STOCKS TELEGRAPH

Category: Featured

  • Paycom Software Inc [PAYC] – A Top Stock to Watch All Through 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.

  • Stocks to Watch amidst Mixed Market Sentiment

    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 21st 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.

     

  • Urban One Inc [UONE] – Why to Buy As Stock Trades At Key Support Level

    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.

  • ADMA Biologics Inc [NASDAQ:ADMA] Set for More Gains as FDA Approves Plasma COVID-19 Treatment

    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.

  • Hancock Jaffe Laboratories Inc [HJLI] – What next after Bullish breakout?

    Hancock Jaffe Laboratories Inc [HJLI] – What next after Bullish breakout?

    Hancock Jaffe Laboratories Inc [NASDAQ: HJLI] is in a bullish breakout at the moment.  After trading in a range for months, the stock has shot up by 130%. The breakout follows the company’s announcement that follow-up data on two more VenoValve patients showed improvement compared to their condition before the surgery. The two are part of the company’s first human studies in Colombia.

    The company stated that the two patients included an 86-year old male, whose reflux had improved by 62%. The study also found that on the Venous Clinical Severity Scores, the patients showed an improvement of 42%, while pain improved by about 79%. Besides these two patients, the company had reported that 8 other patients had completed the first-in-human trials. Of the eight, seven patients had an over 50% success on Venovalves, VCSS, Reflux, and VAS. Commenting on the success, the company’s CEO Dr Marc H. Glickman said that the results were a major improvement and that they would drive excitement in the world of vascular treatment.

    The treatment will now go to the next step of more monitoring and undergo several tests as required by the FDA.  The company also announced that it expected to file for a pivotal trial in Q1 of 2021.

    What next?

    With the progress that the company has made so far with this treatment, positive sentiment is likely to remain high, until 2021 when it enters the pivotal trial. That’s because approval of this treatment would mean a huge bump in revenues and an increase in the intrinsic value of the stock.

    The stock also stands to benefit from two major market-related factors. The first one is the increased fear of market overvaluation. Since the S&P 500 hit a new high recently, momentum has become more subdued. Investors are looking more into tech, and stocks that have strong growth fundamentals. From this perspective, HJLI offers good prospects that could see it grow revenues long-term, due to the positive progress with regards to the treatment currently undergoing human trials.  This is likely to see more money flow into the stock, especially now that it has broken resistance.

    There is also the possibility of a market-wide rally if a COVID-19 vaccine is found soon. There is growing consensus in the scientific community that a vaccine could be found before the end of 2020. If this happens, a stock with strong momentum such as HJLI could rally even more. Its momentum could be boosted if the vaccine comes out at around the same time as the pivotal trial for the company’s treatment in 2021.

    About Hancock Jaffe Laboratories Inc

    Hancock Jaffe Laboratories Inc is a biotech company that develops tissue solutions for cardiovascular ailments. The company is headquartered in Irvine, California.

  • 9 Meters Biopharma [NMTR] Breaks Monthly Resistance – Is A Rally Beckoning?

    9 Meters Biopharma [NMTR] Breaks Monthly Resistance – Is A Rally Beckoning?

    9 Meters Biopharma [NASDAQ: NMTR] is showing some interesting price action. Yesterday, the stock gapped up and pushed through monthly support at $0.80. This price action came just a day after the company was highlighted at the Truist Securities Catalyst conference call. The conference call touched on preliminary phase 1 /2 data from short bowel syndrome that is expected in the second half of 2020. The highlight points to the progress that 9 Meters has made in the quest for a treatment for short bowel syndrome.

    It also comes just a week after 9 Meters had provided an update on its treatment for the problem. In its update, the company stated that it had kick-started phase 1 ./2b clinical trial for its treatment adding that the first patients had been given a dose of the trial treatment in July, with the results expected in Q1 of 2021.

    The company also stated that it had amended how it was defining the primary endpoint for its phase 3 trial for its celiac disease treatment.  It added that the amendment allowed for a reduction in the number of participants to 525 from the previous 630.  The update also highlighted that the company was anticipating multiple inflection points all through the next 18 months. While providing the update, CEO John Temperato stated that the company’s advances at the clinical trials have been good and that they were happy with the team.

     What next?

    The stock has gained upside momentum after the release of this update indicating that investors are confident that the treatments could turn successful.  The excitement around this potential could see the stock keep gaining all through the year. Positive results from the trial in Q1 of 2021 could see the stock gain even further.

    Besides, the excitement around the trials, there are several other factors that could see this stock keep gaining in value in the near-term.  One of them is that it has the finances to see its treatments succeed. The company recently gave an update for Q2 and stated that in the quarter, its cash and cash equivalents stood at $13.5 million. This was a significant increase compared to Q1 when it’s cash and cash equivalents stood at $2.7 million.  The company’s capability to see its programs through instills confidence in investors and could help support the price in the near-term.

    Besides these internal factors, the markets have rebound despite the COVID-19 pandemic. There is lots of optimism that a COVID-19 vaccine could be available by the end of the year. Such a development could see NMTR, with all the positive vibe around it, gain all through the year.

    About 9 Meters Biopharma

    9 Meters Biopharma is a Biopharmaceutical Company that develops treatments for rare disorders. It is headquartered in Raleigh, North Carolina.

  • Stocks to Watch as Market Sentiment Points to a Strong Day

    Stocks to Watch as Market Sentiment Points to a Strong Day

    The markets have started the day in positive territory, and the S&P 500 is trading close to record highs. This comes amidst rising optimism that a COVID-19 vaccine is close. There is also the fact that market dynamics point to economic resilience despite the pandemic.

    The markets are also looking forward to a host of economic data both on the economy and company earnings. On the economic front, some of the key data that the market is awaiting is on the home sales report and the FOMC minutes for the July meeting.

    Home sales are largely expected to be high due to the low-interest rates environment that has prevailed for some time now. Looking into individual, stocks, companies that have announced strong quarterly earnings have shown the most potential pre-market, are likely to remain strong all through the day. Some of the biggest gainers this morning that are likely to remain strong all through the day are as below:

    Comstock Mining Inc [NYSE: LODE]

    Comstock was gaining upside momentum all through pre-market trading, and at one point was up by 86%. The rally follows the company’s release of strong Q2 results. The company reported a net income of $1.3 million, which represents an income of $0.05 per share. It’s significantly higher than the loss of $2.1 million that it reported in Q2 of 2019.

    The company also reported a number of strategic moves that it made in the quarter. Some of them include investments in multiple high potential companies. For instance, the company made investments in Tonogold Resources Inc and Mercury Clean Up LLC. The company also announced that it had made a strategic decision to sell non-mining properties in Silver Springs. Given that Q2 has been difficult for a lot of companies, the swing to profitability points to fundamental strength, and could see LODE  emerge as one of the day’s top gainers.

    LMP Automotive Holdings Inc [NASDAQ: LMPX]

    LMP Automotive Holdings Inc was up by 50% in pre-market trading and looks set to extend those gains in the day. Its bullish price momentum follows last week’s announcement of strong Q2 results. The company announced that quarterly revenues grew by 44% to stand at $7.7 million. The company also reported that gross profits for the quarter increased by 85% to stand at $1.5 million.

    The company’s cash position was also stable in Q2, closing the quarter with a cash position of $17.7 million. CEO, Sam Tawfik stated that the numbers were a reflection of the huge opportunity that exists in the industry. With such prospects for good performance in the near-term, this stock could remain strong today, and in the foreseeable future.

     

     

  • Best Performing Stocks as Dow Leads Market Rally

    Best Performing Stocks as Dow Leads Market Rally

    The markets are in the green this afternoon with the Dow adding 200 points to make it the day’s top performer. The NASDAQ and the S&P 500 are in the green too, gaining by 142 points and 23 points respectively. The Dow’s exceptional performance is largely driven by Microsoft, which has rallied on Tiktok buyout news. Markets have also been revamped by expectations of strong earnings from major corporations, and the continuing talks between democrats and republicans over the next stimulus package.

    While there is a huge gap between what the two sides want from a stimulus, the markets are optimistic that middle ground will be found and resuscitate the economy beaten up by the COVID-19 pandemic. In this environment of high optimism, stocks are rallying, and some of the best performers this afternoon are as below:

    Datasea Inc [NASDAQ:DTSS]

    Datasea is one of the best performers this afternoon and is up by over 60%. The stock’s huge gains come after it announced that it had entered into an agreement with Beijing Tengyuenjunjie Parking Management for the installation of its control system in Nanaipingzhung Beixiang, a residential area in Beijing. The engagement has a value of $7800 and will run for three years. Through this deal, Dataset will handle the hardware, software, and installations. Commenting on the deal, CEO Liu Zhixin stated that the city of Beijing has more than 21 million inhabitants and over 6000 communities in residential setups. He added that in the long run, the company was looking to capture a significant portion of this market using its proprietary technologies.  This news plus the overall positive sentiment in the market has seen this stock rally and is likely to close the day with significant gains.

    ADT Inc [NYSE:ADT]

    ADT Inc is another top performer this afternoon and is up by 60%. These gains follow news that Google was buying a $450 million stake in the company. Through the deal, Google will have a 6.6% stake in the company. At the moment, ADT is the biggest home security company in the United States and has over 6 million customers. Commenting on the deal, ADT CEO Jim DeVries stated that the partnership with Google as part of the company’s move to stop pursuing a strategy of product agnosticism. He added that the company would integrate Amazon’s product, Alexa, into its systems if the market demands it.

    Pitney Bowes Inc [NYSE:PBI]

    Pitney Bowes Inc is another top performer this afternoon and is up by over 40%. This comes after the company announced that it had secured a government contract worth $5 million for its shipping and mailing technology. The government agency will benefit through cost-savings and a higher level of efficiency. CEO, Jason Dies stated that the company was happy to be part of the transformation process to make the government more efficient.