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  • Super Micro Computer Inc [SMCI] Looks Strong after Impressive Q1 2021 Results

     

    Super Micro Computer, Inc [NASDAQ: SMCI] was a top gainer yesterday and looks set for more gains short-term.  This is after the company that deals with high-efficiency servers and storage technology as well as green computing released its financial results for the first quarter of the fiscal year 2021 ended September 30, 2020.

    According to that financial report, the company recorded net sales of $762 million, which was lower than its results in the fourth quarter and the first quarter of the fiscal year 2020 which were $896 million and $800 million respectively. The gross margin for this quarter was 17% as compared to the fourth quarter of the previous year that was 13.8% and that of the first quarter of the previous year that was at 16.4%. Net income for this quarter was $27 million, a significant increase as compared to the last quarter of the previous year that was $18 million and also an improvement from last year’s first quarter that recorded $26 million.

    The Non-GAAP gross margin for this quarter was at 17.1% that adds back stock-based compensation expenditures of $0.5 million. The report recorded $0.55 Non-GAAP diluted net income per common share in this quarter that adds back stock-based compensation expenditures of about $7.2 million. Special performance bonuses were amounting to $0.1 million and additional expenses that are non-recurring of $0.2 million.

    Following these results, the company projects a better second quarter, expecting net sales of about $780 million to $880 million. They also expect a GAAP net income per diluted share of $0.25 to about $0.47 as well as a non-GAAP net income of $0.35 for every diluted share. These projections both assume that there will be a tax rate of about 16% with a total of 56 million shares that will be fully diluted.

    Supermicro Chairman and CEO, Charles Liang expressed his joy saying that they were pleased to have recorded a revenue higher than the midpoint of the company’s guidance range despite the rough year that has seen a very turbulent business environment. He notes that a number of their enterprise clients reduced their spending significantly slowing down business, but they are encouraged by a boost from their high profile customers. They also have confidence going forward with a couple of innovative products coming in place. He hopes that going forward the company will record even better financial reports in the preceding quarters of the fiscal year 2021.

  • Document Security Systems, Inc [DSS] In a Bullish Breakout after Strong Q3 Results

    Document Security Systems, Inc [DSS] In a Bullish Breakout after Strong Q3 Results

    Document Security Systems, Inc [NYSE:DSS] is in a breakout at the moment and could see its value rise in the near-term.  The company that is focused on brand protection technology, direct marketing, healthcare, real estate, blockchain security, and securitized digital assets yesterday announced its financial results for the third quarter 2020, ended September 30.

    Among the highlights of these results included the company’s revenue growing 59% to $4.2 million up from $2.6 million in the same quarter last year. The printed segments grew by 40%, from $2.1 million in 2019 to $3.0 million in the same quarter.

    Direct marketing revenue recorded an increase of $715,000, indicating the company’s strength of venturing into the direct marketing industry. The highlight of this report was the company’s net income that recorded a massive growth up from a net loss of about $1.2 million from continuing operations to approximately $5.4 million in 2020, in the third quarter of the two respective years. The cost of operations also increased in 2020 to $6.6 million, up from $3.8 million.

    The increase was as a result of an increase in the costs of professional and consultation fees, administrative and marketing expenses as well as sales costs. Particularly, marketing for the direct marketing business segment took a significant chunk of those expenses.

    Despite that, equity stockholders recorded a massive growth up by 496% to a massive $73.3 million from $12.3 million as of December 31, 2019.

    Some of the business highlights that sparked the massive growth were the complete acquisition of Impact BioMedical, two separate offerings that so the balance sheet strengthened with $11.6 million in cash, published results of a successful COVID-19 treatment, with prophylactic cell protection that prevents infection by the virus, signed an agreement with global personal protective equipment exporter that will see the company’s AuthentGuard as a Service popularised and also launched the save AGaaS app on the App store. Other ventures include the testing of COVID-19 vaccine efficacy and began a research collaboration with Impact BioMedical that will see the company develop microbial-resistant plastics.

    DSS Chief Executive Officer, Frank Heuszel in a statement expressed his excitement saying that the quarter was truly transformational with investors getting $1.20 in net profit per share from continuing operations and the shareholder equity growing five-fold to $73.3 million.

    He further noted the company’s move to further strengthen the company’s business and further grows shareholders’ equity and profits after DSS completed the move to acquire Impact BioMedical and declaring a special share dividend. He noted that with such forward-looking collaborations and partnerships, the company is set to further grow its business in the coming quarters.

  • Sequential Brands Group Inc [SQBG] Rallies after Reebok Deal

    Sequential Brands Group Inc [SQBG] Rallies after Reebok Deal

    Heelys, a company that deals with wheel technology shoes, and which is part of Sequential Brands Group Inc [NASDAQ:SQBG] has announced that it is having a new collection with Reebok, a popular lifestyle footwear brand. The collaboration involves Heelys adding their wheel technology to ten of Reebok’s signature styles.

    Heelys has had several different collabs recently, but it is the first time that it is working with another sneaker brand. Among the styles Reebok presents will include a variety of colours, shapes, and patterns. Heelys will work on these varieties to turn them into skates in the usual manner of working on the weight in relation to the heel.

    The collaboration between the two will feature ten styles with a range of sizes. Kids’ sizes will range from 13-8, while adults’ sizes will range from 9-13. These skates will be available as we approach the holiday season making them ideal for gifts for both kids and adults.

    Sequential’s Lifestyle Division Senior Vice President, Arta Isovski said that they are looking forward to teaming up with such a popular and timeless brand such as Reebok. Reebok he notes is focussed on the sport while Heelys is born of adventure.

    The two coming together will produce a formidable and exciting product that will take on the world. Arta continues to say that they are excited to have this product for both adults and children. Most of the potential adults’ clients have grown with Reebok and Heelys. It is exciting that now they will have to experience both of these brands working together to give them an awesome product. The Reebok and Heelys collab is set to hit the market and will be retailing at about $55 to $60 on Heely’s website and other retail markets around the world.

    About Reebok

    Reebok International Ltd., is an established leading designer, manufacturer, and distributor of lifestyle and sports footwear, apparel, and equipment. It has its headquarters in Boston, MA, USA. Reebok is committed to producing and distributing sports equipment to meet and fulfil individuals’ potential all over the world. The company has had a long-lasting connection with fitness enthusiasts all over the world.

    About Heelys

    Heelys is a company that deals with manufacturing skates that allow sports enthusiasts to transition from walking and running, to skating by shifting weight to the heel of the show. It was founded in the year 2000 and has been working towards helping both adults and children express their potential and have fun while skating.

  • Molecular Data Inc [MKD] Rallies after Bouncing Off Key Support Level

    Molecular Data Inc [MKD] Rallies after Bouncing Off Key Support Level

    Molecular Data Inc [NASDAQ:MKD] was a top performer yesterday after it bounced off a key support level. This is an indicator that investors expect the stock to hold up above this level in the near-term. MKD recently announced that it will be entering into a definitive agreement with Cayman Islands’ exempt YA II PN, Ltd., that is under the management of Yorkville Advisor Global, LP.

    In the agreement, Molecular Data is set to issue and sell convertible debentures worth an aggregate principal of US$5.0 million in a private placement that will be subject to customary closing conditions.

    Issuing and selling of the convertible debentures will be on instalments that will adhere to the following schedule:

    1. Upon signing of the definitive agreement, there will be a sale of convertible debentures worth US$3.0 million.
    2. Upon the filing of a registration statement with the SEC (Securities and Exchange Commission) convertibles debentures worth US$1.0 million will be issues and bought
    • When the SEC declares the registration statement effective, convertible debentures worth US$1.0 million to be issued and bought.

    The convertible debentures issued attract an annual interest rate of 5%. They are set to mature within one year after the issuance date as long as they are not redeemed or converted based on the terms set before the maturity date.

    The purchasing party has the right to convert the convertible debentures in part or entirely at any time, based on the terms of the agreement and upon compliance with those terms. If the purchaser converts the convertible debentures, the selling company will have to deliver to the purchaser American depository shares of the company. Projections show that the initial conversion price will either be the lower of US$1.30 for every ADS unit or 88% of the benchmark price of the Company’s ADSs.

    About Molecular Data Inc

    Molecular Data Inc., is an international technology-driven company that forms part of China’s chemical industry. It helps connect companies in the chemical value chain using integrated and updated solutions. Among the services, the company provides in this industry include financial solutions, warehousing and logistics, e-commerce, and SaaS suite to help facilitate operations within the chemical industry. The e-commerce solutions that the company offers work on an integrated knowledge engine as well as artificial intelligence (AI) capabilities and mainly offer those services on the company’s online platform. The online platform allows for scaling these solutions to unlimited levels. This platform consists of Moku Data WeChat, molbase.cn, molbase.com, and Chemical Community App among other supporting platforms.

  • BOQI International Medical Inc [BIMI] Rallies After 1026% Revenue Growth

    BOQI International Medical Inc [BIMI] Rallies After 1026% Revenue Growth

    BOQI International Medical Inc [NASDAQ:BIMI] is one of the top performers this afternoon, at a time when key indices have turned negative. The stock is currently up by over 50% and gaining. It’s upside momentum follows the release of stronger than expected Q2 results, including a huge increase in revenues compared to a similar period last year.

    Breaking down the results, the company announced that total revenues rose by over 1026% compared to Q2 of 2019. The company also announced that its gross profit margins rose by 22.77% a significant increase when compared to Q2 of 2019 when it recorded a gross profit margin of 4.35%. The company also reported that its net income in Q2 of 2020 rose by 629% when compared to Q2 of 2019.

    The company attributed its strong revenues growth to Guanzan Group’s sales of generic medications and medical devices. Guanzan Group is the latest asset purchase by BOQI International and one that has proven to be pivotal to the company’s revenue growth in Q2.

    The revenue growth was also attributed to the sale of products made by t NF Group. It also attributed its revenue growth to the provision of technical services and partnerships in product processing services. The company’s gross profit margins for the quarter wholesale business mainly in the wholesale medical devices and wholesale medical segments which both grew by over 20% in the quarter.

    The company’s net profits also recorded massive growth compared to a similar quarter in 2019. In specifics, the company reported a net profit of $4,673,854 when compared to a net loss of $883,245 in a similar period in 2019.

    The company attributed the increase in net profits to money made from the sale of the NF Group. The company’s liquidity position also improved from $36,674 to $109,402.

    Commenting on the results, CEO Tiewei Song said that they were happy with the Q2 results. He added that they had bought Guanzan Group allowing them to better align with the present business environment and long term growth.  He added that with more healthcare facilities opening up, the company expected demand for its products to rise, thereby adding value to the company’s shareholders.

    About BOQI International Medical Inc

    BOQI International Medical Inc is a distributor of pharmaceuticals and other healthcare products. The company runs through a network of 16 stores and mainly distributes its products in China. It is headquartered in Dalian, China.

  • Interpace Biosciences [IDXG] Rockets after Beating Complaint

    Interpace Biosciences [IDXG] Rockets after Beating Complaint

    Interpace Biosciences, Inc [NASDAQ: IDXG] announced today that the Board of Directors Audit Committee found the complaints regarding some billing and employment issues that have been raised to be invalid. After a thorough independent investigation, the committee said that the allegations raised were unsubstantiated since there was no evidence of any illegal activities.

    Company employees, including one that has since terminated their contract, sent letters to the company raising the employment and billing compliance issues. These issues arose from the company’s requirements as in its Notification of Late Filing on Form 12b-25 filing that showed the firm’s inability to meet the deadlines to file Form 10-Q for that quarter ended June 30, 2020. Interpace responded by forming an Audit Committee, an independent registered public accounting firm, and a Regulatory Compliance Committee to investigate the issues those employees had brought forth.

    The committees commenced with the investigations and carefully looked into every issue raised. They received assistance from an independent counsel and advisors to avoid any overlapping issues. After the completion of the investigation, the investigating team concluded that the claims were not substantiated and that there were no claims or evidence of illegal acts.

    Who is Interpace Biosciences?

    Interpace Biosciences is one of the emerging medical sciences firms that focus on personalized medicine. Among the services, the company offers to include specialized therapeutic services, early diagnosis, and therapeutic applications through a value chain that sees patients get special care. Further, the company uses the latest technology in the area of personalized medicine for patient diagnosis and management. They use diagnostic tests, pathology services, and bioinformatics to evaluate the risk of cancer.

    As of the moment, Interpace has four molecular tests that have already been commercialized, and another that is currently at its clinical evaluation stage (CEP). The four molecular tests are

    • PancraGEN: Diagnosis and prognosis of cancer of the pancreas emerging from pancreatic cysts.
    • ThyGeNEXT: Diagnosis of thyroid cancer emerging from thyroid nodules. It uses next-generation sequencing assay
    • ThyraMIR: Diagnosis of thyroid cancer also from thyroid nodules. This one uses proprietary gene expression assay
    • RespriDX: Helps differentiate primary versus metastatic origin lung cancer.

    The test that is at the CEP stage is a molecular-based assay, BarrenGEN that will help stop the progression of Esophagus Barrent into fully blown esophageal cancer.

    Interpace also works with Pharma services to provide other solutions that include genotyping, testing, biorepository, and other important services in this industry.

     

     

     

     

  • Medley Capital Corporation [MCC] Could Test $25 After Deal with Golub Capital LLC

    Medley Capital Corporation [MCC] Could Test $25 After Deal with Golub Capital LLC

    Medley Capital Corporation [NYSE: MCC] has sustained gains since last week.  This follows last week’s announcement that it has entered into a Membership Interest Purchase Agreement together with MCC Senior Loan Strategy JV LLC, the other partner with interests in MCC JV and a member of Golub Capital LLC with Golub LLC, in which Golub LLC purchased both MCC and MCC JV Interests for a total of $156.4 million. The purchase is subject to various adjustments, following the terms and conditions set in the purchase agreement.

    Following this transaction, MCC JV has managed to pay in full all of its outstanding borrowings and ended its senior secured revolving credit facility. This facility was dated August 4, 2015, after Deutsche Bank AG, the New York Branch amended it. These repayments and adjustments have had a significant positive impact on the two establishments. In addition to debt repayment, the two establishments, MCC and MCC JV received some proceeds. They received $41.0 million and $6.6 million.

    The Chair of the MCC special Committee, David Lorber said that they believe that the transaction is significant for MCC, as it is set to improve the firm’s liquidity and strengthen its balance sheet giving it a positive edge. Both companies are now out of debt and on their way to making massive profits. The special committee that saw the success of this transaction received advice from Houlihan Lokey.

    About Medley Capital Corporation

    A closed-end business establishment Medley Capital Corporation is externally managed and has common stocks and outstanding bonds both of which are traded on the New York Stock Exchange. The stock trades under the symbol (NYSE: MCV), and the bonds under the symbol (NYSE: MCX). The company aims to generate current income and capital appreciation. The company lends to private firms in the middle market through direct originated agreements, to help the firms grow their business and acquire new assets. MCC is externally advised and is registered under the Investment Advisers Act of 1940.

    About MCC Advisors LLC

    Medley Advisors LLC are the primary advisors of Medley Capital Corporation. The advisors are under Medley Management, an asset management company that controls about $3.6 billion worth of assets. It manages these assets under two companies, Sierra Income Corporation and Medley Capital Corporation. The firm has financed over 400 companies across 35 industries in the United States and North America for over 18 years. Medley LLC has bonds trading in the New York Stock Exchange (NYSE: MDLX) and (NYSE: MDLQ).

  • Charles Schwab [NYSE: SCHW] Set for Growth as it Consolidates Market

    Charles Schwab [NYSE: SCHW] Set for Growth as it Consolidates Market

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

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

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

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

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

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

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

    About Charles Schwab

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

  • Why VivoPower International PLC [VVPR] Could Sustain Upside Momentum on Monday

    Why VivoPower International PLC [VVPR] Could Sustain Upside Momentum on Monday

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

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

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

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

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

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

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

    About VivoPower

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

     

     

  • Here’s Why You Should Hold On To VivoPower (NASDAQ: VVPR) Stock Now

    Here’s Why You Should Hold On To VivoPower (NASDAQ: VVPR) Stock Now

    Shares of VivoPower International PLC (NASDAQ: VVPR) skyrocketed on the trading session of Friday as the company gained +4.29. The strong performance of the company has highlighted the positive sentiments of the investors after the company announced the agreement to buy a 51% shareholding in Tembo e-LV B.V. It had a trading volume of 44.02 million as compared to the average volume of 2.77 million.

    The financial consideration of the new agreement will be USD$4.7 million and VivoPower International PLC has the option to buy the remaining 49% of the Tembo e-LV B.V in the future. The transaction is based on certain closing conditions including capital structuring and funding mix requirements. Tembo has earned USD$2.3 million in revenue for its fiscal year ended December 31, 2019.

    VivoPower International PLC (NASDAQ: VVPR) share price went from a low point around $0.59 to briefly over $14.84 in the past 52 weeks, though shares have since pulled back to $14.38. It has moved up 23367.29% from its 52-weeks low and moved down -3.10% from its 52-weeks low. Looking at its liquidity, it has a current ratio of 1.00. This company market capitalization has remained high, hitting $118.46 million.

    Tembo is a Netherlands-based specialist battery-electric and off-road vehicle company with global sales and distribution channels across four continents. The company projected that the market for potential fleet vehicles could be at least USD$36 billion within the markets in which Tembo is currently active. Both the companies have over 700 active customers combined, many of which are in the mining, infrastructure, and utility sectors.