduled to open in October, overlooks the Golden Gate casino.

 

“Play ball!”

Sports bettors and fans across America have been anxiously waiting four months to hear those two hallowed words.

So has Derek Stevens, chief executive officer of Las Vegas-based Circa Sports, who plans to open the $1 billion, 777-room Circa Las Vegas hotel and casino in October, featuring a three-story, state-of-the-art sports book.

It’ll be the best “seat-for-seat, pixel-for-pixel” sports book not only in Las Vegas, rivaling Westgate and Caesars Palace, but best in the world, Stevens confidently asserts during a recent interview at The D, his namesake hotel and casino formerly known as Fitzgerald’s.

Stevens has no fear of losing revenue to online sports betting, which is legal in 18 states following the U.S. Supreme Court’s 2018 decision to overturn the Professional and Amateur Sports Protection Act (PASPA), with legislation pending in eight other states.

 

Sports betting future img 2

Circa Sports CEO Derek Stevens

 

It shows America’s growing acceptance of sports gambling. Stevens jumped on the train in February when Circa Sports partnered with Century Casinos to launch a mobile sports betting app in Colorado.

Century Casinos Inc. (CNTY) is rated strong buy by one broker and buy by four brokers, with an average price target of $7.75. If this proves correct, Century stock provides upside potential of over 88% from Friday's close of $4.12. On comparative valuation metrics, CNTY trades at a significant discount to its casino industry competitors, trading at 25% discount to book value and 67% discount to the group. On a prices/sales basis, CNTY trades at approximate 60% discount. To shore up its balance sheet and secure growth capital, the company files a $100 million shelf offering.

“Before the Supreme Court ruling, I was asked about other states,” says Stevens, the Detroit native who unabashedly gambles on sports himself. “Will it hurt Las Vegas or not? I’ve always said it’ll be good for Las Vegas. It just grows the size of the pie.”

People who bet sports in their home state are going to eventually come to Las Vegas, he believes. “For all reasons, Vegas is Vegas, and the sports book is part of it,” he says.

 

Football fever

While many states saw growth in sports betting revenue before the COVID-19 pandemic shut down the economy, including live sporting events, the handle – or amount wagered – dropped off a cliff when bettors were limited to obscure sports such as Ukrainian table tennis, German soccer and a few UFC fights.

Along with MLB starting its 60-game season on July 23, the NBA, WNBA and NHL are resuming play in “bubble” environments, and the NFL is set to play in September, though fan attendance remains a question. College football is also in limbo.
Even with no fans or limited attendance, the popularity of the NFL and other pro sports will boost betting, says Michael Gaughan, owner of South Point hotel and casino in Las Vegas.

“Remember, football is still No. 1 in sports handle,” Gaughan notes.

“The main unknown is how many games will be played. California has banned all football in the state. The Rams and the Chargers will play in Las Vegas and Phoenix and the 49ers will (play) in Seattle. Also, the players union is another wild card.”

If all the games are played, it will be a “banner year for sports,” the longtime Las Vegas gaming executive believes. Everything changes if the season is curtailed due to different state regulations or player union demands.

 

Favorable laws

California ran into tribal opposition that killed sports betting legislation in June, but eight other jurisdictions are in the process of legalizing sports betting, including North Carolina, which is tribal; Tennessee and Washington, D.C., which have regulations in place; Washington, Virginia and Puerto Rico, which are currently in the regulatory phase; and South Dakota and Maryland, where sports betting will be on the ballot in November.

Circa CEO Stevens would consider expanding his sports betting app into other markets, but only if the regulatory environment is favorable. Some states such as Illinois and Montana have introduced sports betting legislation in a manner that is “not as inviting” as others, he says.

Illinois, for example, sets a money line of minus-125 each way, meaning bettors must wager $1.25 to win $1.00 no matter which side they bet, whereas Las Vegas is minus-110, sometimes minus-105 in promotions.

“Look at New Jersey, all the markets have been blown away. We expect the same thing in Colorado,” Stevens says.

California took a step back, but most gaming analysts and operators still see a wide-open window of opportunity following the PASPA ruling.

South Point’s Gaughan offers no opinion on California, potentially the richest pot for sports betting with a projected $1.5 billion in total revenue generated and $195 million in taxes. Officials there have been talking about it for three years.

One company that felt the brunt of the California delay was Draft Kings (DKNG). The stock was trading in the low $40s prior to the announcement and sold off sharply to a low of $29.50 in the wake of the legislative delay. Still, with the re-opening of most major sports around the world, Wall Street analysts are forecasting strong growth ahead, seeing revenues doubling over the next 2 ½ years, increasing from $497 million to over $1 billion by year end 2022. This possibility is not lost to investors with DKNG sporting a market cap nearly double the value of MGM Resorts (MGM) and Wynn International (WYNN). Twelve analysts cover the stock, with four strong buys, six buys and two hold ratings. The “street” estimates a price target of $47 for DKNG providing over 25% upside potential. The company recently secured financing its growth plans with a $1.6 billion equity sale with approximately $600 million representing new equity issuance.

Other issues with legalized sports betting must be resolved.

“As of this moment in Congress, there are people trying to outlaw betting on collegiate sports,” Gaughan says. “Between different states with different regulations and different taxes, and some of the leagues wanting a piece of the action and some of the states wanting to give it to them, I see nothing happening soon.

“Always remember, sports betting is not a lottery. It is a very low marginal business. You have to win the money. There are no guarantees. Most states don’t understand this,” he says.

 

Singular Research Sports Gaming Index

Sports betting future img 3

 

Initial Estimates on Covid Vaccine Leaders

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Initial Estimates on Covid Vaccine Leaders

July 28, 2020

 

ss article7 29 2020 img 1
Assumptions

  • The total addressable market for the Covid vaccine is $280 billion.
    • 7 billion people x $20 a shot x 2 shots
  • 50% of the Covid vaccine revenue from the company’s corresponding market share is added to the company’s top line.
  • We are assuming each company’s percentage share weight of the Covid vaccine.

 

To learn more about Singular Research and sign up for a 14-day complimentary trial offer, please follow the link below. Thanks!

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Major Market Indicators (MMI) Report July 2020

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July 2020 MMI Report

 

The Big Mo.

While most of our near-term valuation indicators confirm a fairly valued market, technical and sentiment indicators and continued aggressive stimulus from the Fed keep the market in a bullish mode.


Market Sentiment: Bullish


The VIX and VXN registered in the mid 20s to low 30s, showing slightly elevated volatility.  At 1.43-to-1, the put/call ratio on the S&P 500 is elevated.  The bull to bear ratio scores in at 0.68 and finally, the short interest on the Nasdaq is 3.65 days to cover which is also elevated.

Exhibit 1: VIX 1-Year Chart

 

 

Technical Indicators: Bullish

The market shows a healthy expansion, thus becoming more inclusive.  New highs to new lows register firmly in the bullish camp at 147 to 9.  Last week, the NASDAQ advance/declined volume ratio registered 2,258 up to 1,454 down.  The 10-day moving average on up/down volume on the NYSE is mildly positive at 1.2 times while on the NASDAQ, the ratio is much stronger at 1.5 times.  Confirming the expansion and showing a broadening of the bull market are five of the six major market indices that are now above their 200-day moving average.  The sole laggard is the equal weighted small cap index.

Exhibit 2: SPY 1-Year & 200 Day Simple Moving Average

exhibit 2 spy 1 year 200

 

Liquidity Indicators:  Neutral

Powered by two large M&A deals, the Eldorado/Caesars merger and the Chevron takeover of Noble, net inflows ran to a barely positive $1.5 billion.  Surprisingly, net outflows from equities were over $20 billion and inflows into bond funds were over $25 billion.  Meanwhile, underscoring the heightened aversion to risk, over $4.5 trillion is parked in money market funds, an outsized 13.8% allocation relative to the total market capitalization of current equities.  This sidelined cash provides ample fuel to power equity prices higher.

 

EPS Momentum:  Neutral

The chopping block for EPS estimates seems to have reached a trough in Q2.  Full year earnings estimates have been reduced by over 25% to $123 for 2020.  The S&P PEG ratio scores a 19.96 reading, significantly over the 2.58 reading necessary for a bullish score.  EPS is projected to grow over 26% next year.

 

Valuation: Neutral

 The market to replacement cost indicator shows the market is priced at a 20% premium to replacement cost.  For this indicator to be bullish, we would need there to be a discount.  Currently, total market cap exceeds GDP by 1.53 times.  This indicator points to a fully priced market at these levels.  However, the EPS yield exceeds the quality corporate bond yield by 78 basis points which is encouraging on a relative basis.  Our S&P 500 target based on earnings projections and multipliers, projects an S&P 500 fair value of 3,071, (5)% below the close on July 21.

 

Monetary Indicators:  Bullish

As a result of the historical and aggressive maneuvers by the Fed both in fiscal and monetary actions, our excess liquidity indicator registers a positive 448 basis points.  With another round of stimulus being negotiated, liquidity looks to be more than sufficient, thus the adage “do not fight the Fed” appears to be true at this time.  Term spread is a positive 48 basis points, showing a bullish upward tilt to the term spread yield curve.  High yield bond rates are providing a 512 basis point premium to 10 year Treasuries, a very bullish sign and further showing a modest value available in high yield bonds.

Exhibit 3: U.S. 10-Year Treasury Yield Over 1 Year

exhibit 3 us 10 year

 

In summary, our indicators show a virtual stalemate with the caveat being the extreme stimulus from the Fed, giving the nod to the bulls.  In the area of irrelevant annoying information, Jeff Bezos made $13 billion in the market on July 20.

july 2020

 

By the way, here are some market election year statistics.  Since 1988, the S&P 500 average annual return has been 4.9%.  Excluding 2008, the average annual return has been 10.9%.  Six of the eight election years have posted positive returns.


Case A = S&P 500 at 3,375
Case B = S&P 500 at 3,568

 

Robert Maltbie, CFA

Founder and President of Singular Research
818-222-6234(office)
This email address is being protected from spambots. You need JavaScript enabled to view it.

 

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Covid-19 and the Chorus of Crying Wolves

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Covid-19 and the Chorus of Crying Wolves

 

The U.S. media continues to pound the drum about the outbreak increasing domestically, citing more cases, hospitals approaching capacity, and an uptick in death rates in some locations. However, one can make the argument that the media has an alternative objective of further tarnishing President Trump’s image before the November election. Below, we provide analytical answers to some of the most pertinent questions Americans face today.

 

With state economies reopening, nation-wide protests across the nation, and an increase in testing, is it unusual to see new cases increasing? Have mortality rates been increasing as well?

During the first three months of the outbreak, only those seriously ill were tested. With testing capacity greatly increased across the nation and the potential imploding of the hospital system greatly reduced, asymptomatic and milder cases are now the order of the day, as nearly 50% of all tests are age 50 or younger. Therefore, it is not unusual to see a higher number of new Corona virus cases. As we will see below, mortality rates have been declining, something that is not regularly in the news.

 

Every day, Covid-19 figures look astronomical, but how do they compare with the seasonal flu?

Currently, there are 3.3 million total Covid-19 cases and 137,000 deaths. The seasonal flu averages 9 to 49 million cases and 30,000 to 100,000 deaths per year.

article 7 14 2020 img1

 

The data shows that Covid-19 is proving to be much less lethal than originally thought. A key metric being omitted is percent deaths to new cases which has declined 50% over the last two months. This decline calls into question the fear and panic the media has stoked over an exaggerated expected mortality rate at the onset of the pandemic.

 

article 7 14 2020 img 2

 

Why are we not hearing about Europe anymore?

In the two worst European countries, only embers of infection levels remain. In Spain, the 7-day moving average for daily deaths peaked at 866 on April 3rd. On July 12, the average is 2. In Italy, the peak was 813 on April 2nd. Today, the average is 14. In Sweden, the 7-day moving for daily deaths peaked at 99 on April 16, now that average is just 4. 

 

article 7 14 2020 img 3

By observing Europe and what they have done to contain the spread, we can only hope that America, too, can put an end to the pandemic.For June, we initiated coverage on Meridian Bioscience (VIVO).  Meridian is a fully integrated life science company that develops, manufactures, markets, and distributes a broad range of innovative diagnostic products.

 

Domestically, what is the effect on mortality rates as new cases increase?

As depicted in the charts below, the number of new cases from May 11 to July 11 has increased dramatically. However, the mortality rate from just a two-month window appears to be improving. These results highlight the reasoning previously mentioned that there are currently more tests on younger people who are far less likely to die.

 

article 7 14 2020 img 4

article 7 14 2020 img 5

 

In conclusion, we believe that the Covid-19 pandemic has been over exaggerated by the media. The constant bludgeoning of grim and unsightly deaths from the Corona virus has scared many Americans and disrupted their daily lives. Social distancing and preventative measures should be practiced, but please understand that there are two or more sides to every news story. After the November election, it will be interesting to see how the media portrays the pandemic.

Robert Maltbie, CFA

Founder and President of Singular Research
818-222-6234(office)
This email address is being protected from spambots. You need JavaScript enabled to view it.

 

References:

https://www.worldometers.info/coronavirus/
https://www.cdc.gov/flu/about/burden/index.html
https://elemental.medium.com/us-covid-19-deaths-compared-to-diseases-pandemics-wars-2a7495a43280

 

Singular Research Director’s Letter: June performance 2020

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Singular Research Director’s Letter: June performance 2020

 

 In the first half of June, states continued to reopen, but those that reopened early and had relaxed their social distancing guidance faced an exponential increase in new cases and hospitalization rates.  On June third, Texas reopened bars, indoor seating at restaurants, and gyms when there was roughly 1,400 new cases per day; however, Texans did not follow correct social distancing habits, leading to the escalation of new cases to nearly 6,000 per day on June 26, which then forced Governor Greg Abbott to again close bars and other businesses that had once reopened.  By the end of the month, new cases in Texas had reached 8,000 per day.  Other states such as California, Arizona, and Florida have seen dramatic increases in new Corona virus cases.  However, new deaths from the Corona virus have not been as pronounced as they were in New York City which leads many to believe that we are now in a new stage of the Corona virus battle.    

The June Purchasing Managers Index (PMI®) rebounded to expansion territory, registering 52.6 percent, an increase of 9.5 percentage points from the May reading of 43.1 percent.  Similarly, the Conference Board Leading Economic Index® (LEI) increased 2.8 percent in May to 99.8 (2016 = 100), following a 6.1 percent decrease in April and a 7.5 percent decline in March.  Although both the PMI and LEI are still in a weak state, investors saw optimism in the results as they showed sequential growth.  The unemployment rate fell to 11.1% (13.3% in May) as businesses have started the rehiring process.

 For the month of June, the Singular coverage list outperformed the S&P 500 and the Russell 2000 by 232 and 76 basis points, respectively.  Year-to-date, the Singular coverage list has underperformed the S&P 500 and outperformed the Russell 2000 by 806 and 127 basis points, respectively.  Over the last twelve months, the Singular coverage list has underperformed the S&P 500 and outperformed the Russell 2000 by 851 and 451 basis points, respectively.  As new Corona virus cases dramatically increased from states relaxing social distancing measures, markets wavered in June.  Investors were enthusiastic over an increase in general economic activity and did not appear to favor one specific sector.

top 5 performance june 2020

 The month of June’s performance was based mainly on positive investor sentiment of economic reopening throughout the United States.  All five of our top performers had no major press releases to identify a reason for growth; however, the top five performers are all based in the U.S. and Canada.  Investors with long term vision are looking past the Corona virus and are investing in domestic companies like SALM and IEC that will not be affected by further trade tension with China.  Furthermore, SA is a safe haven play in case of times of increased economic uncertainty while HBIO and ANIK are investments that are tied to positive outcomes with Corona virus treatments. 

ZM, a short position, was our worst performer for the month as the company reported great results with revenue up 169% year-over-year and a 354% increase in new customers.  We continue to believe that demand and usage of the ZM platform will wane as the Corona virus fades and other companies enter the cloud-based video communications market.  EHTH had a rough month after being a top performer in May.  The company issued a report that the average unsubsidized family of four could face average annual deductibles and insurance premiums of $25,000 in 2020, which could lower the demand for EHTH’s product. 

For June, we initiated coverage on Meridian Bioscience (VIVO).  Meridian is a fully integrated life science company that develops, manufactures, markets, and distributes a broad range of innovative diagnostic products.

june 2020 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.  

14-Day 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.

Top Growth & Value small caps present at Singular Research’s Spring Select Webcall on 5/28

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Top Growth & Value small caps present at Singular Research’s Spring Select Webcall on 5/28

 

At Singular Research, we focus on small and micro-cap stocks that are under covered on Wall Street.  These stocks have a niche business model and have yet to be widely discovered.  Many of the Corona virus fears in the stock market today do not affect these stocks.  Our small-cap Spring Select webinar will focus on top ranked emerging growth, undervalued, and under covered companies that exemplify our research and provide exciting alpha opportunities.  Please see below for our conference presenters, the schedule of presentations, and a brief description with valuation metrics on the companies that are presenting. 

To register for the webinar on May 28, please follow the link: https://register.gotowebinar.com/register/5157882020359085070

 

Schedule of Presenting Companies:

6:15 am:    NV5 Global Inc. (NVEE) Mr. Dickerson Wright Chairman & CEO

7:00             Luna Innovations Incorporated (LUNA) Mr. Scott A. Graeff Pres, CEO, Treasurer, Sec. & Director

7:45:            A-Mark Precious Metals Inc. (AMRK) Mr. Gregory N. Roberts CEO & Director

8:30:            IEC Electronics Corp. (IEC) Mr. Thomas L. Barbato CFO & Sr. VP

9:15:             Emergent BioSolutions Inc. (EBS) Robert Burrows COO-IR

10:00:         Banco Latinoamericano, S.A (BLX) Ms. Ana Graciela de Méndez Exec. VP of Fin. & CFO

10:45:          Good Natured Products Inc. (GDNP.V) Mr. Paul John Antoniadis Exec. Chair & CEO

11:15:            Harvard Bioscience Inc. (HBIO) Mr. James W. Green Pres, CEO & Chairman

12:00 pm: JMP Group LLC (JMP) Mr. Joseph Andrew Jolson Chairman & CEO

12:45:         IRadimed Corporation (IRMD) Ms. Leslie L. McDonnell Pres, CEO & Director

1:30:            Singular MMI market strategy report

 

Luna Innovations Inc. (LUNA)

$9.75 Price Target, Buy, Current Price: $6.10 (5/20/20)

Luna Innovations Inc. develops and markets fiber optic sensing and test and measurement products worldwide. The company has two operating segments. The products and licensing unit sells the company’s commercial fiber optic test and sensing equipment and the technology development segment performs contract R&D for U.S. government agencies.

luna 5 20 2020

 

 

A-Mark Precious Metals Inc. (AMRK)

$19.00 Price Target, Buy Long-Term, Current Price: $16.49 (5/20/20)

A-Mark Precious Metals (AMRK) is a full-service precious metals trading company offering a wide array of products and services. Products include gold, silver, platinum, and palladium for storage and delivery in the form of coins, bars, wafers, and grain. Services include financing, leasing, consignment, hedging, and a variety of customized financial programs.

amark 5 2020

 

 

IEC Electronics Corp. (IEC)

$11.50 Price Target, Buy, Current Price: $7.62 (5/20/20)

IEC Electronics is a provider of electronic manufacturing services to advanced technology companies that produce lifesaving and mission critical products in the medical, industrial, aerospace, and defense sectors.

iec 5 2020

 

 

Emergent BioSolutions Inc. (EBS)

Price Target Under Review, Buy, Current Price: $88.59 (5/20/20)

Emergent BioSolutions (EBS) is a global specialty life sciences company that develops and commercializes vaccines, drugs and devices that address biodefense threats. The Company is a preferred provider of biodefense products and services to the U.S. government under multi-year contracts. Its most valuable product, BioThrax is the only FDA-approved anthrax vaccine. The Company’s products are sold mainly in the U.S. as well as internationally.

ebs 5 2020

 

 

Banco Latinoamericano SA (BLX)

$24.00 Price Target, Buy Long-Term, Current Price: $11.36 (5/20/20)

Banco Latinoamericano a multinational bank, primarily engages in the financing of foreign trade in Latin America and the Caribbean. The company operates through two segments, Commercial and Treasury.

blx 5 2020

 

 

Good Natured Products (GDNP.V)

$0.27 Price Target, Buy Long-Term, Current Price: $0.16 (5/20/20)

Good Natured Products Inc., formerly Solegear, is an award-winning, publicly traded bioplastics company founded in 2006 and based in Vancouver, British Columbia, Canada. Good Natured is an innovator in the field of next generation bioplastics made from annually renewable plant-based sources.

gnp 5 2020

 

 

Harvard Bioscience (HBIO)

$4.00 Price Target, Buy, Current Price: $2.68 (5/20/20)

Harvard Bioscience (HBIO) develops, manufactures, and markets scientific equipment, systems, and consumables that are used by thousands of researchers worldwide. The Company was founded in 1901 by a Harvard Medical School professor and has grown through a combination of new products and acquisitions. HBIO is headquartered in Holliston, Massachusetts and has sales and/or manufacturing operations in the U.S. and Canada, the UK, Germany, Sweden, France, Spain, and China.

hbio 5 2020

 

 

JMP Group LLC (JMP)

$6.00 Price Target, Buy, Current Price: $2.73 (5/20/20)

JMP Group is a diversified financial services company. The company’s main lines of business consist of a broker-dealer and investment bank focused on the middle market, and asset management subsidiaries focused on alternative investment strategies and a corporate credit manager.

jmp 5 2020

 

 

IRadimed Corp. (IRMD)

$30.00 Price Target, Buy, Current Price: $21.29 (5/21/20)

Iradimed develops, commercializes, and markets MRI-compatible medical devices that can be used safely on patients undergoing MRI procedures. The Company markets MRI-compatible IV infusion pumps that monitors patient’s vital signs and has plans to introduce a magnetic detection device in 2019 for MRI scanner rooms. The Company makes sales directly in the U.S. and through distributors internationally. Iradimed has an installed base of over 5,000 infusion pumps and more than 260 patient vital signs monitors.

irmd 5 2020

 

 

NV5 Global, Inc. (NVEE)

$94.00 Price Target, Buy, Current Price: $44.80 (5/21/20)

NV5 Global, Inc. is a provider of professional and technical engineering and consulting solutions in the infrastructure, energy, construction, real estate, and environmental markets. The Company’s clients include the U.S. federal, state and local governments, and the private sector.

nv5 5 2020

 

For a complimentary research report on any of these companies mentioned, please e-mail This email address is being protected from spambots. You need JavaScript enabled to view it. or call 818-222-6234.  Thank you.

Singular Research’s Institutional 1-on-1 Webinar on 6/25

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Singular Research’s Institutional 1-on-1 Webinar on 6/25

 

As states and economies around the world reopen, the S&P 500 and Russell 2000 have increased 39% and 42% off their March 23rd lows.  Both large and small cap stocks have made a tremendous comeback, but small cap stocks appear to have more room to the upside given their undervaluation compared to large cap stocks.

1 on 1 webinar 6 2020

 

At Singular Research, we focus on small and micro-cap stocks that are undercovered on Wall Street.  These stocks have a niche business model and have yet to be widely discovered.  Many of the Corona virus fears in the stock market today do not affect these stocks. 

Our 1 on 1 Institutional Webinar highlights four companies that have either been shielded from the negative effects of the Corona virus or have benefitted from such an uncertain time.    Please see below for our webinar 1 on 1 schedule and a brief description with valuation metrics and growth catalysts of the companies that will be in attendance. 

 

To register for the webinar on June 25, please follow the link:

https://register.gotowebinar.com/register/8885806981336621323

 

Schedule of Companies (PDT):

  • 7:00 AM - 9:00 AM: Luna Innovations Inc. (LUNA), Scott A. Graeff, President & CEO
  • 9:00 AM - 11:00 AM: NV5 (NVEE), Alex Hockman, President & COO and Ed Codispoti, CFO
  • 11:00 AM - 1:00 PM: The Rubicon Project, Inc. (RUBI), Nick Kormeluk, CIRO
  • 1:00 PM - 3:00 PM: Good Natured Products Inc. (GDNP.V), Paul John Antoniadis, Executive Chair & CEO
  • 3:00 PM - 5:00 PM: Manufactured Housing Properties Inc. (MHPC) , Michael Z.Anise, President

 

Luna Innovations Inc. (LUNA)

$9.75 Price Target, Buy, Current Price: $6.31 (6/16/20)

Luna Innovations Inc. develops and markets fiber optic sensing and test and measurement products worldwide. The company has two operating segments. The products and licensing unit sells the company’s commercial fiber optic test and sensing equipment and the technology development segment performs contract R&D for U.S. government agencies.

luna 6 2020

In their first quarter, the company delivered its tenth successive quarter of double-digit revenue growth.  So far, the COVID-19 pandemic has had a minor impact on LUNA’s operations.  Management reiterated its FY:20 outlook, although guidance will now trend towards the lower end of the earlier range.  We maintain our BUY rating and our target price at $9.75 per share.

 

A-Mark Precious Metals Inc. (AMRK)

$19.00 Price Target, Buy Long-Term, Current Price: $17.45 (6/16/20)

A-Mark Precious Metals (AMRK) is a full-service precious metals trading company offering a wide array of products and services. Products include gold, silver, platinum, and palladium for storage and delivery in the form of coins, bars, wafers, and grain. Services include financing, leasing, consignment, hedging, and a variety of customized financial programs.

amark 6 2020

The company reported strong Q3:20 results, delivering net income higher than any fiscal full year period since being public.  Higher economic uncertainty due to the COVID-19 pandemic is beneficial for the company as AMRK tends to be more profitable in times of volatility.  We increase our price target to $19.00 (earlier $10.00) and maintain our rating at BUY-Long-Term.

 

 

The Rubicon Project, Inc. (RUBI)

$9.50 Price Target, Buy, Current Price: $7.32 (6/16/20)

RUBI provides a technology solution to automate the purchase and sale of digital advertising inventory. Sellers (which include websites or mobile apps) provide digital advertising inventory to RUBI’s platform in the form of advertising requests. These ad requests from sellers are sent to buyer, which can then place bids on them.

rubicon 6 2020

Q1:20 results were below management’s stated guidance which was negatively impacted by COVID-19.  Q2:20 guidance is a touch lighter implying flat sales growth at the mid-point of their guidance.  While near-term concerns remain a headwind, we are optimistic on their long-term prospects, especially with the entry in the CTV market after their acquisition of Telaria.  We lower our target price to $9.50 (earlier $14.00) and maintain our BUY rating given the upside potential.

 

Good Natured Products (GDNP.V)

$0.27 Price Target, Buy Long-Term, Current Price: $0.14 (6/16/20)

Good Natured Products Inc., formerly Solegear, is an award-winning, publicly traded bioplastics company founded in 2006 and based in Vancouver, British Columbia, Canada. Good Natured is an innovator in the field of next generation bioplastics made from annually renewable plant-based sources.

gnp 6 2020

 

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