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DAOI - As noted, there was a $140k gain in the Q. However, they expect to recognize another gain of $140k during 2017. R&D is expected to increase a bit, but they are looking at ways to further reduce operational costs in 2017. And expect revenues to increase over 2016. Hard to say what the bottom line will look like for the year, but seems like they are in a good spot financially and to capitalize on the wave of programmable devices for the IoT and automotive markets.
hweb2, this may be the answer you are looking for?
Unidentified Analyst
Is there an explanation as to why there was no revenue growth from the third quarter to the fourth quarter of this year?
Anthony Ambrose
So the question on revenue growth from Q3 to Q4, they are both at very high levels for the quarter. Probably the biggest reason was that we had a couple of big systems that had acceptance process and were deferred until we get final test by the customer that is taking place here in January and February. So that’s the biggest single difference. Otherwise, with the bookings, there was significant bookings growth again.
Unidentified Analyst
Right. So then we can expect much better first quarter for this year then?
Anthony Ambrose
Well, we don’t give guidance on the specific quarter. And we have just never given guidance. But what I would encourage you to do is build your own models looking at what we have discussed on previous revenues, bookings, the backlog that comes into the quarter and also deferred revenue. And then I think you will be able to build up your model accordingly.
http://seekingalpha.com/article/4049212-data-os-daio-ceo-anthony-ambrose-q4-2016-results-earnings-call-transcript?part=single
Snagged a few more DAIO on the dip this afternoon. Not incredibly cheap but I really like the mid to longer term prospects. The automotive sector will continue to become more automated, requiring a lot more programming capabilities. Although not yet reflected in bookings or revenue, DAIO is anticipating huge programming demand from IoT devices. In the last cc, CEO also sounded excited about work they were doing to make devices more secure, but was reluctant to share much on that matter until future calls...so that's a wildcard. Balance sheet is solid, too. Seems like the company is in the right place at the right time.
This presentation from November is very informative, if anyone is interested in DAIO:
http://www.dataio.com/Portals/0/DAIO%20-%20IR%20Presentation%20-%20November%202016%20-%20final.pdf?ver=2016-11-09-075430-113
SSKILLZ1 -I'm considering low-volume ALPE as a wildcard pick. Can you check if it meets the minimum dollar volume requirement? Thanks
HZNP saw a nice gain on Friday after positive Express Scripts move, and subsequent Mizuho upgrade.
"Horizon Pharma PLC (NASDAQ:HZNP) shares are ascending 7% currently in pre-market trading following the news that Express Scripts has made its formulary decision and removed rheumatoid arthritis and osteoarthritis pain relievers Duexis and Vimovo from its Exclusion List.
In reaction, Mizuho analyst Irina Rivkind Koffler leaves the sidelines and upgrades from a Neutral to a Buy rating on HZNP while boosting the price target from $14 to $25, which implies a 56% upside from current levels.
For Koffler, this was a real game changer, as she explains, “Express Scripts removed Duexis and Vimovo from its Exclusion List, thereby eliminating the risk that formed the basis of our prior Neutral thesis. Management has previously indicated Express represents approximately 30% of covered lives. As a result of this update, we think HZNP will trade closer to its fundamental valuation, and we are returning to our DCF valuation and raising our PT to $25 from $14, which supports our upgrade to Buy from Neutral. The near-term risks to our Buy thesis include lack of momentum from data catalysts and continued price pressure concerns on the stock ahead of 2017 guidance, but without the Express overhang we now feel that the stock makes a safer longer-term investment. Additionally, the company can de-lever and continue to diversify its portfolio away from its primary care assets.”
In fact, the analyst believes this decision begets new confidence in the staying power of Horizon’s primary care franchise, which was initially the root of investor worries, as it will be in a protective bubble through 2022 to 2023, when generic rivals for Duexis break through the market.
Ultimately, at least until the time frame competition becomes a factor to take into consideration, “We are directionally more comfortable that this franchise can remain relatively stable […]” Koffler surmises."
R59, UWTI - thats a good point. It would seem logical that demand would diminish prior to and after a delisting, especially if some brokers are restricting the trade. But with a finite amount of shares, traders could certainly have their way w/ this one if demand remains high. I hadnt considered Credit Suisse taking an active role in repurchasing shares when undervaluation occurs, but that seems reasonable. I'm guessing some of the UWTI crowd moves to UCO, which is leveraged at a mere 2x.
CPTMatt - UWTI
I was able to short some via TD Ameritrade this afternoon (surprisingly). It will continue to trade on the pinksheets after the delisting, but there may be a flurry of selling prior that event on December 9th. It's a gamble I am willing to take on the short side and will cover sometime before the possible forced close-out. IB sent out this restriction notice to clients who hold shares.
"Delisting Notice
Dear Client, You are receiving this notice as your IB account XXXXXXX holds a position in DWTI and/or UWTI, both Exchange Traded Notes (ETNs) scheduled to be delisted by the issuer, Credit Suisse AG effective December 9, 2016. In addition, Credit Suisse AG has announced that it has suspended further issuances of these notes. Following the delisting, these ETNS will remain outstanding but will no longer trade on a national securities exchange. The ETNs may trade on an over-the-counter basis, however, there is no assurance that a ready market will exist. In addition, while Credit Suisse Ag retains the right to accelerate the February 9, 2032 due date for these two ETNs, they have provided no notice of their intent to do so. As a result, effective today IB will no longer accept opening transactions for DWTI or UWTI but will accept orders to close existing positions. In addition, customers holding short positions remain subject to the risk of forced close-out should the shares borrowed be recalled by the lender.
Interactive Brokers Client Services"
Hweb2, UWTI, according to this:
"When an issuer chooses to delist and then halt creations, that can create a dangerous scenario for the investors in what is already a highly dangerous product," he said. Since the notes will not be called, redeemed, or liquidated, owners must sell their holdings by Dec. 8 unless they want to try to do that in an extremely illiquid market, Balchunas adds.
https://www.bloomberg.com/news/articles/2016-11-18/the-risky-oil-etf-that-millennials-loved-is-getting-delisted
I dont plan on holding my short past Dec 8th, and not sure if I even could.
I shorted a few UWTI (VelocityShares 3x Long Crude Oil ETN, up @ 28%). Certainly a gamble, but I have done well shorting these types of highly leveraged ETN's on huge pops. However, its interesting to note that these "investment vehicles" have been under scrutiny, and Credit Suisse is voluntarily delisting UWTI on Dec 9th. Oh well, the fun will soon be over.
----
2 Of The Most Popular Leveraged Oil Trading Vehicles To Be Delisted
1:41 pm ET November 17, 2016 (Benzinga)
Two of the most popular instruments for making levered bets on oil prices we be delisted on December 9. Credit Suisse has announced that it will be discontinuing its Velocity Shares 3X Long Crude ETN linked to the S&P GSCI Crude Oil Index Excess Return (NYSE: UWTI) and Velocity Shares 3X Inverse Crude ETN linked to the S&P GSCI Crude Oil Index Excess Return (NYSE: DWTI).
“As part of its continuing effort to monitor and manage its suite of exchange traded notes, Credit Suisse AG has decided to delist the foregoing ETNs with a view to better align its product suite with its broader strategic growth plans,” the firm said in a statement.
Popularity Doesn't Ensure Longevity
The two ETNs are wildly popular among traders, averaging a combined daily volume of more than 21 million. However, the steep contango associated with levered ETNs tied to the futures market has led to intense scrutiny from regulators. This contango is the reason why both ETNs are down more than 50 percent year-to-date.
PreMarket Prep host Dennis Dick discussed the dangers associated with the controversial ETNs on Thursday morning’s show.
“People don’t understand these vehicles,” Dick explained. “People think if you buy this triple long UWTI and if oil goes up 10 percent this year, they think they’re going to be up 30 percent. I bet you 90 percent of investors think that, and they’re all wrong.”
In reality, these ETNs are designed only to track the daily moves in oil futures, not the long-term moves.
“Once you start holding these things overnight, that’s when it starts to get sloppy, that’s when it gets messy, and that’s what investors don’t understand,” Dick added.
Many traders have been using these triple-levered ETNs to get around margin restrictions in their trading accounts. Dick is not a fan of any triple-levered trading instruments and sees a much better alternative for investors looking to increase exposure.
“If you want to triple exposure to something, buy three times as much of it!” he suggested. “If you don’t have the money to do it, maybe you shouldn’t be putting that much money into something.”
DRYS - from $100+ to $6.75 in one week's time. I'm not sure if I've ever seen a short covering rally that extreme. Too bad Ameritrade didnt have any shares available to short!
Yahoo is so bogged down with ads these days. I recently installed uBlock - a free add-on for my Firefox browser - which automatically blocks *most* ads on each page (including IHub). Now Yahoo loads much quicker. uBlock is available for Chrome, as well. Might want to give something like that a try if the problem persists.
New presentation. I'm expecting some sort of offering soon to fund the next phase of growing staff and testing samples at the new factory. Interesting to note that management has already had discussions with major batteries and auto manufacturers, so it will be interesting to see what develops on that front over the course of 2017.
http://alpha-encorp.com/PDF/alpha-En_Pitch_Deck_2016_11_11_website.pdf
Trump takes Florida. S&P 500 VIX futures up 42%. NASDAQ and S&P down @ 4-5% at the moment.
Fascinating indeed. I think the big-city pollsters forgot to ask the rural folk who they were going to vote for.
The magnitude of the rally over the last two caught me off guard. Almost seemed like a post-election rally, banking on an easy Clinton victory.
So if Trump wins, what will this mean for Wall St? Trump has called the stock market "a bubble," bad-mouthed the role of the The Federal Reserve and our current trade deals, etc. Until he clarifies some of his stances with specifics on what he intends to carry out, the market may remain volatile, and, to some, maybe even uninvestable. On the plus side, Trump has advocated for lowering the business tax from 35% to 15%. That could be very beneficial to earnings (and shareholders). With regard to the stock market, I see Trump as a wildcard, short-term negative but potentially a longer term positive. Any thoughts on how a Trump presidency plays out for the market? Are people buying, selling, or holding tomorrow? I may short the VIX on a major spike, but hold off on buying stocks at this point.
The VIX futures went from down 5% to up 9% within the last hour. Should be interesting to see how this plays out overnight. Tomorrow may be a buying opportunity (or the next 4 years could be a buying opportunity!)
ALPE getting their SEC filings and Board of Directors assembled. I'm guessing the plan is to uplist at some point, but not sure which route they take. New board member seems well connected and experienced, as well as an early investor in the company, so he has "skin in the game." While the technology seems to work as intended, and the opportunity seems great, ALPE still needs to finance their factory and payroll. It will be interesting to see how it plays out but its reassuring to know the CEO (Steve Fludder) came from a high profile background to take advantage of this start-up opportunity at Alpha En (taking mostly stock as compensation). I dont have a large position in the stock but think its worth gamble at these prices. I would love to see some partnerships develop here (anyone have Elon Musk's number?).
Jim Kilman Joins Board of Directors at alpha-En Corporation
News provided by
alpha-En Corporation
Nov 04, 2016, 08:00 ET
TARRYTOWN, N.Y., Nov. 4, 2016 /PRNewswire/ -- alpha-En Corporation (OTC PINK: ALPE), an innovative clean technology company focused on enabling next-generation battery technologies by producing high purity lithium metal and associated products, announced today that veteran investment banker Jim Kilman has been appointed to its Board of Directors, expanding the Board to four directors effective immediately.
Mr. Kilman is Chief Executive Officer of Scarborough, NY-based KielStrand Capital, a family office merchant bank that makes and manages investments, provides advisory services and engages in philanthropic activities. He retired earlier this year as Vice Chairman of Investment Banking at Morgan Stanley, having spent a total of 32 years in senior investment banking roles, including earlier stints at Goldman Sachs, ABN AMRO and PaineWebber.
Continue Reading
Jim Kilman
Jim Kilman
Executive Chairman and Founder, Jerome Feldman, commented, "It is a pleasure to welcome Jim Kilman to the Board of alpha-En Corporation. An early investor in alpha-En, he is widely admired as an investment banker, an advisor on strategy, mergers and restructurings, and for raising debt and equity capital. His decades of experience and his deep expertise will be invaluable to us as alpha-En grows."
"I'm very excited to be deepening my relationship with alpha-En by joining its Board," Mr. Kilman said. "It's an exciting time for the company as it begins to commercialize its ground-breaking approach to lithium production. I look forward to working with the alpha-En team."
Mr. Kilman will serve on the Audit and Compensation Committees of the Board. He also serves on the Boards of privately held Berwyn, PA-based Modular Space Corporation, and of privately held New York City-based Lebenthal Holdings LLC. He serves on the Board of the Hudson Valley Shakespeare Festival in Cold Spring, NY, and on the Finance and Investments Committee of the Jacob Burns Film Center in Pleasantville, NY. He is Treasurer of his Yale College Class, and has previously been active on the Parents Association Boards at Bucknell University and Carleton College.
Mr. Kilman holds an MA and a BA in Economics from Yale University.
I'm surprised they haven't been more aggressive w/ the share repurchase program. Only 6500 shares bought during the Q. They could really juice the numbers if they spent a million or two - of their $9.7M cash horde - repurchasing more, but I guess they see it prudent to hold a large reserve for R&D or whatever else they have planned. They seems to be executing on all fronts, and this sounds encouraging: "we see massive opportunities ahead."
Impressive Q from DAIO ($3.50) w/ EPS of .08 on highest revenue in 5 yrs. Backlog way up, cash level on the balance sheet continue to rise. Hweb2 brought this one to board after their .06 last Q.
REDMOND, WA--(Marketwired - October 27, 2016) - Data I/O Corporation (DAIO), the leading global provider of advanced data and security programming and IP management solutions for flash-memory, flash based microcontrollers and other intelligent devices, today announced financial results for the third quarter ended September 30, 2016.
Third Quarter 2016 Highlights (on year-over-year basis unless noted)
Net sales of $6.6 million, a 5-year high
Shipped 100th PSV system in third quarter, marking the fastest ramping automated product in Company history
Total bookings of $7.9 million, an 8-year high
Gross margin as a percentage of sales of 55.3% up from 51.5% in 3Q15 and 53.2% in 2Q16
Net income increases 42% to $625,000, or $.08 diluted earnings per share
Adjusted EBITDA*, excluding equity compensation, of $865,000, up from $645,000
Orders from the Automotive electronics industry represented nearly two thirds of Q3 bookings
Orders from Programming Centers through the third quarter reached their highest level in 10 years
Backlog of $3.1 million at end of quarter, up from $2.0 million at June 30, 2016
Cash and securities of $9.7 million at end of quarter, up 10% from $8.8 million at June 30, 2016
Management Comments
"We had an outstanding third quarter of 2016 borne out of our investments to develop industry leading programming technologies and successful transition into higher growth sectors while benefiting from the leverage in our model," said Anthony Ambrose, President and CEO of Data I/O Corporation.
"Revenues in the third quarter of $6.6 million reached a 5-year high. Consistent with the first half of the year, the primary driver of our revenue growth was demand for our automotive electronics solutions. We continue to experience significant interest in our automotive products from original equipment manufacturer customers as well as major programming centers. Third quarter orders include initial procurement relating to the 5-year supply agreement we were awarded by Bosch Car Multimedia.
"Automotive electronics orders represented nearly two thirds of our total bookings through the third quarter, with the balance for products addressing the burgeoning Internet-of-Things (IoT) market and other vertical market requirements. Total bookings in the third quarter reached the highest level in 8 years at $7.9 million.
"Automotive and IoT remain our top growth engines, which we see as more than making up for our more mature product positioning that brought us to this point. While harvesting the cash flow generated from our legacy business activities, over the past few years we invested in research and development for new platforms which require more processing power, higher volume production, automation and security. This approach will continue as we see massive opportunities ahead. The Company's R&D expense in the third quarter, while similar to the second quarter at approximately 20% of sales, was increased with our higher revenue base to nearly $1.4 million. This includes increases in intellectual property patent protection and engineering recruiting expenses. The increased spending underscores our commitment to next generation products, particularly for managed and secure programming platforms which are important to extend our lead in automotive electronics and to enable the next phase of growth with billions of smart connected devices working within the global cloud ecosystem.
"With our strategic imperatives to grow revenues and invest in product development, we have not lost sight of our other operational objectives. In the third quarter, our financial performance was aided by continued management focus and the leverage in our business. Our gross profit increased 15% as we achieved a nearly 4 percentage point increase in gross margin as a percentage of sales, aided by a favorable product mix. Reflecting measures taken to reduce expenses, a higher volume of business and the leverage impact, third quarter net income increased 42% from the respective prior year period. Finally, improvements in our balance sheet are evidenced by the 10% increase in cash and 5% increase in shareholders' equity at the end of the third quarter 2016 from three months earlier."
Financial Results
Net sales in the third quarter of 2016 were $6.6 million, compared with $6.2 million in the third quarter of 2015. The year-over-year increase in sales was primarily a result of strong bookings in the second and third quarters of 2016, particularly for automotive electronics equipment to end customers and programming centers. During the third quarter, the Company shipped and recorded revenue for its 100th PSV system, marking the fastest ramping automated product in Data I/O history. Net sales for the first nine months of 2016 and 2015 were $17.0 million.
For the 2016 third quarter, gross margin as a percentage of sales was 55.3%, compared to 51.5% in the third quarter of 2015 and 53.2% in the second quarter of 2016. The improvement in gross margin as a percentage of sales compared to the same period in 2015 was primarily due to sales mix and higher order volume. For the first nine months of 2016, gross margin was 54.5% compared to 51.4% in the same period last year.
Net income in the third quarter of 2016 was $625,000, or $0.08 per diluted share, compared with net income of $439,000, or $0.05 per diluted share, in the third quarter of 2015. Year-to-date, net income was $901,000, or $0.11 per diluted share, compared to $589,000, or $0.07 per diluted share for the same period last year.
Earnings Before Interest, Taxes, Depreciation and Amortization ("EBITDA") was a $755,000 in the third quarter of 2016, compared to $552,000 in the third quarter of 2015. Adjusted EBITDA, excluding equity compensation, was $865,000 in the third quarter of 2016, compared to $645,000 in the third quarter of 2015. Year-to-date, EBITDA was $1.3 million, compared to $925,000 for the same period last year, while Adjusted EBITDA excluding equity compensation was $1.7 million in 2016 compared to $1.3 million for the same period last year.
Bookings in the third quarter of 2016 reached the highest level in eight years at $7.9 million, compared to $5.9 million in the third quarter of 2015, and $5.7 million in the second quarter of 2016. Backlog at September 30, 2016 was uncharacteristically high at $3.1 million as compared to $700,000 at December 31, 2015, and $2.0 million at June 30, 2016. Approximately $1 million of the September backlog is for systems that are not scheduled to be recognized as revenue until early 2017. Deferred revenue was $1.3 million at September 30, 2016, compared with $1.0 million at December 31, 2015 and $1.1 million at June 30, 2016.
During the third quarter of 2016, the Company purchased 6,500 shares under its stock buyback program. Year to date, a total of 80,345 shares were repurchased at an average price per share of $2.38.
Conference Call Information
A conference call discussing the third quarter ended September 30, 2016 financial results will follow this release today at 2 p.m. Pacific time/5 p.m. Eastern Time. To listen to the conference call, please dial (612) 288-0340, passcode: DAIO. A replay will be made available approximately one hour after the conclusion of the call. To access the replay, please dial (320) 365-3844, access code: 404839. The conference call will also be simultaneously webcast over the Internet; visit the News and Events section of the Data I/O Corporation website at http://www.dataio.com to access the call from the site. This webcast will be recorded and available for replay on the Data I/O Corporation website approximately one hour after the conclusion of the conference call.
SCKT - I confirmed the licensing fee was $250k, so that had a large impact on earnings. But there is a positive going forward. The licensee (a medical device company) is allowed the right to manufacture the SoMo controller board used in their primary device, and to develop derivative works (limited to use in their own products). Socket will earn a future royalty for all products they manufacture. Therefore, we should expect to see some additional (high-margin) revenue from this agreement. Maybe not much, but at least SoMo is not entirely dead and may contribute a little as scanner growth continues.
Another reason to be confident in your LNTH short. Navallier upgraded it last week to an "A"
Rating: Weekly View
This Week: A - no change
Last Week: A - upgrade
Two Weeks Ago: B - no change
http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=LNTH
Congrats on STS, hweb2. Those insider sales were certainly telling. I actually like the company and management - gaining market share, good balance sheet (considering acquisitions only if they will be accretive), improving efficiencies, etc - but the stock had gotten ahead of itself in a cyclical market segment. Might be a good stock to accumulate if the stock gets pushed down below $10 in the coming Q's.
Navellier had been pumping it the last few months in his "Ultimate Growth" newsletter. Went back today to see if he had changed his rating on the stock but his server seems to be down. Hmmmmm. At least, I can't access it.
http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=STS
LCI - not sure how big a deal this is, but might explain why its down so much:
per Briefing.com
"the FDA issued a proposal to withdraw approval of an abbreviated new drug application for methylphenidate hydrochloride extended-release tablets held by Lannett subsidiary Kremers Urban Pharmaceuticals"
LCI article in Forbes yesterday may be effecting the stock:
http://www.forbes.com/sites/nathanvardi/2016/10/06/another-drug-company-that-raises-prices-like-crazy/?utm_source=yahoo&utm_medium=partner&utm_campaign=yahootix&partner=yahootix&yptr=yahoo#316e49ce740f
Yikes
Here are the securities included in the pilot:
http://tsp.finra.org/finra_org/ticksizepilot/TSPilotSecurities.txt
STS - I noticed Navellier has been bullish on the stock, so that may help explain some of the momentum over the last several months.
http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=STS
hweb2, I know TVIX is shortable.
I shorted TVIX on one of those huge down days last summer (see posts 12136 and 12178). At the time, TVIX was @ $15, which is equal to $150 today (vs current price of $24) due to the 10 for 1 split. I flipped it for a quick gain, but wish I held on to my short a little longer...
worthylion, re: leveraged etf's.
They are confusing, for sure. These articles may help:
http://seekingalpha.com/article/1864191-what-you-need-to-know-about-the-decay-of-leveraged-etfs
https://dqydj.com/dont-use-leveraged-etfs-unless/
TVIX (2x leveraged VIX) was up 32% today. Might be a good short on Monday morning if we see another big selloff, before the market (hopefully) calms down. With that "natural decay" of the leveraged ETFs, the odds are good for making money on the short side.
STS - the spike yesterday seemed to coincide with the release of this news:
http://trailer-bodybuilders.com/market-stats/orders-medium-duty-trucks-rebound-august
August numbers still down from last August's numbers, so not that impressive. Only other recent catalyst I found was this recent bullish report:
http://seekingalpha.com/article/4002351-supreme-industries-value-play-accelerating-business-momentum
Not sure how many people are buying because of that. I dont put too much stock in any research firm who spells "winning" with one "n" in their bullet points.
I agree. Last Q benefited from seasonality, high backlog, favorable revenue mix. That won't be repeated and the insider's unloading seems to be telling us this.
"As proposed, the joint venture partner has developed the two patents and would contribute this intellectual property to the joint venture company and Microphase would commercialize the prototypes and take to market, as well as finishing development, marketing, manufacturing and selling the new amplifier product line."
Amplitech provides the IP-which, it seems, as already been created- and Microphase does the "heavy lifting" with expenses, manufacturing, and selling of the products. Seems very positive for Amplitech.
value1008,
"To have a market cap valuation of $3M (relatively high for this co., no?)"
I'm not very familiar with this stock either, but they had a couple million in market cap yesterday, they added $4M+ cash to the balance sheet with this offering, so (share count aside) why would a $3M market cap (below cash) be high? On a superficial analysis, without digging, seems like the market cap should adjust to @ $6M after the new cash infusion. Again, I havent digged into the specifics here and not sure where that would place the stock with the new shares.
Level II looking better today. Maybe that large seller withdrew his sell order after reading the earnings pr.
Yeah, certainly the big players have the brand-name and marketing budgets going for them over B-Scada. But we are talking multi-billion dollar companies vs a $3M dollar company, so a couple of multi-year contracts to replace the lost oil revenue could do wonders for this company/stock. And the SaaS IoT model could gain traction, as it seems like it would have appeal to small companies looking to hit the ground running with an offering that is complete and easy to set up. At this point, the company has reduced their budget and are getting closer to profitability...while promoting a commpete offering - on a limited budget - they feel is top-notch.
Despite its small size, B-Scada has attracted high profile clients before (Schlumberger, Korean subway system), so we could see more in the future. Both the SCADA and IoT are high growth areas, and SCDA is a low float stock, so its a good one to keep an eye on to see where it goes from here. Not many eyes on it at the moment. We will see how it plays out....
http://www.scada.com/News
SCDA reported a loss with a decline in revenue (due to the loss of oil related business). But hope spring eternal and there is optimism for the new, complete, easy-to-deploy IoT offering. Lets hope it gains some traction. It sounds like it would have appeal to anyone looking to get their foot in the IoT door without the headaches involved in piecing it together themselves.
22nd Century Group Files 2016 First Quarter Report and Announces Conference Call to Provide Business Update
4:15 pm ET May 10, 2016 (BusinessWire)
22nd Century Group, Inc. (NYSE MKT: XXII), a plant biotechnology company that is a leader in tobacco harm reduction, announced today the Company's first quarter 2016 financial results and will provide a business update for investors on a conference call to be held on Wednesday, May 11th, at 4:00 PM (Eastern Time).
Henry Sicignano, III, President and Chief Executive Officer of 22nd Century Group, together with John T. Brodfuehrer, Chief Financial Officer, will conduct the call. Interested parties are invited to participate in the call by dialing: 913-312-0652 and using Conference ID 4615167.
The conference call will consist of an overview of the financials presented in the Company's first quarter 2016 Form 10-Q and a discussion of business highlights and updates. Immediately thereafter, there will be a question and answer segment open to all callers.
Elimination of $2.8 Million Derivative Liability
As reported in the Company's recently filed Form 10-Q, in March 2016 the Company notified the holder of a Tranche 1A warrant that such holder had repeatedly breached the activity restrictions contained in such warrant agreement. Since the warrant agreement contained an exchange rights provision that was subject to compliance with such activity restrictions by the warrant holder, the breach by the warrant holder of such activity restrictions resulted in the exchange rights provision being void and no longer available. However, the remaining shares underlying the Tranche 1A warrant remain exercisable (without the above-referenced exchange rights that are now void) until September 29, 2016 at the exercise price of $3.36 per share. Accordingly, the Company has now reclassified this $2,810,000 derivative warrant liability to Capital in Excess of Par on its Consolidated Balance Sheets at March 31, 2016.
Also, as previously disclosed by the Company, the outstanding Tranche 2 and Tranche 3 warrants held by the same holder of the Tranche 1A warrant referenced above were not exercisable unless and until certain revenue milestones associated with a joint venture in China were obtained. Because the Company terminated the joint venture agreement on June 22, 2015, these revenue milestones can never be satisfied. Accordingly, the Tranche 2 and Tranche 3 warrants will never be exercisable, thereby effectively decreasing the total number of shares issuable under such warrants by an additional 2,000,000 shares.
Recent Business Highlights
-- The Company met with administrators and scientific reviewers at the FDA to review the Company's Modified Risk Tobacco Product (MRTP) application for BRAND A Very Low Nicotine (VLN) cigarettes. The FDA contacted 22nd Century upon receiving the Company's MRTP application and facilitated - fewer than 14 days after the Company's MRTP submission - a meeting at FDA headquarters to discuss the application and the review process. Not long after, FDA formally acknowledged receipt of the Company's MRTP application for BRAND A Very Low Nicotine tobacco cigarettes and assigned two Submission Tracking Numbers (STN) to 22nd Century's historic MRTP application: MR0000047 and MR0000048.
-- Independent scientific researchers at the 22nd Annual Meeting of the Society for Research on Nicotine & Tobacco (SRNT) presented more than fifteen (15) independent scientific studies involving the Company's SPECTRUM(R) research cigarettes. The annual event was highly attended by participants from around the world, including acclaimed university scientists, FDA and other regulators, and industry professionals. The initial results of the independent scientific studies involving the Company's proprietary reduced nicotine tobacco cigarettes once again demonstrates that the Company's VLN cigarettes reduce cigarette consumption and assist in smoking cessation.
-- The Company shipped the remaining 2.85 million of a 4.95 million SPECTRUM(R) research cigarette order for the National Institute on Drug Abuse (NIDA), a department of the National Institutes of Health (NIH). The main SPECTRUM(R) product line consists of a series of cigarette styles that have a fixed "tar" yield but varying nicotine yields over a 50-fold range - from very low to high. Altogether, SPECTRUM(R) features 24 styles, 11 regular and 13 menthol versions, with 8 different levels of nicotine content. SPECTRUM(R) is strictly for research purposes and is not sold as a commercial cigarette. However, the Company has begun outreach efforts to independent scientific researchers who are interested in working with the Company to develop research cigarettes with varying levels of nicotine as desired by researchers for their own clinical studies.
First Quarter 2016 Financial Summary
The first quarter of 2016 saw the Company continue to increase its quarterly net revenues. For the three months ended March 31, 2016, net revenues were approximately $3,019,000 compared to net revenues of approximately $616,000 for the three months ended March 31, 2015, an increase of approximately $2.4 million. Revenues for the three months ended March 31, 2016 included sales of SPECTRUM research cigarettes in the amount of $329,000. The remaining revenues were generated primarily from contracted manufactured cigarettes and filtered cigars and the sales of the Company's proprietary cigarette brands.
For the three months ended March 31, 2016, the Company reported an operating loss of approximately $3,228,000 as compared to an operating loss of approximately $4,127,000 for the three months ended March 31, 2015, a decrease in the operating loss of approximately $899,000. The decrease in the operating loss is primarily due to an increase in gross profit in the amount of approximately $140,000 and a decrease in operating expenses of approximately $759,000. The decrease in operating expenses is primarily the result of a decrease in equity based compensation of approximately $2,158,000, partially offset by an increase in other operating expenses in the approximate amount of $1,399,000.
The Company's net loss for the three months ended March 31, 2016 was approximately $3,252,000, or ($0.04) per share, as compared to a net loss of approximately $4,117,000, or ($0.06) per share, for the three months ended March 31, 2015. The results for the three months ended March 31, 2016 included non-cash expenses consisting of (i) equity based compensation totaling $283,000 and (ii) depreciation and amortization in the amount of $205,000.
Adjusted EBITDA (as described in the paragraph and table below) for the three months ended March 31, 2016 was approximately a negative $2,740,000, or ($0.04) per share, and approximately a negative $1,501,000, or ($0.02) per share, for the three months ended March 31, 2015.
Below is a table containing information relating to the Company's Adjusted EBITDA for the three months ended March 31, 2016 and 2015, including a reconciliation of net loss to Adjusted EBITDA for such periods.
Three Months Ended March 31,
-----------------------------------------------------------------------------------------------------------------------
2016 2015 % Change
------------ ------------ --------
Net loss $(3,252,452) $(4,116,739) -21%
Adjustments:
Warrant liability gain - net (71,065) (59,213) 20%
Depreciation and amortization 205,438 185,397 11%
Loss on equity investment 87,232 50,981 71%
Interest expense 10,374 5,508 88%
Interest income (2,493) (7,795) -68%
Equity based compensation -
Crede consulting agreement - 1,978,785 -100%
Third-party service providers 22,873 108,333 -79%
Officers, directors and employees 259,994 354,087 -27%
------------ ------------ --------
Adjusted EBITDA $(2,740,099) $(1,500,656) 83%
------------ ------------ --------
Adjusted EBITDA is a financial measure not prepared in accordance with generally accepted accounting principles ("GAAP"). In order to calculate Adjusted EBITDA, the Company adjusts the net loss for certain non-cash and non-operating income and expenses items listed in the table above in order to measure the Company's operating performance. The Company believes that Adjusted EBITDA is an important measure that supplements discussions and analysis of its operations and enhances an understanding of its operating performance. While management considers Adjusted EBITDA to be important, it should be considered in addition to, but not as a substitute for or superior to, other measures of financial performance prepared in accordance with GAAP, such as operating (loss) income, net loss and cash flows from operations. Adjusted EBITDA is susceptible to varying calculations and the Company's measurement of Adjusted EBITDA may not be comparable to those of other companies.
Recent Notable Accomplishments and Summary of Anticipated Events for the Remainder of 2016
-- The Company received an initial purchase order from Australian tobacco distributor, Quay Tobacco Trading PTY, LTD, for both Very Low Nicotine MAGIC brand cigarettes and "Extreme Nicotine" RED SUN cigarettes. This purchase order represents 22nd Century's first substantial sale of product to the Asia-Pacific region. Starting this summer, Quay Tobacco will introduce 22nd Century's unique cigarette brands to Australian smokers.
-- The Company entered into a supply arrangement with Celanese Corporation. Through this arrangement, 22nd Century will combine many of its proprietary tobaccos with Celanese's revolutionary CelFX(R) carbon filter in new cigarette designs for select markets around the world. The Celanese CelFX(R) filter is a highly efficient cigarette filter that delivers an extraordinary taste experience while significantly reducing many toxic compounds in smoke. The execution of the Celanese contract will result in the recommencement by 22nd Century of the roll-out of its MAGIC cigarettes in Europe and other parts of the world.
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For anyone rolling the dice on specialty pharma, AMAG ($20.85) looks interesting. Down 19% in 2 days after they missed Q1 estimates but re-iterated full-year guidance. Trading @ 4x 2016 estimates and under book value. USA-based, unlike HZNP, ENDP, VRX.
Imo, the sub 20 cent stock was hindering B-Scada's ability to sign contracts because the company appeared to be scammy or weak with a stock price that low. So splitting the stock 1 for 10 made sense, as now its over $1 and maybe potential customers and funds may consider the company to be more viable and trust-worthy.
As for an up-listing, I'm not holding my breathe at this point. My guess is Ron was hoping to get up-listed within the next year or 2 if all the growth plans came together. As we know, with the oil rev disappearing and all around slow contract flow the last year, the main thing is to stop burning cash, replace lost contracts, and get back to profitability.
After a long absence, looks like Amplitech is active again on Facebook and Twitter:
https://www.facebook.com/AmpliTechInc
AEL - the drop probably has more to do with this than the CEO retirement perks.
http://www.bloomberg.com/news/articles/2016-04-06/u-s-targets-indexed-annuities-in-obama-backed-retirement-rule?cmpid=yhoo.headline
Annual report is going to be late:
"The Company was unable to compile the necessary financial information required to prepare a complete filing. Thus, the Company would be unable to file the periodic report in a timely manner without unreasonable effort or expense. The Company expects to file within the extension period."
http://ih.advfn.com/p.php?pid=nmona&article=70937672&symbol=AMPG
Probably broke the calculator adding up all the profits.