STOCKS TELEGRAPH

Author: ST Staff

  • Houston Wire & Cable Company (HWCC) Stock is Rising, Here is What You Need to Know

    Houston Wire & Cable Company (HWCC) Stock is Rising, Here is What You Need to Know

    Houston Wire & Cable Company (HWCC) stock price increased by over 40% in the current market as Omnicable announced the acquisition of all outstanding shares of HWCC common stock at $5.30 per share. The price per share depicts a premium of 39% to HWCC’s recent closing price set at $3.80. The ‘all-cash’ transaction was approved without any opposition by HWCC board of directors.

    As per the contract, each HWCC shareholder will receive $5.30 for every stock they own. The transaction is scheduled to be completed by May 25th ’21, upon the condition that HWCC stock will cease to be traded in any public market.

    About HWCC and Omnicable

    Houston Wire & Cable Company, consists of an industrial distribution network, and is a large-scale provider of wire, cables and supplying electrical distributors throughout the United States

    It also provides value-added services that include shipping within 24 hours, educational inventory management programs, logistics support, and personalized online ordering as well as a 24/7/365 service.

    Omni Cable, LLC (OmniCable) emphasizes upon redistribution of high-quality wire, cable, electrical products, and value-added services. It’s 24/7 emergency services, as well as research and development in stranded conductors has provided it with a distinctive competency amongst its competitors.

    OmniCable is a daughter company of Dot Holdings Co which has the largest redistribution network for food in Northern America. After the completion of the acquisition, both the company’s will retain their own brands in their respective locations, however the acquisition will maximize OmniCable’s and HWCC’s ability increase net revenue due to the complementary nature of their business.

    Conclusion

    Omni Cable, LLC (OmniCable), being one of the largest distribution networks in North America, is investing heavily on acquiring leading middle-market distribution companies and consumer-oriented products. A premium of 39% on its stock price is a positive sign in terms of revenue and has been a healthy indicator for the company’s future valuation.

  • The Naked Brand Group Limited (NAKD) stock plunged today. Here’s why it happened

    The Naked Brand Group Limited (NAKD) stock plunged today. Here’s why it happened

    Naked Brand Group Limited (NASDAQ: NAKD) stock recently traded at $0.70 and is down 8.3%, at the time of this writing. The recent activity that correlates with this news is the fact that investors are becoming aware of the company’s poor-performing fundamentals and are pulling out of the stock.

    The rise and fall of Naked Brand Group’s fashion trend

    Naked Brand Group Limited (NAKD) was considered to be Europe’s top 20 fastest growing companies.  The company is a designer and manufacturer of apparel and swimwear outfits. It has collaborated with many popular brands for several projects. The apparel company’s mission outline states “focused on enhancing the architecture of the body”.

    However, contrary to its mission statement, NAKD has not been focusing on its own fundamentals which have been severely weakened. The apparel company has been reporting net losses for consecutive five years and what is worse is that these losses have ascended with the passing of years. The company reported a loss of $19.06 million in 2016 and in 2020 it reached a net total of $35.17 million.

    In 2017, NAKD stock was truly in the spotlight when it traded at an all-time high of an exceptional $1420. However now, due to the weakened outlook of the company’s fundamentals, NAKD stock trades around 77 cents. The stock did soar recently in this year (January) but it was due to the hype that retail investors of reddit had caused. It did provide a strong rally to NAKD’s stock which surged to a whopping 300% in three days but quickly died down.

    This is because the external motivator for the positive stock movement could not overcome the underlying weak fundamentals of NAKD. The reason why NAKD stock has not been performing well is that its overall sales have declined and the company reported $15.02 million negative cash flow in 2020 (compared to $9.82 million in 2019).

    Shifting exclusively to an e-commerce platform may not be a good idea

    Naked Brand’s recent attempt to focus its shifting from physical retail business to e-commerce line has shown quite an impressive growth. However, in doing so, it has exclusively focused on its e-commerce platform “FOH Online”. The overall resurgence of retail business due to the easing of the pandemic lockdown will not benefit the company’s retail subsidiary and Flagship brand, Bendon now that it is focusing on FOH Online.

    Furthermore, this growth in the sales of its e-commerce does not compensate for the overall loss in the company’s net revenue growth. Several experts of fashion and apparel businesses suggest that the Naked Brand Group (NAKD) may have fallen victim to the harsh and unreasonable trends of the fashion industry. The brand simply may have run its course of popularity and consumers do not seem to buy any hype around Naked Brand’s latest fashion trend and marketing.

    At this rate, investors have already started associating the NAKD stock with a bearish trend, and the unimpressive fundamentals are painting a dim picture for the company’s overall outlook. Naked Brand Group (NAKD) needs to pull a rabbit (and a fashionable one) out of its hat and fast in order to retain customers and investors.

  • Ault Global Holdings Inc (DPW) stock rebounds today; here’s why it happened

    Ault Global Holdings Inc (NYSE: DPW) stock last closed at $2.97 which is a 9.17% plunge in the stock price. However, the current session showed positivity in the DPW stock price by 1.68%.

    This upward movement in Ault Global Holdings Inc’s (DPW) stock price comes adjacent to the news announcement by the diversified holding company. The news states that DPW’s partner in the electronic business, Coolisys Technologies Corp. has received an offer $10.5 million purchase order.

    Ault Global Holdings, Inc. expands by acquiring businesses

    Ault Global Holdings, Inc. (DPW) is a diversified holding company founded in 1969. DPW expands its basis of operations by acquiring low-valued businesses and technology companies that are globally influential. Besides its strategy of expansion and acquisition, the company also works as a financial lending and aid company that extends loans to entrepreneurial businesses.

    Coolisys is the DPW acquired electronic business that provides project specific products for aerospace, industrial, healthcare, government and telecommunications market clients.

    Why the deal between Coolisys and iNet is significant?

    The $10.5 million purchase order received by Coolisys Tech Corp. (Coolisys) is specifically for the residential EV charging systems. The definitive agreement was made with Origin Micro and its subsidiary iNetSupply.com where 30,000 7kW Electric Vehicle chargers were agreed upon. The Purchase and Resale agreement will be based on a 3 year term.

    Furthermore, Coolisys has announced that it is positive about the prospects of selling accessories for the residential charging EV systems. iNet will acquire these accessories for an estimate of $1.5 million. Specifically these charging systems are able to be wall-mounted and the accessory that comes along with it is the adapter which allows the charging of Tesla vehicles as well.

    iNet itself is a leader in electronic product procurement/distribution and uses efficient traditional as well as e-commerce digital platform. Thanks to its vast supply chain network, the company consists of major well-known clients like Lenovo, Dell, Cisco, and HP.

    iNet plans to procure these wall-mounted residential EV chargers and make them available for preorder purchase at iNetSupply.com. Due to the company’s high well-known reputation for maintaining and delivering product integrity, it will have access to list these 7kW EV residential chargers on e-commerce platforms like Amazon.com, eBay.com and Newegg.com

    This deal is timely placed in this era of increased adoption of Electric Vehicles globally. This adoption can be assessed from the increased competitiveness in EV market due to entrance of newer companies.

    How is the overall outlook for DPW stock’s fundamentals?

    Overall, Ault Global Holdings, Inc (DPW) has been actively strategizing its expansion and investment in subsidiaries. On 12th March, 2021 DPW announced the investment in Alzamend Neuro which was valued at $10 million. This investment was based on the Biotech Company’s recent success in FDA approvals for its neurodegenerative drug treatment. These investments by the Holding company allow for it to reap the reward of progress and development in the fundamentals of invested firms. Eventually, the success of these invested companies lead to the increase in the stock value of DPW and attracts the attention of new investors.

  • SilverSun Technologies Inc. (SSNT) stock jumps 7% today. Here’s what has happened

    SilverSun Technologies Inc. (SSNT) stock jumps 7% today. Here’s what has happened

    SilverSun Technologies Inc. (NASDAQ: SSNT) stock rises by 7.07% in the current trading session after SSNT today has announced financial results of its fourth quarter and full year ended on December 31, 2020. SSNT is a business application also a technology and consulting company that facilitates people with software and IT solutions for their information, technology and business management queries. Through its services, SSNT makes its customers able to manage and monetize their enterprise assets.

    Financial results of the fourth quarter and full year 2020

    • SSNT has generated total revenue of $11,308,787 for the fourth quarter of 2020 compared to $9,967,886 in the fourth quarter of 2019, this makes a total increase of 13.5%. While the revenue generated for the full year 2020 was $44,220,406 whereas for the full year 2019 revenue generated was $38,502,482 which is an increase of 7.1%.
    • The gross profit reported by SSNT for the fourth quarter was $4,736,177 and $16,578,981 for the fourth quarter and full year, respectively. Comparatively, for the fourth quarter and full year 2019, the gross profit was $3,723,109 and $14,678,454.
    • Also, the Income generated from the existing operations was $480,391 for the fourth quarter of 2020 compared to the loss of $399,557 from the same operations in 2019.
    • Earnings per share for the full year 2020 from the existing operations were $0.04, whereas for the year 2019 the EPS was $0.33.
    • Lastly, by the end of 2020, cash totaled was $6,595,416 also SSNT had $1,892,129 as in long-term liabilities.

    Conclusion

    The financial results depict that unlike many other companies the business of SSNT did not get affected by the COVID-19 pandemic. Also, the CEO of SSNT showed his confidence in the progress of SilverSun technologies and also mentioned that they are hopeful to continue making progress in the coming months as well.

  • Why Evofem Biosciences, Inc. (EVFM) stock is falling today?

    Evofem Biosciences, Inc. (EVFM) announced the public offering of its common stock after which the EVFM stock price saw a downtrend of 21.03% today to drop at $1.84 as of this writing. EVFM stock was down by 9.34% at the previous closing. So what you need to know now?

    Public Offering of EVFM Common Stock

    Evofem Biosciences, Inc. (EVFM) is a biopharmaceutical company mainly focused on women’s sexual and reproductive health through the development and commercializing of its various products. EVFM stock recently announced the offering of  17,142,857 shares of its common stock at $1.75 per share public price. Underwriters are granted a 30-day option to buy up to additional 2,571,428 shares worth $4.5 million of Evofem common stock at the public offering price less than the underwriting discounts and commissions. $30 million gross proceeds are estimated for this offering without deducting the underwriting discounts, commissions, and other related expenses. The offering will end on March 29, 2021.

    EVFM is planning to use the net proceeds resulted from this offering in various areas including the commercialization of Phexxi (lactic acid, citric acid, and potassium bitartrate) a contraceptive vaginal gel for the prevention of pregnancy, in the united states of America. Furthermore, these net proceeds will support the advertising activities across television as well as streaming and digital channels of Evofem. Some part of these net proceeds will help in the continuation of phase 3 clinical analysis of EVOGUARD and its related activities in which EVFM is observing the EVO100 for the prevention of infections that transmit sexually.

    “Get Phexxi”: A Marketing campaign

    Evofem started the “Get Phexxi” campaign on Valentine’s day via television, streaming, and digital channels that achieved significant results according to the EVFM officials. The campaign resulted an increase of 73% in ex-factory sales of Phexxi in February 2021 and these sales of the first quarter of 2021 exceeded the full-year sales level of 2020 by March 12. Evofem stock distributed 2,400 Phexxi units in February 2021 which is 30% higher than the prior month.

    Conclusion

    The penny EVFM stock price is continuing the downtrend in the stock market today following the public offering of shares of its common stock and no one knows how long this bearish sentiment will continue. Though EVFM got significant results in its marketing campaign of Phexxi still more development is required for future growth.

  • Cellectar Biosciences Inc. (CLRB) stock gains during pre-market session. Why is it so?

    Cellectar Biosciences Inc. (CLRB) stock gains during pre-market session. Why is it so?

    Cellectar Biosciences Inc. (NASDAQ: CLRB) stock declined by 4.60% in the last trading close while the CLRB stock rises by 4.22% in the pre-market trading session. As of now, there is no latest news available regarding the rise of CLRB stock in pre-market. Cellectar Biosciences is a biopharmaceutical company with its focus on developing and commercializing drugs specifically for the treatment of cancer.

    Recent Developments

    On March 9, 2021, CLRB announced that the Japan patent office has issued Cellectar Biosciences with patent number 6832861 which is titled as “Phospholipid-Ether Analogs as Cancer-Targeting Drug Vehicles”. The patent protects CLRB’s exclusive phospholipid-ether (PLE) which works as delivery vehicle analogs in association with a wide variety of widely used chemotherapeutic groups such as alkaloids, nucleoside analogs, and other small molecule chemotherapeutic agents.

    Also, Cellectar Biosciences was supposed to participate in two recent conferences in March 2021.

    • On March 16, CLRB was happened to present at Oppenheimer 31st Annual Healthcare Conference.
    • And from March 17-19 CLRB participated in Maxim Group 2021 Emerging Growth Virtual Conference.

    Financial Results for the year 2020

    Recently On March 2, 2021 CLBR announced its financial results for the year 2020. The summary of financial results is given below:

    • The cash and cash equivalents generated by CLRB for the year 2020 was $57.2 million compared to $10.6 million for the year 2019.
    • Cellectar Biosciences has recorded its Research and Development as &10.1 million for the year ended December 31, 2021. While the R&D expense for the year 2020 was $9.0 million. The increase in Research and Development expense is approximately 13% compared to the previous year.
    • The net loss that is attributable to common stockholders was $15.1 million for the year 2020 compared to $ 14.1 for the previous year.
    • CLBR has reported the General and administrative expense as $5.1 million for the year ended on December 31, 2020 comparatively the values were a bit high in the year 2019 as $5.2 million.
  • SenesTech Inc. (SNES) stock rises during pre-market trading session. Here’s what’s happening?

    SenesTech Inc. (SNES) stock rises during pre-market trading session. Here’s what’s happening?

    SenesTech Inc. (NASDAQ: SNES) stock gained by 12.50% in the last trading close while the SNES stock keeps on rising by 2.02% during the pre-market trading session after SenesTech announced its collaboration with Liphatech. SenesTech is an agricultural biotechnology company that focuses on the management of fertility for pest control through different technologies. ContraPest is their first commercial which works to fight difficult rat outbreak.

    What’s happening?

    The purpose of collaboration between SenesTech and Liphatech is to develop a non-liquid formulation of ContraPest. Both SenesTech and Liphatech which is an internationally known researcher and distributor of unique and effective pest control products will equally participate to the project through providing resources and finances.

    ContraPest is a rat birth control product. Also it not just only eliminates rat infestations, but it also prevents them from returning. ContraPest has proven to be effective in reducing rat populations over the course of five years of research and implementation in municipal, agricultural, and commercial settings. ContraPest is currently available in a liquid formulation that has been approved by the Environmental Protection Agency.

    Furthermore,

    Brandy Pyzyna, the VP of SeneTech’s Research and Regulatory department said that their area of work will be comprised of all preparation, implementation, and testing to check the efficiency of the non-liquid formulation of ContraPest which is based on the soft bait matrix developed and advertised by Liphatech. Brandy also added that they have a comprehensive, collaborative work plan in place that they can implement right away.

    Conclusion

    This recent positive development in SenesTech has possibly acted as a great initiative for the progress of SNES. Also it has brought the focus of Investors towards the SNES stock. In the past as well, SenesTech through its ContraPest brand has shown great beneficial results whenever it has been linked with any Pest control program. Hence the expectations are high from this collaboration as well.

  • Molecular Data Inc. (MKD) stock gains in the Pre-Market: Things you need to know

    Shares of Molecular Data Inc. (MKD) were gaining in Thursday’s pre-market after following the downtrend in the previous open market. MKD stock price saw a jump of 4.81% to reach $1.10 a share at the time of this writing. MKD stock price dropped to $1.04 and down by 7.96% at the previous closing. Let’s try to find the reason behind this rise.

    What’s happening?

    Molecular Data Inc. (MKD) is the leading chemical e-commerce-based platform in the Republic of China. MKD’s rising stock price today captivated the attention of individuals who are looking for some reason. Still, the reality is somewhat different from expectations. We find no particular news by the company today, no earnings report, no analyst upgrades, or upswing targeted MKD stock price to explain the culprit behind this rise. However, Molecular Data did announce some of its recent development in the early days of this month.

    Recent Agreements

    On March 09, 2021, MKD stock signed the supply frame agreement with Anhui Gujing Distillery Co., Ltd for becoming the key supplier of the chemical and biological reagents and laboratory equipment and consumables to expandMKD’s presence in the food and beverage industry. Molecular Data will provide approximately 2 million stock-keeping units (SKUs) to Gujing for its domestic and foreign laboratory brands and suppliers. On the last day, MKD stock announced the MOU for the potential transaction and a stake in the famous brand name in the U.S to strengthen its presence in America.

    On March 05, 2021, Molecular Data entered into the cooperation agreement with Yili Industrial Group Co., pursuant to which the laboratory supplies Mall and centralized procurement platform of MKD would become branches and subsidiaries of Yili Group.

    Conclusion

    So far, so good for MKD stock price, but one should remember that rising stock price despite the absence of reason could not be the base for any decision about the particular stock.MKD stock has shown developments in recent times, and its business model suits the COVID world. In short, individuals eyeing MKD stock have to get the nitty-gritty details of it.

  • Cabaletta Bio Inc. (CABA) stock rises during the pre-market trading session. Let’s find out why?

    Cabaletta Bio Inc. (NASDAQ: CABA) stock declined by 2.43% during the last trading close. Still, in the pre-market trading session, the CABA stock rises by 10.70%, followed by no recent news or press release available. Whereas fluctuation in CABA stock price has been noted as on March 16, the company reported its financial results for the fourth quarter and full-year ended on December 31, 2020. CABA is a biotechnology company that deals with the invention and engineering of T cell therapies for patients suffering from B cell-mediated autoimmune diseases.

    Overview of CABA financial results

    • CABA’s Research and Development Expenses for the fourth quarter of 2020 were $5.8 million compared to $3.0 million for the same period in 2019. While the R&D expenses for the full year 2020 were $21.4 million compared to $11.7 million for the full year 2019.
    • The General and administrative expenses of CABA for the fourth quarter of 2020 were $3.6 million, whereas the figure was $2.8 million for Q4 2019. G&A expenses for the full year 2020 were$12.5 million compared to $7.0 million for 2019.
    • The cash and cash equivalents calculated is $108.7 million compared to $136.2 million as of December 31, 2019. CABA expects that the cash and cash equivalents, in addition to investments made as of December 31, 2020, will make it possible for Cabaletta to fund its operating plan at least till the third quarter of 2022.

    The forthcoming events for Cabaletta

    • On April 1, 2021, Cabaletta will participate in a fireside chat at the Guggenheim Healthcare Talks Genomic Medicines and Rare Disease Day, which is happening virtually.
    • On April 12-15, 2021, CABA will participate in the virtual Needham & Co. Virtual Healthcare Conference.
  • Despegar Inc. (DESP) stock gains during the pre-market trading. Let’s find out why?

    Despegar Inc. (DESP) stock gains during the pre-market trading. Let’s find out why?

    Despegar Inc. (NASDAQ: DESP) stock declined by 6.08% at the last trading close, whereas the DESP stock soars during the pre-market trading session by 11.61%. There is no latest news available related to the rise in DESP stock, yet Despegar announced its fourth-quarter 2020 financial results at the beginning of March 2021, which might be why the rise and fall in DESP stock price. Despegar is a well-known online travel company located in Latin America. Currently, it is operating in nearly 20 different countries. DESP provides its travelers with the most fantastic traveling experience, and its strong dedication towards excellent customer service has managed to bring it approximately 18 million customers.

    Outlook on Q4 2020 financial results of Despegar

    • DESP has shown a quarterly loss of $0.24 per share compared to the loss of $0.35, estimated by Zacks Consensus. While a year ago,Despegar generated earnings of $0.01 per share. Besides, the values are given for non-recurring items.
    • The financial results of Despegar also show that DESP has three times exceeded the consensus EPS (earning per share) estimate.
    • DESP fourth quarterly report reflects a 31.43 per cent earnings surprise. This online travel business was anticipated to record a $0.39 per share a quarter ago, but it posted a loss of $0.41, providing a -5.13 per cent surprise.
    • Despegar has reported a revenue of $53.25 million for the quarter ended December 2020, which was 52.57% higher than the Zacks Consensus Estimate. Compared to $145.63 million for the previous year. Over the last four years, the organization has surpassed consensus sales expectations twice.
    • Also, DESP shares have shown a loss of about 0.2% since the start of 2021, whereas the S&P has shown a gain of 3.8%.

    Conclusion

    With the ongoing COVID-19 situation, the travel business has been damaged the most. Therefore, we can see that DESP has underperformed in the year 2020. Even today, Despegar and the analysts cannot make any specific statement about the progress of DESP in 2021, keeping in mind that the pandemic is still not over, and almost every country is under complete or bright lockdown, which makes it difficult to travel. Investors are supposed to be more vigilant regarding this whole uncertain situation before investing for an extended period of time.