Steve Clark

Steve Clark is a 23-year Wall St professional with stints in M&A, risk management, and algorithm trading. Steve keeps his head in the game by looking for, and writing about, small companies that often get overlooked by the big investment firms.

NII Holdings, Inc. (NASDAQ:NIHD) And Lenders Reach Agreement

NII Holdings, Inc. (NASDAQ:NIHD)

Shares of NII Holdings, Inc. (NASDAQ:NIHD) gained 4.55% after the mobile communication services provider announced the restructuring of a loan agreement with China Development Bank, Banco do Brazil, and Caixa Economica Federal. The changes include the deferral of principal payments for the first 48 months from the date of effectiveness.

NII Holdings, Inc. (NASDAQ:NIHD)

Loan Amendments

Wednesday’s rally helped push the stock slightly above its 52-week low of $0.36 a share. However, the stock continues to trade in a strong downtrend after underperforming the overall industry for the better part of the year. The stock is down by more than 80% for the year.

Amidst the underperformance, Chief Financial Officer, Dan Freiman remains upbeat about NII Holdings, Inc. (NASDAQ:NIHD) prospects,

“The signing of the amendments marks a significant milestone in our efforts to improve our financial outlook and liquidity and will enable us to continue to invest in and grow our business in Brazil. We are actively working to obtain the final approvals necessary for the amendments to become effective,” said Mr. Freiman.

The proposed amendments include a compliance holiday for certain financial covenants including the net debt financial covenant until June 30, 2020. The amendments also include a loan maturity date of 98 months. NII Holdings, Inc. (NASDAQ:NIHD), through Nextel Brazil, is to grant an additional security interest to each of its lenders in the form of preferential rights as part of the agreement. The amendments are still subject to approval by Sinosure on or before December 31, 2017.

 

Q2 Financial Results

NII Holdings, Inc. (NASDAQ:NIHD) reported a net loss of (-$84.8) million or (-$0.85) cents a share for the second quarter. Revenue in the quarter totaled $225 million. Capital expenditure in the quarter totaled $9 million. The company exited the quarter with a 29,000 3G net subscriber losses and 104,000 subscriber losses.

According to Chief Executive Officer, Roberto Rittes, the quarter highlighted improved operating cash flow efficiency due to increased focus on improving liquidity.

“In addition, during the quarter, other operators introduced more aggressive rate plans that affected our subscriber growth and churn. In response to this development, in August, we introduced new rate plans that we believe will compete well against the new offers in the market,” said Mr. Rittes.

I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.

Don’t miss out! Stay informed on $NIHD and receive breaking news on other hot stocks by signing up for our free newsletter!

About the author: Steve Clark is a 23-year Wall St professional with stints in M&A, risk management, and algorithm trading. Steve keeps his head in the game by looking for, and writing about, small companies that often get overlooked by the big investment firms.

Vermillion, Inc. (NASDAQ:VRML) Stock Jumps!

Vermillion, Inc. (NASDAQ:VRML)

Vermillion, Inc. (NASDAQ:VRML) stock is up over 33% in early afternoon trading after the company’s subsidiary announced that it expanded positive policy coverage with the addition of 14 key managed care providers. VRML stock opened at $1.51, also today’s low, and shot up to hit an inter-day high of $1.97. VRML shares are trading around $1.88 at the time of this writing (12:38 PM EST).

Vermillion, Inc. (NASDAQ:VRML)

Austin, TX-based Vermillion, Inc. (NASDAQ:VRML) discovers, develops, and commercializes diagnostic and bio-analytical solutions that aid physicians to diagnose, treat, and improve gynecologic health. Vermillion, along with its scientific collaborators, discovers, develops, and delivers innovative diagnostic and technology tools that help women with serious diseases. One of the company’s subsidiaries is ASPiRA Labs – the exclusive distributor of OVA1 (Multivariate Index Assay) (MIA).

Vermillion Subsidiary Coverage Details

ASPiRA Labs established positive coverage policies specify that OVA1 is medically necessary for the below plans:

  • BlueCross BlueShield (BCBS) plans associated with a national plan, Health Care Service Corporation (HCSC) that include Illinois, Montana, New Mexico, Oklahoma and Texas (approximately 14.8 million covered lives)
  • Horizon BCBS plans in New Jersey (approximately 3.7 million covered lives)
  • Highmark BCBS plans that include Pennsylvania, West Virginia and Delaware (approximately 3.2 million covered lives)
  • Wellcare: Government sponsored managed care across the U.S. (approximately 2.9 million covered lives)

Fred Ferrara, Chief Operating Officer of Vermillion, Inc. (NASDAQ:VRML) stated “Two policies totaling approximately 3.8 million covered lives are effective as of October 1, 2017, with the remainder being effective January 2018. This positive policy coverage is the first step to in-network contracts and market adoption. We are finishing this year strong with managed care rapidly increasing support of OVA1 to over 123 million lives, as of January 2018.  OVA1 provides the only pelvic mass risk assessment product proven to get patients to the highest standard of care for ovarian cancer treatment.”

VRML Stock Performance

VRML stock is currently trading above the analysts’ consensus price target of $1.75. Its 52-week low is $0.76 and its 52-week high is $2.85.

Earnings losses have been contracting over the past three years. In 2014 the per share loss was (-$0.53), followed in 2015 by a loss of (-$0.41), and a narrower loss for 2016 of (-$0.29).

Dilution remains a concern though. In 2012 there were 15.1 million shares outstanding. That number has increased every year and for 2016 the company reported 52.2 million shares were outstaning.

I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.

Don’t miss out! Stay informed on $VRML and receive breaking news on other hot stocks by signing up for our free newsletter!

About the author: Steve Clark is a 23-year Wall St professional with stints in M&A, risk management, and algorithm trading. Steve keeps his head in the game by looking for, and writing about, small companies that often get overlooked by the big investment firms.

Northwest Biotherapeutics, Inc (OTCMKTS:NWBO)

Legal Issues Settled for Northwest Biotherapeutics, Inc (OTCMKTS:NWBO)?

Northwest Biotherapeutics, Inc (OTCMKTS:NWBO)

Bethesda, MD-based Northwest Biotherapeutics, Inc (OTCMKTS:NWBO) shares are off 5% after the company announced “meaningful progress” in resolving four lawsuits that were brought against it. The company announced that it expects to not pay any monetary damages.

Northwest Biotherapeutics, Inc (OTCMKTS:NWBO)

The Lawsuits

The lawsuit filed in a Maryland court included a variety of claims about alleged false reporting concerning results of the DCVax-Direct Phase I trial and the DCVax-L Phase III GBM trial, among other things.

Another lawsuit filed in Delaware and Maryland was a class action lawsuit on behalf of the Company and its shareholders naming Cognate, various Toucan entities, and NW Bio’s Board of Directors as defendants and seeking disgorgement of purportedly improper benefits and an unspecified amount of damages, among other relief.

The last lawsuit was filed in Maryland and was an amalgam of accusations detailed above.

Northwest Biotherapeutics, Inc (OTCMKTS:NWBO) CEO Linda Powers stated “lawsuits like these can be a distraction from the important work of companies like ours. In my opinion, disposing of these cases is an important step forward in our vindication from the relentless and false campaign to discredit our science, our operations and our ethics, and hopefully helps remove what have been delaying obstacles in our path forward.  These resolutions come with no further price tag to shareholders, allowing us to focus our resources on the Company’s mission of providing our promising vaccines to as many solid tumor cancer patients as possible, at the earliest time possible.”

About Northwest Biotherapeutics, Inc.

Northwest Biotherapeutics, Inc (OTCMKTS:NWBO)is a biotechnology company that develops personalized immunotherapy products designed to treat cancers more effectively than current treatments, without toxicities of the kind associated with chemotherapies, and on a cost-effective basis. The company has operations and sales in both the North America and Europe.

NWBO Stock Performance

The consensus one-year price target for NWBO stock is $5.00. However, today the shares hit a new low of $0.16. 10% of the shares float is held by short-sellers.

I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.

Don’t miss out! Stay informed on $NWBO and receive breaking news on other hot stocks by signing up for our free newsletter!

About the author: Steve Clark is a 23-year Wall St professional with stints in M&A, risk management, and algorithm trading. Steve keeps his head in the game by looking for, and writing about, small companies that often get overlooked by the big investment firms.

Payment Data Systems, Inc. (NASDAQ:PYDS)

Payment Data Systems, Inc. (NASDAQ:PYDS) Post Record Processing Activity

Payment Data Systems, Inc. (NASDAQ:PYDS)

San Antonio, TX-based Payment Data Systems, Inc. (NASDAQ:PYDS) stock rose over 80% after the payment processor announced that its transactions processing volumes for the third quarter of 2017 set an all-time record. PYDS stock closed at $2.59 on a volume figure that was over 150 times the listed daily average. Total dollars processed for the third quarter of 2017 exceeded $704.9 million.

Payment Data Systems, Inc. (NASDAQ:PYDS)

Louis Hoch, President and CEO of Payment Data Systems, stated, “The successful execution of our revenue growth plan is now yielding results. We are pleased at the dramatic growth in the credit card processing segment of our business, and are also pleased to see the growth in our ACH business as compared to second quarter’s downturn. We now have visibility into continued revenue growth throughout the rest of 2017 and for all of 2018.”

Payment Data Systems, Inc. (NASDAQ:PYDS) is an integrated payment solutions provider, and offers a wide range of payment solutions to merchants, billers, banks, service bureaus, and card issuers. The Company operates credit, debit/prepaid and ACH payment processing platforms to deliver convenient, world-class payment solutions and service to their clients.

One year ago, Payment Data Systems, Inc. (NASDAQ:PYDS) hot their 52-week high of $2.65 – $0.06 above today’s losing price. After that high was hit, PYDS shares slid over the next 6-8 months and established a new 52-week low of $1.17. Over the past year the shares have done well – up over 25%. Year-to-date they have performed even better – up 40%.

Analysts have given PYDS stock a consensus one-year price target of $8 even as the shares have been projected to post negative earnings of 20%.

I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.

Don’t miss out! Stay informed on $PYDS and receive breaking news on other hot stocks by signing up for our free newsletter!

About the author: Steve Clark is a 23-year Wall St professional with stints in M&A, risk management, and algorithm trading. Steve keeps his head in the game by looking for, and writing about, small companies that often get overlooked by the big investment firms.

LightPath Technologies, Inc. (NASDAQ:LPTH)

LightPath Technologies, Inc. (NASDAQ:LPTH) Continues to Jet Higher

LightPath Technologies, Inc. (NASDAQ:LPTH)

LightPath Technologies, Inc. (NASDAQ:LPTH) has recorded a new inter-day 52-week high, $4.10, on volume that is five times the listed daily average. While the broad market indexes are all pulling back, LPTH shares are on track to post a 27% gain in just the past week.

LightPath Technologies, Inc. (NASDAQ:LPTH)

Orlando, FL-based LightPath Technologies, Inc. (NASDAQ:LPTH) is a vertically integrated provider of optics, photonics and infrared solutions for the global industrial, defense, telecommunications, testing and measurement, and medical industries. LightPath designs, manufactures, and distributes proprietary optical and infrared components including molded glass aspheric lenses and assemblies, infrared lenses and thermal imaging assemblies, fused fiber collimators, and gradient index GRADIUM® lenses. LightPath also offers custom optical assemblies, including full engineering design support.

LPTH Stock Performance

Shareholders of LightPath Technologies, Inc. (NASDAQ:LPTH) have fared well in 2017. Year-to-date, LPTH shares are up over 143%. This high level of performance is also reflected in the stock’s Relative Strength Index (RSI) figure of 86. Many investors and traders believe a figure over 70 reflects an “overbought” condition in a security, however LPTH shares have been over 70 for at least a month and the market seems to believe that higher prices are justified by recent earnings which are up 300% over the previous year. Financial analysts are expecting earnings growth for next year to be around 22%.

In 2015, LightPath posted a per share loss of ($0.05) but followed that in 2016 with a profit of ($0.09) per share, and profit of ($0.39) in FY2017. Sales have followed a similar path. For 2014, LightPath Technologies, Inc. (NASDAQ:LPTH) reported sales of $11.8 million. That number increased every year and in FY2017 the number was $28.4 million.

Two investment firms follow LightPath Technologies, Inc. (NASDAQ:LPTH). Both rate the shares as a “Buy”.

I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.

Don’t miss out! Stay informed on $LPTH and receive breaking news on other hot stocks by signing up for our free newsletter!

About the author: Steve Clark is a 23-year Wall St professional with stints in M&A, risk management, and algorithm trading. Steve keeps his head in the game by looking for, and writing about, small companies that often get overlooked by the big investment firms.

Shineco Inc (NASDAQ:TYHT)

Can Shineco Inc (NASDAQ:TYHT) Sustain Trend?

Shineco Inc (NASDAQ:TYHT)

After three attempts in the last six weeks to close above $3.50, Shineco Inc (NASDAQ:TYHT) shares closed up over 30%, on heavy volume, and closed at $3.64. Investors flocked to the China-based producer foe heal and well-being products after the company announced its subsidiary, Tianjin Tajit E-Commerce Ltd., obtained contractual rights to distribute branded products of Daiso Industries Co. Ltd, a large franchise of 100-yen shops founded in Japan, via JD.com – the largest e-commerce company and retailer in China. Daiso Industries Co., Ltd. operates home center chains throughout the world.

Shineco Inc (NASDAQ:TYHT)

Shineco Deal

Shineco Inc (NASDAQ:TYHT) is now authorized to distribute Daiso’s branded products and use its brand names in connection with Tianjin Tajit E-Commerce Ltd in China. The allows Shineco to access JD’s massive online customer base for business development in China. JD will leverage Shineco’s business expertise, and Shineco will serve as JD’s authorized vendor for providing its customers with access to a wide range of products of Daiso.

Mr. Yuying Zhang, Chairman and Chief Executive Officer of Shineco Inc (NASDAQ:TYHT), stated, “We are excited about teaming up with China’s e-commerce giant JD and Japan’s retail giant Daiso, and the potential market that new relationship can bring to our business. JD’s vast online retail channel will enable us to distribute Daiso’s products in a more efficient and economical manner to meet the growing consumer demand in China, which further drives the Company’s fast expansion in e-commerce, enhances the influence of the Company and builds up the brand awareness of Shineco.”

TYHT Stock Analysis

In mid-August, Shineco Inc (NASDAQ:TYHT) stock established a new 52-week low of $1.72. However, two weeks ago the stock began a strong uptrend and has closed higher every day since. Friday’s price action was remarkable. TYHT stock had closed on Thursday at $2.78, then gapped up on the news to open Friday’s session at $2.86 before hitting an inter-day high of $4.38. That upward move was accompanied by strong volumes that were over 64 times the listed 30-day, daily average.

Earnings per share, sales, and the number of outstanding shares have all been largely consistent over the past five years. One thing that does stand out is the fact that the stock has a float of only 13.87 million shares. That low float level could serve as a catalyst for any future moves, up or down, as traders seek to capitalize on the expanding Asian healthcare markets.

I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.

Don’t miss out! Stay informed on $TYHT and receive breaking news on other hot stocks by signing up for our free newsletter!

About the author: Steve Clark is a 23-year Wall St professional with stints in M&A, risk management, and algorithm trading. Steve keeps his head in the game by looking for, and writing about, small companies that often get overlooked by the big investment firms.

Torchlight Energy Resources Inc (NASDAQ:TRCH)

Oil Price Bring Traders to Torchlight Energy Resources Inc (NASDAQ:TRCH)

Torchlight Energy Resources Inc (NASDAQ:TRCH)

Torchlight Energy Resources Inc (NASDAQ:TRCH) shares are up over 7% to $1.49, and trading on a volume that is over 11 times their 30-day, daily average. Shares may be moving higher on the news from the European oil markets that the price of crude oil is rising in an environment where additional production is far from a certainty.

Ten-day chart for TRCH stock:

Torchlight Energy Resources Inc (NASDAQ:TRCH)

Plano, TX-based Torchlight Energy Resources Inc (NASDAQ:TRCH) is a high-growth oil and gas exploration and production (E&P) company with a focus on acquisition and development of highly profitable domestic oil fields. The company has assets focused in West and Central Texas where the company targets established plays such as West Texas’ Permian Basin and Eagle Ford Shale.

On October 18, Torchlight Energy Resources Inc (NASDAQ:TRCH) provided an update to the flowback process underway on its Flying B Ranch #3H well. At that time, the company said it was producing ~2500 barrels of fluid per day and experiencing increasing oil cuts and gas production. Most recent measurements reflected an oil cut of roughly 6% reaching ~150 BO/d and 30 MCF/d.

TRCH Stock Performance

TRCH shares have done well this year – up over 36%. However, this week alone the shares have skyrocketed and are up over 27%. That move pushed their Relative Strength Index (RSI) figure above 70 to 75. Accordingly, they are now trading in an area (above 70) that many traders consider to be in “overbought” condition, but given the recent upward trajectory in global oil prices, more may be left to the upside for this energy stock.

As demonstrated by the increase in share volume, traders may be moving quickly in this stock to capture any quick moves. Long-term investors have been rewarded but they also are skittish of the fact that Torchlight Energy Resources Inc (NASDAQ:TRCH) had increasing per share losses from 2012 through 2015 when the company posted a loss of (-$1.56) per share. That loss shrank to (-$0.18) for 2016. Another area of concern for long-term holders is the shareholder’s equity dilution. In 2014 15.73 million TRCH shares were outstanding. That number increased almost three-fold by the end of 2016 to 43.12 million.

I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.

Don’t miss out! Stay informed on $SMIT and receive breaking news on other hot stocks by signing up for our free newsletter!

About the author: Steve Clark is a 23-year Wall St professional with stints in M&A, risk management, and algorithm trading. Steve keeps his head in the game by looking for, and writing about, small companies that often get overlooked by the big investment firms.

MediciNova, Inc. (NASDAQ:MNOV)

MediciNova, Inc. (NASDAQ:MNOV) Reports Topline Results

MediciNova, Inc. (NASDAQ:MNOV)

MediciNova, Inc. (NASDAQ:MNOV) shares fell 2.76% after the biopharmaceutical company reported topline results from its SPRINT-MS Phase 2B trials which investigated MN-166 for the treatment of multiple sclerosis. The lead drug candidate achieved its primary endpoints by demonstrating statistically significant reduction in the rate of progression in brain atrophy when compared to a placebo.

MediciNova, Inc. (NASDAQ:MNOV)

MN-166 Topline Results

The topline clinical trial results will be presented at the 7th Joint ECTRIMS*-ACTRIMS** Meeting in Paris on October 28, 2017, by Dr. Robert Fox, Staff Neurologist at the Cleveland Clinic.

Dr. Robert Fox commented, “This is an encouraging step forward in the development of treatments for progressive MS, which has historically been very difficult to treat.” Yuichi Iwaki, MD, Ph.D., President and Chief Executive Officer of MediciNova, Inc. commented, “This is a major epoch for patients. We will coordinate the next plan to complete our mission.”

MediciNova, Inc. (NASDAQ:MNOV) is currently trading in an uptrend after bouncing from its August lows of $4.40 a share. However, the stock has come under pressure in recent trading sessions after recording a new 52-week high of $7.85 a share. It faces immediate resistance at the $6.90 mark above which it could make a push for the 52-week high. The stock is currently rated as a strong buy by one analyst firm according to data compiled by Zacks Investment Research.

MediciNova Pipeline

MediciNova, Inc. (NASDAQ:MNOV) lead candidate drug MN-166 is an orally bioavailable, small-molecule phosphodiesterase designed to suppress pro-inflammatory cytokines to promote neurotrophic factors. The company acquired it from Kyori pharmaceuticals having been marketed in Japan and Korea since 1989.

MediciNova, Inc. (NASDAQ:MNOV) is currently focusing on MN-166 for the treatment of neurological disorders such as progressive MSM ALS and substance abuse. The company has completed the enrollment of patients in a Phase 2 clinical trial of MN166 in Methamphetamine Dependence.

“We are pleased that enrollment is now completed in the first study to evaluate MN-166’s (ibudilast) potential clinical utility for methamphetamine dependence. We look forward to the final results of the study which we expect by the first quarter of 2018,” said Mr. Iwaki

The company’s pipeline also includes MN-221 for the treatment of acute exacerbations of asthma and MN-029 for solid tumor cancers. MediciNova, Inc. (NASDAQ:MNOV) is currently engaged in strategic partnerships and other potential funding discussions to support the development of its clinical programs.

I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.

Don’t miss out! Stay informed on MNOV and receive breaking news on other hot stocks by signing up for our free newsletter!

About the author: Steve Clark is a 23-year Wall St professional with stints in M&A, risk management, and algorithm trading. Steve keeps his head in the game by looking for, and writing about, small companies that often get overlooked by the big investment firms.

Neos Therapeutics Inc (NASDAQ:NEOS)

Neos Therapeutics Inc (NASDAQ:NEOS) Shares Rocket on Acquisition Offer

Neos Therapeutics Inc (NASDAQ:NEOS)

Neos Therapeutics Inc (NASDAQ:NEOS) stock boomed today after the company revealed that they are reviewing an unsolicited proposal to acquire the Texas-based drug company. NEOS stock ended yesterday at $7.30, then gapped up to open at $9.50 before hitting an inter-day high of $10.90 on a volume figure that was ten times the average. With two hours left in the trading day, NEOS shares are trading around the $10 handle.

Neos Therapeutics Inc (NASDAQ:NEOS)

Acquisition history

The current acquisition proposal is from PDL BioPharma Inc (NASDAQ:PDLI). On June 23, 2017 PDL made an offer to acquire Neos Therapeutics for $10.25 per share in cash. That offer was studied and subsequently rejected by the Neos Board of Directors. The, on July 31, 2017, PDL Biopharma made another unsolicited acquisition offer at the same price.  Following the second offer, Neos entered into a confidentiality agreement with PDL to facilitate discussions. Following these discussions, PDL again made a proposal to acquire Neos for $10.25 per share, in cash. At that time, PDL Biopharma acknowledged that Neos Therapeutics Inc (NASDAQ:NEOS) was likely more valuable than the offer price. In deciding to recommend a rejection of the PDL offer at $10.25 per share, the Neos Board considered the successful path the company is taking in executing its strategy.

NEOS Stock Performance

Shares of Neos Therapeutics Inc (NASDAQ:NEOS) have done well without the acquisition offerings. YTD, NEOS stock is up 25%, and is up over 12% for the quarter. Prior to today’s action, NEOS stock had a 52-week high of $9.60 and a 52-week low of $4.85.

Sales have improved considerably over the past three years. In 2014, the company reported $800,000 in sales which was followed by $3.8 million in 2015, and $9.2 million for 2016. Unfortunately, losses have been a noted area of concern among investors. In 2014, NEOS shares lost (-$1.76), followed by a per share loss of (-$2.07), and a larger loss of (-$5.19) for 2016.

Three investment firms follow Neos Therapeutics Inc (NASDAQ:NEOS). One rates NEOS stock as a “Strong Buy” one rates the shares a “Buy” and one rates the shares a “Hold”.

I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.

Don’t miss out! Stay informed on $NEOS and receive breaking news on other hot stocks by signing up for our free newsletter!

About the author: Steve Clark is a 23-year Wall St professional with stints in M&A, risk management, and algorithm trading. Steve keeps his head in the game by looking for, and writing about, small companies that often get overlooked by the big investment firms.

Cumulus Media Inc (NASDAQ:CMLS)

Cumulus Media Inc (NASDAQ:CMLS) Broadcasts Good News

Cumulus Media Inc (NASDAQ:CMLS)

Cumulus Media Inc (NASDAQ:CMLS) stock doubled in value earlier today and is currently up over 80% on historically high volumes. The massive movement to the upside came after the media company released preliminary operating results to the public that beat Wall St expectations.

Cumulus Media Inc (NASDAQ:CMLS)

Cumulus Media Inc (NASDAQ:CMLS), headquartered in Atlanta, GA, owns and operates radio stations in the United States. The company operates under two brands, Radio Station Group and Westwood One. Revenues are generated through the sale of commercial advertising time to local, regional, and national advertisers as well as network advertising. Cumulus creates and broadcasts content through approximately 445 owned-and-operated stations in 90 United States media market. The company also has approximately 8,200 broadcast radio affiliates and various digital channels.

Quarterly Results

Cumulus Media Inc (NASDAQ:CMLS) will issue a press release reporting its third quarter 2017 operating results at approximately 7:30 AM EST on Thursday, November 9th. However, the company expects to report net revenue in a range of $286.0 million to $288.0 million, net (loss) income in a range of $(0.3) million to $1.7 million, and Adjusted EBITDA in a range of $60.0 million to $62.0 million.

Mary Berner, President and Chief Executive Officer of Cumulus Media Inc (NASDAQ:CMLS), said, “The strong preliminary results for the third quarter provide further evidence that our turnaround plan is taking hold. We are encouraged by our continuing operating and financial momentum in the face of negative industry trends.”

Ms. Berner followed that positive statement with a more cautious tone when she stated “While the Company has ample cash to operate our business, Cumulus continues to be constrained by an excessive debt load. With the assistance of outside advisors, we are proactively exploring a range of alternatives with our lenders and noteholders to restructure the balance sheet and reduce debt.”

CMLS Shares

Cumulus Media Inc (NASDAQ:CMLS) shares have been under pressure this year having lost over 80% of their value. While today’s preliminary numbers have been well received, cautious investors note that sales have been relatively flat. In 2014 the company posted sales of $1.26 Billion, followed by $1.17 Billion for 2015, and in 2016 the company posted $1.14 Billion in sales.

Shareholder losses have been substantial as well. In 2015 the per share loss was (-$18.37). That loss marginally improved in 2016 when the company lost (-$17.45) per share. The lone firm that covers CMLS shares rates them as a “Hold”.

I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.

Don’t miss out! Stay informed on $CMLS and receive breaking news on other hot stocks by signing up for our free newsletter!

About the author: Steve Clark is a 23-year Wall St professional with stints in M&A, risk management, and algorithm trading. Steve keeps his head in the game by looking for, and writing about, small companies that often get overlooked by the big investment firms.