STOCKS TELEGRAPH

Author: ST Staff

  • ShiftPixy, Inc. (PIXY) Stock Undergoes Minor Volatility as MIAMI WORKS Campaign Continues

    ShiftPixy, Inc. (PIXY) stock prices were down by 3.39% as of the market closing on July 1st, 2021, bringing the price per share down to USD$2.28 at the end of the trading day. Subsequent pre-market fluctuations saw the stock rally by 1.75%, bringing it up to USD$2.32.

    MIAMI WORKS Campaign

    June 23rd, 2021 saw the company announce the launch of the MIAMI WORKS campaign, which provides staffing and recruiting solutions to facilitate the circumvention of the pandemic-driven staffing shortage in the restaurant and hospitality industries. PIXY hosted the first in a series of recruiting events on June 26th, 2021 in collaboration with local universities and community development groups. The event provided a platform for shift workers to easily find job opportunities that compensated workers with living wages, a signup bonus, flexible schedules, healthcare, workers’ compensation, and 401K benefits.

    Pandemic in South Florida

    South Florida was hit especially hard by severe staffing shortages following the outbreak of the pandemic, which proved to be a major challenge given how it relies so heavily on the hospitality and tourism business. The campaign will help business connect with and recruit willing and eligible workers more easily, facilitating the moves to get operations back to normal to effectively meet customer demand. A 60-day marketing effort has been initiated since the inauguration of the event, which seeks to connect the registered workforce to open positions across restaurants and other hospitality operators in the Miami area.

    Delivery Services Affected

    Compounding the effects of the labor shortage, third-party delivery services are facing a threat from authorities that would necessitate them to reclassify drivers as employees, rather than independent contractors. This has the potential of putting their business model and the restaurants they serve at risk. PIXY also facilitates the provision of a stable platform that offers fair wages and benefits for the delivery workers, allowing restaurants to reduce their reliance on third-party services by ramping up their own recruiting and staffing efforts.

    Facilitating Accessibility

    The job fair saw local restaurants and hospitality operators in PIXY-served communities being represented, where they were directly connected with the on-demand workforce. The process was made more accessible with the provision of the ability to complete onboarding quickly and efficiently, in an entirely paperless fashion.

    Future Outlook for PIXY

    Armed with the ongoing job fairs that increase the company’s scope and consolidate its brand image, PIXY is poised to capitalize on its trajectory of success. Investors are hopeful that the company will be able to usher in organic and long-term growth by making the most of the opportunities afforded to it.

  • ZW Data Action Technologies, Inc. (CNET) Stock Exhibits Volatility After Having Been Selected as Latest Meme Stock

    ZW Data Action Technologies, Inc. (CNET) stock prices were up by 6.50% as of the market closing on July 1st, 2021, bringing the price per share up to USD$2.13 at the end of the trading day. After-hours trading saw the stock plummet by 7.04%, bringing it down to USD$1.98.

    Revenue Reports

    Revenues for the quarter ended March 31st, 2021 were reported at USD$8.40 million, a 91.5% increase from the USD$4.38 reported in the same quarter of the prior year. The year-over-year difference is largely attributable to increases in revenue from the company’s internet advertising and related service business segment. This, in turn, has benefitted from the economic recovery since the Covid-19 outbreak in the second half of the prior year.

    Costs of Revenues

    Q1 2021 total cost of revenues came out to USD$9.11 million for the quarter ended March 31st, 2021, up a massive 161.5% from the USD$3.49 million reported for Q1 2020. The year-over-year difference was largely driven by increases in cost derived from the distribution of the right to use search engine marketing services that CNET had previously purchased from key search engines. Further contributing to the yearly difference were costs related to the provision of Internet advertising services with various ad portals.

    Gross Loss and Margins

    Gross loss for the quarter ended March 31st, 2021 was reported at USD$0.72 million down from the gross profit of USD$0.90 reported in the same period of the prior year. This difference over the year is primarily attributable to the negative gross margin rate resulting from the main stream of service revenues. Accordingly, the gross loss margin was 8.5% for the quarter, while the prior-year quarter reported a gross profit margin of 20.5%.

    Meme Stock Phenomenon

    With no recent news coverage since the end of May 2021 and no significant changes in fundamentals, CNET seems to have found itself to be the target of the meme stock phenomenon that has resurged through the markets lately. After the massive volatility around the end of June 29th, 2021, CNET stock continues to dip and rally in significant swings. Driven by retail investors who coordinate on the social media platform Reddit to execute a collaborative short squeeze of underperforming companies with little to no sound bases for being invested in, meme stocks have been all the rage lately.

    Future Outlook for CNET

    Armed with the fortuitous strengthening of the position of its equity value, CNET is poised to capitalize on the opportunities presented to it in a bid to usher in more organic growth. Investors are hopeful that management will be able to keep the snowball going rather than a massive downward correction, as is seen very often with meme stocks.

  • How Has The DTSS Stock Declined 7% In The Extended Trades?

    Shares of technology company engaged in providing smart security solutions, smart hardware, and education-related technologies in China, Datasea Inc. (DTSS) were down -7.17% in after-hours trading at $2.20. Datasea stock closed the regular session at $2.37, falling -5.20% or $0.13. DTSS stock traded across a range of $2.33 to $2.4987. DTSS shares exchanged hands for 32.68K, a lower number than the company’s 50-day volume of 0.16 million and lower than its Year to date volume of 0.9 million.

    DTSS stock price has fallen 15.05% over the past year, -3.27 percent over the last week. DTSS stock has gained 12.86% in the last six months and has decreased by -30.29% in the last three months. Since the beginning of the year, the DTSS share price has returned 18.50%. After announcing collaboration around 5G messages standard, DTSS stock gained nearly 5% in two days, but yesterday, investors seem to have taken profit.

    What did DTSS’ 5G collaboration entail?

    Datasea, a Chinese technology company, provides smart hardware and smart security solutions, as well as education-related technology development. Furthermore, DTSS also offers education-related technologies as part of its comprehensive and optimized security solutions. Through the leveraging of proprietary technologies, intellectual property, innovative products, and market intelligence, DTSS provides comprehensive and optimized solutions for clients. Beijing’s finance, tax, as well as science and technology authorities have jointly certified DTSS as a High Tech Enterprise. Additionally, DTSS is a Zhongguancun High Technology Enterprise recognized for its high technology products.

    According to Datasea, it has entered into a cooperation agreement with National Engineering Laboratory for Logistics Information Technology through its wholly-owned subsidiary Shuhai Zhangxun Information Technology Co., Ltd.

    • As part of the joint promotion of 5G Messaging standards in the express industry in China, DTSS’ subsidiary has joined National Engineering Laboratory.
    • YTO Express is one of the leading express companies in China.
    • YTO Express is the official sponsor of the National Engineering Laboratory, which is approved by China’s National Development and Reform Commission.
    • By partnering with DTSS, the express industry will be able to access its 5G Message-marketing Cloud Platform (5G MMCP).
    • A collaboration between DTSS and National Engineering Laboratory is also underway to develop standards for transferring and exchanging logistics information, as well as promote the use of 5G messaging services.
    • In this partnership, National Engineering Laboratory and DTSS demonstrate their abilities to work together to develop international standards for 5G messaging in the express industry.

    What will this collaboration mean for DTSS in the future?

    The collaboration represents a landmark for Datasea (DTSS) since it acknowledges the company’s technological expertise and influence within the industry. DTSS will be able to respond to the needs of express delivery companies through the formulation of 5G messaging standards, which will not only improve operational efficiency and reduce costs of marketing and communication internally but also increase end customers’ satisfaction with logistics services and products.

  • Is This Why The Virgin Galactic (SPCE) Stock Rose 27% After Hours?

    On the last check Thursday, Virgin Galactic Holdings Inc. (SPCE) gained 27.32% to $54.99 in after-hours trading. The Virgin Galactic stock price ended the last trading session at $43.19, a loss of -6.11%. The price range of SPCE stock was from $43.19 to $46.43.

    SPCE stock traded 26.96 million shares, which was more than its daily average of 22.92 million shares over the past 100 days of trading. The SPCE shares have gained 7.28% in the last five days, while they have gained 38.74% in the past month. An announcement of a fully crewed flight to take off later this month sparked SPCE’s stock price to rise.

    SPCE’s plans for spaceflight:

    Advanced air and space vehicles of Virgin Galactic enable private spaceflight for tourists and researchers, a pioneering feat for the aviation and space travel industry. A spaceflight system is being developed by SPCE to offer customers an environment of wonder and awe on par with space travel.

    Today, Virgin Galactic announced the date for its next rocket-powered test flight of SpaceShipTwo Unity will be July 11, subject to weather and technical requirements. During its “Unity 22” mission, VSS Unity will complete its 22nd flight test, and SPCE will conduct its fourth crewed mission in space.

    Founder Sir Richard Branson will test the private astronaut experience aboard the first private astronaut aircraft, along with four mission specialists including two pilots. Several customer-experience objectives will be addressed during Unity 22 to build on the success of SPCE’s most recent flight in May, including:

    • SPCE will conduct a full crew assessment of the commercial customer cabin with an emphasis on cabin environment, seat comfort, weightlessness experience, and views of Earth that the spaceship delivers, all to ensure astronauts can enjoy the wonder and awe of space travel at every step of their journey.
    • Unity 22 will demonstrate how human-tended experiments can be performed.
    • The Virgin Galactic hopes to confirm that the training program at Spaceport America is compatible with the space flight experience.

    How is this time different from the last?

    Virgin Galactic (SPCE) will live-stream the spaceflight for the first time for everyone to watch. Visitors from around the globe will be able to attend virtual test flights of Unity 22 to experience the extraordinary experience SPCE is building for future astronauts. Virgin Galactic will simulcast the livestream on its Twitter, YouTube, and Facebook pages as well as on Virgin Galactic.com.

  • Why Has The GEE Group Stock Gained 12% During Extended Trading?

    GEE Group Inc. (JOB), a provider of professional staffing services and human resource solutions, was trading at $0.64 in after-hours at the time of this writing, up 12.28%. JOB stock dropped -0.68% to $0.57 at the close of Thursday trading. Volume for GEE group stock remained at 6.95 million shares, down from 7.76 million shares on average over the past 50 days.

    Job shares are down by -5.36% over the past week, and their value has increased by 10.83% over the past 12 months. JOB stock has lost -58.76% over the past three months, while it has lost -45.80% over the past six months. The JOB, along with its outstanding shares of 113.50 million, has a current market value of $65.78 million.

    As JOB stock rose without any recent news, we are able to provide an even more detailed overview of JOB by referring to recent developments.

    Has JOB been going well lately?

    Since 1893, Gee Group has provided specialized staffing services. With its names Agile Resources, Triad, Ashley Ellis, Paladin Consulting, General Employment, Omni-One, and Access Data Consulting, JOB operates in two market niches: technical and engineering staffing services, as well as financial and accounting staffing services. Through its Scribe Solutions brand, JOB also provides medical scribes for emergency departments and medical practices by providing necessary documentation for patient care in conjunction with electronic medical records (EMR).

    Results for the second quarter ended March 31, 2021 are the latest financial position announced by GEE Group.

    Q2 2021 Highlights:

    • JOB’s revenues for the reported quarter were $34.7 million, up marginally from the same quarter of fiscal year 2020.
    • In the second quarter of the fiscal year 2021, JOB earned approximately $637,000 in operating income as opposed to a loss of approximately $(2.4) million in the same quarter a year ago.
    • JOB’s non-GAAP financial measure of adjusted EBITDA (about $2.2 million) was up from about $783,000 for the second quarter of the fiscal year 2020.
    • As of quarter end, JOB had approximately $14.3 million in cash and approximately $8.7 million in net working capital.
    • JOB completed its common stock equity offering in April 2021 together with the exercise of the over-allotment option.
    • JOB raised $57.5 million in gross proceeds before underwriters’ discount, commissions, and expenses.

    Was cost cutting beneficial to JOB?

    In the fiscal 2021 second quarter, GEE Group (JOB)’s selling, general, and administrative expenses (SG&A) decreased by approximately $3.6 million, reaching approximately 26.4% of revenue, down from approximately 36.9% in the fiscal 2020 second quarter. It is expected that SG&A expenses will decrease mainly as a result of COVID-19 mitigation efforts to reduce costs and position GEE for a brighter future.

  • FAST Acquisition Corp. (FST) Stock Surges Ahead of Amendment to Merger Agreement with Fertitta

    FAST Acquisition Corp. (FST) stock prices surged by 16.51% shortly after market trading commenced on July 1st, 2021, bringing the price per share up to USD$13.76 early on in the trading day.

    Merger with Fertitta

    June 30th, 2021 saw the company announced an amendment to their previously announced Agreement and Plan of Merger with Fertitta, which the companies entered into February 1st, 2021. As per the agreement, FST will contribute certain operating businesses, for no additional debt, that were not originally included as part of the business combination with FST. The amendment will see the addition of 42 incremental, high-quality business assets.

    About Fertitta

    The revised transaction will result in Fertitta Entertainment becoming one of the largest publicly traded hospitality companies with 5 land-based casinos, as well as significant ownership of Golden Nugget Online Gaming, Inc. The company also has more than 500 restaurants, amusements, hotels, entertainment venues, and other business units spread out across 38 U.S. states, Puerto Rico, Hong Kong, China, Mexico, Singapore, as well as several licensed restaurants throughout the world.

    Financial Reports

    The company also announced preliminary pro forma financial results for the quarter ended June 30th, 2021. Revenues for the quarter are forecasted to be in the range of USD$917 million to USD$920 million, while adjusted EBITDA is expected to be between USD$270 million and USD$275 million. Full-year 2021 pro forma adjusted EBITDA is expected to be greater than USD$800 million

    Agreement Amendments

    The amendment to the transaction includes an enterprise valuation for Golden Nugget/Landry’s in the amount of almost USD$8.6 billion. This enterprise value is inclusive of the value of the GNOG equity that is expected to be contributed to the company, with the trading price of each share assumed to be roughly USD$13.00 for each GNOG share. This price will be subject to adjustment based on the closing price average for the past 60 days. Cash proceeds from the transaction are forecasted to be comprised of FST’s USD$200 million of cash in trust. Furthermore, shareholders will invest USD$1.24 billion in the form of a PIPE at a price of USD$10.00 per share of common stock.

    Future Outlook for FST

    Armed with an expansion of the partnership with Fertitta, FST is poised to capitalize on the additional opportunities that now lay before it. The company is keen to continue its trajectory of success and usher in unprecedented growth over the long term.

  • Aligos Therapeutics, Inc. (ALGS) Stock Plummets Following Pricing of Public Offering of Common Shares

    Aligos Therapeutics, Inc. (ALGS) stock prices were down by a hefty 17.19% shortly after market trading commenced on July 1st, 2021, bringing the price per share down to USD$16.88 early on in the trading day.

    Public Offering

    June 30th, 2021 saw the company announce the pricing of its previously announced underwritten public offering, wherein ALGS will put up 4.4 million shares of its common stock for sale. As per the announcement, the public offering price will be USD$19.00 per share of common stock. Underwriters have also been granted a 30-day option to purchase up to an additional 660,000 shares of common stock in the case of over allotments.

    Details of the Offering

    The public offering is expected to generate gross proceeds in the amount of roughly USD$83.6 million before the deduction of any expenses related to the offering. This total also does not include capital generated from the exercising of the underwriters’ option to purchase addition shares. The offering is expected to close on July 6th, 2021, pending the satisfaction of customary closing conditions.

    Net Loss Reports

    Net loss for the quarter ended March 21st, 2021 was reported at USD$27.7 million, representing a net loss of USD$0.74 per basic and diluted common share. This is up from the USD$20 million reported for the same quarter of the prior year, representing a net loss of USD$7.56 per basic and diluted common share. The company reported cash, cash equivalents, and marketable securities in the amount of USD$213.4 million for the quarter, as compared to the USD$243.5 million reported as of December 31st2020.

    R&D Expenses

    Research and development costs were up to USD$22.9 million for the quarter ended March 31st, 2021, an increase from the USD$17.3 million reported for the prior-year quarter. This difference was largely driven by expenses related to the company’s ongoing development of ALG-010133 and ALG-000184 clinical trial activities. Further contributing to the year-over-year difference were increases in salaries and employee-related expenses and preclinical programs. The company reported USD$1.7 million in total R&D stock-based compensation expense for the 2021 quarter, as compared to the USD$0.2 million reported in the prior-year quarter.

    Future Outlook for ALGS

    Armed with a solid liquidity position that is to be further consolidated with the closing of its public offering, ALGS is poised to capitalize on the expanded opportunities in front of it. Investors are hopeful that management will continue to leverage the resource at their disposal to facilitate significant and sustained increases in shareholder value.

  • What Is Causing The SFET Stock To Fall Today?

    In today’s early hours trading, shares of Safe-T Group Ltd (SFET), a provider of secure access solutions and intelligent data collection, declined -3.02% to $1.45. Safe-T stock closed the previous trading session at $1.49. Prices ranged between $1.46 and $1.56 for SFET stock.

    There was a turnover of 3.22 million shares in SFET stock, which exceeded its daily average of 1.87 million shares over the past 100 days. In the last five days, SFET shares have gained 4.93%, while they gained 6.43% in the last month. SFET stock price has trended downward even after announcing an acquisition.

    SFET has acquired what?

    Safe-T specializes in providing access control solutions and intelligent data collection systems. SFET’s cloud and on-premises solutions safeguard enterprises’ most sensitive and business-critical data and prevent attacks. SFET’s zero trust philosophy is applied to all organization access use cases, from the organization into the internet, and from the internet out to the organization. From the inside or outside of the network, no one is trusted by default, which means that authentication is required for everyone accessing network resources or cloud resources.

    Safe-T announced today that it has acquired CyberKick Ltd. (CyberKick).

    • SFET anticipates closing the transaction by the end of next week, subject to certain customary closing conditions.
    • A closing is also contingent upon obtaining all required approvals and delivering all documents.
    • SFET will fund the cash consideration from internal cash resources.
    • With its SaaS (Software-as-a-Service), CyberKick provides users with security and privacy tools that help them to be more resilient online and less vulnerable to threats.
    • In addition to protecting users from a plethora of cyber threats, CyberKick’s SaaS also gives them the ability to manage access to their accounts and sensitive information.
    • Through the acquisition, SFET will expand its cybersecurity platform portfolio for private users and complement its secure access service for organizations.
    • The acquired business generated revenues of approximately $4.2 million in 2020, according to unaudited results provided to SFET.
    • With the acquisition of CyberKick, SFET will have access to CyberKick’s talented entrepreneurs.
    • Achieving this milestone will help SFET have a stronger presence in the cybersecurity market, providing unique, competitive cyber security solutions.
    • It will contribute to SFET’s revenue stream and enrich its innovative technology offerings.

    SFET’s Growth strategy:

    Safe-T (SFET) will have additional ways to reach customers with the well-established online infrastructure and expertise of CyberKick. The new acquisition will be a foundational part of SFET’s strategy to become a leader in the privacy and security market, expanding its presence and reaching new segments of potential clients and customers around the world.

  • Ayro, Inc. (AYRO) stock Continues Uptrend Following News of Agreement with KICC

    Ayro, Inc. (AYRO) stock prices were up by a marginal 2.87% shortly after market trading commenced on July 1st, 2021, bringing the price per share up to USD$5.02 early on in the trading day.

    Manufacturing Agreement

    July 1st, 2021 saw the company announce the first Club Car Current vehicles being produced as per a contract manufacturing agreement with the Karma Innovation and Customization Center (KICC). The light-duty electric vehicles address the gap in the market between full-sized trucks and smart utility carts for low-speed logistics and cargo services in campus and urban environments. The formation of the partnership that had arranged for the production of EV vehicles took place in September of 2020.

    Combined Resources

    In the interest of Karma’s ongoing business to business (B2B) initiatives, the relationship with AYRO will utilize their combined OEM expertise and capabilities. The collaborative effort will seek to facilitate that provision of manufacturing, engineering, design, and other services to customers in the mobility space. AYRO’s end-user, market intelligence, and engineering expertise will be complemented by KICC’s manufacturing capabilities and development experience in order to deliver light-duty trucks and electric delivery vehicles to businesses across the U.S.

    Club Car Current

    The Club Car Current is designed for several bed options and accessories, including, but not limited to, van box, pickup truck with sides, flatbed configurations, in order to ensure fleet versatility. It is an ideal solution for the local market, as evidenced by its certification under the State’s California Air Resource Board (CARB) Certification, with its global warming and air quality of zero emission vehicles scoring “cleanest”.

    Working Together

    With AYRO having met exceptionally strong demand from fleet customers, Karma is helping the company deliver the initial run of vehicles from their Moreno facility. This is despite the supply chain challenges that have been adversely affecting production for the rest of the industry. Together, they enable AYRO to deliver on their brand promise to provide practical solutions that address the needs of various business types by providing purpose-built EVs that are fully customizable, affordable, and immediately available.

    Future Outlook for AYRO

    Armed with its recent collaboration, AYRO is poised to capitalize on potential opportunities to consolidate and expand its market footprint in the EV sector. Investors are hopeful that the partnership will facilitate a fruitful leveraging of resources to ensure a continued trajectory of success.

  • What Do You Think Has Boosted KTRA Stock This Morning?

    As of the last check, shares of biopharmaceutical company developing novel cancer therapies for patients who are failing or are resistant to current treatment regimens, Kintara Therapeutics Inc. (KTRA) were trading at $2.80, an increase of 23.35%. Kintara stock closed at $2.27 in the previous session. Volume for KTRA stock remained at 4.81 million shares, which is above the past 50 days’ average of 1.15 million shares.

    In the past week, KTRA shares have gained 1.34%, with this year’s performance of 230.04%. During a three-month period, KTRA stock gained 30.46%, and over a six-month period, it gained 71.97%. Additionally, KTRA has a current market capitalization of $74.68 million and still has 29.27 million outstanding shares. Following topline results from a phase 2 clinical trial, KTRA stock has been rising.

    Why did KTRA conduct the trial?

    Kintara, which has its headquarters in San Diego, California, focuses on the development of novel cancer therapies. In addition to VAL-083, KTRA is developing REM-001 for cutaneous metastatic breast cancer (CMBC), both of which are Phase 3-ready. A novel blood-brain barrier crossing, small molecule, bifunctional alkylating agent by KRTA, called VAL-083, has shown clinical activity against a variety of cancers. KTRA’s proprietary, late-stage photodynamic therapy platform, REM-001, demonstrates promise for localized cutaneous tumor treatment and for other potential applications.

    In its open-label, Phase 2 clinical study of its lead compound VAL-083, Kintara today announced topline data results from the recurrent arm.

    • The study was conducted by KTRA at the MD Anderson Cancer Center (MD Anderson) in Houston, Texas.
    • In Phase 2 of KTRA’s study, the treatment will be tested in patients with the unmethylated promoter of the methylguanine DNA-methyltransferase (MGMT) gene in glioblastoma multiforme (GBM) patients.
    • In the recurrent arm of the KTRA study, temozolomide was pre-treated prior to disease recurrence in patients with temozolomide pre-treatment.
    • A total of 89 patients were enrolled at KTRA, who were initially treated with 30 mg/m2/day on days 1, 2, and 3 of a 21-day cycle.
    • The 30 mg dose being examined is the same dose being tested in KTRA’s recently initiated and currently enrolling GBM AGILE study arm, VAL-083.

    An overview of the results:

    • The median overall survival (mOS) of the 48 efficacy-evaluable patients initially treated with 30 mg / m2 / day was found to be 8.0 months in the KTRA study.
    • Similary to KTRA’s prior research, the most frequent adverse event was myelosuppression.
    • Among patients receiving VAL-083 at 30 mg/m2/day, five experienced a serious adverse event (SAE) possibly related to the drug.
    • KTRA observed that mOS was 7.5 months for 83 efficacy evaluable patients who had completed at least one cycle of treatment.

    The FDA and European Medicines Agency have granted KTRA’s VAL-083 an Orphan Drug Designation for GBM. The FDA has also authorized Kintara (KTRA) to use it for the treatment of medulloblastoma and ovarian cancer, granting it Orphan Drug Designation for the same. Furthermore, KTRA’s VAL-083 in recurrent GBM has been given Fast Track Designation by the FDA.