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

    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 4th 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.

  • Rekor Systems Inc [REKR] Is Just Getting Started on Gains

    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.

  • 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.

  • 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.

  • GEVO Inc [GEVO]  – A Top Stock To Watch For The Remainder Of 2020

    GEVO Inc [GEVO]  – A Top Stock To Watch For The Remainder Of 2020

    GEVO Inc [NASDAQ: GEVO] is a top performer today and is up by over 200%. This comes after the company announced that it had entered into a revenue contract with Trafigura.  The agreement is a long-term take or pay contract that is worth $1.5 billion and is the biggest deal in Gevo history.

    Under the deal, Trafigura, a world-leading commodity trader, will receive 25 MPGY of renewable hydrocarbon.  The deal is expected to become operational in 2023 and is part of Trafigura’s strategy to develop a market of low-carbon gasoline. Commenting on the deal, Gevo CEO Patrick Gruber stated that the deal was bringing in $1.5 billion to the company. He added that the company expected to be of value to Trafigura by helping the commodities giant lower its carbon footprint.  The deal has seen Gevo form a bullish reversal pattern as the market adjusts the price to reflect the news.

    What next?

    The momentum that this deal has created could be followed by a rally that could run into the foreseeable future for several reasons. First investors are anticipating a long-term jump in revenues to the tune of $1.5 billion. This could see long-term investors take positions in this stock, and in the process support the upside price momentum.

    Secondly, the company has a number of other projects that likely to drive the value of this stock long-term. Earlier in the week, the company stated that had entered into a partnership with Praj in a deal that will lead to the commercialization of sustainable aviation fuel in the Indian market. Under the deal, Gevo will offer its technology to Praj under license, while Praj will offer EPC services and plant equipment.   Gevo will also license its services refineries and help them convert isobutanol to premium gasoline.

    On this deal, Gevo CEO Patrick Gruber stated that jet fuel made with their technology can reduce greenhouse gas emissions.  Given that India is one of the most important markets for the global oil and gas industry, the deal is likely to drive up the company’s stock value in the long run. That’s because as revenue from the deal materializes, the intrinsic value of the deal will increase and reflect in the stock price.

    The stock could also get a boost from the approval of a COVID-19 vaccine.  A vaccine would lead to a rally in the entire market, and stocks with strong fundamentals such as Gevo would benefit immensely.

    About Gevo

    Gevo Inc. is a renewable energy company. It sells diesel, jet full and aims to reduce greenhouse gas emissions. It is based in Englewood, Colorado.

  • 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.

  • Starbucks Corporation [SBUX] Upgrades Loyalty Program Ahead Of Q3 Results

    Starbucks Corporation [SBUX] Upgrades Loyalty Program Ahead Of Q3 Results

    It’s a mixed bag in the markets today. The S&P 500 and The Dow are up, while the NASDAQ is down. Nonetheless, overall market sentiment is positively driven by positive news from Europe about a COVID-19 bailout and expectations of a COVID-19 vaccine. One of the stocks that is in the spotlight at the moment is Starbucks Corporation [NASDAQ:SBUX]. The company will release its Q3 earnings on July 28th, and the expectation is that they will drop.  Consensus estimates put SBUX EPS loss at $0.60, or a year-over-year drop of 176.9%. Analysts also expect revenues to drop by 39% to $4.13 billion.

    Besides the upcoming earnings, Starbucks Corporation [SBUX] has today announced that it is carrying out upgrades on it loyalty program. The Motley Fool has reported that SBUX is looking to leverage its wide data systems to give a better loyalty program.

    Under the new program, members will have multiple ways to pay and earn stars that they can use to access beverages. One of the aspects of the loyalty program is that members of the program in the U.S and Canada will be in a position to pay for coffee using credits earned from debit cards and a number of mobile wallets. Another aspect of the program is that these payment methods will be accessible via the company’s app. All they need to do is scan the payment method they intend to use and also link the payment method to their personal account. Commenting on the new loyalty program, SBUX chief marketing officer said that, they expected the increase of payment methods will make the company attractive to a bigger audience.

    Another factor that is making Starbucks an interesting stock to watch in the day is news of its expansion of digital services in the Chinese market.  The company continues to take steps that grow its market presence in China, and through the expanded digital services, customers in China can now make their orders through the various Alibaba Apps. Through the expanded digital program, the company’s customers can make pre-orders of any of its products. SBUX has been expanding its digital services aggressively and has delivered services in more than 3000 stores in over 100 Chinese cities. Through this service, revenues are likely to keep rising in the Chinese market and push up SBUX stock value.

    About Starbucks

    Starbucks Corporation [SBUX] roasts markets, and retails specialty coffee, and operates an American and international division. It is headquartered in Seattle, Washington.