Is the Triple-Tax Break for "Opportunity Zone" Investing Worthwhile?

In 2017, Congress passed the 2017 Tax Cuts and Jobs Act. Since the tax act passed, more than 500 qualified OZ funds have opened. The fund’s popularity seems to be growing with some $2 billion of $6.7 billion invested in December alone. As a rule, 90% of a fund must be invested in one of 8,700 qualified opportunity zones and receive at least 50% of the gross income from the zone. Most of these funds are run by money managers and/or real estate developers. The funds allow investors to defer capital gains tax from stocks, real estate or...READ MORE

Gray Television Inc. (GTN): Why We Are Raising Our Price Target

Exceeds Q4 expectations. Q4 revenues of $579.0 million was better than our $553.0 million estimate on the strength of Political advertising ($35.0 million versus our $26.0 million estimate). Cash flow was $215.0 million, better than our $193.0 million estimate. Political is a barn-burner. Guidance for high margin, Political...READ MORE

InPlay Oil (IPO:CA): Canadian Producer Is Growing Through The Drill Bit, Even In a Low-Price Environment

Cardium play in western Canada offer attractive returns even at current prices. InPlay generates positive operating cash flow sufficient to fund an active drilling program. Its debt levels are modest for a company of its size...READ MORE

Seanergy (SHIP): Scrubber Program Complete. Adjusting Estimates for Dry Bulk Market Weakness.

IMO 2020 compliance plan implemented. Scrubbers were installed on five Capes, with the last one on December 19, 2019. The $12 million cost of the scrubber program was largely funded by charterers. Additional scrubber installations will be dependent upon...READ MORE

Orion Group Holdings (ORN): Better than expected 4Q2019 Results and Positive 2020 EBITDA Guidance

4Q2019 gross profit of $19.1 million and EBITDA of $11.0 million beat our estimates of $15.2 million and $8.2 million, respectively. Gross margin of 9.6% was in line and EBITDA margin of 5.5% was ~400 basis points higher. Main driver was...READ MORE

Tribune Publishing Company (TPCO): Further Consolidation Appears Likely

Quarterly preview. We anticipate that the company will meet our adjusted EBITDA estimate for Q4. The company will report its fourth quarter and full year 2019 results on March 4, 2020. Noble conference highlights. This report highlights a fireside chat with...READ MORE

Black Swans, Falling Knives, and Market Corrections

The word “correction” has been used more than usual on CNBC and other business news programs this week. At first, it seemed to make sense; after all, on Monday, the S&P 500 dropped by 3.4%. Then on Tuesday, it shed another 3.03%. By the market close on Tuesday, the broad index was down a total of...READ MORE

Dyadic International Inc. (DYAI): Progress and Efforts Continues to Validate C1 Platform

Dyadic is progressing towards generating human-like glycosylation by C1 platform. Dyadic ’s research partner VTT Technical Research Centre of Finland made further progress in glycoengineering by expressing another human-like...READ MORE

Endeavour Silver Corp (EXK): Lowering Estimates for 2020; Rating Reset to Market Perform

EXK reports fourth quarter and full year earnings. EXK reported a full year net loss of $48.1 million, or ($0.36) per share, compared to our forecast of a loss of $37.8 million, or ($0.28) per share. The company reported a fourth quarter loss of $17.9 million, or...READ MORE

Genco Shipping & Trading Limited (GNK): Solid Quarter and Expanding Fleet Renewal Program

Adjusted 4Q2019 EBITDA of $28.4 million is below our estimate of $31.5 million, mainly due to lower than expected TCE rates of $12.6k/day. Management call today at 8:30am EST to discuss outlook. Call number is 334-777-6978 and...READ MORE

Euroseas Ltd. (ESEA): Challenging Market, But 2H2020 Recovery Ahead?

Adjusted 4Q2019 EBITDA, excluding dry dock expenses, was $2.7 million, or about $0.6 million below expectations. 4Q2019 gross TCE revenue of $13.2 million increased due to 307 higher ownership days and a $532 increase in TCE rates to...READ MORE

Kratos Defense & Security (KTOS): Underwhelming 4Q; Is the Future Brighter?

Underwhelming 4Q19. Kratos reported mixed 4Q19 results. Revenue came in at $185.1 million, below the $197 million consensus estimate, while adjusted EPS totaled $0.09, below the consensus $0.10 estimate. Full year revenue of $717.5 million was below the low-end of...READ MORE

Orion Group Holdings (ORN): NobleCon 16 Review - 4Q2019 Results Out Shortly

CFO Robert Tabb's presentation at our NobleCon16 conference highlighted progress on the Invest, Scale and Grow (ISG) restructuring program and other positives, including the recent $47 million Industrial award. Upcoming 4Q2019 operating results and...READ MORE

Coeur Mining (CDE): Focusing on the Real Value Drivers

CDE reports full year 2019 earnings. On an adjusted basis, the company reported fourth quarter and full year losses per share of ($0.01) and ($0.25), respectively, compared to our estimates of...READ MORE

Cumulus Media Inc. (CMLS): A Towering Opportunity

Overachieves expectations. Fourth quarter 2019 results were better than expected with revenues of $285.5 million (better than our $279.0 million estimate) and cash flow of $44.9 million versus...READ MORE

Kelly Services Inc. (KELYA): NobleCon 16 Review

NobleCon 16 Presentation. Kelly management presented at NobleCon 16 with the presentation focused on the new strategy, end markets, implementation, and...READ MORE

Newrange Gold Corp (NRG:CA): Additional Ground Is Staked at Pamlico Based on IP Survey Results

IP Survey generates new drilling targets. Newrange Gold announced that its recently completed and interpreted Induced Polarization and Resistivity (IP) survey at the company’s Pamlico...READ MORE

One Stop Systems Inc. (OSS): What Does the New CEO Bring to the Table?

David Raun Appointed Interim CEO. In a somewhat surprising move, on February 18th One Stop's Board of Directors appointed Board member David Raun as interim president and CEO, succeeding Steve Cooper, who remains...READ MORE

TherapeuticsMD Inc. (TXMD): Q4 2019 Earnings: Annovera is Now the Lead Asset in the Sales Bag

Annovera sales exceeded expectations and became the lead commercial focus for the company. Annovera reached $5.8 mm in the fourth quarter compared to $0.4 mm in the...READ MORE

Energy Services of America (ESOA): Lower Revenue But Higher Margins

Soft start to fiscal year. 1Q2020 EBITDA of $0.9 million was below our estimate due to a large project completion in 4Q2019 and limited larger projects behind it. Higher than expected gross margin of 9.1% partly offset the revenue fall off. Adjusting FY2020 EBITDA to $7.1 million to reflect 1Q2020 operating results. Forecasted revenue of...READ MORE

Great Lakes Dredge & Dock (GLDD): Profitability Remains High and 2020 Outlook Robust

Strong execution and higher profitability more than offset lower revenues. While total revenue of $164.3 million was lower than expected by ~$25 million, gross profit of $34.6 million was in line with our estimate, and gross margin improved to 21%, which was above our ...READ MORE

The Market and Management Seem to be at Odds on Earnings Projections

As of February 12, 70% of S&P 500 companies had reported earnings results for the fourth quarter and 2019 year. While the reporting season is still young, the initial reports are somewhat disappointing. Fewer companies are beating estimates. 72.2% of the companies...READ MORE

1-800-Flowers.com (FLWS): Gets Into A Personal Space

Adds A Personal Touch. The company announces plans to purchase PersonalizationMall.com from Bed, Bath & Beyond for $242 million. The transaction is expected to close in early April, 2020. We view the acquisition favorably as it expands its everyday gifting platform, further distances itself from its peers that a narrow gifting offering. Reasonable purchase price. The purchase price is estimated to be...READ MORE

Kelly Services Inc. (KELYA): Can the New Growth Plan Work?

New Growth Strategy. New CEO Peter Quigley is rolling out a new, aggressive organic and inorganic growth plan to build a sustainable and profitable specialty talent solutions provider. We believe Kelly has the means, capability, and opportunity to successfully implement the plan. 4Q19 Results. Fourth quarter results were mixed. Revenue fell short of expectations due to...READ MORE

Newrange Gold Corp (NRG:CA): Striking Gold with District-Scale Projects in Nevada and the Red Lake Region of Ontario

Initiating coverage with an Outperform rating. We are initiating coverage of Newrange Gold Corp. with an investment rating of Outperform and a price target of C$0.25 per share. In our view, the equity offers investors exposure to an early-stage exploration mining company with significant gold and...READ MORE

Seanergy (SHIP): Focus on Weak Cape Market and Upcoming Refinancing

4Q2019 operating results were higher than our recently revised estimates. EBITDA of $11.9 million, TCE rates of $22.9k/day and EPS of $0.08 were above expectations. Dry bulk market weakness impacts 2020 estimate. The early part of the year has been weaker than expected and our new EBITDA estimate is $27.2 million based on TCE rates of $15.3k, down from our previous estimate of...READ MORE

The McClatchy Company (MNI): What happened?

Files for voluntary Chapter 11. There was an outside chance that the company would be able to move unfunded pension liabilities off balance sheet and do a reorganization that would leave some equity value for shareholders. This did not happen. Less favorable terms from the Pension Benefit Guaranty Corporation (PBGC) may have tipped the company's decision. Submits plans for a reorganization. The company plans to go...READ MORE

Trovagene (TROV): Lead Drug Shows Efficacy in Difficult to Treat Prostate Cancer Patients

Data Presentation at ASCO Medical Conference. Trovagene, Inc. yesterday announced results from an ongoing Phase II clinical trial on the use of its lead drug, onvansertib, in combination with hormonal therapy for the treatment of metastatic castration-resistant prostate cancer (mCRPC). Results were presented at the American...READ MORE

ACCO Brands Corporation (ACCO): Post 4Q Call Review: Basic Blocking & Tackling

Blocking & Tackling. ACCO continues to do the basic blocking and tackling. The Company's strategy of focusing on growing channels, strong brands, innovative products, and productivity improvements, complemented by accretive acquisitions is working, in...READ MORE

TherapeuticsMD Inc. (TXMD): Pre-Q4 Overview: Adjusting Our Earnings Estimates

Overview. Prior to fourth quarter earnings reporting, we are updating our estimates and wanted to convey our latest thoughts on the company. In this report, we disclose our estimates for each product, having previously reported total revenue numbers. Our investment thesis remains...READ MORE

The Other 5G Controversy

In an article dated February 4, 2020, The Wall Street Journal reported that the White House is working with U.S. technology companies to create advanced software for next generation 5G telecommunication networks in order to counteract the dominance of China’s Huawei Technologies, which holds a...READ MORE

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