STOCKS TELEGRAPH

Author: Nicholas K

  • Entercom Communications Corp [ETM] Is in a Bullish Reversal: Here’s Why

    Entercom Communications Corp [ETM] Is in a Bullish Reversal: Here’s Why

    Entercom Communications Corp [NYSE: ETM] is in a bullish reversal after several days of losses. This comes after the leading online audio sports company entered into a partnership with and the fastest growing sportsbook company in the United States of America, FanDuel. The deal will see FanDuel become Entercom’s official sportsbook partner in all its best-in-class sports broadcast stations.

    In the agreement, the two titans in this industry have a shared goal in which they aim to entertain, inform and engage sports fans of various issues about games and institute a new model where a sports media platform collaborates with a sports gaming operator to bring the best out of sports. Entercom fans will have as part of the agreement access to Fanduel’s games odds, promotions, and insights that they will get through the sports platforms online audio stations and personalities. The two companies are further set to work together to produce content that will bring forth new formats in the industry.

    The terms of this deal state that Fanduel will be Entercom’s official sportsbook. Fanduel will have access to all Entercom talent in every area that the two engage or operate together. Fanduel on its part brings all its sports betting content, risk and trading expertise, and progressive sports betting products to all Entercom’s audience and fans. This access will be through a comprehensive integration in the country’s leading and largest sports audio platform.

    Commenting on the partnership, Fanduel’s Chief Executive Officer Matthew King said that they were beyond excited to have partnered with Entercom that has revolutionized the entertainment and audio industries in the provision of betting and fantasy categories. He noted that in the two years that the companies have been working together, there has been a real connection with sports fans and the best way of engaging with those fans. He noted that Fanduel will continue providing fans with information relevant and helpful to their needs and continue providing them with tools that will enable them to continue learning and winning.

    On his part, the President and Chief Executive Officer of Entercom noted that they believe this to be the largest advertising commitment that has been made in the recent past in the radio industry. He further said that Entercom is committed to providing the best betting experience to all of its audience in markets where this type of betting is legal. The market he noted is growing exponentially, thus the need to take advantage, and what better way than to collaborate and work with Fanduel, an industry titan.

  • High Potential Stocks amidst Mixed Market Sentiment

    High Potential Stocks amidst Mixed Market Sentiment

    It’s a mixed day in the .U.S markets in early morning trading. The NASDAQ is up but the Dow and the S&P 500 are all in the red. This comes following a mix of good and bad news.

    The good news influencing the market today is data showing that jobless claims have dropped below 800k. The U.S Department of Labor data on unemployment insurance claims shows that initial jobless claims for the week that ended on October 24th  stood at 774k, slightly lower than the 787k that was reported a week earlier.

    On top of that, continuing jobless claims for the week that ended on October 17th stood at 7.775 million, compared to a week earlier when those numbers stood at 8.373 million. The latest data marks the 9th week in a row that jobless claims have held below 1 million. For the markets, this is a positive sign that the economy is resilient despite the pandemic and uncertainty of when a stimulus package will be passed.

    \The bad news is that cases of the pandemic continue to rise not just in the U.S but globally. Several countries have gone back to the strict lockdowns that had been put in place when the pandemic started. This has put a dent to hopes of a speedy economic recovery until a definitive vaccine is found.

    According to the Chief Economist for JLL, the rapid increase in cases means that there is a high probability of the government locking down a large part of the economy again. Even in this mixed environment, there are stocks that are set to start the day on a high note. Some of them are as below:

    Pinterest Inc [NYSE: PINS]

    Pinterest is in the green pre-market and is up by over 30%. This comes after the company released strong Q3 results. The company reported that in Q3, revenues rose by 58% to hit $443 million. The company also reported global monthly users rose by 37% to a high of 442 million. These results are likely to see the stock keep gaining through the day.

    Inphi Corporation [NASDAQ: IPHI]

    Inphi Corporation is up by over 20% in pre-market trading. This follows news that Marvell was buying the company in a $10 billion deal that would strengthen Marvel’s data center and 5G business.  News of this deal could see the company keep gaining all through the day, and outperform the market.

    IT Tech Packaging Inc [NYSE: ITP]

    IT Tech Packaging Inc is up by over 30% pre-market. This upside push comes two days after the company announced that it was carrying out a detailed emergency response drill in Hebei Baoding Dongfang for radiation accidents. The goal of the drill is to help the company employees practice how to respond in emergency cases.

     

     

  • Stocks to Watch as Equities Rebound After Monday Selloff

    Stocks to Watch as Equities Rebound After Monday Selloff

    The markets are up this morning after a heavy sell-off yesterday. This is an indicator that traders feel that the market is entering oversold territory. Under current circumstances, stocks that have some growth potential could rally all through the day. Some are already showing positive price action in early morning trading, like the ones below.

    Insignia Systems Inc  [NASDAQ: ISIG]

    Insignia Systems Inc. is up by over 50% in early morning trading. The company has recently been winning big through its initiatives of helping emerging businesses grow amid the COVID-19 pandemic.

    COVID-19 has greatly affected emerging needs, bring most to their knees, but there are those that have survived through the turmoil and exceeded expectations one of them being Ka-Pop! After winning Insignia’s Pitch Slam competition, the Colorado-based company that makes puffs and chips from ancient or indigenous grains, the brainchild of Dustin and Christina Finkel won the grand prize of $100,000 worth of free mobile advertising and a guest spot on the Omni Talk Spotlight Series podcasts. It is through this initiative that Ka-Pop has made significant leaps despite the prevailing condition in the world.

    Pennsylvania Real Estate Investment Trust [NYSE: PEI]

    A leading international operator of retail and experiential destinations, PREIT is up after it signed an amendment to the Restructuring Support Agreement (RSA) that will see the company get more time through October 28, 2020, to repay its lenders in the debt restructuring formula as provided in the RSA agreement. PREIT Chairman and Chief Executive Officer said the company continues to work constructively with its lenders, with the extension allowing more time for further discussions.

    He continued saying that they are glad about the progress they have so far made and hope to implement the RSA agreement out of court. In the agreement, PREIT hopes to secure more flexibility that will enable the company to meet its obligations and serve its clients better at the company’s properties.

    Ranger Energy Services Inc [NYSE: RNGR]

    Zacks Oil and Gas subsidiary Ranger Energy has been on an uptrend for the last few days. The company recently reported a Q3 quarterly loss of $0.38 per share as compared to the Zacks Consensus Estimate of $0.45 adjusted for non-recurring items. The reports indicate surprise earnings of 15.56%, better than a quarter ago. In the previous quarter, expectations were that the company would post a loss of $0.55 per share, but ended up posting a loss of $0.47, a 14.55% surprise. The shares have now lost about 61.7% from the beginning of this year. Its share price sustainability will depend largely on how the management handles the current financial report. As for the investors, there is no easy prediction when it comes to the performance of Ranger Energy stock. The current status holds Zack Consensus Estimate #3 showing that the shares could perform in line with the market movement going forward.

  • Document Security Systems, Inc [DSS] In a Bullish Breakout after Strong Q3 Results

    Document Security Systems, Inc [DSS] In a Bullish Breakout after Strong Q3 Results

    Document Security Systems, Inc [NYSE:DSS] is in a breakout at the moment and could see its value rise in the near-term.  The company that is focused on brand protection technology, direct marketing, healthcare, real estate, blockchain security, and securitized digital assets yesterday announced its financial results for the third quarter 2020, ended September 30.

    Among the highlights of these results included the company’s revenue growing 59% to $4.2 million up from $2.6 million in the same quarter last year. The printed segments grew by 40%, from $2.1 million in 2019 to $3.0 million in the same quarter.

    Direct marketing revenue recorded an increase of $715,000, indicating the company’s strength of venturing into the direct marketing industry. The highlight of this report was the company’s net income that recorded a massive growth up from a net loss of about $1.2 million from continuing operations to approximately $5.4 million in 2020, in the third quarter of the two respective years. The cost of operations also increased in 2020 to $6.6 million, up from $3.8 million.

    The increase was as a result of an increase in the costs of professional and consultation fees, administrative and marketing expenses as well as sales costs. Particularly, marketing for the direct marketing business segment took a significant chunk of those expenses.

    Despite that, equity stockholders recorded a massive growth up by 496% to a massive $73.3 million from $12.3 million as of December 31, 2019.

    Some of the business highlights that sparked the massive growth were the complete acquisition of Impact BioMedical, two separate offerings that so the balance sheet strengthened with $11.6 million in cash, published results of a successful COVID-19 treatment, with prophylactic cell protection that prevents infection by the virus, signed an agreement with global personal protective equipment exporter that will see the company’s AuthentGuard as a Service popularised and also launched the save AGaaS app on the App store. Other ventures include the testing of COVID-19 vaccine efficacy and began a research collaboration with Impact BioMedical that will see the company develop microbial-resistant plastics.

    DSS Chief Executive Officer, Frank Heuszel in a statement expressed his excitement saying that the quarter was truly transformational with investors getting $1.20 in net profit per share from continuing operations and the shareholder equity growing five-fold to $73.3 million.

    He further noted the company’s move to further strengthen the company’s business and further grows shareholders’ equity and profits after DSS completed the move to acquire Impact BioMedical and declaring a special share dividend. He noted that with such forward-looking collaborations and partnerships, the company is set to further grow its business in the coming quarters.

  • Top Stocks to Watch as Rising COVID-19 Numbers Tank Markets

    Top Stocks to Watch as Rising COVID-19 Numbers Tank Markets

    The markets are down this morning with the NASDAQ, the S&P 500, and the Dow are all in the red. This follows the increased number of COVID-19 cases and the return of strict lockdown measures. Over the weekend, the number of cases rose to hit a high of 83,757.

    Europe too has seen a huge spike in cases with France leading the way with more than 52,000 cases yesterday. This has seen several countries fall back into lockdowns with Italy and Spain announcing very strict measures. In fact, Spain has already declared a state of emergency.

    With the situation seemingly getting worse, the U.S economy, and the world economy at large is unlikely to reopen to pre-pandemic levels any time soon. On top of that, the number of cases is rising at a time when the U.S is close to an election, and there isn’t a consensus on a stimulus package to support the economy. This uncertainty could see the markets trade in the red for the better part of the day.

    Nonetheless, even as markets show weakness across the globe, there are stocks that are performing quite well today. Most of the day’s biggest gainers are stocks that had some good news towards the end of last week and over the weekend. Some of the stocks doing well pre-market are as below:

    Lianluo Smart Limited [NASDAQ: LLIT]

    Lianluo Smart Limited is a top performer this morning and is up by over 900%. This follows the company’s announcement that it had entered into a merger agreement with Newegg Inc. Under the merger deal, shareholders of Newegg Inc will become the main shareholders of Lianluo Smart Limited. On top of that, LLIT will sell its stake in Lianluo Connection Medical Wearable Device Technology Co. Ltd. On top of that, after the merger, the new entity will carry out a public offering where it expects gross proceeds of $30 million.

    Muscle Maker Inc [NASDAQ: GRIL]

    Muscle Maker Inc is a top performer this morning and is up by over 80%. This follows the company’s announcement the acquisition of a previously franchisee-owned location in Chelsea in Manhattan. This is one of the busiest locations and generated over $1.1 million in revenues in 2019.  As such, the acquisition gives muscle maker a chance to grow its business and test products in the market.

    Smart Sand Inc [NASDAQ: SND]

    Smart Sand Inc is up pre-market by over 30%. This follows the company’s announcement that it would release of Q3 results on November 9th, 2020. The expectation of positive results has seen the stock continue to gain.

  • Top Gaining Stocks as Markets Rally on Hopes of a Stimulus Deal

    The major stock indices are up this morning on news that a stimulus deal could be close. Yesterday, house speaker Nancy Pelosi stated that the negotiators were just about the deal.

    Given that it is the most awaited deal at the moment, this positive news could see the market rally all through the day. In this environment of increased optimism, several stocks are outperforming the market and could trade in positive territory all through the day. Some of the top gainers pre-market are as below:

    Socket Mobile Inc [NASDAQ: SCKT]

    Socket Mobile Inc is one of the top gainers this morning after it released its financial results for the third quarter of 2020. These results are subject to an annual review process in line with goodwill impairment and a part of quarter-end closing procedures.

    The company failed to carry out this review in time as a result of COVID-19 complications and uncertainties. That means that the numbers announced today have no goodwill impairment. Sensitive numbers that might be impacted negatively will have an asterisk to denote that there might be some changes.

    The company will issue the full report once they complete the goodwill review and have it as form 10-Q for the third quarter.

    Marin Software Inc [NASDAQ: MRIN]

    Marin Software Inc. is gaining pre-market and looks set to start the day in the green.  The company recently said that it will announce its financial results for the third quarter ended September 30, 2020, on Thursday, November 5 after the close of the market.

    It further announced that on that same day, it will have a conference call at 2:00 PM Pacific Time and (5:00 PM Eastern Time) to deliberate on the result released.

    This call will be available in the United States of America through dialling the number (877)705-6003 and internationally through the number (201)493-6725. The conference ID 13710848 or access it through a live webcast via the link on the company’s website. There will also be a recorded replay of the same on November 12, 2020.

    CLPS Incorporation [NASDAQ: CLPS]

    CLPS Incorporation is another top performer after announcing its half-year and full-year financial results for the fiscal year 2020.

    The company has recorded significant improvement in both periods as compared to the results of the fiscal year 2019. Revenues and Gross profit increased by 37.2% and 25.1% respectively for the half-year results, and by 37.7% and 31.0% respectively for the full-year results. Other results including the net income attributable to CPLS incorporation’s shareholders and non-GAAP net income also recorded considerable improvement.

    The company’s Chief Executive Officer and Co-Founder Mr. Raymond Lin said that they have been focusing on the health of their employees and that of their families during the COVID-19 pandemic, but are pleased to have recorded stable growth in the two periods. He concluded by saying that the company hopes to continue expanding and grow its business.

     

  • Sequential Brands Group Inc [SQBG] Rallies after Reebok Deal

    Sequential Brands Group Inc [SQBG] Rallies after Reebok Deal

    Heelys, a company that deals with wheel technology shoes, and which is part of Sequential Brands Group Inc [NASDAQ:SQBG] has announced that it is having a new collection with Reebok, a popular lifestyle footwear brand. The collaboration involves Heelys adding their wheel technology to ten of Reebok’s signature styles.

    Heelys has had several different collabs recently, but it is the first time that it is working with another sneaker brand. Among the styles Reebok presents will include a variety of colours, shapes, and patterns. Heelys will work on these varieties to turn them into skates in the usual manner of working on the weight in relation to the heel.

    The collaboration between the two will feature ten styles with a range of sizes. Kids’ sizes will range from 13-8, while adults’ sizes will range from 9-13. These skates will be available as we approach the holiday season making them ideal for gifts for both kids and adults.

    Sequential’s Lifestyle Division Senior Vice President, Arta Isovski said that they are looking forward to teaming up with such a popular and timeless brand such as Reebok. Reebok he notes is focussed on the sport while Heelys is born of adventure.

    The two coming together will produce a formidable and exciting product that will take on the world. Arta continues to say that they are excited to have this product for both adults and children. Most of the potential adults’ clients have grown with Reebok and Heelys. It is exciting that now they will have to experience both of these brands working together to give them an awesome product. The Reebok and Heelys collab is set to hit the market and will be retailing at about $55 to $60 on Heely’s website and other retail markets around the world.

    About Reebok

    Reebok International Ltd., is an established leading designer, manufacturer, and distributor of lifestyle and sports footwear, apparel, and equipment. It has its headquarters in Boston, MA, USA. Reebok is committed to producing and distributing sports equipment to meet and fulfil individuals’ potential all over the world. The company has had a long-lasting connection with fitness enthusiasts all over the world.

    About Heelys

    Heelys is a company that deals with manufacturing skates that allow sports enthusiasts to transition from walking and running, to skating by shifting weight to the heel of the show. It was founded in the year 2000 and has been working towards helping both adults and children express their potential and have fun while skating.

  • Top Gaining Stocks Even as Stimulus Talks Bog Down Markets

    Top Gaining Stocks Even as Stimulus Talks Bog Down Markets

    The markets are headed for a weak start to the day, as all major indices are in the red, a continuation of a trend that started yesterday.

    This is a reaction to declining hope that democrats and republicans are unlikely to an agreement with regards to an economic bailout for the economy. Talks are still ongoing between the two sides and yesterday Nancy Pelosi and treasury secretary Steven Mnuchin were still in talks trying to come up with a deal that would be agreeable to both sides.

    According to a spokesperson for the house speaker, the differences that continue to put the two sides apart are still getting smaller, and focus has narrowed to health including on issues such as contact tracing and strategic testing for COVID-19. So far the two sides are yet to agree on the amounts. The Whitehouse is holding strong at $1.88 trillion, while the Democrats are rooting for a $2.2 trillion bailout plan.

    With neither side yielding, trader’s hopes for a deal this week have been dashed and the same is likely to keep reflecting in the markets through the week. The uncertainty is added by the fact that the election is tight and it’s a race between two candidates with very different policy proposals. Then there is the element of COVID-19 that is likely to keep large parts of the economy closed for the better part of the year. Despite the pessimistic mood in the market at the moment, there are stocks that are doing quite well this morning. Some of the top performers ahead of markets are as below:

    TuanChe Limited [NASDAQ: TC]

    TuanChe Limited is a top performer this morning and is up by over 200%. This rally comes just two days after the company announced that it would change the ratio of its class A shares. The change which comes into effect today has a similar effect as a 1 to 4 reverse split on the company’s stock.

    Ever-Glory International Group Inc [NASDAQ: EVK]

    Ever-Glory International Group Inc is a top performer this morning and is up by about 135%. This is largely a momentum-driven move as there is no news related to the company at the moment.

    Align Technologies Inc [NASDAQ: ALGN]

    Align Technologies Inc is up by over 25% this morning. This follows the company’s release of strong Q3 result. The company announced that in Q3, total revenues rose by 20% compared to a similar quarter in the last financial year.

  • Stocks to Watch as Markets Fall on Diminishing Hopes of a Stimulus Package

    Stocks to Watch as Markets Fall on Diminishing Hopes of a Stimulus Package

    The stock markets are down this morning as investors lose confidence that Democrats and   Republicans could strike a stimulus deal within the week. Given how the economy has been weakened by the COVID-19 pandemic, failure to reach a deal could dampen the mood in the market as can be seen in the market sentiment today. Nonetheless, there are stocks that are doing quite well today, braving a drop in value across key indices. Some of the stocks doing well ahead of markets are:

    Snap Inc [NYSE: SNAP]

    Snap has released its financial report for its third-quarter earnings today, showing adjusted profits that have surpassed investors’ expectations. The company now has more than 250 million daily users and has also had a boot in digital ad spending.  Several analysts had this to say about the company’s performance. Seana Smith said that they need to get on board considering Snap’s promising result. He notes that the shares have gone up 16%, and their daily active users keep increasing. The company is showing a promising trend that investors can jump on to make significant profits. Ines Ferre noted that adjusted earnings for every share are at $0.01, while the street was expecting to have a loss of $0.05 per share, but the financial reports showed otherwise.

    VOC Energy Trust [NYSE: VOC]

    VOC Energy Trust has announced today the third quarterly Trust distribution of its net profit for the period that ended on September 30, 2020. Unitholders expect to receive the distribution of about $1,445,000 that is equivalent to $0.085 per unit as of November 13, 2020. Oil prices have decreased significantly in the first six months of 2020 due to an oversupply of crude oil and decreased demand as a result of the effects brought about by the COVID-19 pandemic. Oil prices are likely to remain low throughout the year 2020 and spill over to 2021, a situation that will have negative effects on Trust distributions. As a result, the prices of oil dipped, reducing the net proceeds that saw unit holders distributions reduced. If these prices remain low, the distributions will go low and might get depleted at some point in time.

    Astrotech Corporation [NASDAQ: ASTC]

    BreathTech Corporation, a subsidiary of Astrotech Corporations today announced that it has entered into a partnership agreement with Cleveland Clinic to carry out further research on Astrotech’s BreathTest-1000 mass spectrometer that will have the capacity to rapidly screen for COVID-19 symptoms. The main aim of this research is to develop a non-invasive kit that will identify signs of COVID-19 strains using breath samples. They aim to have a low cost and self-service kit that will see it mass-produced.  Cleveland research team led by their Chairman Raed Dweik were the first to identify that volatile organic compound (VOCs) metabolites present in human breathes are suitable for detecting particular diseases. The team has so far published studies that show the use of metabolites to detect other diseases such as heart failure, pulmonary arterial hypertension, liver disease and asthma.

  • Molecular Data Inc [MKD] Rallies after Bouncing Off Key Support Level

    Molecular Data Inc [MKD] Rallies after Bouncing Off Key Support Level

    Molecular Data Inc [NASDAQ:MKD] was a top performer yesterday after it bounced off a key support level. This is an indicator that investors expect the stock to hold up above this level in the near-term. MKD recently announced that it will be entering into a definitive agreement with Cayman Islands’ exempt YA II PN, Ltd., that is under the management of Yorkville Advisor Global, LP.

    In the agreement, Molecular Data is set to issue and sell convertible debentures worth an aggregate principal of US$5.0 million in a private placement that will be subject to customary closing conditions.

    Issuing and selling of the convertible debentures will be on instalments that will adhere to the following schedule:

    1. Upon signing of the definitive agreement, there will be a sale of convertible debentures worth US$3.0 million.
    2. Upon the filing of a registration statement with the SEC (Securities and Exchange Commission) convertibles debentures worth US$1.0 million will be issues and bought
    • When the SEC declares the registration statement effective, convertible debentures worth US$1.0 million to be issued and bought.

    The convertible debentures issued attract an annual interest rate of 5%. They are set to mature within one year after the issuance date as long as they are not redeemed or converted based on the terms set before the maturity date.

    The purchasing party has the right to convert the convertible debentures in part or entirely at any time, based on the terms of the agreement and upon compliance with those terms. If the purchaser converts the convertible debentures, the selling company will have to deliver to the purchaser American depository shares of the company. Projections show that the initial conversion price will either be the lower of US$1.30 for every ADS unit or 88% of the benchmark price of the Company’s ADSs.

    About Molecular Data Inc

    Molecular Data Inc., is an international technology-driven company that forms part of China’s chemical industry. It helps connect companies in the chemical value chain using integrated and updated solutions. Among the services, the company provides in this industry include financial solutions, warehousing and logistics, e-commerce, and SaaS suite to help facilitate operations within the chemical industry. The e-commerce solutions that the company offers work on an integrated knowledge engine as well as artificial intelligence (AI) capabilities and mainly offer those services on the company’s online platform. The online platform allows for scaling these solutions to unlimited levels. This platform consists of Moku Data WeChat, molbase.cn, molbase.com, and Chemical Community App among other supporting platforms.