Real Industry Inc (NASDAQ:RELY) Files for Bankruptcy Protection

Real Industry Inc (NASDAQ:RELY)

Real Industry Inc (NASDAQ:RELY) voluntarily filed for Chapter 11 bankruptcy protection, sending its stock down over 45% less than a week after the stock lost over 60% in a single day. RELY shares are currently trading around $0.30 on volume over ten times the daily average.

Real Industry Inc (NASDAQ:RELY)ban

Real Industries Bankruptcy

Real Industry Inc (NASDAQ:RELY) U.S. operations have experienced a loss of liquidity during the past year. This was mostly due to the lack of acceptable credit terms which would have enabled the company to refinance its $305 million 10% senior secured notes due January 2019. The Chapter 11 with enhanced liquidity in the form of Debtor-in-possession (DIP) financing which will include the continued use of the company’s $110 million asset-based lending facility, and up to $85 million in incremental liquidity provided by certain holders of the Senior Secured Notes.

The DIP financing also includes the conversion of $170 million of Senior Secured Notes into new notes. Subject to court approval, this DIP financing combined with funds generated from ongoing operations will be used to support Real Alloy’s normal operations during the reorganization effort under Chapter 11. Real Industry Inc (NASDAQ:RELY) has filed the customary motions in order to make operating payments during the Chapter 11 proceedings and expects to receive such approval shortly.

[Note: Not included in the Chapter 11 filings are Real Alloy’s operations in Germany, United Kingdom, Norway, Canada, and Mexico and its Goodyear, Ariz. joint venture.]

Sherman Oaks, CA-based Real Industry Inc (NASDAQ:RELY) is a holding company that seeks to create a sustainably profitable business acquiring companies that meet strict metrics with regards to value and structure. Our business strategy also seeks to take advantage of Real Industry’s U.S. federal net operating loss tax carryforwards of $916 million.

The company, through its subsidiaries, is involved in aluminum melting, processing, recycling, and alloying activities in the United States and internationally. The company operates in two segments, Real Alloy North America and Real Alloy Europe. It processes scrap aluminum and by-products. It manufactures wrought, cast, and specification or foundry alloys.

RELY Stock Performance

Real Industry Inc (NASDAQ:RELY) reported sales of $1.25 Billion for 2016. However, the company has a market capitalization of less than $20 million. Earnings have been negative since 2012 when the company posted a per share loss of (-$0.34). By 2016, that loss had grown to (-$3.71).

In mid-2016, RELY shares were hitting resistance at $9. A steady slide in the share price ensued and by August shares were meeting support around $1.75. Year-to-date, RELY stock has lost over 90% of its value. In the past week it has lost over 70% of its value.

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.

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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.

Sunshine Heart Inc (NASDAQ:CHFS) Stocks Skyrockets on SEC Filing

Sunshine Heart Inc (NASDAQ:CHFS)

Short-sellers of Sunshine Heart Inc (NASDAQ:CHFS) felt the pain today as the stock rocketed up over 500% in early afternoon trading, but have hit strong resistance at the $25 mark. While there has been no news released concerning the company, reports suggesting a catalyst for the upward move reference an SEC filing for a public offering of preferred stock and warrants.

Sunshine Heart Inc (NASDAQ:CHFS)

The filing details a potential offering of preferred shares and warrants totaling $32 million. The unit offering involves $10 million of preferred shares and $22 million of common shares that would be exercisable by the warrant holder(s). The 10,000 preferred shares would be exercisable into 2.141 million common shares of CHFS. The 22 million warrants could be converted into 4.282 million common shares of CHFS. The pricing of the public offering was not disclosed in the filing. In April, 2017, CHFS stock plunged 30% on the news of a dilutive offering of common shares.

About Sunshine Heart

A cardiac surgeon founded Eden Prarie, MN-based Sunshine Heart, Inc (NASDAQ:CHFS). Sunshine Heart is a medical device company that creates, develops, and commercializes technologies that address heart failure. The EU regulatory authorities have granted a CE Mark to their C-Pulse Heart Assist System. In the USA, the system is undergoing clinical studies to determine its safety and efficacy for the treatment of moderate to severe heart failure.

Sunshine Heart, Inc (NASDAQ:CHFS) lead product is the Aquadex FlexFlow® ultrafiltration system. The Aquadex FlexFlow system removes excess fluid from patients suffering from fluid overload who have failed diuretic therapy. Heart failure is the leading cause of fluid overload. The American Heart Association estimates that 6.5 million people in the United States, age 20 and over, had heart failure. There are an estimated 960,000 new heart failure cases annually. Annual hospitalizations for heart failure exceed 1 million in United States and Europe, and more than 90% are due to symptoms and signs of fluid overload.

CHFS Stock Developments

On October 10, 2017, Sunshine Heart, Inc (NASDAQ:CHFS) stockholders approved, later approved by the Board of Directors, a reverse 1:20 stock split. That move was in response to a notification from The NASDAQ Stock Market LLC informing Sunshine Heart that they were no longer in compliance with the minimum bid price requirement, as the bid price of shares of CHFS common stock closed below the minimum $1.00 per share threshold for 30 consecutive business days. Nasdaq also notified the company that they had 180 calendar days, or until November 28, 2017, to regain compliance.

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.

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About the author: Marc has a degree in economics and a MSc. in Finance. Over his 20-year career, Marc has worked for global investment firms in Europe and the United States as an analyst, fund manager, and consultant.

Zosano Pharma Corp (NASDAQ:ZSAN)

Zosano Pharma Corp (NASDAQ:ZSAN) Q3 Net Loss Widens

Zosano Pharma Corp (NASDAQ:ZSAN)

Zosano Pharma Corp (NASDAQ:ZSAN) shares gained 3.70% after the clinical stage biopharmaceutical company reported financial results and an operational update for Q3 2017. The unveiling of the financial results comes a day after the company initiated long-term safety study of zolmitriptan in migraine patients.

Zosano Pharma Corp (NASDAQ:ZSAN)

Zosano’s Net Loss

Zosano generated a net loss of (-$7.9) million or (-$0.20) a share in the third quarter, a slight increase from a net loss of (-$7.4) million, or (-$0.52) a share, reported last year. It awaits to be seen how investors will react to the wider than expected net loss as the stock continues to trade in a downtrend.

The stock has shed more than 70% in market value since March an underperformance that has plunged it to this year’s lows. Zosano Pharma Corp (NASDAQ:ZSAN) is currently trading near its 52-week low of $0.48 and in dire need of new catalyst if it’s to bounce back.

Research and development expenses in the quarter increased to $5.7 million from $5.1 million reported in Q3 of 2016. General and Administrative expenses remained unchanged at $2 million. Zosano exited the quarter with cash and cash equivalent of $19.8 million debt of $8.2 million and 39.2 million common shares outstanding.

During the quarter, the clinical stage biopharmaceutical company made important strides in the development of its pipeline of drugs. In September, the company presented data from Phase 2/3 ZOTRIP study evaluating M207 as a novel treatment for a migraine.

“The company continues to execute on our path to an NDA, including the initiation of our long-term safety study on November 7 and the continued scale up of manufacturing to support potential commercialization, pending approval of M207 by the FDA,” said CEO, John Walker.

Share Purchase Agreement

Separately, Zosano Pharma Corp (NASDAQ:ZSAN) has entered into a common share purchase agreement with Chicago-based institutional investor, Lincoln Park Capital Fund LLC. Pursuant to the approval of the SEC, the company is to sell shares worth $35 million to the investor.

Under the terms of the agreement, Zosano Pharma Corp (NASDAQ:ZSAN) is to control the timing and the amount of any investment by LPC. The investor will also be required to make purchases based on the purchase agreement and prevailing market prices at the time of each sale.

Zosano Pharma Corp (NASDAQ:ZSAN) plans to use proceeds from the purchase agreement to fund long-term study of its lead product candidate M207, and for general corporate purposes.

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.

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About the author: Monica has an undergraduate degree in Accounting and an MBA she earned – with Honors. She has six years of experience in the financial markets and has been an analyst for the past two years.

Ophthotech Corp (NASDAQ:OPHT)

Ophthotech Corp (NASDAQ:OPHT) Earnings Surprise!

Ophthotech Corp (NASDAQ:OPHT)

This morning, Ophthotech Corp (NASDAQ:OPHT) shares jumped up off their 52-week lows to gap up and open higher on the company’s earnings release. Early volume has been heavy – over 30 times the daily pro-rated average. The price action follows the company earnings announcement that saw Q3 net income of $189.1 million, or $5.25 per share, on $206.7 million in revenues. Ophthotech Corp (NASDAQ:OPHT) is a biopharmaceutical company, headquartered in New York city, specializing in the development of novel therapeutics for age-related and orphan diseases of the eye.

Glenn P. Sblendorio, Chief Executive Officer and President of Ophthotech commented on the earnings announcement – “We have progressed in all of our clinical programs by initiating new trials and modifying a current clinical trial. We remain on track to have four trials ongoing by the end of the year.”

Ophthotech Corp (NASDAQ:OPHT)

Ophthotech Business Update

Ophthotech modified its on-going Zimura (avacincaptad pegol) clinical trial for the treatment of geographic atrophy (GA) secondary to dry age related macular degeneration (AMD). This on-going clinical trial is designed to assess the safety and efficacy of Zimura monotherapy in patients with GA. The company has modified the design of the trial to accelerate the anticipated timeline for obtaining top-line data. This was accomplished by restriucting the number of enrollees to 200.

During the third quarter, Ophthotech Corp (NASDAQ:OPHT) initiated a new dose-ranging, open-label Phase 2a clinical trial of Zimura in combination with Lucentis® in patients with wet AMD who have not been previously treated with any anti-VEGF agents. Approximately 60 patients will be enrolled and treated for 6 months. Based on the anticipated enrollment rate, Ophthotech expects initial top-line data to be available by the end of 2018.

Before the end of 2017, an open-label Phase 2a clinical trial will begin that evaluates Zimura, in combination with Eylea®, for the treatment of idiopathic polypoidal choroidal vasculopathy (IPCV) in treatment experienced patients. Approximately 20 patients will be enrolled and treated for a duration of 9 months. Initial top-line data is expected to be available during the second half of 2019.

OPHT Stock Performance

Today’s earnings announcement is very welcome news from shareholders that had seen a year in which OPHT stock had lost over 90% of its value. The value of the shares has dropped on a year-to-date, quarterly, and monthly basis.

Most recently, OPHT stock was touching its 52-week low of $2.24. That price is a 90+% drop from its 52-week high of $40.34.

Five investment firms follow Ophthotech Corp (NASDAQ:OPHT). All five rate OPHT stock a “Hold” with a one-year consensus price target of $5.00.

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 $OPHT 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.

Aratana Therapeutics Inc (NASDAQ:PETX) Jumps

Aratana Therapeutics Inc (NASDAQ:PETX)

The market reacted favorably to the earnings release by Aratana Therapeutics Inc (NASDAQ:PETX) and it shares have risen over 18% on heavy volume. After the market closed yesterday, the pet therapeutics company reported total net revenues of $6.2 million and a net loss of (-$8.9) million or (-$0.21) diluted loss per share. According to Zacks Investment Research, analysts were expecting a per share loss of (-$0.26).

Aratana Therapeutics Inc (NASDAQ:PETX)

Founded in 2010, Aratana Therapeutics Inc (NASDAQ:PETX) has its headquarters in Leawood, Kansas. Aratana is a pet therapeutics company that licenses, develops and commercializes therapeutics for dogs and cats in the United States and Belgium. Its product portfolio includes multiple therapeutics, and therapeutic candidates in development, consisting of small molecule pharmaceuticals and biologics.

Aratana believes that it can leverage the investment in the human biopharmaceutical industry to bring therapeutics to dogs and cats in a capital and time efficient manner. Aratana’s pipeline includes therapeutic candidates for the potential treatment of pain, inappetence, viral diseases, allergy, cancer and other serious medical conditions.

Steven St. Peter, M.D., President and Chief Executive Officer of Aratana Therapeutics Inc (NASDAQ:PETX) commented on the earnings results, “With the launch of NOCITA, GALLIPRANT and now ENTYCE, Aratana is well-positioned to extend the relationships we have been building within specialty and general practice veterinary clinics over the past year. Aratana continues to remain focused on developing and commercializing innovative pet therapeutics, which we believe is the most underserved and attractive segment of the animal health market.”

PETX Q3 Earnings

The company’s Q3 net loss was (-$8.9) million or (-$0.21) diluted loss per share compared to net loss of (-$13.4) million or (-$0.38) diluted loss per share for the same quarter last year. Aratana recorded $6.2 million in net revenues for Q3, which primarily includes approximately $4.0 million of product sales and $2.2 million in GALLIPRANT licensing and collaboration revenue.

Q3 research and development expenses totaled $3.2 million in comparison to $5.3 million for Q3 2016. Selling, general and administrative expenses totaled $6.9 million in the third quarter ended September 30, 2017 and $21.3 million for the nine-month period ended September 30, 2017.

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 $PETX 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.

TICC Capital Corp. (NASDAQ:TICC)

Is TICC Capital Corp. (NASDAQ:TICC) Quarterly Distribution At Risk?

TICC Capital Corp. (NASDAQ:TICC)

Shares of TICC Capital Corp. (NASDAQ:TICC) fell 10.1% after the management investment company reported disappointing financial results that fell short of Wall Street expectations. The point of concern is that the company’s dividend offerings could be at risk as cash holdings continue to drop.

TICC Capital Corp. (NASDAQ:TICC)

Q3 Financial Results

For the three months ended September 30, 2017 the company reported a net investment income of $6.8 million or $0.13 a share. However, TICC Capital Corp. (NASDAQ:TICC) recorded net realized losses of (-$3.3) million and a net unrealized appreciation of $2.6 million. In total, net assets from operations increased by $6 million or about $0.12 a share.

Investors reacted to the Q3 financial results by pushing the stock lower following a sell-off that began in March. The stock has shed more than 30% since the start of the year as investors’ confidence in the company’s long-term prospects continues to drop.

TICC Capital Corp. (NASDAQ:TICC) makes a good chunk of its earnings from collateralized loan obligations (CLOs). A decline in yields on loans inside CLO’s in the recent past has considerably weighed into the company’s net income. The decline has resulted in a decline in the amount of money payable to investors.

The diversified holding company is notably known for its $0.20 a share quarterly dividend. A decline in cash payments received from CLO is already making some investors reassess their positions in the company.

Management Remarks

TICC Capital Corp. (NASDAQ:TICC) says declining cash distributions were a result of one-time expenses. The company does not expect the charges to repeat in the future. According to Chief Executive Officer Jonathan Cohen, focus will be on syndicated corporate loans. There are also plans to focus on narrowly syndicated loans through purchases in primary and pre-marketing syndications.

“Moreover, our corporate investment activity continues to focus on the rotation of the portfolio into higher yielding loans. We also continued the active rotation of our CLO portfolio with opportunistic purchases and sales,” said Mr. Cohen.

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.

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About the author: James Marion is a University of Houston student studying Business with a concentration in Finance. James has interned with several investment professionals and hopes to pursue a career as a professional stock analyst after graduation.

Immune Design Corp (NASDAQ:IMDZ)

Immune Design Corp (NASDAQ:IMDZ) Q3 Earnings Beat Estimates

Immune Design Corp (NASDAQ:IMDZ)

Immune Design Corp (NASDAQ:IMDZ) shares fell 9.09% despite the company posting better than expected third quarter financial results. The clinical-stage immunotherapy company reported a net loss of (-$13.4) million or (-$0.52) cents a share. Analyst were expecting a net loss of (-$0.63) cents a share.

Immune Design Corp (NASDAQ:IMDZ)

Q3 Financial Results

Investor confidence in Immune design has taken a hit in recent weeks, seen by the stock trading near all-time lows. The stock is down by more than 50% for the year.

Immune Design Corp (NASDAQ:IMDZ) posted revenues of $0.5 million for the three months ended September 30, 2017. The revenue is primarily attributable to collaboration revenues associated with the Sanofi G103 HSV vaccine product collaboration.

However, it was a decline from revenues of $8.2 million reported last year. Revenue for the corresponding period last year included $7 million in license revenue and $0.4 million in product sales associated with the Sanofi collaboration.

Revenue for the first six months of the year totaled $6.7 million down from $11.2 million for the corresponding period last year. Research and Development expenses in the third quarter totaled $10.2 million compared to $11.2 million for the corresponding period last year. The decrease was primarily attributed to a decline in licensing royalties and fees to other third parties.

Immune Design Corp (NASDAQ:IMDZ) exited the third quarter with cash and cash equivalent of $67.5 million compared to $110.4 million as of December 31, 2016.

Pipeline Development

During the quarter, Immune Design Corp (NASDAQ:IMDZ) achieved an important milestone in the development of its drug pipeline. The FDA approved the Phase 3 trial, design, and approval criteria for the company’s candidate drug for the treatment of synovial sarcoma, CMB305.

“In addition, at ESMO we presented interim analysis data from our ongoing randomized Phase 2 study of CMB305 and atezolizumab showing that patients receiving the combination therapy experienced greater clinical benefit and immune response than those receiving atezolizumab alone,” said CEO, Carlos Paya.

Immune Design Corp (NASDAQ:IMDZ) completed an underwritten follow-on public offering in Q3 that resulted in the sale of 22.4 million shares of common stock. Estimated net proceeds from the offering is $86.6 million. The company plans to use net proceeds from the offering to fund ongoing clinical programs and for working capital.

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 $IMDZ 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.

Leading Brands, Inc (USA) (NASDAQ:LBIX)

Buyers Jump into Leading Brands, Inc (USA) (NASDAQ:LBIX)

Leading Brands, Inc (USA) (NASDAQ:LBIX)

Shares of Leading Brands, Inc (USA) (NASDAQ:LBIX) are up over 50% and reversing the stock’s ten day decline following the company’s earnings announcement for Q2 2017. Observers believe the market is viewing the previous sell-off as overdone. Investors are buying in abnormally large quantities and the stock’s volume is on pace to register a number 20 times the listed daily average.

Leading Brands, Inc (USA) (NASDAQ:LBIX)

Leading Brands, Inc (USA) (NASDAQ:LBIX), headquartered in Vancouver, BC, Canada, and its subsidiaries develop, market, and distribute their own line of branded beverage products. These include TrueBlue, PureBlue, and LiveHappy Water.

Leading Brands Q2 Earnings

On October 16, 2017 Leading Brands, Inc (USA) (NASDAQ:LBIX) announced a $710,000 (-$0.25 per share) net loss from continuing operations versus a net loss of $949,000 (or $0.33 per share) in Q2 2016. Gross revenue for continuing operations for Q2 2017 was $510,000, versus $568,000 in the comparable period of last year. Gross profit margin for the quarter was 0.7%, up from (9.1%) in the same quarter last year.

LBIX Stock Reaction

On October 10, 2017, investors began accumulating shares, reportedly in anticipation of the earnings announcement. Shares boomed from $0.84 to $3.75 on October 13. The day of the announcement, shares reached $3.20 but closed at $2.82.

The failure to sustain the share increase led to a continuous decline. By October 31, LBIX stock hit a daily low of $1.30 – a 65% drop from its October 13 high. But today, investors jumped in and sent LBIX shares back up. They opened at $1.49 and have hit an inter-day high of $2.52. LBIX stock is trading around $2.25 at the time of this writing (11:52 AM EST).

Leading Brands Sales and Earnings History

In 2013, the company posted a per share profit of $0.15 and followed it up the next year with a figure of $0.31. Unfortunately, the next three years have seen losses. For 2015 the per share loss was (-$1.02), then a loss of (-$1.06) for 2016, and a loss of (-$0.86) for FY2017.

Sales have suffered as well. In 2013 sales were reported at $13.4 million and 2014 saw sales of $11.9 million. But in 2015 sales were just $400,000, then the next year just $600,000, and $900,000 for FY2017.

The one-year consensus price target amongst analysts is $4.40.

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 $LBIX and receive breaking news on other hot stocks by signing up for our free newsletter!

About the author: Marc has a degree in economics and a MSc. in Finance. Over his 20-year career, Marc has worked for global investment firms in Europe and the United States as an analyst, fund manager, and consultant.

Helios and Matheson Analytics Inc. (NASDAQ:HMNY)

Helios and Matheson Analytics Inc. (NASDAQ:HMNY) Down on Subscriber Math

Helios and Matheson Analytics Inc. (NASDAQ:HMNY)

Shares of Helios and Matheson Analytics Inc. (NASDAQ:HMNY) continued their long slide even as the company announced massive subscriber growth in its wholly owned subsidiary, MoviePass. Shares of the company fell 15.92% in Monday’s trading session to end the day at $9.03 a share.

Helios and Matheson Analytics Inc. (NASDAQ:HMNY)

HMNY Stock Performance

Monday’s sell-off capped yet another poor showing in the market on the back of positive news. Over the past month, the stock has shed more than 60% in the market, as the downward spiral shows no signs of slowing down.

Helios and Matheson Analytics Inc. (NASDAQ:HMNY) shares experienced a breathtaking spike in revenues after MoviePass announced an 80% reduction in its monthly subscription fee. The reduction led to an increase in the number of subscribers from 20,000 to 600,000 in less than two months.

Investor confidence on the stock has since taken a hit on concerns that MoviePass’ business model could drain a lot of capital in the near term. The Helios and Matheson Analytics subsidiary lets members watch one standard movie screening per day at any theater that accepts its debit card.

Profits Concerns

The math behind the $9.95 a month plan continues to arouse concerns as the company stands to lose money should subscribers watch more than one movie a month.

Confusion over how Helios and Matheson Analytics Inc. (NASDAQ:HMNY) will be able to generate profit under the current business model is another headwind that continues to plague the stock. A few weeks ago MoviePass CEO Mitch Lowe, said they will be able to break even on current subscribers buying at least one movie ticket. Fast forward, the tune has changed, and the executive insists that users may have to buy multiple tickets.

In what many observers believe is an attempt to prevent a further slide of the stock, Helios and Matheson Analytics Inc. (NASDAQ:HMNY) CEO has hinted at the possibility of generating some value from subscriber data.

“When you apply computer science and machine learning to an industry that we believe has lacked significant innovation, useful patterns start to emerge,” Helios and Matheson CEO Ted Farnsworth says in last week’s press release. “More subscribers mean more data.”

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 $HMNY and receive breaking news on other hot stocks by signing up for our free newsletter!

About the author: Marc has a degree in economics and a MSc. in Finance. Over his 20-year career, Marc has worked for global investment firms in Europe and the United States as an analyst, fund manager, and consultant.

Remark Holdings, Inc. (NASDAQ:MARK)

Remark Holdings, Inc. (NASDAQ:MARK) AI Key To Future Growth

Remark Holdings, Inc. (NASDAQ:MARK)

Shares of Remark Holdings, Inc. (NASDAQ:MARK) gained 5.98% as investors reacted to the company’s 3D augmented reality product being selected as the core technology behind Sina Weibo new mobile application. Developed by the company’s wholly-owned subsidiary, KanKan, the 3D facial tracking technology can track and recognize movements of various facial features.

Remark Holdings, Inc. (NASDAQ:MARK)

Sina Weibo Collaboration

According to the company’s Chief Executive Officer, Kai-Shing Tao, integration of the technology in Sina Weibo app, SuishouPai app, demonstrates the company’s ability to monetize its technologies. The use of the facial recognition technology should also help Remark Holdings better understand various facial expression which could lead to further improvements in the AI technology.

“We not only created a facial tracking system that we believe is far superior to existing technologies, but we also created 3D filters that can be used socially among friends or used to identify business opportunities in various industries, such as in the cosmetics field,” Tao in a statement.

Some observers believe that the value of the Sina Weibo deal has yet to be fully factored into the stock price of Remark Holdings, Inc. (NASDAQ:MARK). The share price has struggled to break through the $3 -$4.50 trading range despite the value of the assets that the company owns.

The stock is currently rated as a ‘strong buy’ by one analyst firm according to data compiled by Zacks Investment Research.

KanKan AI Prospects

KanKan has inked lucrative deals with tech giants Alibaba Group Holding Ltd (NYSE:BABA), Tencent Holdings Ltd (OTCMKTS:TCEHY) and Sina Weibo, something that could have catapulted the stock up the charts. However, that has not been the case. The management has already indicated that the recently announced deals have the potential to take the company’s artificial revenue from zero as of the start of the year, to $20 million as of next year.

The expected revenue could be much higher as tech giants continue to come up with unique ways of integrating artificial intelligence into their operations and products. The Remark Holdings subsidiary could continue to elicit interest given the investment it has made on the emerging technological spectacle.

“Artificial intelligence is the most exciting and disruptive force in technology today. It has the power to rapidly change business fundamentals. Remark’s AI technology platforms are on the forefront,” said Tao.

A further testament to Remark Holdings, Inc. (NASDAQ:MARK) credibility on AI is the naming of KanKan latest product, Heterogeneous Multi-Intelligence System, among the top three in Alibaba’s ‘Best AI Products’.

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 $MARK and receive breaking news on other hot stocks by signing up for our free newsletter!

About the author: Marc has a degree in economics and a MSc. in Finance. Over his 20-year career, Marc has worked for global investment firms in Europe and the United States as an analyst, fund manager, and consultant.