STOCKS TELEGRAPH

Tag: Technology

  • Cemtrex, Inc. (CETX) Stock Among Stocks Being Targeted in Resurgence of Meme Stock Phenomenon

    Cemtrex, Inc. (CETX) Stock Among Stocks Being Targeted in Resurgence of Meme Stock Phenomenon

    Cemtrex, Inc. (CETX) stock prices continue their upward trend, having ended the July 9th, 2021 trading day at USD$1.49, a 13.64% increase. Subsequent premarket fluctuations have seen the stock rise another 15.44%, bringing it up to USD$1.72.

    Revenue Reports

    CETX reported USD$9.3 million in revenue for the quarter ended March 31st 2021, representing a year-over-year decrease of 24% from the USD$12.1 million reported for the same time period of 2020. The yearly difference is largely attributable to the devastating effects resulting from the onset of the coronavirus pandemic causing shutdowns and the limiting of business operations. The Advanced Technologies segment revenues for the quarter were down 11% to USD$5.5 million, while the Industrial Services segment revenues were down 36% to USD$3.8 million.

    Net Income Improvements

    Net income for the quarter was reported at USD$2.5 million for the quarter, up significantly from the net loss of USD$1.6 million reported in the prior year quarter. This year-over-year difference is largely attributable to various income items exclusive to the 2021 quarter, including a one-time settlement agreement, as well as unrealized gains on marketable securities.

    Traded Volume Increase

    The company reported cash and cash equivalents in the amount of USD$15.6 million as of March 31st 2021, indicating a comfortable liquidity position. Nevertheless, the steep climb of volume of shares traded from the low thousands to upwards of one million over a course of days is not adequately contextualized by the company’s recent financials. Rather, the absence of any other recent news or changes in fundamentals makes the stocks recent activity highly contentious.

    Meme Stock Phenomenon

    In the absence of recent developments, it seems likely that the stock finds itself the target of the meme stock phenomenon that has been captivating the markets again as of late. Driven by retail investors, the movement has seen underdog companies being targeted for a short-term pump and dump. Companies that indicate a high short interest find their stock prices being inflated artificially with little to no reason in the coordinated short squeeze. Rife with inherent risk and volatility, the movement is not consistent or reliable. Moreover, in most cases it seems a very large correction on a very short timeframe.

    Future Outlook for CETX

    Nevertheless, armed with the fortuitous surge in equity value provides the company the exposure to capitalize on the addition opportunities it finds at its disposal. Current and potential investors are hopeful that management will be able to leverage the resources at their disposal to facilitate more organic growth over the long term.

  • SGOCO Group, Ltd. (SGOC) Stock Skyrockets as Latest Possible Target of Meme Stock Phenomenon

    SGOCO Group, Ltd. (SGOC) Stock Skyrockets as Latest Possible Target of Meme Stock Phenomenon

    SGOCO Group, Ltd. (SGOC) stock prices were up by an astounding 279.46% as of the market closing on July 9th, 2021, bringing the price per share up to USD$9.79. Subsequent premarket fluctuations have seen the stock surge by 44.02%, bringing it up to USD$14.10.

    About SGOC

    SGOC manufactures a variety of offerings, primarily phase change storage systems. Consisting of a number of businesses based in Hong Kong, SGOC focuses on VR technology, energy saving technology, mortgage lending, property investment, and a host of other growth segments across various markets. The company is continuously allocating resources towards the building of an ecosystem of sustainable growth that results in healthy gains in shareholder value.

    SGOC Financials

    The penny stock company is based in Hong Kong, with a market cap in excess of USD$1 billion. This is despite the company reporting only USD$4 million in revenue for 2020, ultimately proving itself to be unprofitable at the moment. The company also reported a liquidity position of USD$3 million, indicating a balance sheet that does not reflect its inflated market cap.

    SGOC as the Latest Meme Stock

    The company’s stock has recently skyrocketed by more than an astounding 500%. This is despite an apparent absence of significant news about the company or changes in SGOC fundamentals. Without proper contextualization, it seems possible that SGOC has become the latest target of the meme stock phenomenon that has swept through the market . This is reflected by the jump from an average 10-day trading volume of company stock in the amount of 664,000 to more than 100 million.

    SGOC Short Interest

    The meme stock phenomenon is driven by retail investors who target underdog companies in order to execute a coordinated short squeeze. Historically, meme stocks have exhibited a high short interest, which is not the case with SGOC. The company indicated a short interest level of 8%, casting doubt on its status as a meme stock. Nevertheless, data from Fintel reports a short volume ration of more than 25%. Even if the growth is not driven by the meme stock phenomenon, the limited evidence available does suggest the influence of momentum and day traders.

    Future Outlook for SGOC

    Refusing to look a gift horse in its mouth, SGOC is poised to capitalize on the expanded opportunities afforded to it in light of its recent explosion of equity value. Despite the inherent risk and volatility associated with meme stocks, the company is keen to allocate resources towards maintaining its trajectory of fortuitous success by ushering in more organic growth moving forward.

  • Stamps.com, Inc. (STMP) Stock Skyrockets Following Announcement of Acquisition by Thoma Bravo

    Stamps.com, Inc. (STMP) Stock Skyrockets Following Announcement of Acquisition by Thoma Bravo

    Stamps.com, Inc. (STMP) stock prices were up by a marginal 0.36%, bringing it up to USD$197.72 as of the market closing on July 8th, 2021. Premarket fluctuations saw the stock skyrocket by 63.55%, bringing it up to USD$323.38.

    Merger with Thoma Bravo

    July 9th, 2021 saw the company announce that it had entered into a definitive agreement that would see it being acquired by the leading software investment firm, Thoma Bravo. As per the agreement, the transaction will be conducted entirely in cash, with STMP being valued at roughly USD$6.6 billion.

    Details of the Merger

    Stockholders of the company will receive USD$330 per share in cash, which represents an impressive 67% premium over the company’s closing share price on July 8th 2021. The premium represents a 71% increase from the company’s volume-weighted average closing share price over the three-month period ended July 8th, 2021.

    Expanded Scope of STMP

    Upon the closing of the transaction, STMP will become a private company with the added resources and increased flexibility to ensure the continued provision of best-in-class global e-commerce technology solutions. Furthermore, the company will benefit from the operating capabilities, capital support, and deep sector expertise of its partner.

    Go-Shop Option

    The agreement includes a 40-day period that will expire on August 18th, 2021, wherein the company is allowed to actively initiate, solicit, and consider alternative acquisition proposals from third parties. Should this be exercised, the Board will have the right to void the merger agreement in favor of entering a superior proposal. The transaction is expected to close in the third quarter of 2021, pending customary closing conditions, including, but not limited to stockholder approval and the receipt of regulatory approvals.

    Benefits of the Merger

    With the expanded financial and operational resources generated from the merger agreement, the company can continue capitalizing on more and more growth opportunities. STMP hopes to maximize market penetration in the e-commerce shipping market, while consolidating its position as a leader in global multi-carrier e-commerce shipping software. This position of leadership is evidenced by the company being the first of its kind to introduce online postage, as well as its having been an early innovator in e-commerce shipping software.

    Future Outlook for STMP

    Armed with the expansive potential of its pending merger with Thoma Bravo, STMP is poised to capitalize on the opportunities afforded to it in light of the combined pool of resources available to it. Current and potential investors are hopeful that management will continue to leverage the resources at their disposal to sustain the successful trajectory of growth over the long term.

  • Humanigen, Inc. (HGEN) Stock Trending Higher Following MHRA Acceptance of Lenzilumab Marketing Authorization Submission

    Humanigen, Inc. (HGEN) Stock Trending Higher Following MHRA Acceptance of Lenzilumab Marketing Authorization Submission

    Humanigen, Inc. (HGEN) stock prices were up by 1.96% as of the market closing on July 8th, 2021, bringing the price per share up to USD$16.65. Subsequent premarket fluctuations saw the stock rise by 17.24%, bringing it up to USD$19.52.

    Market Authorization Submission Accepted

    July 9th 2021 saw the company announce the acceptance of its Market Authorization submission of lenzilumab as a treatment for Covid-19, having begun in June 2021. The UK’s Medicine and Healthcare Products Regulatory Agency (MHRA) gave the green light for accelerated Covid-related rolling review, with the assessment expected to occur on a short timescale than a standard rolling review.

    Working Towards the Acceptance

    HGEN held various meetings with different UK authorities in the time leading up to the initiation of the submission for Marketing Authorization. This included, but was not limited to, a Rapid C-19 multiagency meeting with representatives from the MHRA, the Therapeutics Taskforce (TTF), the Dept. of Health and Social Care (DHSC), National Health Service England (NHSE), and the National Institute for Health and Care Excellence (NICE).

    Scope of Lenzilumab

    The proliferation of various strains of the coronavirus across the globe emphasize the continued need for effective treatments that can treat various strains for the millions that are still left unvaccinated. Despite an 86% first dose vaccination rate across the UK, current week-long hospitalization rates were nearly 2,500, a 45% increase over the prior period. Deaths in the UK resulting from Covid-19 were up to 161 over the prior week, a 40% increase from the numbers reported in the week before.

    Waiting Game

    The company continues to collaborate with its partners to situate themselves for the most effective distribution of lenzilumab, as they wait for the pending conditional approval of the use of the treatment in patients hospitalized because of Covid-19. With Market Authorization pending, HGEN is also waiting on Emergency Use Authorization in the United States. Should they be awarded concurrently, the company is preparing itself to ensure the appropriate allocation of the treatment in both the U.K and the U.S.

    Future Outlook for HGEN

    With the world hurtling towards global immunizations, HGEN is capitalizing on the available market space as newer variants of the coronavirus continue to devastate the globe. Current and potential investors are hopeful that the company will be able to leverage its resources to consolidate and expand its market footprint in order to usher in significant growth over the long term.

  • MIND Technology, Inc. (MIND) Stock Exhibits Minor Volatility Ahead of Commencement of Dividends

    MIND Technology, Inc. (MIND) Stock Exhibits Minor Volatility Ahead of Commencement of Dividends

    MIND Technology, Inc. (MIND) stock prices were down by a marginal 1.54% as of the market closing on July 8th, 2021, bringing the price per share down to USD$1.92. Premarket fluctuations saw the stock rally by 4.69%, bringing it up to USD$2.01.

    Dividends Initiated

    July 6th 2021 saw the company announce the commencement of the paying of dividends on the company’s 9.00% Series A Preferred Stock, following the approval from the Board of Directors. The dividend will be in the amount of USD$0.5625 per share and will be paid on a quarterly basis for the period started May 1st, 2021, and ends July 31st, 2021. The dividend will be paid out to stockholders on record as of the close of the trading day on July 15th, 2021. The Series A Preferred Stock is listed on the Nasdaq under the ticker symbol MINDP.

    MIND’s Plan of Action

    The company is confident in its long-term outlook as it stays the course in regard to its strategic initiatives aimed at expanding the company’s product portfolio, as well as facilitating maximum market penetration. The company’s upcoming 5-year plan remains largely unchanged. The fourth quarter of fiscal 2021 saw the company expand its contract with a leading integrated geophysical company, PGS, that facilitated the provision of advanced source controller technology.

    Revenue Reports

    The first quarter of fiscal 2022, ended April 30th, 2021, saw the company report USD$4.2 million in revenues generated from the sale of Marine Technology Products. This is comparable to the USD$3.2 million reported in the prior-year quarter and USD$6.4 million in the previous quarter. As of the end of the quarter, the backlog of Marine Technology Products came in at USD$11 million, as compared to the USD$14.2 million reported as of January 31st, 2021.

    Net Loss

    Net loss arising from continuing of operations for the first quarter of fiscal 2022 came in at USD$3.7 million, as compared to the net loss of USD$3.3 million in the prior quarter and USD$6.4 million in the prior-year quarter. Net loss attributable to common shareholders was reported at USD$0.33 per share, as compared to a net loss of USD$0.30 per share for the fourth quarter of fiscal 2021 and a net loss of USD$0.59 per share for Q1 2021.

    Future Outlook for MIND

    With the company’s stock significantly more attractive to current and potential investors on account of the commencement of dividends, the company is poised to capitalize on the increase of its equity value. Shareholders are confident in the company’s ability to leverage the resources at their disposal to usher in long-term organic growth.

  • PubMatic, Inc. (PUBM) Stock Rising as Collaboration with IRIS.TV Continues to Develop

    PubMatic, Inc. (PUBM) Stock Rising as Collaboration with IRIS.TV Continues to Develop

    PubMatic, Inc. (PUBM) stock prices were up by 4.02% as of the market closing on July 8th, 2021, bringing the price per share up to USD$34.91 at the end of the trading day. After-hours trading saw the stuck surge by 10.25%, bringing it up to USD$38.49.

    Third Party Cookies

    The company’s equity value surged in June after Google made an announcement in regard to third-party cookies, which are online identity trackers used in targeted advertising. Google announced it was getting rid of cookies and ad-tech stock across the board suffered. June 24th 2021, however, saw Google report that it would keep cookies through to 2023. This report grants ad-tech companies like PUBM more time to find an alternative to cookies.

    Circumventing Disaster

    While cookies are more important for demand-side platforms, such as brands or ad agencies, PUBM partners with content publishers as a sell-side ad-tech company. The third-party cookie situation is reported as a risk in the company’s filings with the Securities and Exchange Commission.

    Ahead of the Curve

    Nevertheless, the company pointed out that the majority of its revenue can already be generated with alternatives to third-party cookies in its more recent quarterly conference call, going as far as to suggest the alternatives may even be better than third party cookies. While cookies are anonymous identifies, the company is keen to use alternative identifiers that provide greater addressability, facilitating an environment to drive better utilization of its infrastructure.

    Partnership with IRIS.TV

    June 29th 2021, announced its global partnership with IRIS.TV, aimed to facilitate buyers’ accessibility to contextually targeted connected TV and video inventory in efficient, biddable environments. This move provides media buyers with access to leading video data targeting tools enabled by IRIS.TV, which will assist targeted advertising across PUBM’s brand-safe cross-screen programmatic inventory.

    Scope of Collaboration

    Digital video and CTV ad spending has steadily increased, establishing the necessity of brand safety and verification tools to protect brand equity and combat ad fraud. Brands are able to better plan, activate, and measure CTV and video advertising campaigns with data-driven, video-level targeting, this ensuring brand safety is not compromised. Furthermore, post-campaign verification ensures maximum possible returns on investment, while providing insights that help prevent ad fraud.

    Future Outlook for PUBM

    Already poised to circumvent the fallout from the retiring of third party cookies by Google, PUBM is keen to continue extrapolating its trajectory of growth with its expansive partnership with IRIS.TV. Investors are hopeful that the combined resources from the partnership will result in promising returns on shareholders’ investments over the long term.

  • SMART Global Holdings, Inc. (SGH) Stock Trend Lower Despite Continuing to Surpass Earnings Estimates

    SMART Global Holdings, Inc. (SGH) Stock Trend Lower Despite Continuing to Surpass Earnings Estimates

    SMART Global Holdings, Inc. (SGH) stock prices were down by 4.84% as of the market closing on July 8th, 2021, bringing the price per share down to USD$53.31. After hours trading saw the stock dip by 4.80%, bringing it down to USD$50.75.

    Public Offering of Shares

    July 8th, 2021 saw the company announce the launch of an underwritten public offering, wherein 3 million of its ordinary shares will be sold by certain selling shareholders in association with Silver Lake. The company itself is not offering any of its shares up for sale and, therefore, will be collecting proceeds generated from the sale of shares by the selling shareholders.

    GAAP Income

    The third quarter of fiscal 2021 saw SGH report USD$437.7 million in GAAP net sales, up 56% from the same time period of the previous year. The quarter saw the company report a GAAP net loss of USD$7.2 million, representing a net loss of USD$0.30 per diluted share. This is compared to the USD$0.8 million GAAP net income reported for the third quarter of fiscal 2020, representing a GAAP net income of USD$0.03 per diluted share.

    Year-over-year Growth

    Non-GAAP net income for the quarter came in at USD$35.5 million, a significant 107.6% increase from the prior year quarter. This representing a non-GAAP net income of USD$1.39 per diluted share, which exhibited a 98.6% year-over-year increase. Adjusted EBITDA was up 102.3% from Q3 of fiscal 2020, reporting in at USD$51.4 million for the third quarter of fiscal 2021.

    Expansion of Product Portfolio

    The company announced the launch of its newest additions to its product portfolio on June 15th 2021, showcasing the T5EN PCIe/NVMe M.2 2280 and U.2 flash drives. Both products are designed to be suited for applications requiring particularly durable and rugged technology, while securing memory storage to meet the rigorous demands of aerospace, defense, and industrial sectors.The company sources all of its components very selectively, testing them over the course of engineering development phases to ensure the highest standard of performance and reliability. The design process also includes higher margins for the routing of signal, thicker PCBs, as well as more durable housing for the devices.

    Future Outlook for SGH

    Armed with the continued proliferation of its newest technology in the burgeoning global market, SGH is poised to continue its trajectory of success. Current and potential investors are hopeful that management will continue to leverage the resources at their disposal to facilitate significant and sustained increases in shareholder value.

  • XPeng Inc. (XPEV) Stock’s Downward Trend Persists as Chinese Regulations and Oversight Continue to Increase

    XPeng Inc. (XPEV) Stock’s Downward Trend Persists as Chinese Regulations and Oversight Continue to Increase

    XPeng Inc. (XPEV) stock prices were down by 5.86% on July 7th, 2021, bringing the price per share down to USD$41.47 at the end of the trading day. Subsequent premarket fluctuations have seen the stock fall another 6.27%, bringing it down to USD$38.87.

    EXPV Hong Kong Debut

    July 7th, 2021 saw the company fall flat in its trading debut in Hong Kong, having been the first Chinese EV maker to finish a “homecoming” share sale. The share sale saw the company raise an impressive USD$1.8 billion. The shares opened at USD$21.62 and fluctuated throughout the session before ending the trading day at USD$21.24, the same as their offer price. The company went public in the U.S in August 2021 and its New York-listed shares have nearly tripled from their IPO price.

    Increasing Chinese Oversight

    The company’s Hong Kong debut followed increases in Chinese regulations as the country cracks down on the technology industry, dealing a massive blow to both global investors and local companies hoping to be listed abroad. July 6th, 2021 saw the Chinese State Council vow to further increase oversight of data security and overseas listings.

    Future of EV Space in China

    With the Chinese regulatory probe into Didi Chuxing recently, the electric vehicle manufacturing space is concerned about the future of the gathering and analytics of vehicle operating data, which was expected to be the next big source of companies’ profits. Stricter government oversight has also resulted in the scaring off of global investors. Shares of Chinese EV manufacturers that are listed in the U.S. have rallied since their lows in mid-May 2021, based on promising demand growth. XPEV is the first of a total of three U.S-listed Chinese EV makers to launch a homecoming sale. Nio and Li Auto are planning to follow suit with listings in Hong Kong.

    Promising Developments

    Despite the company not having yet turned a profit, revenue has been increasing. With the company forecasting profitability by late 2023 or early 2024, revenues have reached USD$455 million in the first quarter of 2021. Deliveries for June 2021 were up a staggering 617% as compared to numbers from the same month of the prior year.

    Future Outlook for EXPV

    As the company expands its investor base closer to home, it is keen for its consumers to also be its stockholders. XPEV is poised to ride the wave of increased Chinese regulations, with strategies to come out stronger than ever. Investors are hopeful that the company will not be hit too hard by the increasing oversight and that this will not affect its listings abroad.

  • MySize, Inc. (MYSZ) Stock Exhibits Volatility as Indian BoxSize Operations Continue Developing

    MySize, Inc. (MYSZ) Stock Exhibits Volatility as Indian BoxSize Operations Continue Developing

    MySize, Inc. (MYSZ) stock prices were down by 6.76% as of the market closing on July 7th, 2021, bringing the price per share down to USD$1.38 at the end of the trading day. Subsequent premarket fluctuations saw the stock rally by 9.42%, bringing it up to USD$1.51.

    Partnership with Delhivery

    June 29th 2021 saw the company announce its partnership with Delhivery, India’s largest supply chain services provider. MYSZ’s AI-driven sizing solution BoxSize is expected to bolster the industry-leading logistics company with tools to enhance efficiency and operational management.

    BoxSize

    BoxSize facilitates the efficient utilization of resources and strategic planning of logistics, thereby ensuring the protection of both the environment, as well as the company’s bottom line. Delivery efficiency is increased with the use of the parcel measurement tool, which measures both dimension and volume, to help operations teams ensure that a truck is packed properly and completely.

    BoxSize Features

    Furthermore, the BoxSize service offers a myriad of features, including, but not limited to, barcode scanning, geolocation tagging, and image capture. The company ensures decreased emissions and fuel consumption while providing a verified chain of custody, as well as greater operational efficiency. This leads to fewer trucks being packed to less than full capacity, improved real-time allocation of resources, and fewer emissions per delivery.

    Scope of Partnership

    The collaboration with Delhivery complements the company’s renowned in-house tech solutions, increasing visibility and other ERP processes. Delihivery’s status as an industry leader in delivery and logistics tech makes the collaboration a strong testament to the value BoxSize provides. It will provide Delhivery’s employees on the B2B side with essential information to facilitate the effortless optimization of loading efficiency, as well as enhanced real-time visibility to operations.

    Utility of BoxSize

    The company’s handheld sizing solutions serve to commensurate any delivery driver or workhouse employee with the expertise of a logistics planner. With the tool being directly given to employees on the ground and field, the delivery of parcels is enhanced with the empowerment of all the people involved in the process.  The critical tool is intended to provide several businesses across India with the best possible delivery experience.

    Future Outlook for MYSZ

    Armed with the expansive collaboration with Delhivery, MYSZ is poised to massively expand the scope of its footprint in the Indian market. The company is keen to consolidate this growth and usher in further expansion through market penetration of unaddressed segments. Investors are hopeful that the company will continue to expand its reach and facilitate significant and sustained increases in shareholder value.

  • SeaSpine Holdings Corp. (SPNE) Stock Surges Following News of FDA 510(k) Clearance for Flagship Treatment

    SeaSpine Holdings Corp. (SPNE) Stock Surges Following News of FDA 510(k) Clearance for Flagship Treatment

    SeaSpine Holdings Corp. (SPNE) stock prices were down by 4.41% as of the market closing on July 7th, 2021, bringing the price per share down to USD$18.84 at the end of the trading day. After-hours trading saw the stock surge by 20.59%, bringing it up to USD$22.72.

    510(k) Clearance

    July 8th, 2021 saw the company announce the U.S Food and Drug Administration having granted 510(k) clearance for its 7D Percutaneous Spine Module for minimally invasive surgery, thus facilitating a new application and increased functionality for the 7D Flash Navigation System. The news followed the company’s recent acquisition of 7D surgical, with SPNE anticipating a limited release of the Percutaneous Spine Module in the third quarter of 2021.

    Scope of Treatment

    The 510(k) clearance will facilitate the addressing of a crucial segment of the spine navigation market, thus helping the company round out its FLASH Navigation Spine portfolio. The MIS application is expected to be a valuable enhancement for ambulatory hospitals and surgery centers.

    7D FLASH Navigation System

    The 7D FLASH Navigation System creates a 3-D image using visible light in a matter of seconds. These images are used in surgical navigation and are expected to result in shorter and more efficient spinal procedures. Following the announcement of the 510(k) clearance, the system is the only cleared image guidance system that makes use of the company’s proprietary and unique camera-based technology. In conjunction with machine-vision algorithms, the system is designed to eliminate critical issues with legacy surgical navigation platforms. The machine-vision technology will provide significant economic value with its unparalleled speed, accuracy, and efficiency.

    Launch of Waveform L System

    June 8th, 2021 saw the company announce the limited commercial launch of its 3D-printed WaveForm L Interbody System, which was designed for the lateral lumbar interbody fusion procedure. It seamlessly integrates with the entirety of the Regatta NanoMetalene lateral interbody portfolio, including the recently launched Regatta Lateral Plate. The system is designed to deliver a fully porourinterbopdy solution with a graft aperture, which is designed to accommodate a substantial amount of SPNE’s leading allograft demineralized bone matrix offerings, OsteoStrand and OsteoStrand Plus.

    Future Outlook for SPNE

    Armed with the FDA clearance that will facilitate and accelerate the commercialization of the company’s flagship candidate, SPNE is poised to capitalize on the opportunities afforded by the expanded scope of the development of the treatment. Current and potential investors are hopeful that management will continue to leverage the resources at their disposal to facilitate significant and sustained increases in shareholder value.