Latest news, reports, and more from the RedChip Nation.
RedChip.com     May 24, 2018     Contact    
 
 
Catasys (NASDAQ: CATS) Reports 2018 First Quarter Financial Results
 

Catasys Inc. (NASDAQ: CATS), a leading AI and technology-enabled healthcare company, reported its financial results for the first quarter ended March 31, 2018.


First Quarter 2018 and Recent Business Highlights

  • Catasys’ enrollment for the quarter ended March 31, 2018 increased 74% year over year
  • Catasys’ outreach pool of eligible members continued to rapidly increase due to new program launches with two large insurers and expansions with two existing health-plan partners in early 2018. By June 2018, the Company expects its outreach pool to be at approximately 36,000, 44% higher than at the end of 2017.
  • New customer launches continue to take approximately 12 months to reach an annual 20% enrollment rate. One year after launch, the Company generally enrolls more than 20% of its outreach pool. Catasys receives approximately $6,500 per enrolled member.
  • January 2018 – Expanded OnTrak-HC to Illinois, representing the second state with this customer which is the fourth-largest health insurance plan in the country
  • February 2018 – Launched enrollment of OnTrak-Ci program in Tennessee with another top 10 health insurer, representing the fourth national health plan to launch OnTrak
  • March 2018 – Expanded OnTrak-HA with a leading regional health insurer in Illinois, making OnTrak-HA available to eligible commercial and Medicare members with anxiety and depression
  • March 2018 – Launched enrollment of OnTrak-H solution with leading national health plan partner in 16 states
  • The OnTrak program is currently available through six health plans in 19 states.

Key Quote: Terren Peizer, Chairman and CEO of CATS: “Billings for the first quarter of 2018 were in line with our expectations, and in April, we significantly exceeded our internal projections, as a result of strong enrollment. With ongoing program expansions and enrollment launches, we are cautiously optimistic that our outreach pool of eligible members will expand significantly throughout the year. Commensurate with this outreach expansion, we expect enrollment growth will continue to accelerate as the year progresses. We will continue to invest in the expansion of our platform, as well as data-driven analytics and artificial intelligence capabilities, to effectively serve a growing customer base, further driving revenue growth.”


The Backstory: With its OnTrak solution, Catasys, Inc. improves member health while reducing inpatient and emergency-room utilization, driving a reduction of more than 50% in enrolled health insurers’ costs. OnTrak is currently available in 19 states to members of several leading health plans, including six of the nation’s largest plans.


Disclosure

(Catasys [NASDAQ:CATS] is a client of RedChip Companies, Inc. CATS agreed to pay RedChip Companies, Inc. a monthly cash fee for 12 months of investor awareness services designed to help small-cap companies communicate their investment characteristics. RedChip investor awareness services include the preparation of a research profile(s), multimedia marketing, and other awareness services. For the full disclosure, please visit: www.redchip.com/company/home/cats)


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Align Technology (NASDAQ: ALGN) May Purchase up to $600 Million of Its Common Stock Over Next 3 Years
 

Align Technology, Inc. (NASDAQ: ALGN) announced that it may purchase up to $600 million of its common stock over the next three years.


This latest authorization is in addition to the existing $300 million authorization announced in April 2016, which brings the total authorization to $900 million. To date, Align has repurchased approximately $200 million of its stock against these authorizations and anticipates it will repurchase another $100 million through 2018.


Key Quote: “This repurchase program reflects the Board’s confidence in our strong future, as well as our commitment to delivering value to our stakeholders.” Joe Hogan, CEO, Align Technology


The Backstory: Align Technology designs and manufactures the Invisalign® system, the most advanced clear aligner system in the world, and iTero® intraoral scanners and services. Align’s products help dental professionals achieve the clinical results they expect and deliver effective, cutting-edge dental options to their patients. Visit www.aligntech.com for more information.


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Century Casinos (NASDAQ: CNTY) Posted Double-Digit Revenue Growth in Q1
 

Century Casinos (NASDAQ: CNTY), an international casino entertainment company with operations in Canada, Poland, and the United States, announced 12% growth in net operating revenue in the first quarter with a profit of $0.03 per share.


Why It Matters: With a book value of $6.10 per share, and a stock price that has declined 11% over the past year, CNTY represents a compelling opportunity at current levels.


Key Quote: “Construction of our largest and most significant project to date, the Century Mile racetrack and casino development, continues to be on budget and on track for an early 2019 opening.” - Erwin Haitzman, Co-CEO


What’s Next: CNTY opened its Saw Close Casino in Bath, England on May 12, which is its first location in the United Kingdom. Expanding operations are expected to be the key revenue driver in the quarters ahead.


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Inovio (NASDAQ: INO) Opens Phase 2 Trial for VGX-3100 in Third Indication to Treat HPV, the No. 1 Sexually Transmitted Disease
 

Inovio Pharmaceuticals Inc. (NASDAQ: INO) announced Monday, May 21, 2018 that it has commenced a Phase 2 clinical trial to evaluate the efficacy of VGX-3100 in adult men and women with human papilloma virus (HPV)-related anal dysplasia. Recruitment is ongoing for patients who are HIV-negative with histologically confirmed anal or perianal high-grade squamous intraepithelial lesions (HSIL) associated with HPV-16 and/or HPV-18. The study is planning to enroll about 24 patients and will administer at least three doses of VGX-3100.


The Backstory: The open-label, multi-center Phase 2 study is designed to evaluate the safety and efficacy of VGX-3100 administered by intramuscular (IM) injection with the CELLECTRA® delivery system in adult men and women who are human immunodeficiency virus (HIV)-negative with HSIL associated with HPV-16 and/or HPV-18. Previous study results using Inovio’s VGX-3100 immunotherapy, which is also in a Phase 3 trial evaluating treatment for cervical dysplasia, supported expanding treatment indications for patients associated with HPV-16 and/or HPV-18. In a Phase 2 trial for cervical dysplasia, VGX-3100 demonstrated in many patients a systemic response (vs. localized surgery), clearance of cervical lesions, elimination of the underlying HPV infection.


Why It Matters: Anal HSIL or dysplasia is the precursor to anal cancer, which it is estimated will cause more than 1,100 deaths in the United States in 2018. Currently the only treatments for anal dysplasia are surgical excision and electro-cautery or laser therapy. However, more than 50% treated with these current treatments experience recurrence of the disease. VGX-3100 could become the first approved treatment for HPV infection of the cervix and the first non-surgical treatment for precancerous cervical lesions.



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Spectrum Global (OTC: SGSI) Announces $1.5M+ in New Contract Awards
 

Spectrum Global Solutions (OTC: SGSI), a single-source provider of end-to-end next-generation wireless and wireline network solutions to the service provider (carrier) and corporate enterprise markets, continues to add to its contract backlog. Last week they announced another $1.5 million in new contract awards. The work is already underway, and revenue is expected to be realized from the contracts in Q3 and Q4 of 2018.


Why It Matters: SGSI is building in impressive backlog of new business. According to management, there are $12M+ in contracts signed where work has not yet started. The majority of this money will get recorded as revenue in 2018, positioning the company for great year-over-year growth.


Key Quote: “Our pipeline of new opportunities we are pursuing exceeds $125 million and is growing, as recent tax changes have spurred increased capital/infrastructure spending by major telecom carriers.” – Roger Ponder, CEO


What’s Next: SGSI’s market cap is only $1.7 million. The company is expected to generate upwards of $30 million in revenue in 2018. Even at a conservative valuation of 1x sales, the stock could still see several hundred percent gains, in the near-term.


Disclosure

(Spectrum Global Solutions [OTC: SGSI] is a client of RedChip Companies, Inc. SGSI agreed to pay RedChip Companies, Inc. a monthly cash fee for six (6) months of RedChip investor awareness services.)


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Alpine 4 Technologies (OTCQB: ALPP) Reports Record Revenue and Growth of 46% for 1Q2018 over 1Q2017
 

Alpine 4 Technologies Ltd. (OTCQB: ALPP) announced financial results for its 1Q18. The company posted quarterly revenue of $3.69 million, which is growth of 46% over 1Q2017 revenue of $2.49 million.


Key Quote: “Alpine 4 had a great Q1 2018. We saw revenue grow by 46% over Q1 2017. This growth was driven by the strong demand for the products and services we provide.  Further, apart from some one-time expenses mainly associated with the disposal of some under-utilized assets from our subsidiary, Venture West Energy Services, Alpine 4 produced its best quarterly results in its history and is well on the path to showing profitable quarters in 2018” Kent B. Wilson, CEO of Alpine 4


The Backstory: ALPP is a fast-growing, technology-driven holding company forecasted to generate $16 million in annualized revenue by the end of 2017. Going forward, the Company forecasts $67 million in annualized revenue by FY18; these estimates are driven by adding two new acquisitions (signed LOIs) by 1Q18 with a total forecasted annualized revenue of $43 million, and organic growth of $26 million annualized revenue from their existing subsidiaries.


Disclosure

(Alpine 4 Technologies [OTCQB: ALPP] is a client of RedChip Companies. ALPP agreed to pay RedChip a monthly cash fee and 400,000 shares of restricted Class A common stock for six months of investor awareness services.)


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Green Spirit (OTC: GSRX) Ready to Open 2 More Dispensaries in Puerto Rico
 

Green Spirit Industries (OTC: GSRX), a growing owner and operator of dispensaries and other cannabis-related businesses, announced last week that it has requested the final inspection of two new dispensaries in Puerto Rico. The construction of the dispensaries is complete, and staffing is underway. Once the Department of Health of Puerto Rico issues the requisite Occupational License for Establishment, the company will have three revenue generating dispensaries in operation on the island.


Why It Matters: GSRX is positioning itself as an early leader in Puerto Rico’s budding medical-cannabis industry. With peak tourism season around the corner and reciprocity laws for legal cardholders from the mainland United States, the timing couldn’t be better to bring these two new dispensaries online.


What’s Next: The company anticipates completing construction at its other locations in Puerto Rico during 2018, with operations commencing thereafter. Combined with its growing operational base in California, including cultivation, extraction, manufacturing, and delivery services, and under the leadership of Les Ball, former Chairman and CEO of Macy’s Midwest, GSRX could see significant upside in the months ahead.


Disclosure

(Green Spirit Industries [OTC: GSRX] is a client of RedChip Companies. RedChip Companies, Inc. received 1,000,000 registered shares of GSRX for consulting services and 50,000 shares for investor awareness services. Be advised RedChip intends to sell some or all of its shares at any time, including when you are buying.)



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Landmark SCOTUS Decision Could Provide Big Boost for Esports Entertainment (OTCQB: GMBL)
 

The U.S. Supreme Court weighed in on sports gambling this week, ruling states are free to legalize. As reported by Bloomberg, “The justices struck down the federal law that had barred single-game gambling in most of the country, saying it unconstitutionally forced states to maintain their prohibitions.” Experts believe this could have an impact on the industry in a matter of weeks, with legalization at the state level hitting double digits by year end. For Esports Entertainment (OTCQB: GMBL), which recently launched its online wagering platform, this ruling could provide a big boost for its stock.


Why It Matters: Prior to the SCOTUS decision, experts forecasted esports wagering to top $20 billion by 2023. Experts now believe this number could surge by several billion more due to the impact of the U.S. market opening.


Key Quote: “This Supreme Court decision is another great victory in 2018 for esports wagering enthusiasts, which began with the launch of our VIE platform earlier this year.  It is also another great milestone for our loyal shareholders that will now see a very large market open up to the Company.” – Grant Johnson, CEO


What’s Next: GMBL has been announcing a long list of key affiliate marketing relationships, including upwards of 50+ teams that have signed on. Affiliates will play a major role in early adoption of the company’s wagering platform. While shares nearly doubled on the SCOTUS news last week, they are still trading for only a fraction of the high of $3 reached in 2017. Just returning to its high, investors that own at current levels could see a 200%+ gain.


Disclosure

(Esports Entertainment Group, Inc. [OTC:GMBL] is a client of RedChip Companies, Inc. GMBL agreed to pay RedChip Companies, Inc. a monthly cash fee for six (6) months of RedChip investor awareness services.)


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Nutriband (OTCQB: NTRB) Appoints Dr. Jeff Patrick Chief Scientific Officer
 

Nutriband (OTCQB: NTRB), a unique, results-driven health and pharmaceutical company focused on transdermal solutions, appointed Jeff Patrick, PharmD, Chief Scientific Officer and head of its Pharmaceutical Advisory Board.


Why It Matters: Dr. Patrick is a residency-trained clinical pharmacist with approximately 20 years of pharmaceutical industry experience. He brings expertise in executive leadership, scientific and medical strategy, drug development and commercialization to the company. He currently serves as Director of Drug Development Institute at the Ohio State University Comprehensive Cancer Center. He most recently served as Chief Scientific Officer for New Haven Pharmaceuticals. 


What’s Next: Transdermal prescription sales are projected to reach $125 billion by 2021 (11.6% CAGR), while health-supplement sales could surpass $278 billion by 2024 (8.8% CAGR). Nutriband currently sells three consumer products (energy, weight management, and vitamin patches) and has a robust development pipeline of consumer and pharmaceutical solutions. Revenue for FY18 is forecasted to reach $4.2 million, growing to $198 million by 2020.


Disclosure

(Nutriband Inc. [OTCQB: NTRB] is a client of RedChip Companies, Inc. NTRB agreed to pay RedChip Companies, Inc. 10,000 shares of Rule 144 stock for 6 months of RedChip investor awareness services and consulting services.)


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Microcap Managers Continue to Outperform ETFs
 

As microcap and small-cap indexes continue to show strength, investor interest in the space is growing.


Before you jump in and pick up the latest microcap ETF, it’s important to note that over a 3-year time horizon, many active microcap managers have actually delivered superior returns when compared with regular index funds and ETFs. Several have outperformed by double-digit rates.


To learn more, check out senior analyst Mark Tobin’s insightful report on the matter.


 
 
 
 
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About RedChip
 
RedChip Companies, an Inc. 5000 company, is an international investor relations, media, and research firm focused on small-cap and mid-cap companies. Since 1992, RedChip has delivered concrete, measurable results for its clients through the most comprehensive service platform in the industry for small-cap and mid-cap companies. These services include a worldwide distribution network for its stock research written by analysts holding the CFA designation; retail and institutional roadshows in major U.S. cities; outbound marketing to stock brokers, RIAs, institutions, and family offices; a digital media investor relations platform that has generated over 2.3 million unique investor views; quarterly global online institutional and retail investor conferences that reach over 10,000 investors annually; "The RedChip Money Report" television show which airs in 100 million homes across the U.S. on The Family Channel; a weekly newsletter delivered to 60,000 investors; TV commercials in local and national markets; corporate and product videos; website design; and traditional investor relation services, which include press release writing, development of investor presentations, quarterly conference call script writing, strategic consulting, capital raising, and more.
 
RedChip Disclosure
 
RedChip Companies, Inc. research reports, company profiles and other investor relations materials, publications or presentations, including web content, are based on data obtained from sources we believe to be reliable but are not guaranteed as to accuracy and are not purported to be complete. As such, the information should not be construed as advice designed to meet the particular investment needs of any investor. Any opinions expressed in RedChip reports, company profiles, or other investor relations materials and presentations are subject to change. RedChip Companies and its affiliates may buy and sell shares of securities or options of the issuers mentioned on this website at any time.
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Stock market investing is inherently risky. RedChip Companies is not responsible for any gains or losses that result from the opinions expressed on this website, in its research reports, company profiles or in other investor relations materials or presentations that it publishes electronically or in print.
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