STOCKS TELEGRAPH

Author: Nicholas K

Stocks to Watch Today as Major Indices Drop

Colour Star Technology [NASDAQ: CSCW]

Colour Star Technology [NASDAQ: CSCW] is a top performer this morning and is up by over 51% pre-market. This follows the company’s announcement that it will be launching a series of interactive events that will be aired live. These events will feature the company’s growing group of Star Teachers. It is in line with the firm’s celebration of upgrading its Colour World App. The first event will feature the establishment’s “Star Teacher” Julaiti, a 20-year-old musician who has grown in popularity following his top hit that attained a top 15 finish on “Super Boy 2017”. This event will present users of the Colour World App with a rare opportunity to interact with this famed musician.

Altimmune, Inc [NASDAQ: ALT]

Altimmune, Inc [NASDAQ: ALT] is in the green pre-market too. In its bid to manufacture a COVID-19 vaccine, announced yesterday the launch of its pre-clinical trials of its single-dose, intranasal COVID-19 vaccine called AdCOVID. This vaccine is based on the firm’s adenovirus-based intranasal platform the expresses the receptor-binding domain (RBD) of the protein found in SARS-CoV-2. RBD is important as a preventative measure that will keep vaccinated individuals with a history of prior infection from spreading the virus. The virus has an advantage over many other available vaccines thanks to its single-dose effectiveness, intranasal administration, broad immune activation, and the ease with which it can be stored and transported. Altimmune worked in collaboration with the University of Alabama expanding on its earlier preclinical data. This is a big deal and could see the stock rally all through the day.

Auris Medical Holding Ltd [NASDAQ: EARS]

Auris Medical Holding Ltd [NASDAQ: EARS] is in the green pre-market and is up by over 88% without any major news. The company that has a lead product candidate for acute vertigo had positive progress last month. The rally also comes more than a month after the company announced its business update financial results for the fiscal year ended 2020. Auris Medical’s founder, CEO, and Chairman said that they have had significant milestones with their intranasal betahistine program. They have reported positive results in the last two clinical trials. The two trials AM-125 and AM-201 showed therapeutic potential in the development of a drug-free nasal spray against airborne diseases. There is a strong need for protection against airborne diseases as shown by the ongoing COVID-19 pandemic. The biopharmaceutical company hopes to develop such protection with its going trials.

October 13, 2020
Stocks to Watch as Chinese Data Drives Market Optimism

U.S markets are headed for a good start to the day. They are already in the green pre-market and are in line with European stocks that have been trading in positive territory for the better part of the day. This follows news that the Chinese economy was getting stronger despite the COVID-19 pandemic. Stocks in China, and across the world are rallying after news that the Chinese government is looking into ways for institutional investors to draw in more funds in the foreseeable future. Data from China also shows that the country’s tourism sector has rebound with the country in full control over the COVID-19 pandemic. The effect that Chinese data has on the markets has a lot to do with the impact of the Chinese economy on the world economy. China has the second-largest economy in the world, and it exports lots of products to the world. Therefore, when China shows signs of growth, it points to resilience in the global economy, and it inspires optimism in the U.S and across the world. Besides data from China, U.S markets are still riding on the momentum that built up last week over a possible stimulus package. There are hopes that such a deal could be arrived at before Christmas and help uplift businesses, and basically get the economy rolling again. Increased hopes of a COVID-19 vaccine coming out any time soon is also likely to keep U.S markets going strong in the short-term. Under current circumstances, there are several stocks that look set to rally all through the day, going by their pre-market price action. Some of the big gainers pre-market that are likely to keep gaining all through the day are as below:

Medley Management Inc [NYSE: MDLY]
Medley Management Inc is a top performer pre-market and is up by over 200%. This follows news late last week that the company had its MCC Senior Loan Strategy JV portfolio. The sale was made to a fund managed by Golub Capital LLC for $156.4 million.

RedBall Acquisition Corp [NYSE: RBAC-UN]
RedBall Acquisition Corp is a top performer this morning and is up by over 10% at the time of writing. This follows the company’s announcement a week ago that it had started the separate trading of class A shares and warrants. This has created lots of excitement around the stock since then.

Borqs Technologies Inc [NASDAQ: BRQS]
Borqs Technologies Inc in the green pre-market and is up by over 8%. This comes days after the company reported its full-year results, and also announced that it had regained compliance to the NASDAQ listing rules. Stocks to Watch as Chinese Data Drives Market Optimism

October 13, 2020
Charles Schwab [NYSE: SCHW] Set for Growth as it Consolidates Market

It is an interesting time for Charles Schwab [NYSE:SCHW] as it acquired one of its key competitors, TD Ameritrade, to become one of the world’s largest brokerage firms. The $22 billion deal will see Charles Schwab grow to a client asset base of $6 trillion and 28 million brokerage accounts.

This means TD Ameritrade was adding about 12 million client accounts to the combined entity and $1.3 trillion in client assets. Commenting on the deal, Charles Schwab president, Walt Bettinger said that, they were looking forward to using the two companies’ combined strengths to eliminate barriers for investors by lowering costs and giving them better trading technologies. The move is likely to also drive up the company’s revenues going into the future and by extension its stock value.

At the same time, Joe Moglia, the former chairman of the board at TD Ameritrade, announced that he will be relinquishing that position as Schwab merges with the online broker. In an internal video bidding TD Ameritrade Associates, Moglia says that it was a difficult decision but one that was necessary and good for everyone.

Moglia ascended to the position of CEO of TD Ameritrade (then Ameritrade) in 2001. At the time Ameritrade was a struggling firm on the brink of bankruptcy. It was worth a paltry $700 million, with total client assets of about $24 billion.

As the company CEO, Moglia saw Ameritrade transform immensely in just seven years. By the time he was stepping aside to become the chairman of the board in 2008, the company’s capitalization stood at $10 billion and its shares had risen by 500%.

Currently, the TD Ameritrade clients’ assets stand at approximately $5.5 trillion. His exit shows that Charles Schwab wants to be in full control of the new entity’s strategic direction. This could see the company grow much faster going into the future, which is good for market consolidation.

Over the last few years, there has been an increase in competition from smaller, but more techy brokers. With the new entity and a unified strategy, Charles Schwab is uniquely positioned to grow going into the future.

About Charles Schwab

Charles Schwab provides wealth management, asset management and other financial advisory services. It is based in San Francisco, California.

October 12, 2020
Why VivoPower International PLC [VVPR] Could Sustain Upside Momentum on Monday

VivoPower International PLC [NASDAQ: VVPR] announced yesterday that it has entered into a definitive agreement with Tembo e-LV to acquire 51% of its stock.

The Netherlands based company Tembo e-LV that specializes in off-road vehicles and battery electric has a global footprint with distributors in four major continents. It currently services a range of sectors including infrastructure, mining, government utilities, humanitarian aid, and game safaris. The company provides customized off-road vehicles suitable for rugged terrains and light electric vehicles.

VivoPower plans to part with USD$4.7 million for 51% and has the option of acquiring the remaining 49% hence controlling the entire company. This transaction is based on customary closing conditions that include funding mix requirements and capital structuring.

VivoPower sees some potential in Tembo following Tembo’s financial reports in the fiscal ended December 31, 2019. Tembo had unaudited revenue of USD$2.3 million. VivoPower, using publicly available data estimates that the commercial fleet electric vehicles market could be in the range of $36 billion. This market presents lucrative opportunities, and this is considering that the market does not include the United States, South America, and Asia, meaning it could be even bigger.

VivoPower’s Executive Chairman and CEO said that the company is looking forward to scaling up Tembo’s capacity to maximize its potential and enable it to increase its production capacity of rugged commercial fleet electrification solutions. VivoPower is focussed on providing these solutions to the infrastructure, mining, and global utilities but will soon diversify to other sectors. Currently, the two companies, VivoPower and Tembo have a combined customer base of 700. They could increase this if they venture into the US and Asia markets. Most of these clients are in infrastructure, utilities, and mining.

Tembo founder and CEO, Frank Daans welcomed this merge saying that Tembo will now fulfil the pending demands from their customers since this move will scale up their capacity and improve efficiency, thus producing more at reduced costs. This will be possible considering that the two companies have already begun joint operations.

This move adds to the company’s intrinsic value and with market optimism rising due to hopes of a stimulus package, buyers could rally into growth stocks short-term.

About VivoPower

VivoPower is an energy company specializing in battery technology, solar power, electric vehicles, and critical power services. The company’s main mandate is to provide sustainable power and energy solutions to its clients. The company has a global outlook with operations in the United States, the United Kingdom, Australia, and Canada.

October 10, 2020
Stocks to Watch as Markets Rally to 5-weeks High on Stimulus Hopes

The equity markets are up this morning. The NASDAQ, the S&P 500, and the Dow are all at their highest levels in close to a month. This comes after renewed hopes of a stimulus deal between democrats and republicans to save the economy. The deal if agreed upon is likely to be actualized before Election Day. The optimism around it has seen the markets rally despite worsening jobless numbers.

The latest unemployment data shows that last week, the number of people filing for unemployment insurance benefits pushed through the 840k mark. Though the total numbers dipped from the 11 million high that was recorded in March at the height of the lockdowns, it still points to a relatively depressed economy. Optimism around an agreement increased after Nancy Pelosi met and discussed the package yesterday with Treasury Secretary Steven Mnuchin. Reports about the meeting state that Mnuchin stated that the President was much interested in reaching a deal.

Analysts are looking forward to a deal, with Jeffrey Buchbinder of LPL Financial Equity stating that a deal would deliver a surprise to the markets in October. With optimism on the rise, there are stocks that are doing exceptionally well pre-market. Some of the biggest stock gainers this morning that could close the day in gains are as below:

Medigus Ltd [NASDAQ: MDGS]

Medigus is a top performer pre-market and is up by over 55% at the time of writing. This follows news that the company had entered into an e-commerce brand marketing on Amazon marketplace. The company stated that it had entered into a definitive agreement to buy a majority stake in Smart Repair Pro Inc and Purex Inc. These are data-driven eCommerce companies that run on the Amazon Marketplace. Under the deal, Medigus Ltd will have 50.01% in the two companies and will be paid for in cash and shares. Commenting on the development, Medigus CEO, Liron Carmel stated that the company was committed to growing its footprint in the eCommerce space.

Pacific Drilling S.A. [NYSE: PACD]

Pacific Drilling S.A. is another big gainer this morning and is up by over 15% pre-market. This is largely momentum-driven and follows the company’s announcement of strong Q2 results 4 days ago. The company reported that it had sales of $38.91 million and that earnings were up by 80.31% in the quarter.

Sanchez Midstream Partners LP [NYSE: SNMP]

Sanchez Midstream Partners LP is a top performer this afternoon and is up by over 200% this morning. This is largely a price action move and is backed by the improved sentiment in the overall market.

October 9, 2020
Why Pioneer Power Solutions [PPSI] Could Rally Past $10

Pioneer Power Solutions [NASDAQ: PPSI] is forming a bullish continuation pattern. While it had a slight correction yesterday, the stock still has the momentum to keep gaining. A month ago, an insider at Pioneer Power Solutions, Mazurek Nathan bought 1,000 shares at an average price of $1.40 per share after filing Form 4 with insider trading codes. These shares were to later increase in value and began trading at a value of 9% from the last closing price. Following this transaction, the executive insider’s share increased to 31,000.

Why is an Insider Transaction Important?

While you should not use insider transactions to decide to invest in a particular company, such transactions are important factors that you should also put into consideration while making that decision. Here is why they should help you make a decision, but not be the only guide to making a decision.

Any time an inside executive or officer considers buying or buys stock after a vital sell-off, it could be an indication of the faith the insider has on that company’s stock. This action means then that if the insider decides to buy that stock at new highs, then it could mean that the insider feels that the stock has not been overvalued. The opposite is also true to some extent but should be taken with a pinch of salt. When insiders are selling the company’s stock at new lows, it could mean or indicate a capitulation or surrender moment, but not necessarily a loss of faith in the company. Just note that when the insiders sell at new highs, they could be planning to “lock in a gain” or possibly “take some profit.”

In every house, there is an important kind of secret transaction codes that only a few are familiar with, but are not as restricted. In Wall Street, these insider transaction codes are used in the open market as seen in filing Form 4. Traders fill this form via these codes with P indicating purchase, and the code S denoting a sale. When done in an open-market transaction, then that means that the insider trader sold the stock deliberately and is hoping to make some gains from the same.

There are other codes like A and C but do not carry as much weight as P and S, since they are rarely tied to the insiders or in the decision that they make. Transaction code A, denotes an inside trader being forced to let go of their stock to get a particular compensation, while C is indicative of an option being converted.

October 9, 2020
Stocks to Watch as Hopes of a Stimulus Package Uplifts Markets

Orbital Energy Group Inc [NASDAQ: OEG]

Orbital Energy Group, Inc is a top gainer in pre-market trading. Though it has no major news, the stock is riding on strong quarterly results a few weeks ago. The financial report shows the company’s financial performance in the just-ended financial year, capturing the effects of the ongoing global pandemic of COVID-19. The company recorded a gross profit of $1 million despite the tumultuous pandemic period but had an operating loss of $7.2 million as compared with the previous year where they recorded an operating loss of $3.2 million. This year’s operating loss, however, is also partly due to the acquisition of Reach Construction Group. Jim O’Neil, the CEO, and vice-chairman of the company noted their continued transformation in the energy sector despite the challenges most corporations have been facing this year.

Rockwell Medical Inc [NASDAQ: RMTI]

Rockwell Medical Inc is another stock riding on the strength of recent news that could impact on its bottom-line. A while back, Rockwell Medical, Inc., a company in the biopharmaceutical industry with a focus on treating iron deficiency and anaemia management, announced today that it has hired Russel L. Skitbusted, M.B.A., as the company’s Chief Business Officer, Chief Financial Officer, and Executive Vice President. Russel’s responsibilities will include financial operations, business development, and investor relations. The President and Chief Executive Officer of Rockwell Medical, Russell Ellison, M.D., M.Sc., said that the company was pleased to hire Russell in his capacity considering his wealth of experience in other publicly traded biotechnology companies in similar capacities. He further said that Russell will be a great addition to the attainment of the Rockwell Medical going forward.

ALJ Regional Holdings, Inc [NASDAQ: ALJJ]

ALJ Regional Holdings Inc., today announced its financial updates of the fiscal fourth quarter of the year ended September 30, 2020. According to the company’s Chief Executive Officer, Jess Ravich, the company showed continued improvement in the fiscal fourth quarter of 2020. As a result of high trade volumes for books and other trade components, the Phoenix results were much stronger than expected. Following these results, he projects that the corporation could record higher results than the forecasted adjusting to EBITDA. As of the moment, the forecasting adjusted to EBITDA is in the range of $8 to $9 million in the last three months ended September as compared to $5.3 to $6 million in the corporation’s third quarter. This is likely to keep the stock gaining in the near-term.

October 9, 2020
3 Reasons Why Ocean Power Technologies Inc [OPTT] Could Test $4 Short-term
1. A $12.5 Million Liquidity Boost
Ocean Power Technologies [NASDAQ: OPTT] recently agreed with Aspire Capital Fund, LLC on a stock deal where Aspire will buy common stock worth approximately $12.5 million. The deal will be for 30 months and will enable Ocean Power to get funds to purchase new equipment and machinery like PowerBuoys to meet potential energy demands. OPT is now set to initiate new projects as well as advancing the existing ones. The new projects will enhance service delivery hence allowing the company to get new opportunities and expanding its market base. The company’s President and Chief Executive George H. Kirby expressed his excitement following this development that will see OPT access capital on flexible terms and a cost-effective basis.
1. Resilient Quarterly Results
Ocean Power Technologies recently announced its financial results for the first quarter of the fiscal year 2021 that ended July 31, 2020. From the results, the company has made significant milestones in terms of acquiring new machinery and equipment as well as adopting new technologies that have enhanced its operations. It has also opened new offices in a new location that will see better administration and corporate services. The company’s revenue for that quarter was $0.2 million. This result was flat as compared to the fiscal year 2020 of the same period. OPT derived revenue for the fiscal year 2021 mainly from Enel Green Power Project while it had derived revenue for the same period in the previous year from Premier Oil and U.S. navy projects.
1. Company is Expanding Its Team
The company recently announced the addition of a new commercial team member, Gilar Prakoso, to represent the company in the Asia Pacific region. Gilar Prakoso is based in Jakarta, Indonesia, OPT’s President George Kirby, supported the move saying that this will help OPT expand their market and further promote OPT’s capabilities. He further noted that Gilar’s connections and relationships with local maritime agencies and industries will play a crucial role in helping OPT grow its customer base and establish regional partnerships and relationships. OPT is committed to providing maritime solutions such as protecting territorial waters, prevention, and supporting oil well decommissioning as well as curbing illegal fishing. There was a need therefore to establish such relations.

About Ocean Power Technologies Inc

Ocean Power Technologies Inc is a renewable energy company with operations in the Americas, Europe, and Asia. It is based in Monroe Township, New Jersey.
October 7, 2020
Top Stocks to Watch as Equity Markets Rebound

Rave Restaurant Group Inc [NASDAQ: RAVE]

Rave Restaurant Group Inc is up by over 300% this morning and gaining. This follows the company’s announcement that had just hired two new seasoned executives to spur up its development. The new executives are Darren Webb and Dion Firooznia.

Webb will be the new director of development for Rave as well as supporting both Pie Five Pizza and Pizza Inn, while Firooznia will be the Pizza Inn franchise business consultant. These two individuals bring in a range of experiences that will see Rave develop in Carolinas where both are based. The two form a formidable team for the benefit of Rave Group, having worked together before at Bojangles’ restaurants as executives where they both saw the growth of Bojangles in their respective capacities.

Hill International Inc [NYSE: HIL]

Hill International Inc is another top performer this morning and is up by over 10% pre-market. The leading managing construction risk company has stated that it has been awarded a contract to provide project management services for the renovation of Kasr al-Ainy Hospitals Development for Cairo University in Egypt. The company is tasked with providing the project management service through the design, procurement, and execution processes. They will also be responsible for building any additional facility buildings if needed.

Waleed Abdel Fattah, the Senior Vice President of Hill International in North Africa, said in a statement that they are committed to providing efficient services that will see the Iconic Kasr Al-Ainy legacy continues and enable personnel there to provide world-class services. The project, he said will be completed in due time and within the specified budget.

Ocean Power Technologies Inc [NASDAQ: OPTT]

This stock is another top performer pre-market and is up by over 37% pre-market. This follows news that the company has entered into an agreement with Aspire Capital Fund and LLC that will see the power technology company sell common stock worth about $12.5 million. This agreement will run for 30 months and will see Ocean Power get funds to purchase more machinery like PowerBuoys to meet potential energy demands.

The company will also see the advancement of existing projects and initiate new solutions in their bid to provide efficient ocean energy to their clients. The company’s President George H. Kirby said that they are excited about this development that will see them access flexible capital on a cost-effective basis.

October 7, 2020
3 Potentially Profitable Stocks Today Amidst Mixed Market Sentiment

Westwater Resources Inc [NASDAQ: WWR]

Westwater Resources, Inc. has applauded President Trump’s Executive Order that was signed on September 30, 2020, declaring that United States’ reliance of foreign countries for the supply of critical minerals is a threat to the national security. This has seen the stock rally pre-market since the directive favors the company’s projects in the long run, especially on graphite production.

Following this directive, the President has ordered the relevant departments to accelerate the issuance of permits and finance to companies involved in the mining and supply of the same within the US. These agencies include the Office of Science and Technology, the Secretary of Defense, Secretary of Energy and that of the Interior among others.

Graphite and vanadium are critical minerals used in the technology industry and are thus a cause of concern to the country were their supply to be curtailed of cut off by foreign suppliers hence the order.

Xtant Medical Inc [NYSE: XTNT]

Xtant continues to gain upside momentum days after taking a move to restructure debt. In a move to reduce its outstanding debt, the company stated that it had ended its previously announced debt restructuring transaction. The aim of this transaction was to help improve the company’s capital structure by reducing its total debt. This reduction will enable Xtant access to capital markets and regain the compliance standards of getting listed in the NYSE. The company will now be in a position to get investment to stir up its growth.

As part of the transaction, Xtant issued about 57.8 million shares of its common stock which they expected to raise about $40.8 million. This amount will represent part of the aggregate outstanding principal amount. There will also be another $21.1 million of outstanding of PIK interest.

Alteryx Inc [NYSE: AYX]

Alteryx is gaining quite strongly pre-market after releasing strong Q3 forecast. The company has announced that in the third quarter, it expects revenue ranging from $126 million to $128 million, an improvement from the earlier figures of $111 million to $115 million that they had issued on August 6, 2020.

Further, Alteryx has announced that Mark Anderson, who is currently a board member, is set to replace current CEO and co-founder Dean Stoecker with immediate effect. Stoecker will now be an executive chairman and the chairman of the company’s board. This further strengthens the company’s future prospects and could see it gain significantly in the short-term.

October 6, 2020