Singular Research New Initiations Composite Up 46% in 2019
Singular Research New Initiations Composite Up 46% in 2019
Our New Initiations 2019 composite average is up 46% through 12/10/19, outperforming the Renaissance Capital IPO, LD Micro, Russell Micro-Cap, Russell 2000, and S&P 500 indices YTD. Our 2019 New Initiation’s composite constituents and their respective performance since their 2019 initiations are listed below. New subscribers will receive immediate access to all new upcoming initiations.
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Top 3 Performers
For 2019, our new initiations composite was led by ROKU (+264%), LUNA (+90%), and GDNP.V (+62%). ROKU, the leader and first mover in the growing consumer transition from traditional cable television to streaming television over the internet, experienced exponential growth as active accounts, total streaming hours, and average revenue per user grew 36, 68, and 30% YoY, respectively. LUNA completed the accretive acquisitions and integrations of General Photonics and Micron Optics and reported their 8th consecutive quarter of double-digit revenue growth. Our November initiation of GDNP.V had YoY revenue growth of 217% in the third quarter of 2019.
Bottom 3 Performers
Our worst three initiations for the year were GSKY (-56%), FSTR (-17%), and FND (+1%). In the second quarter, GSKY, a point-of-sale lender, reported they would be seeking strategic alternatives and suspended their guidance. As a result, we became less confident in their business and dropped coverage due to a lack of visibility. FSTR, a leading manufacturer and distributor of products and services for transportation and energy infrastructure, has shown signs of weakness from the upstream market in their Tubular segment. This weakness has further been enhanced from a timing of revenue order recognition which has made their revenue appear weaker than normal. We believe FSTR’s management can overcome these issues and have a 34% upside on the stock. And, lastly, our short position on FND, a multi-channel specialty retailer, has not worked in our favor and the stock has mostly traded sideways since our initiation in April.
Most Recent Initiation
On December 17, we initiated coverage on Comtech Telecommunications Corporation (CMTL) with a Buy rating. CMTL should benefit from a favorable business environment for advanced communications, strong order backlog, and exposure to large, growing markets. Fiscal 2020 is expected to be the fifth consecutive year of increased revenue and the fourth consecutive year of increased adjusted EBITDA. We have a $43.50 price target on the stock which is a 20% upside from current levels.
We hope you have a great holiday season. For more information on our new initiations and to subscribe, please email This email address is being protected from spambots. You need JavaScript enabled to view it. or call us at 818-222-6234.
Thank You
Robert Maltbie, CFA
Singular Research, President
818-222-6234(office)
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