Learn about the latest news in small-cap stocks - Read Now
|
Wednesday, February 18, 2015 |
RedChip Money Report
|
|
Table of Contents - Quick Links:
Quote of the Week
"Must believe you're better than the average guy, it's hard, difficult, you cry at night." -Manny Villafana
Featured This Week
Cancer Genetics' Unique, Next Generation Sequencing Panel for Chronic Lymphocytic Leukemia (CLL) Selected for Use in Global Clinical Trial by Leading Biotechnology Company
Cancer Genetics, Inc. (NasdaqCM: CGIX), an emerging leader in DNA-based cancer diagnostics, announced today that its unique genomic panel for CLL, Focus:CLLTM, has been selected to provide genomic information for CLL patients in a global clinical trial. The trial is expected to assess several hundred patient specimens during 2015. Focus:CLLTM will be used to help guide patient stratification and management during the trial. The NGS-based panel is the only clinically validated, disease-focused genomic panel being offered in a commercial clinical setting for chronic lymphocytic leukemia (CLL) and small lymphocytic lymphoma (SLL). Focus:CLLTM is approved for clinical use by the Clinical Laboratory Improvement Amendments (CLIA).
Read More | Learn about CGIX
|
Small-Cap Lesson of the Week:
Defensive Stocks
Defensive stocks are stocks that are usually immune to the ups and downs of
the economy and tend to be less risky than cyclical stocks. Defensive stocks
have stability in their earnings and stable markets for their products. Some
defensive stock groups include tobacco, food, and drugs. Investors should
consider these stocks when anticipating a market downturn. While we’re
certainly not predicting a downturn at this time, an example of a defensive
stock from the life science space is Cancer Genetics (NASDAQ: CGIX), an
emerging leader in DNA-based cancer diagnostics with more than seven tests
in the market, providing diversification and risk reduction.
RedChip Money Report TV Show
Bloomberg Europe: Sundays at 8:30 a.m. & 3:30 p.m. GMT
Bloomberg Asia: Sundays at 3:30 p.m. HKT
Newsmax (on DIRECTV and Dish Network): Sundays at 2:30 p.m. ET
The February 8, 2015 episode of "The RedChip Money Report" features interviews with Trey Knippa, Director of IR for ForceField Energy (Nasdaq: FNRG), a global distributor of LED and other lighting products; Douglas Raucy, CEO of 1347 Property Insurance Holdings (Nasdaq: PIH), a property and casualty insurance holding company focused on coastal markets; and Joey Parsi, CEO, and Phillip Gay, advisory board member, of Giggles N' Hugs (OTCQB: GIGL), the first and only restaurant that brings together high-end, organic food with play elements and entertainment for children.
Watch the Most Recent Show Online
RedChip Conferences
Watch the Replays of Presentations from RedChip's January Global Online CEO Conference
Be sure to visit www.redchip.com/conference/jan2015 and watch replays of the presentations from last week's Global Online CEO Conference. We had more than 20 leading small-cap companies present at the conference and more than 4,000 unique visitors attended. Whether you want to watch a particular presentation again or see a presentation you missed, this is your opportunity to hear directly from executives of some of the best names in small-cap stocks.
MidSouth Week In Review
Weekly Update from Fund Manager Buzz Heidtke, MidSouth Investment Fund
The S & P was up around 2% for the week in turning positive year-to-date. My portfolio seems to rise and fall with oil prices. Wholesale and retail gas prices have had a nice rise recently, indicating many retailers and refiners will be reporting 1Q earning that will be above estimates. The Wall Street Journal reports that many bottom fishing funds such as: Blackstone, Wilburn Ross, GSO Partners and Apollo Global, are raising funds to buy the battered stocks, bonds and loans of energy firms following a 54% decline in crude since June.
BuzzBits
-
Staples - Obama accuses Staples of encouraging their 86,000 employees to work part-time (less than 30 hours) so that the company can avoid providing Obamacare to its employees. Many smaller companies are keeping their workforce below 50 employees to also avoid the Obamacare tax. Staples recently made an offer to acquire Office Depot, which will now most likely be denied by the justice department – BuzzFeed.com
-
Optimism - "Whenever I date a guy, I think is this the man I want my children to spend their weekends with?" – Ruth Rudner
-
"I haven't gotten remarried because I can't afford another divorce" - Buzz
-
File Early - because the IRS says the average taxpayer can expect $3,500+ in refunds this year, however your refund may be delayed. The IRS will be overwhelmed due to the delinquents who owe Obamacare penalties and from those who received too large a health-premium tax credit that must be recovered by the IRS. If you file paper returns, expect your refund to be delayed longer than the typical's' 4-6 week time frame. The majority of e-filers get their refunds within 21 days - Kiplinger's Personal Finance Advisor
-
You've Got To Be Kidding - Vanderbilt could be fined up to $20,000 by the USDA for the death of two pigs used in a radiotherapy experiment. SAEN (Stop Animal Exploitation Now) filed a complaint stating that treatment was not provided to the pigs, citing a discharge from the eyes and snout and damage to the internal organs - Tennessean
-
Wealth Gap in Graduation Rates - 9% of the lowest income quartile ($34,160) earned a bachelor's degree by age 24 in 2013 vs. only 6% in 1970. 77% of adults from families in the top income quartile ($108,650+) earned a degree by the time they turned 24 vs. 40% in 1970. 45% of dependent 18-to-24-year-olds from the lowest income group enrolled in college vs. 28% in 1970 - University of Pennsylvania Alliance for Higher Education
-
Trend Toward Smaller Retail Stores - There are a number of reasons for this. Such stores are convenient to people in heavily populated neighborhoods. The explosive growth of online shopping is negating the need to build more cavernous stores that carry a lot of inventory. As retailers shell out less for smaller-store leases it will add to their bottom lines. Target plans to open five TargetExpress stores this year, each about 86% smaller than the firm's more traditional outlets. Wal-Mart aims to open about 200 smaller-format stores. Whole Foods Market and Best Buy are also investing in smaller-format stores - Kiplinger
-
Staying Home - In 12 states at least half of 25-year-olds lived with parents in 2012. There is a clear, positive correlation between a state's student debt growth and the rate at which its 25-year-olds live with their parents, according to the New York Fed. A $10,000 increase in student debt is associated with a 2.9% rise in stay-at-home millennials. The average 2014 grad with student debt has around $33,000 to pay back
-
Cheap! Cheap! Cheap! - This week Switzerland issued 10-year bonds at a 0.011% rate. If you could buy a $1 million home completely financed at that rate your interest carrying cost would only be $91.66 a month. Germany issued 2-year Treasury notes with a negative yield of -0.22%. Yes, you have to pay interest for the right to own the note. Crazy! - Wall Street Journal
-
An Expensive Education - Secret cameras studied attendance at Harvard lecture halls. Only 60% of the students attended the lectures and only 49% when attendance was not part of their grade - New York Times At most 4-year colleges, attendance policy has been left to the professors discretion. Attendance is the best known predictor of college grades even more so than scores on standardized tests - Wall Street Journal
-
Marriage - is about as good a predictor of economic success as are education, race and ethnicity, the U.S. marriage rate has declined from 70.3% in 1950 to 50.5% in 2012. Married women in the top 10% of earners saw their marriages rates increase since 1970. Married men are more likely to work, make money and not engage in dangerous behavior like drunken driving and committing crimes. A National Bureau of Economic research study found that the median 65-to-69- year-olds married households had 10x as much savings as the typical unmarried - New York Times
-
Gaming the System - Joe Chernach committed suicide at age 25 in 2012. The family ran an autopsy and found out he had C.T.E. (chronic traumatic encephalopathy) so now the estate is suing the Pop Warner league for $5 million in punitive damages. Chernach played football in high school, wrestled for 12 years, was a pole vaulter and his dad was a Pop Warner Coach - New York Times.
Weekly Notes from Paul Resnik, RedChip CFA
Paul Resnik operates Resnik Asset Management Co. (RAMCO), a registered investment advisor.
Overview
The market, buoyed last week by good news and hopes for good news, extended its rally. The Dow Jones Industrial Average gained 195.06 points (1.09 percent), the S&P 500 Index advanced 41.52 points (2.02 percent to a record high), and the Nasdaq Composite gained 310.29 points (2.35 percent). A bounce in oil prices bolstered the energy sector (although U.S. oil production remains at high levels), German gross domestic product surged 0.7 percent in the fourth quarter after expanding 0.1 percent in the previous three months (although French growth came in as expected at a meager 0.1 percent), and fourth-quarter S&P 500 earnings growth, with almost 80 percent of the companies having reported, stood at a healthy 6.3 percent (although first quarter estimates, dragged down by energy call for a 3.4 percent decline in overall earnings). In Europe, Thursday's Ukrainian cease-fire agreement is largely holding (although occasional rebel artillery fire continues to target Ukrainian government troops in the surrounded town of Debaltseve) and hopes grew for a Euro-zone/Greece deal (despite Greece's reiteration that it would not accept the continuation of harsh austerity measures).
In the News
American Express (AXP-78.08) Cashed Out at Costco
Warehouse club retailer Costco Wholesale (COST) will stop accepting American Express credit cards at U.S. stores as of March 2016, threatening nearly 8 percent of the worldwide annual spending on its cards. AmEx said the loss of the contract would hurt earnings for the next two years and it expected earnings per share growth in 2015 to be flat to down modestly from 2014 as the Company invests aggressively to prepare for the termination of the contract. Consensus EPS estimates fell from $5.93 to $5.57 for 2015 (vs. $5.39 in 2014) and from $6.57 to $5.88 for 2016. On Friday there was a published report that AmEx's co-branding deal with JetBlue (JBLU) was also coming to end. AmEx's stock was down 8 percent for the week.
Martin Marietta Materials (MLM-145.23) Rock-Solid Results
Martin Marietta Materials, the cement and building materials company, reported fourth-quarter adjusted EPS of $0.99 on revenue of $779.5 million, up from $0.78 on revenue of $545.1 million in the year-earlier period, and beating the consensus estimates of $0.85 EPS on revenue $775.6 million. Results were aided by its acquisition in July of Texas Industries which helped it expand its business into the large, fast-growing markets of Texas and California. The Company said demand in Texas is likely to outstrip supply for several years and it recently announced prices hikes of $10 per ton there and in California. Increased housing activity was a factor in the strong results; housing activity in 2014 reached its highest level since the peak of the housing boom nine years ago. The Company's shares rallied 23 percent last week to finish at their highest level in seven years.
The Week Ahead
In economic news, January's producer price index will decline once again reflecting weak energy prices. Earnings reports, while unexciting as a whole, should generally show improvement outside of the energy and natural resource sectors. Negotiations in Brussels regarding the Greek debt broke down on Monday as Euro-zone finance ministers called off the session just a few hours after it began, saying Greece's position left them little hope of securing an agreement (the Greek finance minister's tough negotiating stance has made him a hero back home where a solid majority feel enough is enough). In the meantime, pro-Russian rebels are bombarding Ukrainian troops encircled in Debaltseve and a plan for both sides to pull back their heavy guns stalled, pushing a fragile peace deal closer to collapse. Treasury auctions scheduled for this week are on: Tuesday: $26 billion three-month bills and $26 billion six-month bills; and Thursday: $9 billion 30-year TIPS.
Recent Reports
AVTH Research Profile
Developing New Drug for $8.6B Prostate Cancer Market
AV Therapeutics, Inc. is engaged in the business of developing cancer therapeutics
and immunotherapeutic vaccines that can be used alone or in combination with
prevalent treatment modalities, such as chemotherapy and radiation, to treat active
disease and to prevent metastases and recurrence. The Company's immunetherapeutics
is based on the ability of certain proprietary reagents to re-educate or
reprogram an immune system that can target previously unidentified micrometastases. Download Report | Company PageFNRG Research Profile - Jan. 2015
Nasdaq: FNRG Set for Triple Digit Revenue Growth
ForceField Energy Inc. and its subsidiaries comprise a global company whose
products and solutions focus on sustainable energy solutions and improved energy
efficiency. ForceField is a distributor of LED and other lighting products for a
number of premier LED lighting manufacturers; and through its award-winning
subsidiaries, American Lighting (“ALD”) and ESCO Energy Services (“ESCO”),
have completed lighting installations and retrofits as well as energy efficiency
upgrades, for numerous high profile concerns in a variety of industries. ForceField is
also a licensee of modular, heat recovery systems that convert waste heat into clean
electricity. Download Report | Company PageGIGL Research Profile - Jan. 2015
Giggles N’ Hugs is the first and only restaurant that brings together high-end, organic food with play elements and entertainment for children. GIGL offers an upscale, family-friendly atmosphere with a play area filled with climbers, life-size pirate ships and kid-sizecastles dedicated to children ages 10 and younger. The restaurant has a high-quality menu made from fresh, organic foods that are enjoyed by both children and adults, along with nightly entertainment such as magic shows, concerts, puppet shows, face painting, and arts and crafts. GIGL was rated among the best family and kid-friendly restaurants by City Search and Nickelodeon, and has been featured in numerous major news programs and publications. Download Report | Company PageGLYE Research Profile - Nov. 2014
3Q14 Revenue Increased 10% YoY; Capacity Expansion
and Operational Improvements Continue at Facilities
Revenue increased 10% YoY. In 3Q14, GLYE reported revenue of $1.3 million, a
10% YoY increase as compared to 3Q13 revenue of $1.2 million. While revenue
was lower than reported revenues in 1Q14 and 2Q14, this is primarily due to
seasonality, as the 3rd quarter tends to be the slowest quarter for glycol sales. Gross
margins were negative for the fifth straight quarter at (14.7%). The reason for the
negative gross margin was the continued investment in equipment and processes for
Type 1 glycol at the Company’s New Jersey facility. Download Report | Company PageLTTC Research Profile - Nov. 2014
ICON platform improvements and growing customer base expected to drive 4Q14 and FY15 results
Total revenue decreased 7% YoY; Technology revenue and direct service revenue up 42% and 8% YoY, respectively. LTTC’s overall revenue decreased 7% YoY to $2.0 million, with the primary reason for the decrease due to the Company transitioning away from wholesale revenue and focusing primarily on technology sales and direct service revenues. The Company’s superior technology and service solutions led to average annual revenue per inmate of approximately $830, which is much higher than the industry average revenue per inmate of $515. Download Report | Company Page
Sector News
Biotechnology
Actinium Pharmaceuticals (NYSE MKT: ATNM)
Actinium Announces Closing of Public Offering of Common Stock and Warrants Read MorePrincipal Investigator Dr. John Pagel to Brief Clinicians From Major Bone Marrow Transplant Centers on Upcoming Pivotal Trial of Iomab-B Read MoreActinium to Participate in the RBC Capital Markets Global Healthcare Conference Read MoreActinium to Present at the 3rd Annual Sachs Cancer Bio Partnering & Investment Forum on February 23rd Read MoreCombimatrix Corporation (NasdaqCM: CBMX)
CombiMatrix Announces $4.9 Million Registered Direct Offering Read MoreRedHill Biopharma Ltd. (NasdaqCM: RDHL)
RedHill Biopharma to Present at the Life Sciences Israel(TM) 2015 3rd Annual International Partnering Conference Read MoreRedHill Biopharma Announces Closing of Public Offering of Its American Depository Shares Read More
Health Care
Arch Therapeutics (OTC QB: ARTH)
The British Standards Institution Classifies Arch Therapeutics' AC5(TM) as a Medical Device Within the European Union Read MoreBoston Therapeutics (OTC QB: BTHE)
Cancer Genetics, Inc. (NasdaqCM: CGIX)
Cancer Genetics, Inc. to Participate in the BTIG Second Annual Snowbird Medical Technology, Diagnostics & Healthcare IT Conference Read MoreCancer Genetics' Unique, Next Generation Sequencing Panel for Chronic Lymphocytic Leukemia (CLL) Selected for Use in Global Clinical Trial by Leading Biotechnology Company Read MoreOPKO Health (NYSE: OPK)
OPKO Health to Present at the 2015 RBC Capital Markets' Healthcare Conference Read MoreOxySure Systems, Inc. (OTC QB: OXYS)
OxySure (OXYS) Signs Distribution Agreement With Chris Gardner and Associates Read MoreOxySure (OXYS) Inks Distribution Agreement With Stop Heart Attack Read More
Industrials
Erickson Incorporated (NasdaqCM: EAC)
Erickson Announces Date for Fourth Quarter and Fiscal Year 2014 Results Read More
Mining & Metals
Energy Fuels (NYSE-MKT: UUUU)
Energy Fuels Announces Two Additions to Leadership Team Read MoreEnergy Fuels Acquires 50% Interest in the High-Grade Wate Uranium Project in Arizona Read More
Technology
Attunity, Ltd (NasdaqCM: ATTU)
Attunity Expands Solutions for Leading Hadoop and Big Data Platforms Read MoreInteliquent, Inc. (NasdaqGS: IQNT)
Inteliquent Declares Quarterly Dividend Read MoreProfire Energy (NasdaqCM: PFIE)
Profire Energy Reports Financial Results for Fiscal Third Quarter of 2015 Read MoreQuadrant 4 Systems (OTC QB: QFOR)
HealthSmart Selects Quadrant 4's Private Health Exchange Platform, QHIX Read MoreSuperCom, Ltd. (NasdaqCM: SPCB)
SuperCom to Showcase Mobile Payments Solutions Suite at Mobile World Congress 2015 Read MoreSuperCom to Implement New Mobile Biometric Voter Registration and Identification System Read MoreXplore Technologies (NasdaqCM: XPLR)
Xplore Technologies Reports Record Revenue and Net Income for Fiscal 2015 Third Quarter Read More
Weekly Insider Buying Report
$1B and Under Market Cap
Company
|
Ticker
| Net Shares Purchased
(6 mo.) |
Market Cap
(M) |
| REVOLUTION LIGHTING TECHNOLOGIES |
RVLT |
217M |
$148.61 |
LEXICON PHARMACEUTICALS |
LXRX |
149M |
$644.61 |
| DERMIRA INC |
DERM |
50M |
$406.39 |
| GTX INC |
GTXI |
49M |
$84.20 |
| METABOLIX INC |
MBLX |
46M |
$59.48 |
| YUMA ENERGY INC |
YUMA |
43M |
$129.47 |
| LOXO ONCOLOGY |
LOXO |
40M |
$198.11 |
| IKANOS COMMUNICATIONS INC |
IKAN |
28M |
$46.41 |
| ENTERTAINMENT GAMING ASIA INC |
EGT |
27M |
$25.47 |
| HORTONWORKS INC |
HDP |
27M |
$970.68 |
Note: Companies in Bold are in the RedChip Nation.
Source: Thompson Reuters
| |
 |
 |
 |
 |
 |
 |
Quadrant 4 Systems
(OTC QB: QFOR) |
8/12/2013 |
$0.06 |
$1.38 |
$0.45 |
650% |
2,200% |
Inovio Pharmaceuticals
(NasdaqGS: INO) |
11/17/2012 |
$1.96 |
$15.28 |
$6.80 |
247% |
680% |
Galectin Therapeutics
(NasdaqCM: GALT) |
11/02/2012 |
$1.89 |
$18.30 |
$3.84 |
103% |
868% |
Asure Software
(NasdaqCM: ASUR) |
12/12/2011 |
$3.17 |
$7.91 |
$6.02 |
90% |
150% |
Profire Energy
(NasdaqCM: PFIE) |
8/07/2013 |
$1.40 |
$5.78 |
$2.60 |
86% |
313% |
Craft Brew Alliance
(NasdaqGS: BREW) |
12/15/2012 |
$6.49 |
$17.78 |
$11.94 |
84% |
174% |
Northwest Biotherapeutics
(NasdaqCM: NWBO) |
2/23/2013 |
$3.30 |
$9.18 |
$6.07 |
84% |
178% |
Trecora Resources
(NYSE: TREC) |
3/23/2013 |
$8.32 |
$15.36 |
$14.54 |
75% |
85% |
OPKO Health
(NYSE: OPK) |
1/09/2014 |
$8.43 |
$14.36 |
$13.80 |
64% |
70% |
Xplore Technologies
(NasdaqCM: XPLR) |
12/05/2012 |
$4.30 |
$7.30 |
$7.00 |
63% |
70% |
Inteliquent, Inc.
(NasdaqGS: IQNT) |
9/09/2014 |
$12.60 |
$20.00 |
$17.96 |
43% |
59% |
American Water Works
(NYSE: AWK) |
1/19/2013 |
$37.91 |
$57.36 |
$52.64 |
39% |
51% |
Sorrento Therapeutics
(NasdaqCM: SRNE) |
11/18/2013 |
$8.60 |
$16.33 |
$11.41 |
33% |
90% |
MusclePharm
(OTC QB: MSLP) |
2/08/2013 |
$6.49 |
$14.04 |
$8.25 |
27% |
116% |
AVG Technologies
(NYSE: AVG) |
9/23/2014 |
$16.45 |
$20.73 |
$20.73 |
26% |
26% |
InterCloud Systems
(NasdaqCM: ICLD) |
11/11/2013 |
$2.47 |
$18.36 |
$2.87 |
16% |
643% |
j2 Global, Inc.
(NasdaqGS: JCOM) |
12/02/2014 |
$56.97 |
$65.83 |
$65.83 |
16% |
16% |
Professional Diversity Network, Inc.
(NasdaqCM: IPDN) |
4/27/2013 |
$3.95 |
$7.30 |
$4.56 |
15% |
85% |
ForceField Energy
(NasdaqCM: FNRG) |
10/15/2014 |
$6.31 |
$7.21 |
$7.21 |
14% |
14% |
Giggles n' Hugs
(OTC QB: GIGL) |
5/06/2014 |
$0.28 |
$1.43 |
$0.32 |
13% |
411% |
* Data as of 2/15/2015 19:02
About RedChip
RedChip Companies, an Inc. 5000 company, is an international small-cap research, investor relations, and media company headquartered in Orlando, Florida; with affiliate offices in San Francisco, Pittsburgh, and Seoul. RedChip delivers concrete, measurable results for its clients through its extensive global network of small-cap institutional and retail investors. RedChip has developed the most comprehensive platform of products and services for small-cap companies, which includes: Research Reports, Retail and Institutional Marketing, Institutional and Retail Road Shows, Global Online CEO Conferences, an International TV show, The RedChip Money Report(tm), featuring small-cap companies, airing weekly on Fox Business, Bloomberg Europe, and Bloomberg Asia in over 200 million homes, Shareholder Intelligence, Strategic Marketing, Crisis Management, Social Media, Blogging Services, and Webcasts. To learn more about RedChip's products and services, please visit: http://www.redchip.com/our_services
- Back to top
|
