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Analyst: All Systems Are Go for Testing, Testing and More Testing

Source: Streetwise Reports   02/24/2021

This Dawson James report explains why ProPhase Labs is perfectly positioned to benefit from expanded COVID testing.

In a Feb. 22 research note, Dawson James analyst Jason Kolbert stated that ProPhase Labs Inc. (PRPH:NASDAQ) is well positioned to benefit from the several new federal initiatives to expand COVID-19 testing.

Kolbert listed the Biden administration’s recent efforts to increase COVID-19 testing, all of which bode well for ProPhase Labs. The Department of Health and Human Services will partner with the Department of Defense to expand testing for schools and underserved congregate settings through coordination hubs with a $650 million investment. Domestic manufacturing of testing supplies and raw materials will be boosted; $815 million will be directed toward that effort. The Centers for Disease Control and Prevention plans to “increase genomic sequencing of the virus to better prepare for the threat
of variants and slow the spread of disease. CDC plans “to invest nearly $200 million to expand genomic sequencing capabilities, including bioinformatics, reporting, and modeling, to increase sequencing three-fold per week.

Kolbert noted that even a small piece of the multimillion-dollar market for COVID tests “has the ability to be transformative to a company such as ProPhase.”

“Recognizing the opportunity, the company acquired a CLIA lab (October 2020) capable of processing 1,000 samples in 24 hours (& now expanded to 10k/day). We visited the newest facility in Garden City, which is set to come on-line with the capability to process up to 50,000 samples per day,” the analyst explained.

Previously, ProPhase generated revenue solely from sales of its T.K. dietary supplements line and from contract manufacturing of over-the-counter cold/flu and other health products. Those earnings will offset expenses incurred from its new operations, laboratory testing services.

“We see this as a good business and one where the management team, particularly the CEO, has demonstrated the ability to turn around both a falling business and a company,” Kolbert wrote. “With that said, we see this business as a means to an end, with the end being diagnostics.”

Dawson James has a Buy rating on ProPhase Labs and a target price of $25. The stock is currently trading at around $8.28.

 

Disclosure:
1) Doresa Banning compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the decision to publish an article until three business days after the publication of the article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases.
6) This article does not constitute medical advice. Officers, employees and contributors to Streetwise Reports are not licensed medical professionals. Readers should always contact their healthcare professionals for medical advice.

Disclosures for Dawson James Securities, ProPhase Labs, February 22, 2021

The Firm does not make a market in the securities of the subject company(s). The Firm has engaged in investment banking relationships with the subject company in the prior twelve months, as a manager or co-manager of a public offering and has received compensation resulting from those relationships. The Firm may seek compensation for investment banking services in the future from the subject company(s). The Firm has not received other compensation from the subject company(s) in the last 12 months for services unrelated to managing or co-managing of a public offering.

Neither the research analyst(s) whose name appears on this report nor any member of his (their) household is an officer, director or advisory board member of these companies. The Firm and/or its directors and employees may own securities of the company(s) in this report and may increase or decrease holdings in the future. As of January 31, 2021, the Firm as a whole did not beneficially own 1% or more of any class of common equity securities of the subject company(s) of this report. The Firm, its officers, directors, analysts or employees may affect transactions in and have long or short positions in the securities (or options or warrants related to those securities) of the company(s) subject to this report. The Firm may affect transactions as principal or agent in those securities.

Analysts receive no direct compensation in connection with the Firm’s investment banking business. All Firm employees, including the analyst(s) responsible for preparing this report, may be eligible to receive non-product or service specific monetary bonus compensation that is based upon various factors, including total revenues of the Firm and its affiliates as well as a portion of the proceeds from a broad pool of investment vehicles consisting of components of the compensation generated by investment banking activities, including but not limited to shares of stock and/or warrants, which may or may not include the securities referenced in this report.

Analyst Certification: The analyst(s) whose name appears on this research report certifies that 1) all of the views expressed in this report accurately reflect his (their) personal views about any and all of the subject securities or issuers discussed; and 2) no part of the research analyst’s compensation was, is, or will be directly or indirectly related to the specific recommendations or views expressed by the research analyst in this research report; and 3) all Dawson James employees, including the analyst(s) responsible for preparing this research report, may be eligible to receive non-product or service specific monetary bonus compensation that is based upon various factors, including total revenues of Dawson James and its affiliates as well as a portion of the proceeds from a broad pool of investment vehicles consisting of components of the compensation generated by investment banking activities, including but not limited to shares of stock and/or warrants, which may or may not include the securities referenced in this report.

Pandion Shares Trade Up 134% on $1.85 Billion Acquisition by Merck

Source: Streetwise Reports   02/25/2021

Pandion Therapeutics shares reached a new 52-week high after the company reported it agreed to be acquired by pharmaceutical giant Merck & Co. in an all cash transaction for $60 per share.

Clinical-stage biopharmaceutical company Pandion Therapeutics Inc. (PAND:NASDAQ), which focuses on developing modular therapeutics for treating autoimmune and inflammatory diseases, today announced that it entered into a definitive agreement to be acquired by a wholly owned subsidiary of Merck & Co. Inc. (MRK:NYSE) for $60 per share in cash. The firms advised that this price equates to a total equity value of approximately $1.85 billion.

Merck Research Laboratories’ President Dr. Dean Y. Li commented, “This acquisition builds upon Merck’s strategy to identify and secure candidates with differentiated and potentially foundational characteristics…Pandion has applied its TALON technology to develop a robust pipeline of candidates designed to re-balance the immune response with potential applications across a wide array of autoimmune diseases.”

Pandion noted that “it is advancing a pipeline of precision immune modulators targeting critical immune control nodes and that its lead candidate, PT101, is an engineered IL-2 mutein fused to a protein backbone designed to selectively activate and expand regulatory T cells (Tregs) for the potential treatment of ulcerative colitis and other autoimmune diseases.”

Pandion Therapeutics’ CEO Dr. Rahul Kakkar stated, “Pandion grew out of our founders’ personal and scientific mission to change the way patients living with autoimmune diseases are treated. In just a few years, we have taken that mission from idea to clinical proof of mechanism with PT101, our lead IL-2 mutein. We are proud that Merck has recognized our team’s innovation and drive in creating a pipeline of diverse candidates that activate natural immune regulatory mechanisms and thereby have the potential to achieve better clinical responses for patients…We believe Merck is well positioned to bring our novel approach to the millions of those living with autoimmune diseases, and we look forward to seeing these molecules progress in the clinic.”

The companies advised that according to the terms of the purchase agreement, Merck will initiate a tender offer of $60 per share to acquire all of the outstanding shares of Pandion through a subsidiary company. In order to go forward at least one half of the shares held by Pandion investors must tendered in the offer.

The transaction is expected to close in H1/21 following the successful completion of the tender offer, though the transaction remains subject to customary closing conditions and regulatory approvals including the expiration of the waiting period as mandated under the Hart-Scott-Rodino Antitrust Improvements Act.

Merck & Co., Inc. is headquartered in Kenilworth, N.J., and is one of the world’s largest global healthcare companies with a market cap of around $190 billion. The firm is known as MSD outside of the U.S. and Canada. The company provides healthcare services and develops, manufactures and markets animal health products, biologic therapies, prescription medicines and vaccines worldwide.

Pandion Therapeutics is a clinical-stage biopharmaceutical company based in Watertown, Mass. The firm is engaged in developing novel innovative modular therapeutics to meet unmet medical needs in the area of autoimmune and inflammatory diseases. The company noted that “its TALON (Therapeutic Autoimmune reguLatOry proteiN) drug design and discovery platform enables the company to create a pipeline of product candidates using immunomodulatory effector modules, with the ability to also combine an effector module with a tissue-targeted tether module in a bifunctional format.”

Pandion Therapeutics began the day with a market cap of around $756.6 million with approximately 29.52 million shares outstanding. PAND shares opened more than 130% higher today at $59.39 (+33.76, +131.72%) compared to yesterday’s closing price of $25.63. The stock has traded today between $59.21 and $60.38 per share and is currently trading at $60.06 (+$34.43 +134.35%).

 

Disclosure:
1) Stephen Hytha compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. He or members of his household own securities of the following companies mentioned in the article: None. He or members of his household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the decision to publish an article until three business days after the publication of the article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases.
6) This article does not constitute medical advice. Officers, employees and contributors to Streetwise Reports are not licensed medical professionals. Readers should always contact their healthcare professionals for medical advice.

U.S. Cannabis Company ‘Cashed Up with Catalysts Materializing’

Source: Streetwise Reports   02/24/2021

The many reasons why Columbia Care is ‘due for a catch-up trade’ are discussed in an Echelon Capital Markets report.

In a Feb. 19 research note, analyst Andrew Semple reported that Echelon Capital Markets increased its target price on Columbia Care Inc. (CCHW:CSE; CCHWF:OTCMKTS) to CA$14 per share from CA$13.50 “due to a slight increase to our 2021 and long-term estimates based on the solid operational progress we are seeing.” The current share price is about CA$8.70.

Also, Semple highlighted, the company “is overdue for a catch-up rally” and, thus, now offers an attractive entry point.

The analyst presented the several recent developments that have been “highly encouraging for the outlook on this New York-based cannabis company. He added that “these catalysts should help it achieve accelerated growth in 2021, possibly leaving our nearly Street-high 2021 financial forecasts too conservative.”

One, Columbia Care’s Florida sales have picked up speed and are expected to continue accelerating this year. In Q4/20 vs. Q3/20, extract sales volume was 274% higher and dried flower volume was 75% higher. Q1/21 sales are proving even better than those of Q3/20, with extract volume averaging 486% higher and dried flower volume averaging 106% higher.

“This encouraging data support our higher financial forecasts, with the company clearly demonstrating it is capable of succeeding in the Florida cannabis market,” Semple indicated.

Two, Columbia Care’s SWC-branded dispensaries in Tempe and Prescott, Ariz., transitioned to adult-use cannabis sales in late January, months earlier than expected. This shift should generate higher revenue. Also, the company is expanding its cultivation/processing capacity in the state.

Three, Columbia Care was awarded six medical dispensary licenses in West Virginia, including five retail licenses going directly to it and one license going to Green Leaf Medical, which Columbia is in the process of acquiring. Though a smaller market, West Virginia will contribute to overall profitability.

“Columbia Care is one of only two publicly traded companies to be awarded licenses for each category in West Virginia, including cultivation, processing and retail, allowing it to become vertically integrated in this state,” Semple noted.

Four, Virginia seems well on its way to legalizing adult-use cannabis; “the Assembly and the Senate each passed their own versions of adult-use cannabis legalization on February 5,” the analyst noted. Sales there may be a significant opportunity for Columbia Care.

Five, the company’s acquisition of The Healing Center San Diego closed. “While smaller in scale, this acquisition is immediately accretive to Columbia Care and supports its revenue/profitability ramp in 2021,” Semple commented.

Six, the company was granted a provisional license for adult-use sales at its downtown Boston dispensary, and anticipates receiving a final license and approval in the coming months.

Semple pointed out that Columbia Care just completed rounds of debt and equity financings, the latest of which was for CA$25M of equity. Echelon models the company having about $110 million of excess capital, available for mergers and acquisitions (M&A) activity this year.

Lastly, Semple concluded that Columbia Care is much better positioned today and as such, no longer warrants its current valuation. The company closed two acquisitions, TGS and Project Cannabis. It reached positive EBITDA in Q3/20. It expanded operations and now has leading positions in Colorado, California, Pennsylvania, Ohio, Maryland and Virginia. It bolstered its balance sheet, generating funds for further M&A.

“We believe this progress warrants a revaluation towards the large cap U.S. operator peer group average,” Semple wrote.

Echelon has a Speculative Buy rating on Columbia Care.

Disclosure:
1) Doresa Banning compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the decision to publish an article until three business days after the publication of the article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases.
6) This article does not constitute medical advice. Officers, employees and contributors to Streetwise Reports are not licensed medical professionals. Readers should always contact their healthcare professionals for medical advice.

Disclosures from Echelon Wealth Partners, Columbia Care Inc., February 19, 2021

Echelon Wealth Partners compensates its Research Analysts from a variety of sources. The Research Department is a cost centre and is funded by the business activities of Echelon Wealth Partners including, Institutional Equity Sales and Trading, Retail Sales and Corporate and Investment Banking.

I, Andrew Semple, hereby certify that the views expressed in this report accurately reflect my personal views about the subject securities or issuers. I also certify that I have not, am not, and will not receive, directly or indirectly, compensation in exchange for expressing the specific recommendations or views in this report.

Important Disclosures:
Is this an issuer related or industry related publication? Issuer.

Does the Analyst or any member of the Analyst’s household have a financial interest in the securities of the subject issuer? No

The name of any partner, director, officer, employee or agent of the Dealer Member who is an officer, director or employee of the issuer, or who serves in any advisory capacity to the issuer. No

Does Echelon Wealth Partners Inc. or the Analyst have any actual material conflicts of interest with the issuer? No

Does Echelon Wealth Partners Inc. and/or one or more entities affiliated with Echelon Wealth Partners Inc. beneficially own common shares (or any other class of common equity securities) of this issuer which constitutes more than 1% of the presently issued and outstanding shares of the issuer? No

During the last 12 months, has Echelon Wealth Partners Inc. provided financial advice to and/or, either on its own or as a syndicate member, participated in a public offering, or private placement of securities of this issuer? Yes

During the last 12 months, has Echelon Wealth Partners Inc. received compensation for having provided investment banking or related services to this Issuer? Yes

Has the Analyst had an onsite visit with the Issuer within the last 12 months? No

Has the Analyst or any Partner, Director or Officer been compensated for travel expenses incurred as a result of an onsite visit with the Issuer within the last 12 months? No

Has the Analyst received any compensation from the subject company in the past 12 months? No

Is Echelon Wealth Partners Inc. a market maker in the issuer’s securities at the date of this report? No

Owens & Minor Shares Soar 36% After Firm Reports Record Q4 Earnings and Positive 2021 Outlook

Source: Streetwise Reports   02/24/2021

Shares of Owens & Minor Inc. soared to a new 52-week high after the company reported Q4/20 and FY/20 financial results that were boosted by a 58% gain in global products revenue and increases in elective medical procedures.

Global healthcare solutions firm Owens & Minor Inc. (OMI:NYSE) today announced financial results for the fourth quarter and full year of 2020 ended December 31, 2020.

The company’s President and CEO Edward A. Pesicka remarked, “The monumental effort of the Owens & Minor teammates in 2020 along with their relentless focus on serving our customers has reinforced our position in the healthcare industry as a trusted partner…I am very proud of how our teammates delivered on our mission of ‘Empowering Our Customers to Advance Healthcare’ and exemplified our IDEAL values in our swift response to the Covid-19 pandemic.”

“We delivered exceptional financial results for the quarter and full year through strong execution…Our productivity gains along with favorable product mix drove our margin improvement and significant earnings growth. During the year we successfully deleveraged our balance sheet while continuing to reinvest in our businesses. We have established a solid foundation for long-term profitable growth and enhanced financial flexibility,” Pesicka added.

The company reported that total revenue in Q4/20 grew by 8% year-over-year to $2.362 billion, compared to $2.191 billion in Q4/19. The firm listed that Q4/20 Global Solutions revenue grew to $1.95 billion, which represented a 1% increase over Q4/20 and a 5% increase over Q3/20. During the same period, Global Products revenue increased to $575 million, representing a 58% increase from Q4/19 and a 21% boost versus Q3/20.

Owens & Minor advised that the strong growth in Q4/20 revenue was largely driven by increased demand for personal protective equipment (PPE) through its medical distribution channel as well as through its direct to customers home healthcare business.

The company stated that net income in Q4/20 was $50.7 million, compared to a net loss of $5.4 million in Q4/19. The company reported that in Q4/20 GAAP earnings per share (EPS) was $0.72 per share and adjusted EPS was $1.14, which represented growth of nearly 400% compared to adjusted EPS of $0.23 in Q4/19.

The firm noted that the significant increase in Q4/20 year-over-year earnings was achieved by a combination of sales growth, operating efficiencies and product mix. The company stated that its gross margin expanded by 390 basis points which contributed to a 204% increase in adjusted operating income.

The company highlighted that it “delivered over 12 billion units of PPE to healthcare workers in the fight against Covid-19, of which approximately 5 billion units were produced with materials manufactured in its American factories or Owens & Minor owned facilities, since January 2020.” The firm added that that it has been actively partnering with both U.S. federal and state agencies to respond to the pandemic by making further investments in PPE manufacturing capacity and distributing PPE to frontline medical personnel and is doing its part to aid in replenishing the country’s strategic national stockpile.

The company offered some forward guidance and stated that for FY/21 it expects adjusted net income will be $3.00-3.50 per share, which represents growth in the range of 33-55% compared to FY/20. Owens & Minor stated that the FY/20 estimates are based upon achieving increased PPE capacity and manufacturing efficiencies during 2021. In addition, the firm projects that pass through of exam glove cost increases will add $300-$500 million to top line, but will only have a minimal impact on profitability. The firm also advised that it anticipates that the strength in the number of elective medical procedures undergone in Q4/20 will continue thru H1/21.

Owens & Minor indicated that its Board of Directors has approved a dividend for Q1/21 in the amount of $0.0025 per share, which is payable to shareholders of record as of March 15, 2021, on March 31, 2021.

Owens & Minor is a global healthcare solutions company based in Richmond, Va. The company employs about 15,000 people and markets its products and services to greater than 4,000 healthcare industry customers in around 70 countries. The firm provides a broad spectrum of integrated technologies, products, services and logistical support to healthcare providers and manufacturers across the continuum of care. At present, the company is highly focused on reliably supplying its self-manufactured surgical and PPE products and portfolio of products representing 1,200 branded suppliers to medical facilities. The company has production and distribution operations, customer service centers and sales offices located across Asia-Pacific, Europe, Latin America, and North America.

Owens & Minor started the day with a market cap of around $1.9 billion with approximately 73.51 million shares outstanding and a short interest of about 7.6%. OMI shares opened 14% higher today at $29.03 (+$3.60, +14.16%) over yesterday’s $25.43 closing price and reached a new 52-week high this morning of $35.73. The stock has traded today between $28.50 and $35.73 per share and is currently trading at $34.54 (+$9.11, +35.82%).

 

Disclosure:
1) Stephen Hytha compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. He or members of his household own securities of the following companies mentioned in the article: None. He or members of his household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the decision to publish an article until three business days after the publication of the article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases.
6) This article does not constitute medical advice. Officers, employees and contributors to Streetwise Reports are not licensed medical professionals. Readers should always contact their healthcare professionals for medical advice.

Telehealth Tech Company Continues Rapid Growth in COVID-Changed Landscape

Source: Streetwise Reports   02/24/2021

Reliq Health introduces iUGO Home services and just added a care management network in California with 50 clinics and over 500 physicians.

Not only does Reliq Health Technologies Inc. (RHT:TSX.V; RQHTF:OTCQB; A2AJTB:WKN) continue to add innovative and advanced virtual care solutions for community-based healthcare—care outside the hospital setting—it also is growing the network of providers using its technology.

COVID has changed the healthcare landscape. “The pandemic has certainly accelerated the adoption of virtual care technology by over a decade,” Dr. Lisa Crossley, CEO of Reliq Health Technologies, told Streetwise Reports. “Medicare and Medicaid have validated that using virtual care technologies prevents patients from going into hospital or going into the ER and therefore significantly reduces the cost of care for these patients. We’re at a point now where there’s a lot of market pull for our platform.”

“This is really going to be the breakout year for us,” Dr. Crossley added.

She noted that the company hadn’t had a lot of interest from skilled nursing facilities prior to the pandemic, but “now they are one of our most rapidly growing segments. Their business was hard hit by the pandemic, but transitional care, remote monitoring and remote annual wellness visits are new revenue streams for them and a way to maintain some continuity of care, without having patients in a residential setting where the risk of catching COVID is so high.”

More than 37 million Medicare and Medicaid patients have two or more chronic diseases, Dr. Crossley noted. “That’s a $100 billion market for us right there.” The company is also getting interest from private insurers.

The company just added a care management network in California with 50 clinics and over 500 physicians. “The network delivers culturally customized, technology-enabled health care to senior citizens in the Asian-American community across California,” the company advised.

“We are very pleased to be expanding on the West Coast, and in particular to be leveraging our customizable, multilingual iUGO Care and iUGO Home solutions to meet the needs of Medicare, Medicaid and privately insured patients in the Asian-American community in California,” said Dr. Crossley.

“Using our highly scalable iUGO Care platform, physicians serving this community will be able to manage complex patients in their own homes and in their preferred language, offering multilingual Remote Patient Monitoring (RPM), Chronic Care Management (CCM) and Behavioral Health Integration (BHI) services,” Dr. Crossley explained.

“iUGO Care allows complex patients to receive high quality care at home, improving health outcomes, enhancing quality of life for patients and families and reducing the cost of care delivery,” the company stated. Remote patient monitoring allows people to monitor their health status anywhere using medical devices, and the system notifies the care team if a patient’s condition starts to deteriorate.

“With iUGO Home, case managers in the network can support seniors aging in place, allowing them to live safely and independently by providing multilingual personal emergency response services, fall detection, medication reminders and geofencing,” Dr. Crossley said. The company expects to begin onboarding patients in California in March, with revenue averaging US$40/patient/month.

Reliq’s iUGO Home system uses a wearable device, either a watch or a pendant, that connects a patient with its care team. The system facilitates two-way audio communication, fall detection, medication reminders and fencing alerts if the patient wanders beyond a defined area. The device connects either by cellular or Wi-Fi, and also connects with Bluetooth-enabled medical devices that the patient is using.

The company signed its first contract for iUGO Home at the end of January, with a long-term care facility in Texas that will supply iUGO Home to its patients, and expects to add 3,000 iUGO Home patients in North Texas this year. The average revenue is expected to be $30 USD per patient per month. “Many of these patients will also be using other iUGO Care products including Remote Patient Monitoring, Chronic Care Management, Transitional Care Management and Behavioral Health Integration, with an average additional revenue per patient of $40 USD/patient/month,” the company stated.

Reliq has also launched iUGO Well to address people’s physical and mental needs. In October, Reliq announced an agreement with the University of Notre Dame Australia, a school with 12,000 students. “iUGO Well is a digital health solution that delivers preventative health and wellbeing programs via mobile and web applications,” the company explained. “With iUGO Well,” Dr. Crossley explained, “we’re mostly focusing on the university students, although also on the faculty and staff, looking at reducing stress in general and making positive lifestyle changes. Australia is a really good market for that kind of product, because the government actually penalizes employers if they have employees who are either hospitalized for a mental health conditions if it’s related to stress at work, or if they committed suicide.”

“Just this year we are working in new geographies, we’ve got new technologies that are allowing us to access different patient populations, so we are diversified geographically as well as in our product lines,” Dr. Crossley concluded. “We are ramping up the first half of this year, and we expect to see truly explosive growth the second half of the year as COVID vaccinations alleviate a lot of the acute, urgent demands on our clients, and allow them to focus on more proactive approaches to care.”

Disclosure:
1) Patrice Fusillo conducted this interview for Streetwise Reports LLC and provides services to Streetwise Reports as an employee. She owns, or members of her immediate household or family own, shares of the following companies mentioned in this article: None. She is, or members of her immediate household or family are, paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this interview are billboard sponsors of Streetwise Reports: Reliq Health Technologies. Click here for important disclosures about sponsor fees. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
3) The interview does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
4) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the decision to publish an article until three business days after the publication of the article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Reliq Health Technologies, a company mentioned in this article.

Is Amazon stock approaching a buy or break zone?

By Admiral Markets

The global stock market rout continued in yesterday’s trading, led by a 3.5% fall in the Nasdaq 100 stock market index – the biggest drop since October.

An outsized surge in bond yields spooked stock market investors who are now rushing to exit risk assets. Especially the stocks that have soared in value in recent months such as the big-name tech stocks.

Just take a look at the surge higher in Amazon’s monthly chart below:

Amazon Monthly ChartSource: Admiral Markets MetaTrader 5, #AMZN, Monthly – Data range: from Apr 1, 2011, to Feb 25, 2021, performed on Feb 25, 2021, at 8:30 pm GMT. Please note: Past performance is not a reliable indicator of future results. 

One notable feature in the chart above is just how far the price is away from the 20-period (blue) exponential moving average. The last bounce off this level was in March 2020. Moving averages can often act as support and resistance levels where turning points in stock prices can occur.

In the daily chart below, the price of Amazon shares is approaching a historic level of horizontal support at the ~$2,888.00 price level. This could be a bounce or break moment for the stock. Are buyers going to bargain hunt at these levels, or will sellers breakthrough?

Analysing the price action and sentiment at this level will be critical in determining what we see. If more money moves into bond yields which are now trading a better premium than the S&P 500 dividend yield, a stock market rout could just be the beginning.

Amazon Daily ChartSource: Admiral Markets MetaTrader 5, #AMZN, Daily – Data range: from May 18, 2020, to Feb 25, 2021, performed on Feb 25, 2021, at 8:30 pm GMT. Please note: Past performance is not a reliable indicator of future results. 

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Bonds And Stimulus Are Driving Big Sector Trends And Shifting Capital

By TheTechnicalTraders 

– Falling Bonds and rising yields are creating a condition in the global markets where capital is shifting away from Technology, Communication Services and Discretionary stocks have suddenly fallen out of favor, and Financials, Energy, Real Estate, and Metals/Miners are gaining strength.  The rise in yields presents an opportunity for Banks and Lenders to profit from increased yield rates. In addition, historically low interest rates have pushed the Real Estate sector, including commodities towards new highs.

We also note Miners and Metals have shown strong support recently as the US Dollar and Bonds continue to collapse.  The way the markets are shifting right now is suggesting that we may be close to a technology peak, similar to the DOT COM peak, where capital rushes away from recently high-flying technology firms into other sectors (such as Banks, Financials, Real Estate, and Energy).

The deep dive in Bonds and the US Dollar aligns with the research we conducted near the end of 2020, which suggested a market peak may set up in late February. We also suggested the markets may continue to trade in a sideways (rounded top) type of structure until late March or early April 2021.  Our tools and research help us to make these predictions nearly 4 to 5+ months before the markets attempt to make these moves.  You can read this research here:

2021 MAY BE A GOOD YEAR FOR THE CANNABIS/MARIJUANA SECTOR

PRICE AMPLITUDE ARCS/GANN SUGGEST A MAJOR PEAK IN EARLY APRIL 2021 – PART II

WHAT TO EXPECT IN 2021 PART II – GOLD, SILVER, AND SPY

If our research is correct, we may have started a “capital shift” process in mid-February where declining Bonds, rising yields and the declining US Dollar push traders to re-evaluate continued profit potential in the hottest sectors over the past 6 to 12+ months.  This would mean that Technology, Healthcare, Comm Services and Discretionary sectors may suddenly find themselves on the “not so hot” list soon.

Bonds Collapsing While Yields Continue To Rise

The following TLT Weekly chart highlights the extended downward trend taking place in Treasury Bonds.  This downside pricing pressure would usually support a rising stock market and moderately weaker precious metals.  But given the way the US Dollar is also declining, we are seeing fear become more of an issue as the high-flying stock market starts to look quite a bit over valued.  Rising yields also puts Financials and banking/lending near the top of the list for future profit potential.

US Dollar Struggling To Find Support

The Invesco US Dollar ETF, (UUP) Weekly below chart shows how weak the US Dollar has been after the COVID-19 price rotation.  The continued decline in price levels after May 2020 is a very clear indication that the US Dollar is reacting to the continued stimulus efforts as well as the decreased economic expectations.

Be sure to sign up for our free market trend analysis and signals now so you don’t miss our next special report!

Combined, the Bonds and US Dollar decline are raising the fear-factor among global investors and causing many to rethink where future growth and profits will originate.  Many are landing on the Financial and Energy sectors right now.

Financial Sector Begins To Skyrocket Higher

The following Direxion Financial Bull 3x ETF (FAS) Weekly chart shows the incredible advance in the Financial Sector over the past 6+ months.  Almost like a sleepy rally, Financials have been rallying while traders have been focused on Technology, Healthcare and other sectors that seemed hot.  This shifting trend in sectors, and the associated shifting capital, suggests we may be nearing a tidal shift in sector trends – moving away from Technology and into Financials, Energy, Real Estate, and others.

Volatility is still 2x to 3x what we have seen 4 to 5+ years ago.  This suggests any breakdown in trends could prompt a very volatile price correction/transition.  As sectors continue to shift, we urge traders to pay attention to the risks in the markets related to this elevated volatility which seems to be present in every sector.

We believe we may be starting an extended “capital shift” process which may last well into March/April 2021 before real opportunities setup possibly in May or June.  The markets will do what they always do, react to traders, capital, and global central bank influence.  There are times when certain sectors enter a euphoric phase and there are times when the global markets revalue risk.  We may be nearing an end to a euphoric phase and starting a revaluation phase.

This means many various sectors and symbols will present some very real opportunities for profits over the next few weeks and months.  Marijuana, Cryptos, Metals, Miners, Financials & Real Estate appear to be leading opportunities related to sector trends.  If these trends continue throughout 2021, we may see a revaluation/capital shift to propel these trends higher.

Don’t miss the opportunities in the broad market sectors over the next 6+ months, which will be an incredible year for traders of the BAN strategy.  You can sign up now for my FREE webinar that teaches you how to find, enter, and profit from only those sectors that have the most strength and momentum. Learn how the BAN strategy can help you spot the best trade setups because staying ahead of sector trends is going to be key to success in volatile markets.

For those who believe in the power of trading on relative strength, market cycles, and momentum but don’t have the time to do the research every day then my BAN Trader Pro newsletter service does all the work for you with daily market reports, research, and trade alerts. More frequent or experienced traders have been killing it trading options, ETFs, and stocks using my BAN Hotlist ranking the hottest ETFs, which is updated daily for my premium subscribers.

Have a great rest of the week!

Chris Vermeulen
Chief Market Strategist

TheTechnicalTraders.com

The bull run still has legs despite inflation concerns

By Hussein Sayed Chief Market Strategist (Gulf & MENA), ForexTime

Inflation threats and rising bond yields have been the dominant market topics over the past several weeks. Many investors fear the latest selloff in bonds and rise in long term interest rates will put an end to the fastest and strongest bull market in history.

Significantly, it is not only the US which is seeing bond yields rise. Long term yields in Germany, Japan, China and many other major markets are all fast approaching pre-pandemic levels. While this may indicate that inflation is returning, it also suggests investors are gaining confidence in the economic recovery and corporate earnings growth.

Corporate earnings are expected to recover at a much faster pace than previous crises, thanks to the trillions of dollars being pumped into the global economy and several investment banks have started revising their earnings forecasts higher for 2021. That could offset the negative aspects of rising long-term interest rates.

Federal Reserve Chairman Jerome Powell assured the markets over the past two days testimony to Congress that an interest rates increase is nowhere near. He continues to see price pressures as muted and says the economy is a long way from the Fed’s employment goals. Hence, easy monetary policy will continue beyond this year, even if some inflation metrics surprise to the upside over the coming months.

Given those factors, I assume the bull run is likely to continue for Q1 and Q2, but not necessarily in a straight line.

Despite the assurances from Chair Powell, equity investors will need to keep a close eye on long-term yields. The energy, industrial, material and financial sectors are the ones to benefit most from the reflationary environment and may be positively correlated to the rise in bond yields. But the technology sector that currently makes up 38% of the S&P 500 market cap is at risk if yields move much higher.

The rising interest rate environment makes it less appealing for investors to increase their proportion of growth stocks in their portfolios. They are already expensive compared to historic metrics and many stocks within the sector are trading at extremely high multiples. It’s now time to become more selective and focus on quality companies with reasonable price tags within the Tech industry.

The choppy movement in Tech stocks over the past two days has been a kind of warning signal. Investors highly exposed to this growth sector may need to build some downside protection.

LISTEN to the “MARKETS EXTRA” Podcast: Will the Fed trigger a “taper tantrum” or “taper rally”?

 

Disclaimer: The content in this article comprises personal opinions and should not be construed as containing personal and/or other investment advice and/or an offer of and/or solicitation for any transactions in financial instruments and/or a guarantee and/or prediction of future performance. ForexTime (FXTM), its affiliates, agents, directors, officers or employees do not guarantee the accuracy, validity, timeliness or completeness, of any information or data made available and assume no liability as to any loss arising from any investment based on the same.


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The Return of the Reddit Gang

By Han Tan Market Analyst, ForexTime

If you thought that the meme-stock mania was dead and buried, think again.

The army of day traders on r/WallStreetBets are back, sending their favoured stocks soaring higher on Wednesday:

  • GameStop: +104% (it added an additional 83% in the after-market session, flirting with the $200 mark).
  • AMC Entertainment: +18% (up another 22% in late trading)
  • Koss: +55% (as much as +82.5% in late trading)
  • Express Inc: +41% (climbed an extra 26% in late trading)
  • Naked Brand Group: +31% (as much as +10% in late trading)

Such gains are in stark contrast to how benchmark US indices fared on the same day:

Although these meme stocks remain a long way off from the dizzying heights registered in late January (GameStop peaked at $483 on 28 January), before crashing back down to earth in early February, such mind-blowing price swings have not deterred these retail traders from attempting to launch prices into the stratosphere once more. And the catalyst appears to be the same chatter on Reddit that’s fueling yet another “stonk” frenzy.

Sure, Bloomberg reported on Tuesday that GameStop’s Chief Financial Officer Jim Bell is resigning after less than two years on the job, reportedly due to differences on how the company should reposition itself. But such a C-suite shuffle, in itself, wouldn’t typically warrant a doubling of the stock price, much less trigger a wave of buying in the other meme stocks.

It remains to be seen whether this latest spurt can match the January peaks for these stocks that are beloved by day traders, and whether another capitulation awaits on the other side. Both are likely outcomes.

Although r/WallStreetBets is filled with screenshots of those who have made massive returns, there are also enough reports (and even a separate, dedicated section on WallStreetBets) telling of traders who suffered deep losses from the earlier episode.

And now, with the added scrutiny of US lawmakers who exactly a week ago conducted a hearing on this GameStop saga before the House Financial Services Committee, the wider investing and trading community will also be eager to find out whether regulators are able to stomach more of such volatility.

As I had mused in my January 29th note, it’s how they respond that would determine the next chapter in this saga.

 

Disclaimer: The content in this article comprises personal opinions and should not be construed as containing personal and/or other investment advice and/or an offer of and/or solicitation for any transactions in financial instruments and/or a guarantee and/or prediction of future performance. ForexTime (FXTM), its affiliates, agents, directors, officers or employees do not guarantee the accuracy, validity, timeliness or completeness, of any information or data made available and assume no liability as to any loss arising from any investment based on the same.


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ForexTime Ltd (FXTM) is an award winning international online forex broker regulated by CySEC 185/12 www.forextime.com

Cooper Tire Shares Roll 30% Higher on $2.8B Buyout by Goodyear

Source: Streetwise Reports   02/22/2021

Cooper Tire & Rubber Co. shares raced to a new 52-week high after the company reported it entered into agreement to be acquired by Goodyear Tire & Rubber Co. in a combination cash and stock transaction valued at $2.8 billion.

Tires

Prior to the U.S. market open today, global tire manufacturer Cooper Tire & Rubber Co. (CTB:NYSE) announced that it entered into a definitive agreement to be acquired by The Goodyear Tire & Rubber Co. (GT:NASDAQ). The firms stated that the total enterprise value of the transaction is estimated to be approximately $2.5 billion.

The companies advised that the merger of the two businesses will serve to greatly expand Goodyear’s product offerings by combining the portfolios of two highly complementary brands. Goodyear expects that by acquiring Cooper it will emerge with an even stronger position as a U.S.-based manufacturer with increased presence in distribution and retail channels including the highly profitable light truck and SUV product segments.

The report stated that under the terms of the transaction “Cooper shareholders will receive $41.75 per share in cash and a fixed exchange ratio of 0.907 shares of Goodyear common stock per Cooper share for a total equity value of approximately $2.8 billion.”

The companies advised that the transaction has already been approved by their respective Boards of Directors and is expected to close in H2/21, though the deal still remains subject to the approval of Cooper shareholders along with the satisfaction of customary closing conditions and required regulatory approvals. Subsequent to closing, the combined company will be headquartered in Akron, Ohio, although Goodyear anticipates that it will continue to maintain Cooper’s existing large operations and presence in Findlay, Ohio.

Goodyear’s Chairman, CEO and President Richard J. Kramer commented, “The addition of Cooper’s complementary tire product portfolio and highly capable manufacturing assets, coupled with Goodyear’s technology and industry leading distribution, provides the combined company with opportunities for improved cost efficiency and a broader offering for both companies’ retailer networks.”

Cooper Tires President and CEO Brad Hughes remarked, “Cooper has transformed into a dynamic, consumer-driven organization that has balanced traditional and emerging channels to increase demand for our products, while updating and effectively leveraging our global manufacturing footprint. I am extremely proud of what our team has accomplished over the past 107 years and am grateful to our talented employees for their contributions and commitment. This transaction marks the start of a new chapter for Cooper, which we are entering from a position of strength. We believe that it represents an attractive opportunity to maximize value for our shareholders, who will receive a meaningful premium as well as the opportunity to participate in the upside of the combined company.”

The firms outlined the strategic and financial benefits from the combined entity and stated that the merger strengthens Goodyear’s leadership position in global tire industry and specifically will nearly double its presence in the Chinese market. The companies also noted that the two product brand lines are quite complementary which will being together Goodyear’s strength in OEM and premium replacement tires with Cooper’s strength in the light truck and SUV segments. The firms added that the combined operations will also benefit from significant, immediate and long-term financial synergies in both manufacturing and distribution.

In a separate news release today, Cooper Tire & Rubber Co. reported financial results for its fourth quarter and full-year ended December 31, 2020.

The company stated that for FY/20 it achieved net income of $143 million, or diluted earnings per share of $2.83, compared to net income of $96 million, or $1.91 diluted earnings per share during FY/19.

The firm indicated that net sales totaled $2.52 billion in FY/20, compared to $2.75 billion in FY/19 and stated that in FY/20 global unit volume decreased 13.0%, versus FY/19.

CEO Hughes stated, “In 2020, Cooper continued to build upon the positive momentum that began in 2019, driven by execution of our strategic initiatives, which have successfully transformed Cooper into a consumer-driven company…Despite impacts from coronavirus, we delivered strong operating profit performance for the year and demonstrated that the value proposition of providing high quality tires at an affordable price is compelling for consumers, especially in the current environment.”

The company provide additional financial data for Q4/20 and FY/20, but stated that its primary focus in its earnings call will be centered upon the Goodyear acquisition and the path forward.

Goodyear is one of the world’s largest tire companies. The company manufactures products in 21 countries worldwide and employs around 62,000 people globally.

Cooper Tire & Rubber is the fifth largest tire manufacturer in North America by revenue. The firm is owns several companies that specialize in designing, manufacturing and selling tires for autos, light and medium trucks, motorcycles and for motorsport racing. The company operates 10 manufacturing facilities around the world and employs roughly 10,000 employees in 15 countries.

Cooper Tire & Rubber started the day with a market cap of around $2.2 billion with approximately 50.37 million shares outstanding and a short interest of about 3.9%. CTB shares opened nearly 19% higher today at $51.97 (+$8.20, +18.73%) over Friday’s $43.77 closing price and reached a new 52-week high this morning of $57.68. The stock has traded today between $51.48 and $57.68 per share and is currently trading at $57.17 (+$13.40, +30.61%).

 

Disclosure:
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