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Author: ST Staff

Nutanix Inc [NTNX] In a Sweet Spot as Multiple Factors Favor Stock-Value Growth

Nutanix Inc [NASDAQ:NTNX] has been on an uptrend for some time now and has sustained that trend in today’s session. It is currently up by 28% and gaining. This follows the company’s announcement of Q4 results that beat analysts’ estimates.

The company’s earnings came out at a loss of $0.39 against a consensus estimate of $0.67. The earnings loss was also much lower than what it recorded in a similar quarter a year ago when it reported a net loss of $0.57. This is the 4^th time in a row that the company had beat analysts’ estimates on earnings.

Delving deeper into its earnings, the company reported that revenues in Q4 stood at $327.9 million, or an increase of 9% compared to a similar quarter in 2019. The company also reported that billings in the quarter increased to $388.5 million compared to a similar quarter in 2019. The gross margins on sales also improved compared to a similar quarter in 2019.

The company reported that its GAAP gross margin increased from 77% in Q4 of 2019 to 79.6% in Q4 of 2020. Commenting on the results, CEO Dheeraj Pandey stated the result were a demonstration of the company’s growth despite the COVID-19 pandemic.

The strong financial results also come at a time when the company has received an investment of $750 million from Bain Capital that is aimed at supporting its growth initiatives. Commenting on the deal, the CEO stated that Bain Capital was a good investment because it has extensive experience in investing in technology and helping companies grow their operations.

He added that the investment by Bain was a vote of confidence in the company’s position, as a market leader in the hybrid cloud infrastructure market. In fact, one of Bain Capital’s Managing Directors, David Humphrey stated that they found the company to be a good match based on its vision of having a differentiated hybrid cloud platform that offers a flexible environment for easy integration with other platforms.

Looking ahead

With the strong financials that the company recorded in Q4 and the investment from Bain Capital, this company is uniquely positioned for growth in coming quarters. Its prospects for growth are enhanced by the fact that the business environment is getting better as the COVID-19 restrictions start to ease up. As investors expect better results from the company, it is likely to experience a sustained upside momentum in the near-term. Overall market momentum, as investors take riskier bets post-pandemic, could help support this stock in the near-term.

About Nutanix Inc [NASDAQ: NTNX]

Nutanix Inc is an enterprise cloud company that operates in North America and all over the world. It is based in San Jose, California.

August 28, 2020
Stocks to Watch amidst Mixed Market Sentiment after Fed Policy Framework

It’s a mixed day in markets today, after yesterday’s news from the Federal Reserve. The FED Chairman Jeremy Powell offered a roadmap for the raising of interest rates in 2020. This led to an instant drop in the value of most stocks.

That’s because investors are still apprehensive of the risks that this poses to the economy. The economy is just reopening after a pandemic shutdown that has devastated most sectors of the economy. However, the Fed has downplayed the impact of the interest rates increase and offered a rationale for it. Powell stated that the increase in interest rates was meant to cushion the economy in the future.

He stated that consistently maintaining low inflation would diminish expectations of inflation. This, in turn, would lower the Fed’s ability to stabilize the economy by cutting interest rate. It is on this basis that the Federal Open Market Committee was unanimous in its approval of an allowance for inflation to rise to slightly over 2% for a while.

While this has dampened the market to some extent, the markets are still supported by hopes of a COVID-19 vaccine. Several companies are already in advanced stages in the push for a workable vaccine. Success on this front would counteract the negative effects of an increase in interest rates since it would restart the economy across all sectors. In this environment of mixed sentiment, there are stocks that are rallying this morning. Some of the stocks that are in gains ahead of markets are as below:

Just Energy Group Inc [NYSE: JE]

Just Energy Group Inc is a top performer this morning and is up by over 80%. This follows the company’s announcement that it had approved a recapitalization plan. The company is part of the company’s plan to de-risk and achieve more sustainable growth. Through the recapitalization, the company announced that the move would improve the company’s finances by injecting more than $100 million and cut on net debts and the costs of preferred shares by $520 million. The improved outlook could play a role in the stock’s performance throughout the day.

Nortech Systems Incorporated [NASDAQ: NSYS]

Nortech Systems Incorporated is up by over 50% this morning. This comes after the company announced that it had completed a sale and leaseback deal. The deal is for the company’s manufacturing facilities that are located in Bemidji and Mankato for $6.3 million. The company’s CEO Jay D. Miller stated that he was happy with the deal’s success. He added that the deal had generated cash that had improved the company’s balance sheet and put it in a position to make strategic investments.

MICT Inc [NASDAQ: MICT]

MICT Inc is another top performer this morning and is up by 20%. This is momentum-based and follows the company’s announcement early last week that it had received its first order for its video telematics product.

August 28, 2020
Rekor Systems Inc [REKR] Is Just Getting Started on Gains

Rekor Systems Inc [NASDAQ:REKR] has been gaining upside momentum over the last two months. The company’s momentum has seen a growing analyst consensus that the stock is a buy.

Today, the stock has sustained this momentum and is up by 24%. So what next for REKR? After such huge gains, is the stock up for a correction or is the bull rally likely to continue? To understand the possible direction of this stock, one needs to understand the reason behind the rally.

Why REKR is gaining

This stock has been on an uptrend since July when it was reported that the company was joining the NVIDIA Metropolis Software partner program.

The goal of the program is to apply deep learning techniques in live streams. Through the program, NVIDIA is looking to create a way for the creation of artificial intelligence cities. Rekor is now part of the over 100 NVIDIA city partners. Through this program. Rekor will leverage NVIDIA’s AI and GPU for its machine-learning enabled software.

At the time, Rekor’s Chief Science Officer Mathew Hill said that by working with NVIDIA, the company was taking advantage of the program to expand the software on the over 1 billion cameras that will be in the NVIDIA cities by the end of 2020. Through this partnership, the brand image of REKR has improved, and the company’s revenues stand to grow over time. As the NVIDIA cities come alive, the company’s stock stands to grow. This could see the stock keep gaining upside momentum in the near term.

What next?

Besides the NVIDIA program, this stock’s upside momentum is supported by the company’s strong finances. Earlier in the month, the company released its Q2 results and they point to a strong company. In Q2, the company reported that revenues grew by 89% to $2.7 million as compared to Q2 of 2019.

The company also announced that it entered into an agreement to exchange more than 77% of all its payable notes from 2019. This points to a company whose core fundamentals are, strong enough to support growth. In the near-term, this could see the stock value grow based on both investor confidence and the ability to quickly take advantage of emergent opportunities.

While announcing the results, the company CFO Eyal Hen stated that they would continue carrying out their strategic plan of focusing on technology to grow revenues.

About Rekor Systems Inc

Rekor Systems Inc is a vehicle identification and a management systems provider. It is based in Columbia, Maryland.

August 28, 2020
Stocks to Watch as Markets Await Fed Chairman Remarks

It’s a weak start to the markets as investors await news from the Federal Reserve Chairman on the steps that the Fed is taking to bump inflation to its set target of 2%.

Speculation is rife that he will only offer a vague idea of the steps that the monetary policy committee will take. This is largely due to data consistently showing underlying economic weakness. Recent data on retail sales and consumer spending has shown that the core economic indicators are weak.

This also comes at a time when the S&P 500 has hit record highs raising fears that the markets are overvalued at the moment. In this environment of perceived high risks, money continues to flow into big tech stocks such as Facebook and Amazon. Investors are optimistic that in the event that the market corrects, big tech has what it takes to absorb the impact.

These stocks have already navigated the last few months of the COVID-19 pandemic well. Despite the dampened mood in the market, there are non-big tech stocks that have started the day on a high note. Some of them are as below:

Urban Tea Inc [NASDAQ: MYT]

Urban Tea is up by over 1000% this morning. The gains comes after the company announced its 1:10 reverse split that has now taken effect. Essentially this means that the company’s stock is now trading at 10 times the price it was trading at before the split.

However, the split does not in any way affect the shareholding of the investors. Every investor will still hold the same percentage of the stock that they held before the stock. Through the reverse split, the company’s shares have shrunk from a total of 79,438,648 to about 7,944,211. However, the reverse split has not affected the company’s preferred shares that still hold at 5 million shares.

Moxian Inc [NASDAQ: MOXC]

Moxian Inc is another stock that has started the day on a high note. This comes after the company announced that it had agreed the terms for a merger with Btab Group Inc. Under the deal, the new entity will offer 59 million of common stock, and 50 million class A shares that have restricted rights to vote. The merged entity will have a valuation of $400 million and over $40 million in revenues annually.

VBI Vaccines Inc [NASDAQ: VBIV]

This is another big mover this morning and has started the day up by over 30%. This comes after the company announced its pre-clinical COVID-19 program data and candidates selection for its one-dose vaccine candidate. This has created excitement around the stock in early morning trading.

August 27, 2020
Paycom Software Inc [PAYC] – A Top Stock to Watch All Through 2020

Paycom Software Inc [NYSE: PAYC] has been on an upward trajectory since April. That’s despite the company being impacted by the COVID-19 pandemic. Recently, the company announced that in Q2, its quarterly revenues dropped by 14% compared to a similar period in the last financial year.

The stock’s strong upside momentum despite this drop can be attributed to the fact that the company has been investing heavily in advertising. While releasing Q2 results, the company stated that it increased its marketing spend by 36% in the quarter, and its research and development budget by 30%.

According to CEO Chad Richison, the company had spent more on marketing in Q2 than it has ever spent in any other quarter. He also added that aggressive investment in advertising had started to bear fruit on a weekly basis. He stated that while it is not always easy to see where advertising dollars go, the company had clearly seen the benefits in Q2.

According to him, they were able to see tangible effects in terms of new business development. He added that the results were due to two key factors. The first one is that the company was able to see an increase in the number of customers checking out its website and requesting product demos. Secondly, the company recorded an increase in demand for virtual meetings, which saw an acceleration of the sales cycle to days, from previous cycles that took weeks.

In terms of Research and Development, the CEO stated that thanks to the R&D efforts, a number of cloud-based tools were developed in Q2. Some of them include the company’s Manager-on-the-go application. This is an app that gives business executives the ability to handle executive business functions straight from their smartphones. He also added that the company would continue investing in R&D to give customers an even better experience.

These developments have given investors the impression that despite the hard times, this company is willing to adapt to the changing environment.

What next?

Going forward, this stock stands to get even stronger. That’s because, with a COVID-19 ending now closer than ever, business is likely to return to normal, sooner rather than later. As this happens, the company will benefit both from its old clientele and the new ones. This is likely to draw in even more investor optimism in the near-term.

About Paycom Software Inc

Paycom Software Inc is a cloud-based HR management company. It is based in Oklahoma City, Oklahoma.

August 26, 2020
Stocks to Watch amidst Mixed Market Sentiment

The markets are headed for a weak start to the day this morning. On one hand, there is the optimism of an easing of trade tensions between the U.S and China. At the beginning of the week, negotiators said there was positive progress on the trade talks.

The optimism is increased by news that China will be buying a large amount of US soya beans. The positive momentum is also increased by hopes of an end to the restrictions that have shrunk global trade, especially in service-related industries. This week the US FDA approved a COVID-19 treatment, and there are hopes that several vaccines are on the way. However, there are also fears that the effects of the pandemic run deeper. This is evident in the latest consumer data.

According to the Consumer Confidence Index data, confidence dropped in August to its lowest in 6 years. This is a negative signal to the US economy since two-thirds of it runs on consumer spending. This mixed outlook has seen money continue to flow into big tech stocks.

This is on the strength of these companies in their core markets. These companies also have the resources and the infrastructure to keep innovating and remain strong despite the prevailing circumstances. Despite the mixed outlook, there are several stocks that look set to start the day on a high note. Some of the big gainers pre-market that could dominate in the day are as below:

PolyMet Mining Corporation [NYSE: PLM]

PolyMet Mining Corporation is a top performer this morning and is up by over 700%. This follows the actualization of a 1:10 share split. The reverse share split was approved by the company’s board on the 21^st of August. At the time the company stated that after the split, the total issued and outstanding shares will drop from 1,0006,997,495 to 100,699,749. The split does not negatively impact on shareholders as everyone will retain the percentage of stock they held before the reverse split.

Immunic Inc [NASDAQ: IMUX]

Immunic Inc is another top performer this morning and is up by 19% pre-market. This is largely a price action move, after the stock’s correction over the last few days. Several days ago, the company announced that it had dosed its first healthy volunteer in his phase 1 clinical program for its IMU-856. The company announced that in pre-clinical studies, the compound had shown a paradigm shift in treating gastrointestinal disease.

Heat Biologics Inc [NASDAQ: HTBX]

Heat Biologics Inc is a top performer this morning and is up by over 20%. This comes after the company announced that it announced that it had published pre-clinical results on a COVID-19 vaccine. With the increased hopes of a COVID-19 vaccine, this stock stands to gain momentum through the day.

August 26, 2020
Urban One Inc [UONE] – Why to Buy As Stock Trades At Key Support Level
Urban One Inc [NASDAQ: UONE] has been on a downtrend for the past month. However, it seems to have found some support at around $4 and has bounced off this price level. If it holds, the stock could see an increase in buying momentum as investors move in to take positions. This is already showing in its price action today when the stock is up by 6%. However, there are other factors likely to drive this stock’s price action beside the technical price action. Some of the factors likely to drive up momentum in this stock are as below:
1. Increased interest in black-owned businesses
Over the last few months, there has been an increase in interest in black-owned businesses. This interest is unlikely to drop any time soon. In fact, due to the ongoing racial issues in the U.S, such businesses are likely to keep gaining more interest in the near-term. Urban One Inc is one of the black businesses that stand to gain the most from the growing interest in black businesses.

The company stands to benefit in two ways. First, it is well-positioned to attract investors who want to invest in black businesses. The company runs 61 broadcast stations that are all targeted at the black community. This makes it one of the best businesses for an investor that wants to invest in a business that has an impact on the business community.

Secondly, the business offers a window of opportunity for investors looking to target the black community for different empowerment programs. This could see the number of advertisements rise, and as a consequence, drive up its revenues and intrinsic value. Both of these factors could see the value of this stock grow in value in the foreseeable future.
1. The company is recapitalizing
Recently, Urban One Inc announced that it was undertaking an equity offering to raise $25 million. The company intends to do this by issuing class A shares. The company has stated that it intends to use the money for repaying debts, and for general company purposes. With this recapitalization, the company is well-positioned to grow in value in the near-term. That’s because, when the company gets out of debt, it will have the liquidity to invest in new growth opportunities.

The company will also be in a position to navigate better through tough economic times and that adds to its intrinsic value.

About Urban One Inc

Urban One Inc is the largest media company targeting the black community in the U.S. Through its media outlets, the company reaches more than 59 million households. It is based in Silver Spring, Maryland.
August 25, 2020
Stocks to Watch as Positive U.S-China Trade News Drive-up Markets

The markets are up this morning driven by news that the U.S and China are making progress in their trade negotiations. According to the U.S trade negotiator Robert Lighthizer and his Chinese colleague, the two countries were fully committed to ensuring that the negotiations turn out successful.

This reassurance has led to higher appetite for stocks due to the reduced geopolitical risks. According to Naeem Aslam of Avatrade, the possible positive outcome of the trade negotiations between the two largest economies in the world had taken away a major barrier in the global stock markets.

The news also come at a time when another risk factor to the economy seems to be falling under control. On Sunday the FDA approved the use of blood plasma in the treatment of COVID-19. In the event that it shows widespread effectiveness, then it would be a green light for the world economy to go back to normal. At the same time, hopes of a COVID-19 vaccine are rising by the day.

Several biopharma companies and academic institutions are in advanced stages in the race for a vaccine. This has added an extra layer of positive sentiment in the market. In this environment of high optimism, stocks with positive news or anticipated positive news are rallying. Some of the top performers ahead of markets are as below:

Viveve Medical Inc [NASDAQ: VIVE]

Viveve is a top performer pre-market and is up b 41% at the time of writing. This comes after the company announced that it has positive primary efficacy data from its Stress Urinary Incontinence (SUI) feasibility study that done over 5-months.

The company also announced that it had got positive results from its in-vivo pre-clinical study that was done to test the company’s new inert sham that would be used in the upcoming PURSUIT trial in the U.S. Commenting on the results, CEO Scott Durbin stated that they believed that the results were in support of the company’s thesis stating that cryogen-cooling had a good therapeutic effect. The results are likely to support this stock through the day.

Ocugen Inc [NASDAQ: OCGN]

Ocugen Inc is another top perfumer this morning and is up by 19%. This comes as investors await news from the company about its forward-looking statements. The stock is also buoyed by the fact that an insider recently bought a sizeable amount of the stock. The company’s founder Shankar Musunari bought $108k worth of stock, an indicator that he has confidence in the company.

Vivopower International PLC [NASDAQ: VVPR]

This is another top performer this morning and is up by 18%. This follows the company’s release of its finances for the financial year ending 30^th June 2020. The company reported that revenues grew by 12% compared to the last financial year. The company also reported that gross revenues grew by 28% compared to the last financial year. This has inspired investor confidence in the stock pre-market.

August 25, 2020
ADMA Biologics Inc [NASDAQ:ADMA] Set for More Gains as FDA Approves Plasma COVID-19 Treatment

ADMA Biologics Inc [NASDAQ: ADMA] is a top performer this afternoon. Like other companies that deal in plasma biologics, this stock has benefitted from the FDA’s approval of the use of blood plasma in the treatment of COVID-19.

Yesterday, the FDA released a statement stating that it was issuing an Emergency Use Authorization for the use of plasma in the treatment of COVID-19 on the basis of prevailing scientific evidence showing that it works. Commenting on the move, the U.S Health and Human Services Secretary Alex Azar stated that the decision by the FDA was a huge milestone in the Trump administration’s efforts to fight the coronavirus. On his part, FDA Commissioner Stephen M.

Hahn stated that the body was fully committed to releasing safe and helpful treatments for COVID-19. He added that it is on this basis that the FDA was authorizing the use of convalescent plasma after it had shown promising results in the fight against COVID-19. On the basis of prevailing evidence, the FDA had established that the use of convalescent plasma was effective in lowering the severe effects of the disease and in shortening the time that one spent in the hospital. It also established that the potential effects of the treatments were much lower than the possible benefits that come with using it.

Why the gains?

The company’s rally is in line with the market-wide rally touching on stocks that deal in plasma biologics. That’s because these companies already have the infrastructure for plasma-related treatments. As such, investors expect that they will channel a sizeable portion of their resources towards the fight against COVID-19, a factor that could see these companies recorded revenue growth going into the future.

ADMA Biologics has the infrastructure for use in developing plasma treatments for COVID-19. The company is specialized in immunoglobulins and is known for its capabilities in developing plasma-based treatments for infectious diseases. Since COVID-19 is an infectious disease, it falls right within the speciality of the company. Over the years, the company has developed a range of plasma-based therapeutics including for the treatment of pneumonia.

The company also has the infrastructure for the collection of blood plasma, which places it right in the centre for the collection of blood plasma of recovered COVID-19 patients. On this basis, it stands to keep gaining as investors expect it to be at the centre of the fight against COVID-19 in the U.S.

About ADMA Biologics Inc

ADMA Biologics Inc is a biopharma company. It is based in Ramsey, New Jersey.

August 24, 2020
High Flying Plasma Pharmaceuticals as FDA Approves Plasma-based COVID-19 Treatment

The markets are up this morning driven by news that the U.S had approved a COVID-19 treatment. Yesterday, the U. S FDA issued an emergency use authorization for the use of blood plasma from people who had recovered from COVID-19 as a treatment.

In a statement, the FDA said that on the basis of available scientific evidence, the blood plasma of people who had recovered from COVID-19 had benefits that outweighed any potential risks. The statement further stated that the Emergency Use Authorization gave the green light for the distribution of the product in the U.S for use by healthcare providers to treat people hospitalized with COVID-19.

Commenting on the development, President Trump has stated that the treatment had so far cut mortality rates by 35%, quoting a study by the Mayo Clinic. Over the weekend, it was also reported that the President was considering fast-tracking a vaccine that was being developed by Oxford University in the U.K.

All these news have led to a surge in optimism across the financial markets, and major U.S indices are strong pre-market. In this environment of high optimism, plasma-related biopharma companies are rallying. Some of the biggest gainers this morning are as below:

ADMA Biologics Inc [NASDAQ: ADMA]

ADMA Biologics is flying high this morning after the FDA approved the use of recovered COVID-19 patients’ plasma as a treatment.

At the time of writing, the stock was up by 70% and gaining. The company is specialized in making plasma biologics for the treatment of a wide array of immune deficiencies and infectious diseases. With the use of plasma approved, investors are optimistic that with its infrastructure in plasma-based treatments, this company stands to benefit significantly in the foreseeable future.

ThermoGenesis Holdings Inc [NASDAQ: THMO]

ThermoGenesis Holdings Inc is another plasma-treatment biotech company that is rallying this morning. The company has the infrastructure for it, and investors are optimistic that it stands to benefit from the approved treatment.

The company operates in two segments and one of them is involved in automated cell separation of progenitor and stem cells taken from umbilical cords blood. It is also involved in the preservation of such blood for clinical applications.

Liminal Biosciences Inc [NASDAQ: LMNL]

This is another top performer this morning and is up by over 60% in pre-market trading. The company operates in two segments and one of them is called Plasma Derived Therapeutics. This segment of the company has a plasma protein purification system that is used in the extraction of protein therapeutics from plasma.

August 24, 2020