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Tag: Mid day movers

  • Flying Eagle Acquisition Corp [FEAC] Rallies on Massive Esports Merger Deal

    Flying Eagle Acquisition Corp [FEAC] Rallies on Massive Esports Merger Deal

    Flying Eagle Acquisition Corp [NYSE: FEAC] is a top perfumer this afternoon and is up by 19% at the time of writing. The stock’s upside momentum is driven by news that the company was taking mobile gaming platform Skillz, public. In a statement, Skillz has said that it was merging with Flying Eagle Acquisition Corp, a special purpose vehicle for mergers and acquisitions. Under the deal, Skillz Inc will go public at a valuation of $3.5 billion, representing 6.3 times the estimated value of the company’s 2022 revenues. The move to take Skillz public is a big deal for a number of reasons.

    First, Skillz is the first mobile Esports Company to go public. This will see it draw interest from investors looking for a share of the first growing mobile gaming market. The business already has attributes that make it a high potential stock. For starters, it already has investment commitments totalling to over $250 million. Some of the big investors that have committed themselves to the company include Wellington, Franklin Templeton, Fidelity and Neuberger Berman.

    . On top of that, the company is operating in a high growth market. It is projected the company will have a compound annual growth rate of 57% from 2020 to 2022, and its revenues for 2022 are projected to hit $555 million. However, the most important factor to the deal is that the company is retaining the persons behind its success so far.

    As part of the merger deal, the company will retain both its CEO Andrew Paradise who is also a founder, and Casey Chafkin who is the company’s CRO and founder.  By retaining its top brains, the company is uniquely positioned to sustain the momentum that it started while still trading as a private company. For context on how good the team is, it has managed to grow the company to become one of the largest and most important players in the mobile gaming space.

    Commenting on the merger deal, Flying Eagle CEO Harry E. Sloan stated that he had been active in the gaming industry for over 20 years and had seen it evolve to what is today. He added that he firmly believed Skillz was well-positioned to be the future of gaming. His views were echoed by Skillz CEO who stated that the company was in a good position to capture the worldwide esports market.

    With such a high-value company under its fold, Flying Eagle is well-positioned to record stock value growth in the near-term.

    About Flying Eagle Acquisition Corp

    Flying Eagle Acquisition Corp effects mergers and asset acquisitions and corporate reorganization. It is based in Los Angeles, California.

     

  • Jounce Therapeutics Inc [JNCE] Rallies after Gilead Deal – What Next?

    Jounce Therapeutics Inc [JNCE] Rallies after Gilead Deal – What Next?

    Jounce Therapeutics Inc [NASDAQ:JNCE] is a top performer this afternoon. After trading in a range all through August, the stock has gapped up and is in gains of close to 50%.

    This follows the company’s announcement that it was entering into an exclusive license agreement with Gilead Sciences for a novel immunotherapy program named JTX-1811.  JTX-1811 is a monoclonal antibody that depletes immunosuppressive tumour-infiltrating T cells. It is currently under development and will have an investigational new drug application in H1 of 2020.

    Commenting on the agreement, between the two companies, Jounce CEO Richard Murray stated that the investment that Gilead’s had made in the JTX-1811 program was a major boost to the company’s translational science program that is differentiated and focuses on sustainability in treating people with cancer but have not gained from immunotherapy.

    He added that the company’s mission was to give patients the best immunotherapy treatments and that it remained focused on offering long-terms solutions such as JTX-1811. On his part, Gilead executive Vice President stated that they were happy to add JTX-`1811 to the company’s list of investigational immune-oncological treatments that have the capacity to improve the lives of cancer patients.

    He added that JTX-1811 was complementary to the company’s other treatment candidates for cancer, and that, it had the potential to become a new class of treatment for haematological malignancies’ as well as for the treatment of solid tumours.

    The excitement around this stock stems from the fact that the partnership with Gilead has validated the viability of the JTX-1811. Investors are expecting that the program will lead to a major breakthrough and add to Jounce revenues in the near-term.

    What next for Jounce

    Since the agreement hints at an IND application in H1 of 2021, there is bound to be a sustained interest in this stock until them. Any major breakthrough on the program could add to the momentum. Looking at it from the perspective of the overall market, the stock’s fundamentals could see it gain a massive boost from the increased positive sentiment in the market.

    If a COVID-19 vaccine is approved soon, there is likely to be a major rally in the equity markets, and high potential stocks like Jounce stand to gain the most. That momentum has already started building up, and if Jounce holds on to today’s gains, it could mark the beginning of a significant uptrend.

    About Jounce Therapeutics Inc

    Jounce Therapeutics Inc is an immunotherapy company that makes cancer treatments. The company is based in Cambridge, Massachusetts.

  • Which One is Better After Stock Split: TSLA or AAPL?

    Which One is Better After Stock Split: TSLA or AAPL?

    It is a good day for Tesla [NASDAQ: TSLA] and Apple [NASDAQ:AAPL] investors. The two companies have done a stock split to become accessible to a wider investor base. Investor momentum in the two is being driven by the excitement around the stock split and the fact that they are both fundamentally strong companies. Tesla has turned profitable and continues to record strong revenue numbers.

    Apple Inc [AAPL] too is on a growth trajectory and has made history by hitting a valuation of $2 trillion. So between these two companies, which one is a better hold?

    Well, the two stocks are a good hold both for short-term and long-term investing.  As such with enough resources, holding both presents a good opportunity for gains.

    However, if one only has the resources to invest in one of the two stocks, AAPL would be a better hold. That’s because, it is a dominant player in its markets, with little possibility of being overtaken by any other company.  For context, Apple dominates 50% of the smartwatch market.

    The company’s core product, the iPhone is one of the fastest-selling smartphones in the market. Most importantly, the iPhone stands out for the margins it makes per phone. The company sells the phones at a premium and is the key reason behind Apple’s huge valuation. Going by the iPhone’s brand equity, it is unlikely to be dethroned by any other smartphone maker anytime soon.

    On top of that, the company has been able to leverage the iPhone to sell a wide array of profitable products. Apple enjoys a near duopoly with Google in the Apps market. The Apple store is a major revenue driver for Apple.

    This is evident in its recent tussle with Fortnite over the commissions that the company charges. Despite the high commissions it charges, the company has the market power to dictate terms as was seen in its ability to kick out Fortnite, a major gaming company from its platform.

    Looking into the future, Apple stands to benefit from the upcoming 5G networks. 5G will unlock a new wave of applications for the iPhone, creating a new growth cycle for the company. This makes AAPL a viable stock to hold long-term.

    Tesla has its strengths but its biggest risk is competition. As the large carmakers such as Toyota and Volkswagen enter the electric car space more aggressively, Tesla’s growth curve could flatten. Nonetheless, the company is investing heavily in R&D and will remain a major player in the electric car market going forward.

  • 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.

  • 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.

  • 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.