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RMAX—The way I see it, today's news will still adversely effect REMAX despite the previous settlement since I presume their realtors are affiliated with NAR. This would be an industry-wide change, rather than company-specific. I don't have a position in RMAX, but I wanted to share this news as I recall that some here were invested in it.
"Almost 9 in 10 home sales are handled by real estate agents affiliated with NAR. The organization, the country's largest trade association, requires home sellers to offer a non-negotiable commission, typically 6%, before listing homes on its property database, known as the Multiple Listing Service, or MLS."
"How will this impact real estate commissions?
Notably, the landmark deal will slash realtors' standard 6% sales commission fee, potentially leading to significant savings for homeowners. The group had been found liable for inflating agent compensation.
Fees could be slashed by up to 30%, the New York Times reported, citing economists.
That could impact earnings for 1.6 million real estate agents, who could see their $100 billion annual commission pool shrink by about one-third, analysts with Keefe, Bruyette & Woods wrote in a report last year about the pending litigation.
Standard commission rates in the U.S. are among the highest in the world. Real estate agents make money by pocketing a percentage of a home's sale price." https://www.cbsnews.com/news/realtor-commission-settlement-nar-national-association-realtors/
RMAX - I'm not sure how much of this was known and already factored into the price, but I think this agreement could certainly hurt a company like RMAX.
"Realtors Reach Settlement That Will Change How Americans Buy and Sell Homes
Groundbreaking $418 million legal agreement could drive down commission rates and shrink the number of real-estate agents"
https://www.wsj.com/real-estate/realtors-settlement-change-buy-sell-homes-da45eb23
SBH ($10.89) is back in value territory. Earnings reported on Aug 3rd were strong, albeit down from last year.
Sally Beauty Holdings Reports Third Quarter Fiscal 2023 Results; Maintains Full Year Sales Guidance and Updates Operating Margin Outlook to High End of Previous Range
6:45 AM ET, 08/03/2023 - Business Wire
-Q3 GAAP Operating Margin of 9.7%; Adjusted Operating Margin of 9.6%
-Q3 GAAP Diluted EPS of $0.46; Adjusted Diluted EPS of $0.49
-Introduces New Store Concept – Happy Beauty Co.
DENTON, Texas--(BUSINESS WIRE)--Aug. 3, 2023--Sally Beauty Holdings, Inc. (NYSE: SBH) (“the Company”), the leader in professional hair color, today announced financial results for its third quarter ended June 30, 2023. The Company will hold a conference call today at 7:30 a.m. Central Time to discuss these results and its business.
Fiscal 2023 Third Quarter Summary
Consolidated net sales of $931 million, a decrease of 3.2% compared to the prior year;
Consolidated comparable sales increased 0.6%;
Global e-commerce sales increased 3% to $83 million, representing 8.9% of net sales;
GAAP gross margin at 51.0%; Adjusted Gross Margin at 50.9%;
GAAP operating earnings of $90 million and GAAP operating margin of 9.7%; Adjusted Operating Earnings of $90 million and Adjusted Operating Margin of 9.6%; and
GAAP diluted net earnings per share of $0.46 and Adjusted Diluted Net Earnings Per Share of $0.49.
“We are pleased to report another solid quarter with net sales of $931 million, Adjusted Gross Margin of 51%, Adjusted EBITDA of $119 million and free cash flow of $32 million. Three quarters into our fiscal year, we are on track with our operating initiatives and the financial guidance we originally laid out for fiscal 2023,” said Denise Paulonis, president and chief executive officer.
“Our teams remain focused on fueling growth through our core strategic initiatives – enhancing customer centricity, driving innovation and increasing operating efficiency. Of note, we continue to pilot a number of growth driving initiatives, including Cosmo Prof Direct, Studio by Sally and Happy Beauty Co. When combined with our focus on innovation and owned brands, we are confident that our strategies will continue to build upon our modern and dynamic retail platform, taking us well into the future. Importantly, we remain steadfast in our commitment to enhance value for our customers and shareholders over the long-term.”
Fiscal 2023 Third Quarter Operating Results
Third quarter consolidated net sales were $931.0 million, a decrease of 3.2% compared to the prior year. The Company was operating 352 fewer stores at the end of the quarter compared to the prior year. Foreign currency translation had a favorable impact of 20 basis points on consolidated net sales for the quarter. At constant currency, global e-commerce sales increased 3% compared to the prior year to $83 million or 8.9% of consolidated net sales for the quarter.
Consolidated comparable sales increased 0.6%, driven primarily by Sally Beauty’s strong sales recapture rates from the Company’s recent store optimization efforts, mostly offset by the continuation of stylist demand trends seen over the last several quarters at Beauty Systems Group.
Consolidated gross profit for the third quarter was $474.7 million compared to $490.2 million in the prior year, a decrease of 3.2%. Consolidated GAAP gross margin was 51.0%, flat compared to the prior year. Adjusted Gross Margin, which excludes the true-up of a non-cash inventory write-down in the fourth quarter of fiscal 2022 related to the Company’s previously announced distribution center consolidation and store optimization plan, was 50.9%, a decrease of 10 basis points compared to 51.0% in the prior year. Higher product margin at Sally Beauty, driven by pricing leverage and higher owned brand penetration, was offset by lower margin at Beauty Systems Group resulting from an unfavorable sales mix shift between the segment’s stores and expanded Regis partnership, as well as a shift in some distribution center costs from selling, general and administrative expenses into gross margin.
Selling, general and administrative (SG&A) expenses totaled $384.2 million, a decrease of $6.8 million compared to $391.0 million in the prior year. The decrease was driven primarily by the savings from the Company’s previously announced distribution center consolidation and store optimization plan, lower advertising costs and prudent cost control, partially offset by higher labor and accrued bonus expenses. As a percentage of sales, SG&A expenses were 41.3% compared to 40.7% in the prior year.
GAAP operating earnings and operating margin in the third quarter were $90.1 million and 9.7%, compared to $99.2 million and 10.3%, in the prior year. Adjusted Operating Earnings and Operating Margin, excluding the Company’s restructuring efforts and COVID-19 related net expenses, were $89.8 million and 9.6%, compared to $100.6 million and 10.5%, in the prior year.
GAAP net earnings in the third quarter were $50.8 million, or $0.46 per diluted share, compared to GAAP net earnings of $46.6 million, or $0.43 per diluted share in the prior year. Adjusted Net Earnings, excluding the Company’s restructuring efforts, COVID-19 related net expenses, the loss on extinguishment of debt, and other adjustments, were $53.3 million, or $0.49 per diluted share, compared to Adjusted Net Earnings of $59.8 million, or $0.55 per diluted share in the prior year. Adjusted EBITDA in the third quarter was $118.8 million, a decrease of 7.5% compared to the prior year, and Adjusted EBITDA Margin was 12.8%, a decrease of 50 basis points compared to the prior year.
Balance Sheet and Cash Flow
As of June 30, 2023, the Company had cash and cash equivalents of $74 million and an outstanding balance of $16 million under its asset-based revolving line of credit. At the end of the quarter, inventory was $996 million, down 2% versus a year ago. Third quarter cash flow from operations was $53.1 million. Capital expenditures in the quarter totaled $21.6 million.
The Company ended the quarter with a net debt leverage ratio of 2.2x.
On April 28, 2023, the Company entered into a 3-year interest rate swap agreement, which swaps a notional amount of $200 million of the new term loan, which was refinanced in February of 2023, from a floating term SOFR rate to a fixed rate of 3.705%.
Fiscal 2023 Third Quarter Segment Results
Sally Beauty Supply
Segment net sales were $534.9 million in the quarter, a decrease of 3.0% compared to the prior year. The segment operated 327 fewer stores at the end of the quarter compared to the prior year and had a favorable impact of 70 basis points from foreign currency translation on reported sales. At constant currency, segment e-commerce sales decreased 5% to $32 million or 5.9% of segment net sales for the quarter.
Segment comparable sales increased 3.0% in the third quarter, driven primarily by strong sales recapture rates from the Company’s recent store optimization efforts. The Sally Beauty businesses in the U.S. and Canada represented 77% of segment net sales for the quarter and had a comparable sales increase of 3.1%.
At the end of the quarter, net store count was 3,141.
GAAP gross margin increased by 30 basis points to 58.8% compared to the prior year. The increase was primarily driven by higher product margin from pricing leverage and higher owned brand penetration.
GAAP operating earnings were $88.7 million compared to $88.8 million in the prior year, essentially flat. GAAP operating margin increased to 16.6% compared to 16.1% in the prior year.
Beauty Systems Group
Segment net sales were $396.1 million in the quarter, a decrease of 3.3% compared to the prior year. The segment operated 25 fewer stores at the end of the quarter compared to the prior year and had an unfavorable impact of 40 basis points on reported sales from foreign currency translation. At constant currency, segment e-commerce sales increased 8% to $51 million or 13.0% of segment net sales for the quarter.
Segment comparable sales decreased 2.4% in the third quarter, primarily reflecting the continuation of stylist demand trends seen over the last several quarters.
At the end of the quarter, net store count was 1,336.
GAAP gross margin decreased 40 basis points to 40.5% in the quarter compared to the prior year, driven primarily by an unfavorable sales mix shift between the segment’s stores and expanded Regis partnership, as well as a shift in some distribution center costs from selling, general and administrative expenses into gross margin.
GAAP operating earnings were $48.7 million in the quarter, a decrease of 13.1% compared to $56.1 million in the prior year. GAAP operating margin in the quarter was 12.3% compared to 13.7% in the prior year.
At the end of the quarter, there were 650 distributor sales consultants compared to 700 in the prior year.
Fiscal Year 2023 Guidance
The Company is updating its full fiscal year 2023 guidance by revising its Adjusted Operating Margin to the higher end of the original guidance. All other components of the Company’s full fiscal year 2023 original guidance are being maintained:
Comparable sales are expected to increase by low single digits compared to the prior year, driven by growth in key categories, sales transfer from store closures related to the Company’s store optimization efforts, the expanded Regis distribution and new strategic initiatives;
Net sales are expected to decline by low-single digits compared to the prior year, reflecting the unfavorable impact due to store closures from the Company’s store optimization efforts, net of expected sales recapture rates;
Gross margin is expected to remain above 50%; and
Adjusted Operating Margin is now expected to be in the range of 9.0% and 9.4% (previously 8.5% to 9.5%).
The Company does not provide a reconciliation for forward-looking non-GAAP financial measures where it is unable to provide a meaningful or accurate calculation or estimation of reconciling items and the information is not available without unreasonable effort. This is due to the inherent difficulty of forecasting the occurrence and the financial impact of various items that have not yet occurred, are out of the Company’s control or cannot be reasonably predicted. For the same reasons, the Company is unable to address the probable significance of the unavailable information. Forward-looking non-GAAP financial measures provided without the most directly comparable GAAP financial measures may vary materially from the corresponding GAAP financial measures.
Sally Beauty Holdings Launches New Store Concept – Happy Beauty Co.
The Company announced the launch of Happy Beauty Co., a unique new retail store concept that brings to market an engaging beauty experience with a value price point offering. Happy Beauty Co. offers quality beauty at great prices in an accessible, fun and expressive environment. All of the merchandise is priced under $10 with product offerings encompassing four key categories: Cosmetics & Facial Care, Bath & Body, Nails and Hair, featuring both third-party brands and the Company’s owned brands. The initial pilot store was opened in the Dallas/Ft. Worth market in late June.
I think this is what hweb2 is referring to:
https://www.newsweek.com/where-zelensky-open-compromise-russias-4-demands-end-war-1685987
SUMR ($10.40) looks interesting as a turnaround play, especially if the supply chain issues subside in 2022.
This Seeking Alpha contributor does a good job at highlighting the value proposition.
https://seekingalpha.com/article/4470028-summer-infant-sumr-stock-interrupted-turnaround-resumes
I started a position this afternoon.
AMRX - I think you mentioned this stock before, SSKILLZ1.
Seems like this partnership could be very good for AMRX if this startup takes off, and the Cuban connection might get some eyeballs on AMRX. I like the concept here...
Mark Cuban-Owned Company To Launch Pharmacy Benefit Management Services
Billionaire investor Mark Cuban is funding a new company focused on selling generic pharmaceuticals at a transparent fixed-rate markup.
What Happened: The Mark Cuban Cost Plus Drug Company is launching a new pharmacy-benefit management (PBM) service that will incorporate manufacturing, pharmacy services and wholesale distribution under one corporate operation, according to a Wall Street Journal report.
The company's manufacturing facility will be based in Dallas and is slated to be open by September 2022. Also in the works is an online pharmacy will sell 100 of the most commonly prescribed generic medications.
The pharmacy is buying drugs directly from generic manufacturers including Amneal Pharmaceuticals Inc. (NYSE: AMRX) and will charge customers a 15% markup plus a $3 dispensing fee, said Alex Oshmyansky, the CEO of Cuban’s company.
On the wholesale side, Cuban’s PBM will start bidding for clients next year for its PBM services and aims to be operational in 2023, Oshmyansky added, noting the company will share details of its operating costs to clients and will share 100% of the rebates they receive from drugmakers.
“The supply chain for distributing pharmaceuticals to patients is so cumbersome and broken,” Oshmyansky said. “We decided the only way to get our drugs to the people who need them is to build a parallel supply chain where we have control of all the intermediary players and ensure the same level of transparency at every level.”
Why It Happened: Cuban launched his drug company in January after being a longtime vocal critic of the high cost of health care, with an initial focus on the manufacture of albendazole, an antiparasitic drug. Oshmyansky was tapped by Cuban to run the PBM after he wrote an unsolicited pitch letter to the “Shark Tank” star three years ago.
“Our goal is that everyone should be able to afford their medicine,” said Cuban company’s website. “Everyone should know what it cost to make their medicine. Everyone should feel the price they paid for their medicine was fair.”
LMB - Just a thought.
Ex-FDA commissioner Scott Gottlieb has been on CNBC a lot lately. He thinks that Covid is likely here to stay, and, in order to feel comfortable about getting back to some normalcy, we need to start retrofitting public spaces with better air filtration.
Seems like there would be a lot of opportunity for HVAC-type companies (like LMB), especially if the government starts mandating better air quality in these types of buildings over the coming years.
FRD: Steel bulls might want to also check out LEGO, a SPAC merging with formerly bankrupt steel company Algoma Steel (at an enterprise value of $1.7B). Algoma Steel just reported $281 million of Adjusted EBITDA for the Q, so seems pretty cheap on the surface.
I don't know much about the company otherwise and I have no position in this or any other commodity stock.
Press Release: Algoma Steel Inc. Announces Strong First Quarter Results; Parent Company Expected to Become Public in 2021
5:36 pm ET August 19, 2021 (Dow Jones)
Algoma Steel Inc. Announces Strong First Quarter Results; Parent Company Expected to Become Public in 2021
PR Newswire
SAULT STE. MARIE, ON, Aug. 19, 2021
SAULT STE. MARIE, ON, Aug. 19, 2021 /PRNewswire/ - Today Algoma Steel Inc. (the "Company") reported strong first quarter results for the fiscal quarter ended June 30, 2021, setting the stage for its parent company, Algoma Steel Group Inc. ("Algoma") to become a public company later in 2021. Unless otherwise specified, all amounts are in Canadian dollars.
In the first quarter of fiscal 2022, the Company earned a net income of $214 million, up from $114 million in the prior quarter and a $43 million loss in Q1 fiscal 2021.
The Company's strong financial performance is primarily attributable to an improvement in shipment volume, strong steel demand and improved selling prices.
Shipments for the first quarter increased by 47% to 610,000 tons, compared to 416,000 tons in Q1 fiscal 2021, culminating in steel revenue of $765 million, up 124% from $423 million in the first quarter of fiscal 2021 and from $633 million in the prior year quarter.
The strong demand and realized pricing, as well as the Company's focus on cost containment, contributed to $281 million of Adjusted EBITDA for the first quarter, up from $167 million in the prior quarter and $21 million in Q1 fiscal 2021. As described below, Adjusted EBITDA is a non-GAAP/IFRS measure of profitability that management uses as an indicator of the operational health of the business.
The Company's Chief Executive Officer Michael McQuade remarked on the Company's first quarter performance, "We believe that our ongoing focus on keeping our employees safe and developing a culture of continuous improvement, coupled with a steady stream of strategic investments in our operating facilities, improves our position across the steel cycle. The extended strength we see in the steel market positions us favorably for our pending return to public markets. In addition, last month's announcement of the Government of Canada's anticipated $420 million in support for our proposed transition to electric arc furnace ("EAF") technology, together with up to US$306 million of new equity capital that may be provided by our merger with Legato Merger Corp. ("Legato", NASDAQ: LEGO, LEGOU, LEGOW), is expected to make our sustainability transformation possible."
Solid earnings out of UONE ($7.13). Might be one to watch because it tends to get hyped by the Robinhood crowd (it's a black-owned media company) - although I don't know if they care about earnings reports....
Press Release: Urban One, Inc. Reports Second Quarter Results
6:45 am ET August 5, 2021 (Dow Jones) Print
Urban One, Inc. Reports Second Quarter Results
PR Newswire
WASHINGTON, Aug. 5, 2021
WASHINGTON, Aug. 5, 2021 /PRNewswire/ -- Urban One, Inc. (NASDAQ: UONEK and UONE) today reported its results for the quarter ended June 30, 2021. Net revenue was approximately $107.6 million, an increase of 41.6% from the same period in 2020. Broadcast and digital operating income(1) was approximately $49.6 million, an increase of 64.3% from the same period in 2020. The Company reported operating income of approximately $37.9 million for the three months ended June 30, 2021, compared to approximately $20.4 million for the three months ended June 30, 2020. Net income was approximately $17.9 million or $0.36 per share (basic) compared to approximately $1.4 million or $0.03 per share (basic) for the same period in 2020. Adjusted EBITDA(2) was approximately $44.8 million for the three months ended June 30, 2021, compared to approximately $24.5 million for the same period in 2020.
Alfred C. Liggins, III, Urban One's CEO and President stated, "Overall we had an extremely strong second quarter; not only was Adjusted EBITDA up 82.4% year-over-year, but we also surpassed our Q2 2019 pre-pandemic Adjusted EBITDA. We are experiencing unprecedented advertiser interest in our audience across the entire Urban One platform. The radio advertising business saw a robust rebound from the worst impacts of the pandemic in Q2 2020, with segment revenues up by 73.0% and radio syndication revenues up 50.2%. We also benefitted from strong TV scatter markets, with TV advertising revenues up 21.3% in the quarter; furthermore, registered interest in our 2021-22 TV upfront sales presentations has also been extremely encouraging, which will help our fourth quarter revenue performance. Demand for our digital products remains high, with digital revenues up by 147.9% for the quarter and Adjusted EBITDA up by over $6.0 million; a significant help to our top and bottom-line growth. For Q3, our core radio business excluding political is currently pacing up by over 40%, and we are comfortable increasing our FY21 Adjusted EBITDA guidance to mid-$130 million, excluding casino chase costs. During the quarter we completed the second tranche of our Class A ATM share sale program, which yielded $21.2 million net of fees. This cash influx further strengthened our balance sheet, and we ended the quarter with $129.8 million of cash on hand, which is a healthy place to be ahead of the exciting new investment opportunity in the One Casino & Resort in Richmond, Virginia."
I also bought some SCKT on today's selloff.
The brief CC had some positive comments about the rest of the year, plus highlighted some of the NFC potential:
https://docoh.com/transcript/944075/2021Q2/SCKT
The CEO stated:
"The strong demand we saw in Q2 should continue during 2021.
We expect retail to remain strong and hope to see improvements in our Commercial Services, Logistics, and Healthcare segments where we are currently seeing many testing and piloting activities.
We expect these activities to start converting into meaningful revenue moving forward.
We continue to invest in our NFC-centric products which we expect to be a significant revenue driver in 2022 and beyond. Currently, the NFC market is very payment-centric.
For example, the NFC technology is used in Apple Pay and Google Pay. Their technology is easy to use, convenient and secure. Apple, an iOS 15 will enable the consumer to use the same NFC technology to carry identification information such as mobile driver licenses, and you'll be able to carry these as mobile passes in your digital wallets. Visibility will significantly increase the usage of mobile driver licenses and the demand for a reader that can access this information in a nonpayment situation. We believe our S550 and D600 NFC products are the ideal mobile pass readers for this opportunity."
As far as supply chain issues, the CFO seemed to downplay any concerns here:
"Our inventory level increased in Q2 in response to the supply chain tightness. The team is navigating the challenges well through supplier diversification and inventory management, and we feel good about the rest of the year."
They did mention hiring new talent so, hopefully, they keep expenses in check and don't overspend. The rest sounds pretty good. Covid is accelerating contactless payments and, of course, the low float means it could spike higher at any time for a good reason or no reason at all!
IMMR preliminary numbers look pretty good. Solid company with great IP and a good balance sheet.
4:41 pm ET July 6, 2021 (Dow Jones)
Immersion Announces Preliminary Results for Fiscal Second Quarter 2021
Company Expects 90% Year-over-year Revenue Growth, GAAP EPS of between $0.16 and $0.18 per share and Non-GAAP EPS between $0.22 and $0.23 per share
SAN FRANCISCO--(BUSINESS WIRE)--July 06, 2021--
Immersion Corporation (NASDAQ: IMMR), the leading developer and provider of technologies for haptics, announced today preliminary results for the fiscal second quarter ended June 30, 2021.
Based on preliminary financial data, Immersion expects fiscal second quarter:
-- Revenues to be between $10.5 to $11.0 million
-- GAAP Operating expenses to be between $5.1 and $5.5 million
-- GAAP Net Income to be between $5.0 and $5.5 million or $0.16 and $0.18
per diluted share
-- Non-GAAP Operating expenses to be between $3.9 and $4.3 million
-- Non-GAAP Net Income to be between $6.8 and $7.3 million or $0.22 and $0.23 per diluted share
Jared Smith, Immersion's Interim Chief Executive Officer commented, "We finished the first half of 2021 with strong momentum in our business, delivering sequential and year-over-year growth while continuing to innovate. I'm excited to capitalize on this momentum and look forward to providing a more comprehensive update in our upcoming earnings call."
Value1008 and Worthylion, FYI, the team behind FRX is back with its second SPAC, FRXB. Just began trading at $10 yesterday.
I bought some FRXBU for $10.05. Each unit of FRXBU comes w/ 1 common share and 1/5 warrant. You can't buy this one yet on TDAmeritrade but you CAN buy it on Fidelity. Not sure about other brokers.
researcher59 - ACIC
Archer's founder was interviewed on Benzinga today. Definitely worth a listen. The interview begins that the 11-minute mark:
FRX - Ironically, BeachBody doesn't seem to be the "sexy" company the market was looking for. Pre-revenue SPACs seem to fare better! Oh well. I'm still holding for now.
The stock was actually trading at $15.50 when I woke up at 5 AM EST but I was unable to sell at that hour.
Does anyone have a WeBull account? This new online broker allows trading from 4 AM EST, a full 3 hours before the standard after-hours trading sessions of brokers like TD Ameritrade and Fidelity.
FRX (the "Shaq SPAC") announces their merger target https://www.wsj.com/articles/fitness-and-nutrition-companies-to-combine-in-3-billion-spac-merger-11612933261
r59 - EV list
RMO Romeo Power (batteries) should qualify.
https://romeopower.com/
BUS.V/BUSXF - Not sure if Grande West Transportation Group qualifies but I'll mention it anyway.
Grande West is not a pure-play EV company (they still manufacture gas guzzlers) but they do seem to be transitioning to electric buses and are starting to get recognized as such (the stock is soaring). They are also building a US factory and seeking to list on the NASDAQ or NYSE. https://grandewest.com/index.php/investors/press-releases
value1008- FRX - I agree, Triller seems like a perfect fit. I could see ex-TikTok CEO Kevin Mayer joining Triller's BOD and serving as an advisor post-merger.
Unless it pops before a target is announced, I'll hold on and see what happens...
Bought some FRX - FOREST ROAD ACQUISITION CORP ($10.38) as a flyer. This SPAC started trading today and has some big names at the helm (from ex-Disney employees to SHAQ). At $10.38 it's trading at 38 cents above NAV so not too much downside risk. I read that Kevin Mayer (ex-TikTok CEO) will be on CNBC later today so I think there may be a little spike if and when that interview happens. If they find an acquisition/merger target, it will take months or more so I don't plan on holding beyond today or next wk. Of course, the $10 plus interest gets returned to investors if no merger acquisition candidate is identified within 2 yrs (hence the "low risk").
-------------
"Special Purpose Acquisition Company called Forest Road Acquisition Corp. filed an S-1 filing with the Securities and Exchange Commission seeking to raise $250 million from investors to acquire or merge with a company in the technology, media or telecommunications sectors.
The most notable news for Hollywood, however, is who is behind the SPAC: Former Walt Disney Co. COO Tom Staggs, Disney's former direct-to-consumer chief Kevin Mayer, and former Disney executive vp Salil Mehta. They are joined by NBA legend Shaquille O'Neal, film and TV producer Mark Burg (Saw, Two and a Half Men), former Focus Features CEO Peter Schlessel, Martin Luther King III and executives Teresa Miles Walsh and Sheila Stamps.
Finance executive Keith Horn will be CEO of the SPAC with Zachary Tarica serving as chief investment adviser and Idan Shani serving as COO.
Staggs will be a director and chair of the company's strategic advisory committee, Mehta will be CFO, while Mayer, O'Neal and Burg will be strategic advisers. Stamps, Miles Walsh, Schlessel and King will serve on the SPAC's board of directors.
Forest Road Acquisition is one of many new SPACs targeting the media, entertainment and technology space. As investors pour billions of dollars into these blank check firms, the question remains as to whether there are enough attractive private companies to take public through the SPAC process.
In this case, the extensive entertainment background of the SPAC's sponsors suggest that they believe they can identify a company in the space that could make for a strong fit.
"We believe that media and entertainment is undergoing rapid and aggressive technology-induced change, resulting in new monetization opportunities and secular growth as opportunities to reach consumers expand, new entrants seek to gain market share, and the 'old guard' adapts to the evolving needs of today’s consumers," Forest Road Acquisition writes in its S-1. "We believe that our team’s experience in building and executing strategies that combine capabilities and expertise in consumer preferences and technology/product development will differentiate our ability to source a successful partner."
AWX back in the $2.70's A/H after spiking to $4 just 24 hours ago.
The people dumping today are probably the same ones who chased it yesterday.
In EV SPAC-land, today's entry is ACTC (up 70%)
https://finance.yahoo.com/news/ev-tech-company-proterra-public-131555516.html
Anyone interested in playing SPACs, I'd recommend listening to the
Benzinga stream at 11:00 EST Mon-Fri
https://www.youtube.com/c/Benzinga
I forgot to include GIK, a SPAC merging w/ medium-duty EV company Lightning eMotors.
Speculative EV SPAC plays
I purchased RIDE this morning on news of a rather significant preorder number (at this stage of the game).
"Lordstown Motors shares are trading higher after the company announced 100,000+ preorders for its all-electric pickup truck for fleets."
NGA is another EV SPAC w/ an AMZN partnership
TCCO trading over $16 in the pre-market. The insanity continues!
Powell's comments yesterday certainly didn't give the bulls pause, so it continues: https://www.cnbc.com/2020/12/16/powell-says-stock-prices-are-not-necessarily-high-considering-the-low-level-of-interest-rates.html
UNFI ($15.58) looks cheap. Their earnings came up short of estimates, but they reiterated guidance and gave an upbeat CC. CEO said they expect to renew the Whole Foods contract (biggest customer) in early 2021 (even though the current contract doesn't expire until 2025). E-Commerce biz growing quickly.
I see their trucks in my neighborhood all the time.
https://www.supermarketnews.com/retail-financial/unfi-ramps-business-new-existing-customers-q1
CFRA MAINTAINS BUY OPINION ON SHARES OF UNITED NATURAL FOODS, INC.
11:13 am ET December 9, 2020 (CFRA)
We lower our target by $4 to $22, calculated by applying an EV/EBITDA multiple of 6.8x against our FY 21 (Jul.) adj-EBITDA estimate of $590M (down from $610M), which excludes UNFI's retail business. We lower our FY 21 EPS estimate to $3.16 from $3.50 and FY 22's to $3.50 from $3.55. UNFI posts F1Q (Oct-Q) adj-EPS of $0.51 vs. $0.04, $0.23 below consensus; sales missed by 2%. We note F1Q is typically a seasonally slow period and F2Q should shape up to be much stronger due to the recent surge in Covid-19 cases, capacity constraints in the food-away-from-home channel (limited outdoor dining opportunities), a seasonally strong period for food-at-home demand, and new business opportunities from new and existing customers. Also, UNFI will soon be lapping customer bankruptcies within the independent space. Lastly, outgoing CEO Steve Spinner said he expects the Whole Foods contract (set to expire in 2025) to be extended early in CY 21 (terms still unknown), which could be a significant catalyst for the shares.
Wade, just to play the devil's advocate, here are a few things to ponder:
1. This article is worth a read. It outlines where the major investment banks have set their 2021 target prices for the S&P 500.
Target Prices for 2021
2. Insights from one billionaire: Billionaire investor Paul Tudor Jones forecasts the economy will see an 'absolute supersonic boom' in 2021
3. Interesting insights from Bespoke Investment Group (free newsletter released today). Kind of a mixed bag but no signs we are at the edge of the cliff, imo.
"November’s rally put the S&P 500’s total return for the last year to 17.5%, which is nearly six percentage points above the historical average. On an annualized basis, two, five, and ten-year returns are also well above their historical averages, while 20-year returns are still well below average (7.3% vs 10.9%). The market is making up for lost time."
"There have been some concerns regarding the labor market, but based on the ISM Manufacturing report, the problem is more about the supply of labor than demand."
"December has been a positive month for the Dow with positive average returns over the last 100, 50, and 20 years."
hweb2 - ISNS. Their earnings reports haven't been too great for a while now, so I'm guessing that insider is excited about their new "RTMS Echo" product. Here's a demo video:
insert-text-here
Looks like it could be a useful tool and maybe they get a bunch of contracts with the new infrastructure spending. I don't own the stock.
"The improvement in product revenue was driven by winning several opportunities previously delayed by COVID-19 and the sales team's focused market engagement with partners and end customers. Additionally, through aggressive promotion, webinar content, and roundtables with industry experts, we have created a sizable pipeline of opportunities for our latest product, RTMS Echo. This trend reinforces our belief that Echo will become the foundation for organic growth in the coming years," concluded Mr. Stelzig.
IDEX increased its market cap today by roughly $250M after announcing "it increased its stake in California-based Solectrac Inc. through a follow-on investment of an additional $1.3 million."
It's up another 9% a/h. Yikes
Earlier this week, JP Morgan set their EOY 2021 S&P target at 4500. Now Goldman sets their target at 4300.
Goldman hikes S&P 500 target, sees a 20% gain by end of 2021
Pfizer’s promising vaccine news prompted Goldman Sachs to lift its stock-market outlook on Wednesday.
The firm hiked its year-end S&P 500 target to 3,700 from 3,600, a 4% rise from Tuesday’s close of 3,545.53. Goldman also expects the broad equity benchmark to rally to 4,300 by the end of 2021, which represents a 21% gain from here.
“A vaccine is a more important development for the economy and markets than the prospective policies of a Biden presidency,” David Kostin, the bank’s chief U.S. equity strategy, said in a note on Wednesday. “The much-awaited results from Pfizer (PFE) that its COVID-19 vaccine has an efficacy rate greater than 90% is a positive event that will allow society to gradually normalize during 2021.”now Goldman sees 4300
Seems overly optimistic to me, but.....
"JPMorgan says vaccine news could take the S&P 500 as high as 4,500 next year, or 24% from here"
https://www.cnbc.com/2020/11/09/jpmorgan-says-vaccine-news-could-take-the-sp-500-as-high-as-4500-next-year-or-24percent-from-here.html
Not to speak for R59, but I've been watching: http://maximwebsite.tripod.com/President2020.html
Picked up some UNFI ($14.63). Looks cheap under $15.
BGFV - Lake Street gave a bullish commentary and reiterated its $15 PT.
I saw this on Yahoo:
"Lake Street analyst reiterates 15 target:
LS $BGFV doubled its quarterly dividend yield of 4.9%.
Reiterate BUY $15 PT think BGFV shares are inexpensive trading at 2.1x EV/EBITDA on our 2021 estimate and 6.4x forward earnings. We derive our $15 price target by applying a 5x EV/EBITDA multiple applied to new 2021 estimate"
Benzinga says BGFV beat sales estimates while Marketwatch says they missed sales estimates.
1. Big 5 Sporting Goods Q3 EPS $1.31 Up From $0.30 YoY, Sales $304.96M Beat $265.99M Estimate
4:15 pm ET October 27, 2020 (Benzinga)
Big 5 Sporting Goods (NASDAQ:BGFV) reported quarterly earnings of $1.31 per share. This is a 336.67 percent increase over earnings of $0.30 per share from the same period last year. The company reported quarterly sales of $304.96 million which beat the analyst consensus estimate of $265.99 million by 14.65 percent. This is a 14.58 percent increase over sales of $266.15 million the same period last year.
2. Big 5 stock falls after Q3 results, dividend increase
4:33 pm ET October 27, 2020 (MarketWatch)
Shares of Big 5 Sporting Goods Corp. (BGFV) fell more than 9% in the extended session Tuesday after the retailer reported fiscal 2020 third-quarter sales below Wall Street expectations, but which the company called the "strongest" in memory. Big 5 earned $28.4 million, or $1.31 a share, in the quarter, compared with $6.4 million, or 30 cents a share, in the third quarter of fiscal 2019. Sales rose to $305 million, compared with $266 million a year ago. Same-store sales rose 15% for the quarter, the company said. FactSet consensus called for sales of $313 million in the quarter. There was no consensus for GAAP EPS available on FactSet. "I am pleased to report an exceptional third quarter, which represents the strongest sales and earnings performance in our 65-year history," Chief Executive Steven G. Miller said in a statement. The retailer's products resonated "with consumers who are looking for ways to stay healthy and active." The company ended the quarter with no borrowings and nearly $56 million in cash, it said. As a result, its board authorized a dividend increase to 10 cents a share from 5 cents a share, payable Dec. 15 to stockholders of record as of Dec. 1, it said.
CC replay can be found here: BGFV webcast
This IPO may bring some more attention to BGFV and the sporting goods sector
Retailer Academy Sports and Outdoors sets IPO range at $15-$17
Academy Sports and Outdoors late Wednesday set its initial public offering terms, hoping to sell 15.625 million shares between $15 and $17 a share. The Texas-based sporting goods and recreation retailer would become a public company amid difficult times for the retail industry, beset by recent bankruptcies and competition with online-only retailers. Academy Sports and Outdoors has applied for listing on the Nasdaq, with underwriters including Credit Suisse, J.P. Morgan, and BofA Securities. For the six months ended Aug. 1, the company recorded net income of $157.7 million on revenue of $2.74 billion, after net income of $73.8 million on revenue of $2.31 billion in the same period a year ago.
It's amazing to look at a 3-year chart of the Russell 2000. The index is exactly where it was at this time back in 2017. These giant tech companies are certainly dominating our lives these days...and dominating the stock market.
UCTT down $1.75 (-7.69%) to $21. I bought some. No news that I can see.
Needham reiterated their $35 target after the latest earnings beat. The stock was over $30 a few weeks ago. Guidance seems positive.
From the July 29th earnings pr:
"Third Quarter 2020 Outlook
Due to limited visibility resulting from the pandemic, the Company has widened its guidance ranges to reflect the heightened uncertainty in the marketplace. The Company expects revenue in the range of $320.0 million to $360.0 million and GAAP diluted net income per share to be between $0.40 and $0.56. The Company expects non-GAAP diluted net income per share to be between $0.56 and $0.72."
TD Ameritrade shows that the PR came out at 11 AM
Security National Financial Corporation Reports Financial Results for the Quarter Ended June 30, 2020
Today 11:00 AM ET (GlobeNewswire)Print
Security National Financial Corporation (SNFC) (NASDAQ symbol "SNFCA") announced financial results for the quarter ended June 30, 2020.
For the three months ended June 30, 2020, SNFC's after-tax earnings from operations increased 490.7% from $3,480,000 in 2019 to $20,557,000 in 2020, on a 73.4% increase in revenues to $118,662,000. SNFC's after tax earnings for the six months ended June 30, 2020 increased 306.3% to $21,982,000 from $5,410,000 in 2019.
Scott M. Quist, President of the Company, said, "We are pleased with the operational performance of our company for the second quarter, and year-to-date. Any time profitability is up approximately 500% quarter over quarter, up essentially 300% YOY, and earning a 13% return on equity for the first half of the year, we should be pleased. For Q2 all of our business segments delivered very solid results.
"The majority of our income improvement came from our mortgage segment. The economic disruptions caused by the pandemic have done several things. First, interest rates decreased considerably since January 1, which not only spurred refinance volumes but also made purchase transactions more affordable. Both factors led to significantly increased origination volume. Second, because of broad pandemic related economic disruptions, the secondary markets have provided generally higher margins on the sale of loans for those institutions having the financial wherewithal to take advantage. I think it fair to say that in the first half of 2020 mortgage banks that had a strong and liquid capital base and vibrant sales force were economically rewarded.
"Our insurance segment's operational income is considerably more nuanced. Our Kilpatrick Life Insurance Company acquisition (approximately $200,000,000 asset size), which closed last December, is getting close to being fully integrated. Kilpatrick experienced losses during the first four months of 2020, as was anticipated, but now appears to be profitable. Considerable work has been done with our excellent sales forces to implement needed compensation and organization changes. The same is true for internal operations. However, during the same period that Kilpatrick was becoming profitable, the effects of Covid-19 related death claims became more pronounced throughout our insurance segment. Suffice it to say that YTD our insurance segment's overall death claims are up by about 15% over 2019 levels and were up for the month of June by approximately 50% over June 2019. I don't know whether the 50% number is a fair predictor of the future, but obviously Covid-19 claims are having, and will continue to have, an impact. Lastly, obtaining necessary investment yields within acceptable risk tolerances is becoming more difficult in this low interest rate environment. We do not anticipate those economic circumstances changing over the near term.
"Our Memorial segment delivered a very solid Q2 and YTD with operational income increasing 42% YTD over 2019. Much of that improvement, but not all, was driven by increasing preneed cemetery sales. This excellent performance is not an isolated instance. It is instructive to note that our Memorial segment has achieved an average 24% compound annual growth rate in operational income over the last four years. In my view, such excellent financial results are the consequence of continuously providing superb customer care and consumer experience during very difficult times."
SNFC has three business segments. The following table shows the revenues and earnings before taxes for the three months ended June 30, 2020, as compared to 2019, for each of the three business segments:
Revenues Earnings before Taxes
2020 2019 2020 2019
Life Insurance $ 37,789,000 $ 28,607,000 32.1 % $ 3,670,000 $ 1,219,000 201.1 %
Cemeteries/Mortuaries $ 5,306,000 $ 4,543,000 16.8 % $ 1,549,000 $ 1,024,000 51.3 %
Mortgages $ 75,567,000 $ 35,295,000 114.1 % $ 21,975,000 $ 2,381,000 822.9 %
Total $ 118,662,000 $ 68,445,000 73.4 % $ 27,194,000 $ 4,624,000 488.1 %
For the six months ended June 30, 2020:
Revenues Earnings before Taxes
2020 2019 2020 2019
Life Insurance $ 70,994,000 $ 59,112,000 20.1 % $ 601,000 $ 3,304,000 (81.8 %)
Cemeteries/Mortuaries $ 9,320,000 $ 8,902,000 4.7 % $ 1,653,000 $ 2,209,000 (25.2 %)
Mortgages $ 117,957,000 $ 61,925,000 90.5 % $ 26,414,000 $ 1,543,000 1,611.9 %
Total $ 198,271,000 $ 129,939,000 52.6 % $ 28,668,000 $ 7,056,000 306.3 %
Net earnings per common share was $1.10 for the three months ended June 30, 2020, compared to net earnings of $0.19 per share for the prior year, as adjusted for the effect of annual stock dividends. Book value per common share was $11.87 as of June 30, 2020, compared to $10.86 as of December 31, 2019.
The Company has two classes of common stock outstanding, Class A and Class C. There were 18,759,149 Class A equivalent shares outstanding as of June 30, 2020.
If there are any questions, please contact Mr. Garrett S. Sill, Mr. Brian Nelsen or Mr. Scott Quist at:
Security National Financial Corporation
P.O. Box 57250
Salt Lake City, Utah 84157
Phone (801) 264-1060
Fax (801) 265-9882
Low floater COHN back in the 16's.
Nice earnings report on Friday morning (Adj. EPS $0.80 Up From $(0.54) YoY, Sales $24.12M Up From $11.17M YoY). Not sure how repeatable those numbers are but the commentary sounded bullish and seems like a better buy now than when the stock was over $30 last Wednesday (just before the numbers came out).
Wouldn't be surprised if the traders took it for another spin after this sell-off is over. Bought some for a trade.
--------------------------------------
comments from Friday's pr:
"Lester Brafman, Chief Executive Officer of Cohen & Company, said, "We are pleased with our second quarter results, and extremely excited about the development of some of our longer term strategic initiatives across our SPAC franchise, as well as our broker dealer and asset management businesses. We are active in multiple aspects of the SPAC market, including as a sponsor, asset manager and investor. Our company-sponsored Insurance SPAC, Insurance Acquisition Corp, entered into a merger agreement with Shift Technologies, Inc., and we are now also the sponsor of a second special purpose acquisition company, which intends to raise $175 million in an initial public offering of its units."
Brafman continued, "Our Vellar Funds, which focus on investing in SPAC opportunities, raised additional capital during the quarter. Cohen's involvement in the SPAC market both as a sponsor and as an asset manager has given the firm access to unique investment opportunities, one of which drove the revenue in our principal investing segment this period. We have a long history in the SPAC space, and we intend to continue building our SPAC franchise and capitalizing on opportunities in the space.
"On the broker dealer side, we continue to grow our mortgage complex, specifically our gestation repo business, where our balances increased to $2.3 billion by the end of the quarter. Our European investment advisory subsidiary successfully launched another series of closed-end investment vehicles with total commitments in excess of EUR375 million."
Brafman concluded, "I am proud of our company's ability to drive our initiatives forward while navigating this uniquely challenging environment. We are optimistic that the strategic investments we have made in these businesses will continue to pay off, and we remain committed to executing on our objectives, with a continued focus on enhancing stockholder value."
OSS CEO interview
https://www.channelchek.com/channelcast-detail/157