STOCKS TELEGRAPH

Tag: Technology

  • Newegg Commerce, Inc. (NEGG) Stock Prices Skyrocket Following Announcement of BTO Service

    Newegg Commerce, Inc. (NEGG) Stock Prices Skyrocket Following Announcement of BTO Service

    Newegg Commerce, Inc. (NEGG) stock prices were up a monumental 109.19% shortly after market trading commenced on July 7th, 2021, bringing the price per share up to USD$56.90 early on in the trading day.

    BTO Offering

    July 7th, 2021 saw the company announce the offering of a service to facilitate professional PC assembly for customers who use the Newegg PC Builder tool to design their own computers. The company’s build-to-order offering makes use of the company’s ENIAC in-house computer assembly service to construct and deliver fully assembled computers. NEGG sets itself apart from other competitors in the BTO offering space by providing the service significantly faster.

    Competitive Edge

    Having a varied inventory in the millions, the company can source virtually any build with the use of its existing inventory within their network, with the delivery of completed PCs available to customers anywhere in the U.S. With traditional BTO services offering limited component selection and a timeline that spans weeks to fulfill customer orders, NEGG has proven having a significant competitive edge.

    Services Provided

    The initial beta phase will result in the generation of critical insight that will guide the launch of the second phase of the company’s BTO service, which will come with more perks and options, such as laser engraving, to facilitate additional customization and personalization of consumers’ builds. The PC assembly line is staffed with a workforce of skilled technicians, ensuring the highest quality possible.

    PC Builder Tool

    June 20th, 2021, NEGG rolled out the Newegg PC Builder tool which is an online PC configurator that allows even uninitiated customers to design their own computers. The service was an instant hit, given the scope of customers who prefer professional assembly over doing it themselves. Given how complicated the process can be, with near-limitless configuration possibilities. With the plethora of components, brands, specs, and compatibility issues, the right configuration that meets customers’ needs while staying within budget can be a daunting task. Especially in light of the Covid-19 pandemic, customers have been opting more and more to have their devices built remotely and then delivered.

    Future Outlook for NEGG

    Armed with a service that massively expands the scope of its business, NEGG is poised to capitalize on the expanded and consolidated market footprint it finds itself to now have. The company is keen to leverage the resources at its disposal to organically sustain the recent surges in equity value.

  • Silverback Therapeutics, Inc. (SBTX) Stock Trending Higher Following Announcement of Clinical Supply Agreement with Regeneron

    Silverback Therapeutics, Inc. (SBTX) Stock Trending Higher Following Announcement of Clinical Supply Agreement with Regeneron

    Silverback Therapeutics, Inc. (SBTX) stock prices were up by 1.02% just around the market opening on July 7th 2021, bringing the price per share up to USD$28.83 at the start of the trading day.

    Clinical Supply Agreement

    July 7th 2021 saw the company announce a clinical supply agreement for the PD-1 inhibitor, Libtayo, (cemiplimab) with Regeneron. The supply agreement will facilitate the evaluation of the treatment in combination with SBT6050, the pioneer of targeted immune-oncology agents. These agents are designed to route a TLR8 agonist linker-payload to activate myeloid cells in tumors expressing levels of HER2 that are moderate and higher.

    SBT6050

    The treatment’s unique capacity to activate both innate and adaptive immune responses could potentially enhance and expand the effectiveness of a PD-1 inhibitor in HER2-expressing solid tumors. The company is keen to complete the ongoing dose escalation of SBT6050 combined with a PD-1 inhibitor as it begins tumor-specific expansion cohorts.

    Clinical Trial of SBT6050

    The first quarter of 2021 saw the company commence treatment in Part 3 of the Phase 1/1b study to evaluate the activity of SBT6050 administered in conjunction with PD-1 inhibitor in dose escalation. As per the agreement, the company will expand its ongoing Phase 1/1b trial to evaluate the combination of SBT6050 and Libtayo in tumor-specific dose expansion cohorts. The treatment will initially be used in HER2-expressing non-small cell lung cancer and gastric cancer.

    Libtayo

    Libtayo is being collaboratively developed and commercialized by Regeneron and Sanofi as a PD-1 blocking antibody. It has been approved for the first-line treatment of patients with advanced NSCLC that have tumors that exhibit a high PD-L1 expression. This was determined by an FDA-approved test for adults with metastatic cutaneous squamous cell carcinoma (CSCC) or locally advanced CSCC who are not candidates for curative surgery or curative radiation. The treatment was also for patients with advanced basal cell carcinoma previously treated with a hedgehog pathway inhibitor or for patients where HHI is not a valid option, being either locally advanced (full approval) or metastatic (accelerated approval).

    Future Outlook for SBTX

    Armed with its recent clinical supply agreement, the company is poised to capitalize on the tenured profitability it has secured for the contract term. 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.

  • Data Storage Corp. (DTST) Stock Skyrockets Following Promising Closure of Merger with Flagship LLC

    Data Storage Corp. (DTST) Stock Skyrockets Following Promising Closure of Merger with Flagship LLC

    Data Storage Corp. (DTST) stock prices surged 24.40% on July 6th, 2021, bringing the price per share up to USD$7.29. Subsequent premarket fluctuations saw the stock skyrocket by 75.45%, bringing it up to USD$12.79.

    Merger with Flagship

    June 3rd, 2021 saw the company announce the merger of its wholly owned subsidiary, Data Storage FL, with Flagship Solutions. Flagship will continue on as the surviving combined entity, with its CEO taking over as the CEO of the combined company. The merger followed shortly after the company was uplisted to Nasdaq, with the transaction substantially expanding the services offered, thus proving highly synergetic with existing IBM operations.

    Details of the Merger

    The combined company is poised to lead the industry as a one-stop provider of multi-cloud IT solutions, which are cross-sold across relevant enterprise and middle-market customers. With more and more customers migrating to the IBM cloud, the merger came at an opportune time, with further growth expected in the market. This assumption is based on the fact that it is only recently that the IBM on-premise server market began transitioning to the cloud. The partnership will provide access to additional resources and infrastructure that will accelerate the growth of the combined company.

    Public Offering

    May 18th had seen the company announce the closing of its underwritten public offering of shares of its common stock. The offering will see the sale of 1.6 million units to the public, at a price of USD$6.75 per unit. Each unit will consist of one share of common stock and one warrant, which can be used to purchase one share of common stock, at an exercise price of USD$7.425. The shares and warrants comprising each unit were immediately separable and were issued separately, having begun trading on the Nasdaq Capital Market on May 14th 2021, under the tickers DTST and DTSTW.

    Allocation of Capital

    The company anticipates the generation of gross proceeds in the amount of USD$10.8 million. An additional USD$2,400 were generated from the exercising of the allowable overallotment option that saw the purchase of an additional 240,000 warrants at a price per warrant of USD$0.01. The funds raised are expected to be allocated towards the expansion of the company’s sales force, marketing and business development, potential acquisitions, as well as the payment of dividends.

    Future Outlook for DTST

    With the final completion of the business combination having occurred on July 6th 2021, in conjunction with the healthy liquidity position, soaring stock prices reflect the untapped potential of the combined company. Investors are hopeful for continued gains over the long-term.

  • Athena Tech Acquisition Corp. (ATHN) Stock Continues to Rise Following Merger with Heliogen

    Athena Tech Acquisition Corp. (ATHN) stock prices were up by a marginal 0.31% as of the market closing on July 6th, 2021, bringing the price per share up to USD$9.73 at the end of the trading day. Subsequent premarket fluctuations have seen the stock rise by 2.26%, bringing it up to USD$9.95.

    Merger with Heliogen

    July 7th 2021 saw the company announce having entered into a definitive agreement for a business combination with Heliogen, Inc. Following the merger, Athena will be renamed Heliogen, Inc. and will be listed on the New York Stock Exchange under the HLGN ticker symbol. Aimed at addressing intermittency issues associated with renewable sources of power generation, Heliogen’s modular, AI-enabled, concentrated solar power plants have the potential to revolutionize the energy market.

    About Heliogen

    Heliogen is focused on flattening the power generation curve by using its technology and concentrated solar power with storage to facilitate increases in the availability of energy to industry. It’sprorietary heliostat layout and control system are designed to concentrate the sun’s rays, with the ability to generate temperatures at the point of focus that exceed 1,000 degrees centigrade. This heat is captured and converted for industrial use, power generation, or to facilitate the production of green hydrogen fuel. The technology aims to provide almost 24-hour renewable energy that will see concentrated sunlight replacing fossils fuels.

    Details of Transaction

    The commercialization of Heliogen’s AI-enabled, concentrated solar power modules is underway, with internationally renowned customers in the industrial, mining, and energy sectors. AllofHeliogen’s stockholders are expected to transition their existing equity into the combined companies, receiving ATHN Class A common stock at closing as compensation. The transaction is forecasted to raise roughly USD$415 million in gross proceeds of cash, assuming no redemptions by public stockholders of ATHN.

    Allocation of Capital

    The capital generated is expected to be allocated towards scale heliostat manufacturing and to support R&D efforts on innovative heliostat technology. The funds will also be used to support the development of projects around the world, as well as to strengthen the company’s balance sheet. The gross proceeds include USD$165 million in shares of stock that investors have committed to purchasing through a PIPE, with each share priced at USD$10.00.

    Future Outlook for ATHN

    Armed with the recent merger with Heliogen, ATHN is poised to capitalize on the opportunities afforded to it in the expansive alternative energy space. Investors of both companies are confident that the merger will result in significant and sustained increases in shareholder value for the combined entity.

  • Evolving Systems, Inc. (EVOL) Stock Exhibits Volatility as Relationship with Cellcard Cambodia Expands

    Evolving Systems, Inc. (EVOL) stock prices were up a significant 19.64% as of the market closing on July 6th, 2021, bringing the price per share up to USD$2.68 at the end of the trading day. Subsequent pre-market fluctuations have seen the stock dip by 10.44%, bringing it down to USD$2.40.

    Partnership with Cellcard

    June 15th, 2021 saw the company announce that Cellcard Cambodia had finalized plans to upgrade to the new Evolution platform, in the interest of enhancing its loyalty program, Cellcard Club. This move will facilitate the driving of more personalized and relevant offers to subscribers through various digital media in real-time. Cellcard has a customer base that is 4 million strong and the company is in the process of rolling out 5G services.

    Cellcard Club

    The company has made use of its Cellcard Club platform to provide a program that rewards consumer loyalty while also engaging customers with the unparalleled customer experience and personalized value propositions. The decision to upgrade will see the company launching a myriad of new features. These include the use of machine learning to deliver highly personalized and relevant Next Best Offer recommendations, delivered through an omni-channel experience; the rewarding of roadmap items like Achievement Badges; the chance to spend loyalty points in a shopping catalogue; and a new premium paid Loyalty Club subscriptions.

    Scope of Partnership

    Existing stellar results include a monthly growth in Club membership of 16%, with 50% of members engaged in the digital games offered by the program. 25% already participate in redemptions, with the number steadily rising as more customers accumulate more loyalty points. The upgrade to EVOL’s platform will serve to bolster this success and drive in further growth by reducing churn, drive acquisition and enhance the program’s appeal among the key youth market in Cambodia. This will be done by elevating the digital lifestyle brand to actively engage with customers.

    Promising Financials

    Total revenue for the first quarter of 2021 was reported at USD$6.5 million, up to USD$0.2 million from the revenue reported for the same time period of the prior year. This year-over-year difference was largely attributable to revenues from existing client work on new projects and upgrades, as well as projects from new clients.

    Future Outlook for EVOL

    Armed with an expansive partnership, EVOL is poised to capitalize on the opportunities afforded to it in light of the agreement. With the added resources for each company, both are keen to leverage their combined capital in order to facilitate sustained and significant growth.

  • SemiLEDs Corp. (LEDS) Stock Continues Upward Trend After Entering Limelight for Day Traders

    SemiLEDs Corp. (LEDS) Stock Continues Upward Trend After Entering Limelight for Day Traders

    SemiLEDs Corp. (LEDS) stock prices were up by 5.14% some time aftermarket trading commenced on July 6th, 2021, bringing the price per share up to USD$16.77 early on in the trading day.

    Revenue and Net Loss Reports

    The company reported revenue in the amount of USD$1.4 million for the third quarter of fiscal 2021, up from the USD$1.2 million reported in the prior quarter. GAAP net loss attributable to SemiLEDs stockholders came out to USD$64,000, representing a net loss of USD$0.02 per diluted share, for the third quarter of fiscal 2021. The second quarter of fiscal 2021 reported a net loss of USD$255,000, representing a net loss of USD$0.06 per diluted share.

    GAAP Gross Margin and Liquidity Position

    GAAP gross margin was up to 46% for Q3 of fiscal 2021, a significant improvement from the 20% reported for the prior quarter. Operating margins for the quarter ended May 31st, 2021 was down to negative 41%, as compared to the negative 42% reported for Q2 of fiscal 2021. The company ended the third quarter of fiscal 2021 with a solid liquidity position. As of May 31st 2021, the company reported cash and cash equivalents in the amount of USD$1.7 million, down from the USD$2.1 million reported at the end of Q2 of fiscal 2021.

    Scope of LEDS

    The company develops and manufactures both LED chips and components for general lighting applications, including, but not limited to streetlights, as well as commercial, industrial, system, and residential lighting. LEDS also facilitates specialty industrial applications, such as UV curing, medical/cosmetic, counterfeit detection, horticulture, architectural lighting, and entertainment lighting. The company’s product portfolio includes blue, white, green, and UV LED chips.

    Effects of the Pandemic

    Current and potential investors are hopeful that management will continue to push for continued growth as global restrictions ease and universal immunization programs are accelerated. Nevertheless, recent activity has been largely confounding. With the company itself admitting to lacking any fundamental reason for the gains, evidence suggests LEDS is being driven by day traders. The company has reported a negative free cash flow and only USD$5 million in revenue over the last twelve months.

    Future Outlook for LEDS

    Armed with consistently improving financials despite the ongoing effects of the coronavirus pandemic, LEDS has managed to stay afloat during particularly tumultuous economic times. The dire straits presented by the onset of Covid-19 resulted in the massive reduction of the scope of the company’s business, with social gatherings being limited and so many businesses facing temporary or permanent closure.

  • DiDi Global Inc. (DIDI) Stock Plummets as Increasing Chinese Regulations Result in Cancellation of U.S IPO

    DiDi Global Inc. (DIDI) stock prices were down by 5.30% as of the market closing on July 2nd, 2021, bringing the price per share down to USD$15.53 at the end of the trading day. Premarket fluctuations saw the stock plummet by 22.22%, bringing it down to USD$12.08.

    Troubles in China

    July 6th, 2021 saw the company announce the removal of its DiDiChuxing mobile app in China in accordance with directions from the Cyberspace Administration of China (CAC). The order came following the CAC’s belief that the company was collecting the personal information of its users, which is in direct violation of Chinese laws and regulations. Global operations are expected to be directly unaffected. With the app having been taken down in the massive Chinese market, the company expected its Chinese revenues to suffer. Fortunately, users who had downloaded the app before the CAC’s directives can continue making use of it.

    Increasing Regulations

    The Chinese version of Uber, the ride hailing service, is facing a harder time pitching its shares to prospective investors as China’s regulations are ramped up. Global equity managers are considering the impact of the increasing regulatory threats as the country’s efforts to control big data develop. The move sees China target companies that are spreading into the North American markets with the launches of U.S IPOs by Chinese tech companies.

    Scope of Chinese Tech Space

    The Chinese capital continues to crack down on the tech space, with as many as 34 pending filings for U.S. listings by Chinese and Hong Kong based companies having been announced this year. These numbers are unprecedented, with more than USD$15 billion priced in New York IPOs in the year so far. Following the cybersecurity review of DIDI, the company saw its shares drop massively in the U.S premarket.

    Ripple Effect

    Chinese companies that are subject to increasing regulations are unhappy with the way the regulations are being enforced. Rather than preventing the U.S IPOs from commencing, China has forced companies to break trust with many foreign investors. Even after the resolution of the matter at hand, it will take significant effort to repair the adverse effect on the company’s brand image.

    Future Outlook for DIDI

    With the planned IPO having been pulled, DIDI is exploring measures to recoup from the financial and non-financial adverse effects of recent Chinese developments. Current and potential investors are hopeful that the Chinese government will facilitate the accessible expansion of the tech space with a reigning in of regulations.

  • Pulse Biosciences, Inc. (PLSE) Stock Dips Following Announcement of USD$50 Million Private Placement

    Pulse Biosciences, Inc. (PLSE) Stock Dips Following Announcement of USD$50 Million Private Placement

    Pulse Biosciences, Inc. (PLSE) stock prices were down by 11.58% some time after market trading commenced on July 2nd 2021, bringing the price per share down to USD$18.41 early on in the trading day.

    Stock Purchase Agreement

    July 1st 2021 saw the company announce that it had entered into a stock purchase agreement with Robert Duggan, the Chairman of PLSE’s Board of Directors. The agreement will see Mr. Duggan purchase 3,048,780 shares of the company’s common stock, with each stock being priced at USD$16.40 per share, which is the last reported sale price of the shares as of the market closing on June 30th 2021.

    Details of the Agreement

    Any debt owed to Mr. Duggan by the company as per the loan agreement from March 11th 2021 will be paid through the cancellation and extinguishment of the debt. Rather, Mr. Duggan will be compensated with common stock shares in a private placement that will write-offUSD$41 million in principal balance and USD$0.6 million in accrued and unpaid interest. As per the private placement, Mr. Duggan will invest new capital in the amount of USD$8.4 million into the company.

    CellFX Milestone

    The company announced on June 30th 2021 that the first patient in Canada had been successfully treated with PLSE’s proprietary CellFX procedure. Marking the first commercial use of the ceillular-focused CellFX System in Canada, the treatment is proven to clear common benign lesions, such as sebaceous hyperplasia, seborrheic keratosis, and cutaneous non-genital warts. CellFX further expands the company’s Controlled Launch program that is currently ongoing in both Europe and the United States.

    Continued Development

    PLSE continues to build its global foundation of key opinion leader adoption of the unique NPS technology. To this end, it is continuing its strategic rollout with thought-leading skin specialists from across Canada aiming to expand the clinical and commercial potential of the CellFX System for multiple aesthetic and therapeutic applications.

    Future Outlook for PLSE

    Armed with the influx of capital generated from their private placement, PLSE is poised to capitalize on the proliferation of its CellFX system. Investors are hopeful that the company will be able to consolidate and expand its market footprint to usher in significant and sustained increases in shareholder value.

  • Ocean Power Technologies, Inc. (OPTT) Stock Surges as Latest Target of Raging Meme Stock Phenomenon

    Ocean Power Technologies, Inc. (OPTT) stock prices surged by 13.2967% shortly after market trading commenced on July 2nd, 2021, bringing the price per share up to USD$2.7871, before having peaked at USD$3.0577 earlier in the trading day.

    Inclusion in Russell Microcap Index

    June 23rd 2021 saw the company announce its inclusion in the Russell Microcap Index, effective as of the market opening on June 28th 2021. The company’s inclusion in the Index signals its growth potential, with the move benefitting existing shareholders as well as leading to greater exposure to potential institutional investors. Membership in the Russell Microcap Index entails automatic inclusion in relevant growth and value style indexes; and is determined annually by objective, market cap ranking, and style attributes.

    Revenue Reports

    Revenue for the third quarter of fiscal 2021 was reported at USD$0.3 million, down from the USD$0.7 million reported for the same time period of the prior year. Net loss for the 2021 quarter was up USD$0.3 million from the net loss reported for Q3 2020. The first nine months of fiscal 2021 reported USD$0.6 million in revenue, as compared to the USD$1.1 million reported for the same time period of the prior year. These movements are largely attributable to the company’s revenue-generating projects experiencing pandemic-related delays.

    Balance Sheet

    The company reported USD$80.4 million in total cash, cash equivalents, and restricted cash as of January 31st, 2021. Net cash allocated towards operating activities was down by USD$0.1 million during the first nine months of fiscal 2021, reporting in at USD$8.5 million. The decrease is largely the result of lower cash spending on customer projects, as well as product development costs. The company generated net proceeds in the amount of USD$76.1 million with its ATM agreement and equity line agreements with Aspire Capital.

    Meme Stock Phenomenon

    Despite inclusion in the Russell Microcap Index, the recent activity in OPTT’s stock prices seems unwarranted. Without recent news coverage or significant changes in fundamentals, the company seems to be the latest target of the meme stock phenomenon that has been sweeping through the stock exchange. Driven by retail investors using the social media platform Reddit, underperforming companies are targeted for a coordinated short squeeze.

    Future Outlook for OPTT

    Armed with the fortuitous gains in its equity value, OPTT is poised to capitalize on the opportunities afforded to it in order to ensure more organic growth for the long term. Investors are hopeful that the management will leverage the resources at their disposal to usher in increases in shareholder value.

  • Marin Software Inc. (MRIN) Stock Skyrockets Under Spotlight of Meme Stock Phenomenon

    Marin Software Inc. (MRIN) stock prices surged by 54.64% shortly after market trading commenced on July 2nd, 2021, bringing the price per share up to USD$23.32 early on in the trading day.

    Collaboration with Instacart

    June 23rd, 2021 saw the company announce the addition of the ability to manage Instacart Ads to its flagship MarinOne platform, facilitating the connection between brands and customers directly at the point of sale. MRIN will leverage its extensive track record to help advertisers optimize over USD$40 billion in digital advertising spend to the rapidly growing platform.

    About Instacart

    As the leading North American online grocery platform, Instacart is partnered with more than 600 national, regional, and local retailers, including unique brand names. The company has 55,000 stores across more than 5,500 cities across North America. Instacart offers self-service and managed ad services for more than 2,500 CPG brands, including all of the Top 25 CPG companies.

    MarinOne Platform

    The self-serve MarinOne platform helps generate additional demand by unifying lower-funnel marketplace advertising with paid search and paid social campaigns. The platform allows marketers to align their efforts to ensure the seamless functioning of their channels across the customer journey. With the pandemic having seen consumer habits shift, online grocery delivery skyrocketed to unprecedented levels.

    Scope of Partnership

    Instacart is an essential addition to the digital marketing strategy MRIN, as a leading online grocery platform in North America. MRIN is excited to give advertisers on Instacart the opportunity to maximize returns on investments with the company’s added resources. The company’s automation facilitates the accessibility of managing Instacart Ad campaigns by automatically constructing campaigns, providing alerts on performance changes, and proactively identifying opportunities for better results.  The optimization tools serve to identify the most suitable levels of spend, while the best possible performance is ensured by MRIN bidding. The company’s Insight molecule automatically identifies opportunities such as Product A/B Testing in customers’ accounts, with estimates of potential value and easy implementation being provided.

    Meme Stock Phenomenon

    Despite the integration with Instacart Ads, the recent movement in MRIN’s stock price does not seem warranted. With an absence of any other news coverage or changes in fundamentals, it seems that MRIN is the latest target of the meme stock phenomenon that has been sweeping the stock exchange as of late. Driven by retail investors who use the social medial platform Reddit to coordinate a short squeeze in underperforming companies with high short interests. Inherent with risk and volatility, this phenomenon provides a fortuitous bump to companies that find themselves in its spotlight. Investors are hopeful that MRIN will leverage the additional resources at its disposal to usher in more organic growth.