Enteromedics Inc. (Nasdaq: ETRM)

EnteroMedics Inc.– Nasdaq: ETRM

Enteromedics Inc has had four continuous days of gains. Traded on the Nasdaq under ticker ETRM, the biotech stock had a reverse split in late December. What is newsworthy of late is the massive relative volumes that have been associated with the stock. Below is our original report from January 6, 2017.

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Shares of MN-based EnteroMedics Inc. are up over 80% in pre-market trading on heavy volume. Shares are traded on the Nasdaq under the ticker symbol ETRM. ETRM closed at $2.09 on Wednesday, $3.97 on Thursday, and have traded as high as $7.62.

EnteroMedics® Inc. develops therapies for obesity. It has developed vBloc® vagal blocking therapy, a patented therapeutic approach to treat a range of gastrointestinal and metabolic diseases. vBloc® is a weight loss treatment that addresses the growing global health crises associated with obesity and its co-morbidities, such as diabetes and hypertension.

vBloc® Therapy, delivered by a pacemaker-like device called the Maestro® Rechargeable System, controls both hunger and fullness by blocking the primary nerve which regulates the digestive system. The Maestro Rechargeable System has received Food and Drug Administration (FDA) approval as well as CE Mark in Europe, and has been listed on the Australian Register of Therapeutic Goods (ARTG) by the Therapeutic Goods Administration (TGA) for supply in Australia.

Price action seems to be motivated by news that MedStar Health in Maryland and Roper St. Francis in South Carolina, both vBloc institutes, have implanted vBloc Neurometabolic therapies.

EnteroMedics Inc. has no reported sales. Only one firm follows ETRM and rates it as a “Strong Buy”.

I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 96 hours. All information, or data, is provided with no guarantees of accuracy.

SNU stocks that may be the ones to watch in 2017

Poised for big move in 2017?

At SNU we see a lot of stocks and write about those that we believe are, or will be, a hot topic. We searched through our screeners for five we believe investors might want to pay attention to in the coming year. The following are small-cap Nasdaq stocks that have good volumes, priced between $5 and $20, have good insider trading characteristics, and experts believe will have superior 2017 earnings.

FRED – Fred’s, Inc. sells general merchandise through its retail discount stores and full service pharmacies. The company, through its stores, offers household cleaning supplies, health and beauty aids, disposable diapers, pet foods, paper products, various food and beverage products, and pharmaceuticals to low, middle, and fixed income families in small- to medium- sized towns. It also sells general merchandise to franchised Fred’s stores. As of January 30, 2016, the company operated 641 company-owned stores in 15 states and 18 franchised stores under the Fred’s name, as well as 372 pharmacies and 3 specialty pharmacy facilities primarily in the southeastern United States. It also operates 18 franchised stores under the Fred’s name. Fred’s, Inc. was founded in 1947 and is headquartered in Memphis, Tennessee.

CONN – Conn’s, Inc. is a specialty retailer of durable consumer goods and related services in the United States. The company’s stores provide home appliances comprising refrigerators, freezers, washers, dryers, dishwashers, and ranges; furniture and mattress, including furniture and related accessories for the living room, dining room, and bedroom, as well as traditional and specialty mattresses; and home office products consisting of computers, tablets, printers, and accessories. Its stores also offer consumer electronics, such as LED, OLED, Ultra HD, and Internet-ready televisions; and Blu-ray players, and home theater and portable audio equipment. Conn’s, Inc. also provides repair service agreements, installment credit plans, and various credit insurance products. As of March 29, 2016, the company operated approximately 100 retail locations in Arizona, Colorado, Georgia, Louisiana, Mississippi, Nevada, New Mexico, North Carolina, Oklahoma, South Carolina, Tennessee, and Texas. Conn’s, Inc. was founded in 1890 and is based in The Woodlands, Texas.

KTOS – Kratos Defense & Security Solutions, Inc. provides mission critical products, solutions, and services primarily for Government and commercial customers. The company operates through three segments – Kratos Government Solutions, Unmanned Systems, and Public Safety & Security. The Kratos Government Solutions segment offers microwave electronic products; satellite communications; technical and training solutions; modular systems; and defense and rocket support services. The Unmanned Systems segment provides unmanned aerial, ground, seaborne and command, control, and communications systems. The Public Safety & Security segment offers integrated solutions for homeland security, public safety, and critical infrastructure, as well as security and surveillance systems. This segment serves critical infrastructure, power generation, power transport, nuclear energy, financial, IT, healthcare, education, transportation, and petro-chemical industries, as well as government and military customers. The company was founded in 1994 and is headquartered in San Diego, California.

MDCA – MDC Partners Inc. provides marketing, advertising, activation, communications, and strategic consulting solutions worldwide. Its Advertising and Communications segment offers multi-channel media management and optimization; interactive and mobile marketing; direct marketing; database and customer relationship management; sales promotion; corporate communications; market research; data analytics and insights; corporate identity, design, and branding services; social media communications; product and service innovation; and e-commerce management. The company was formerly known as MDC Corporation Inc. and changed its name to MDC Partners Inc. in January 2004. MDC Partners Inc., founded in 1980, is headquartered in New York, New York.

EGLE – Eagle Bulk Shipping Inc., through its subsidiaries, engages in the global ocean transportation of dry bulk cargoes. The company owns, charters, and operates dry bulk vessels that transport a range of bulk cargoes, including coal, grain, ore, pet coke, cement, and fertilizers. As of December 31, 2015, it owned and operated a fleet of 44 oceangoing vessels, which include 43 Supramax and 1 Handymax vessels with a combined carrying capacity of approximately 2,404,064 deadweight tons. Eagle Bulk Shipping Inc.,founded in 2005, is headquartered in Stamford, Connecticut.

I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 96 hours. All information, or data, is provided with no guarantees of accuracy.

Energous Corporation (Nasdaq: WATT) Up Today

Energous Corporation; Nasdaq: WATT

Shares of Energous Corporation are up close to 10% on heavy volume. Energous Corporations trades on the Nasdaq under the ticker symbol WATT. Yesterday WATT closed at $17.48 but today’s morning trading has seen the shares trading as high as $19.28.

Energous Corporation is the developer of WattUp®—an award-winning, wire-free charging technology that Energous hopes will transform the way consumers and industries charge and power electronic devices at home, in the office, in the car and beyond. WattUp is a radio frequency (RF) based charging solution that delivers intelligent, scalable power via radio bands, similar to a Wi-Fi router. WattUp differs from other wireless charging systems in that it delivers power at a distance, to multiple devices – thus resulting in a wire-free experience that saves users from having to plug in their devices.

In November the U.S. Patent Office’s Trial and Appeal Board (PTAB) rejected a challenge to the Energous patent.

“Yesterday’s decision from the PTAB confirms our steadfast confidence in the strength of our intellectual property and strategy surrounding our WattUp technology,” said Stephen R. Rizzone, president and CEO of Energous. “As a licensing and semiconductor company, protecting and securing our patents is an important element of our goal of maintaining a dominant leadership position in the emerging market of wire-free power. We will continue to vigorously defend our intellectual property as we innovate and develop breakthrough wire-free charging technologies.”

Three firms follow Energous Corporation and all three give WATT shares a “Strong Buy” rating.

I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 96 hours. All information, or data, is provided with no guarantees of accuracy.

12/22/2016
Ticker Symbol WATT
Last Price a/o 11:44 AM EST  $             19.15
Average Volume 569,780
Market Cap $327.75
Sales $1.3 million
Shares Outstanding 18.75 million
Share Float 14.08 million
Shortable Yes
Optionable Yes
Inside Ownership 2.30%
Short Float 31.29%
Short Interest Ratio 7.73
Quarterly Return -6.52%
YTD Return 121.00%
Year Return 124.10%

InvenSense Inc (NYSE: INVN) Sets Acquisition Pricing at $13/share

InvenSense Inc.; NYSE: INVN

This morning InvenSense Inc.finalized a previously announced acquisition deal that would see its shares purchased by Japanese-based TDK for $13 per share – $1.00 more than initial reports. InvenSense Inc trades on the NYSA under the ticker INVN. Shares of INVN immediately popped over 15% on the news from their Tuesday close of $10.84. For most of 2016 INVN traded between $5 and $10. When initial news of the $1.3 Billion deal hit, Shares on InvenSense Inc. jumped 28%.

Founded in 2003, InvenSense Inc. is the world’s leading provider of MEMS sensor platforms. Its corporate headquarters are in San Jose, CA with offices in North America, Europe, and Asia. InvenSense’s vision of Sensing Everything™ targets the consumer electronics and industrial markets with integrated Motion and Sound solutions. InvenSense Inc. solutions combine MEMS (micro electrical mechanical systems) sensors, such as accelerometers, gyroscopes, compasses, and microphones with proprietary algorithms and firmware that intelligently process, synthesize, and calibrate the output of sensors, maximizing performance and accuracy. InvenSense’s motion tracking, audio and location platforms, and services can be found in many of the world’s largest and most iconic brands including smartphones, tablets, wearables, drones, gaming devices, internet of things, automotive products, and remote controls for smart TVs.

Eleven analysts cover INVN with four giving it a rating of “Strong Buy” and seven giving it a rating of “Hold”. InvenSense Inc. sales have continuously increased year-on-year. In 2012 reported sales were $153 million and in 2015 reported sales were $418.4 million. EPS did not perform as well. In 2012 INVN had a $0.39 EPS but in 2015 there was a reported EPS loss of $0.23.

I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 96 hours. All information, or data, is provided with no guarantees of accuracy.

Ticker Symbol INVN
Last Price a/o 7:21 AM EST  $             12.62
Average Volume 1.74 million
Market Cap $1.03 Billion
Sales $340 million
Shares Outstanding 94.67 million
Share Float 93.48 million
Shortable Yes
Optionable Yes
Inside Ownership 0.40%
Short Float 10.90%
Short Interest Ratio 5.84
Quarterly Return 39.69%
YTD Return 5.96%
Year Return 3.44%

Iridium Communications Inc. (Nasdaq: IRDM) Shares Gaining as SpaceX Launch Approaches

Iridium Communications Inc.; Nasdaq: IRDM

Iridium Communications Inc. markets itself as the world’s only true global mobile satellite communications company. The company claims it provides 100% global voice and data coverage through 66 low-orbit satellites. The McLean, VA-based firm trades on the Nasdaq under the ticker IRDM. IRDM was trading under $6.00 in October of 2015, today traded above $11.00.

Iridium Communications sales have consistently improved over the years – in 2011 the figure was $348.3 million and in 2015 that improved to $411.4 million. However, shareholders have not seen the same improvement in earnings. In 2011 EPS was $0.57 but in 2015 there was an EPS loss of $0.09. Analyst sentiment on IRDM is divided – two rate it as a “Hold” and two rate it as a “Buy”.

Iridium Communications and SpaceX are sending 72 satellites into space together, completely replacing Iridium’s satellite net in a $492 million contract. The next launch is for ten Iridium telecoms satellites, Iridium had said last week that the launch could happen as soon as Dec. 16, but SpaceX has now walked that back to early January, with no firm date for launch.

I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 96 hours. All information, or data, is provided with no guarantees of accuracy.

Ticker Symbol IRDM
Last Price a/o 4:00 EST  $             11.00
Average Volume 745,100
Market Cap $1.01 Billion
Sales $432.6 million
Shares Outstanding 96.5 million
Share Float 80.91 million
Shortable Yes
Optionable Yes
Inside Ownership 0.90%
Short Float 24.61%
Short Interest Ratio 26.72
Quarterly Return 39.33%
YTD Return 24.25%
Year Return 31.80%

Conatus Pharmaceuticals Inc. (Nasdaq: CNAT) Signs Deal with Novartis AG

Conatus Pharmaceuticals, Nasdaq: CNAT

Shares of Conatus Pharmaceuticals Inc. rocketed in after-hours trading. CNAT, traded on the Nasdaq, closed the regular session at $1.96, but rose to $5.90 (150%+) after Conatus Pharmaceuticals announced a licensing and collaboration agreement with Novartis AG for a liver disease treatment. Conatus said it will receive $50 million upfront from Novartis in addition to other payments for an exclusive option, collaboration, and licensing agreement for its liver disease drug Emricasan. Novartis will also pay 50% of development costs for the drug after the exercise of options.

Six Wall St. firms cover CNAT and all rate the shares as a “Strong Buy”. The consensus target price is $8 but that is certain to be reviewed by analysts after tonight’s announcement.

I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 96 hours. All information, or data, is provided with no guarantees of accuracy.

Ticker Symbol CNAT
Last Price a/o 6:00 PM EST  $               4.10
Average Volume 497,500
Market Cap $53.5 million
Sales
Shares Outstanding 27.28 million
Share Float 25.28 million
Shortable Yes
Optionable Yes
Inside Ownership 0.10%
Short Float 2.70%
Short Interest Ratio 1.43
Quarterly Return -6.22%
YTD Return -31.94%
Year Return -34.45%

 

Prospect Capital Corporation (Nasdaq: PSEC)

Prospect Capital Corporation – Nasdaq: PSEC

Prospect Capital Corporation is a business development company – they are a lender to midsize companies and invest in real estate. Typically, investors consider business development companies for their attractive dividends in our low interest-rate environment. Business development companies are a sensitive and hotly debated asset in investment circles. However, there are a few good reasons that Prospect Capital Corporation may be worth a look.

First, according to InsiderMonkey.com, thirteen hedge funds held positions in PSEC. This is important because hedge funds are traditionally run by people that have their own money at risk. Secondly, continuing the theme of whose money is at risk, senior management are the largest shareholders of PSEC with more than $160 million of common stock, including over $50 million purchased in the March 2016 quarter. Senior management has never sold a share. Additionally, a key part of analyzing a business development company is the quality of their debt. Prospect Capital Corporation first-lien and second-lien secured loans comprise approximately 71% of PSEC’s investment portfolio, and majority of those are first-lien. In the current rising interest-rate market PSEC has positioned itself to benefit by investing predominately in floating rate assets and borrowing at fixed rates. Lastly, it is trading near its 2016 highs. Did we mention that PSEC has a dividend rate over 10%?

For those that like to pour over financial statements, this is a stock you might think about you to adding to your list. Industry insiders consider Prospect Capital to be in the process of strengthening its balance sheet by selling off some of its less profitable assets. It continues to pursue a robust pipeline of investment opportunities and interested investors should pay close attention.

I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 96 hours. All information, or data, is provided with no guarantees of accuracy.

Ticker Symbol PSEC
Last Price a/o 4:00 EST  $               8.26
Average Volume 1.75 million
Market Cap $2.96 Billion
Sales $771.6 million
Shares Outstanding 358.4 million
Share Float 334.6 million
Shortable Yes
Optionable Yes
Inside Ownership 0.10%
Short Float 9.37%
Short Interest Ratio 17.92
Quarterly Return 5.66%
YTD Return 33.41%
Year Return 39.80%

 

Genius Brands International, Inc (Nasdaq: GNUS) – Trying to Bank the “Cool” Factor

Genius Brands International, Inc – Nasdaq: GNUS

Genius Brands International, Inc. “GBI” (Nasdaq: GNUS), headquartered in Beverly Hills, CA, creates and licenses multimedia content for toddlers to tweens. Genius Brands International, Inc. distributes content, and character-based products, worldwide in all formats. GBI’s portfolio includes award-winning Baby Genius; adventure comedy Thomas Edison’s Secret Lab, available on Netflix, public broadcast stations and GBI’s Kid Genius channel on Xfinity on Demand; animated movie Stan Lee’s Mighty 7; and Warren Buffett’s Secret Millionaires Club, starring iconic investor Warren Buffett. Genius Brands International is also producing a new animated preschool series based on Llama Llama, the NY Times bestselling children’s book franchise; and a tween music-based adventure series SpacePOP.

GNUS has traded above $7.00 but experiences low volumes. This may change in the future as it does have partnership and distribution assets that could propel its earnings. To date, Disney and Sony both have signed agreements with GNUS and one of its key products, SpacePOP, is being sold in Toys-R-Us. GNUS is going after the “cool” market and if it gets hot and continues to develop its impressive partnerships and distribution assets, could see much better days ahead. But be warned, the last financials showed a $3.48 EPS loss.

Always perform your own due diligence before making any decisions regarding the buy or sale of any stock.

 

Lululemon Athletica (Nasdaq: LULU) Announces Q3 Results and Share Repurchase

Market Mover Alert on Lululemon Athletica Inc. – Nasdaq ticker: LULU

Lululemon Athletica Inc. announced third quarter results yesterday and its stock (LULU) has seen a price bump amid high volumes.

Lululemon Athletica is a Vancouver, Canada based company that designs and sells athletic wear. Products include performance shirts, shorts, pants, and lifestyle apparel and yoga accessories. Sold internationally, they compete with Athleta, Nike, and Under Amour.

From Lululemon Atheltica’s press release:

For the third quarter ended October 30, 2016:

  • Net revenue increased by 13% to $544.4 million from $479.7 million in the third quarter of fiscal 2015.
  • Total comparable sales, which includes comparable store sales and direct to consumer, increased by 7%.
  • Comparable store sales increased by 4%.
  • Direct to consumer net revenue increased by 16% to $104.0 million.
  • Gross profit increased by 24% to $278.4 million, and as a percentage of net revenue gross profit was 51.1% compared to 46.9% in the third quarter of fiscal 2015.
  • Income from operations increased by 36% to $93.0 million from $68.2 million in the third quarter of fiscal 2015, and as a percentage of net revenue was 17.1% compared to 14.2% of net revenue in the third quarter of fiscal 2015.
  • Diluted earnings per share for the third quarter of fiscal 2016 were $0.50 compared to $0.38 in the third quarter of fiscal 2015.

 

Of possibly more importance was the announcement that Lululemon Athletica’s board has approved a share buy-back.

The Company also announced that its board of directors has approved a stock repurchase program for up to $100 million of its common shares in the open market at prevailing market prices. The timing and actual number of common shares to be repurchased will depend upon market conditions and other factors, in accordance with Securities and Exchange Commission requirements. The stock repurchase program is intended to create shareholder value by making opportunistic repurchases during periods of favorable market conditions. Shares may be repurchased from time to time on the open market, through block trades or otherwise. Purchases may be started or stopped at any time without prior notice depending on market conditions and other factors.”

LULU stock, traded on the Nasdaq, is up over 16% in morning trading on heavy volume.

Ticker Symbol LULU
Last Price a/o 11:45 EST  $             69.37
Average Volume 2.3 million
Market Cap 8.3 Billion
Sales $2.2 Billion
Shares Outstanding 140.1 million
Share Float 106.7 million
Shortable Yes
Optionable Yes
Inside Ownership 0.10%
Short Float 13.60%
Short Interest Ratio 6.25
Quarterly Return -9.44%
YTD Return 14.05%
Year Return 14.72%