InvestMacro

Source: Leo Mariani  (3/6/24)

Solid returns of capital, including dividends and buybacks, higher production growth vs. peers, and discounted valuation vs. Permian peers, are the reasons Permian is rated a Buy, according to a Roth MKM research note. 

Of this decision, Mariani stated, “We rate Permian Resource a Buy due to its solid returns of capital, including dividends and buybacks, higher production growth vs. peers, and discounted valuation vs. Permian peers.”

Mariani noted that, all in all, he anticipates that the company will have a more positive outlook than its peers do today. 

Part of this valuation came from the news that Permian said it would be redeeming US$356 million of its Senior Notes (of which it has 6.875%), due in 2027. The company reported that it would be redeeming this on April 5 of this year. 

Payment of the notes will be made by cash the Permian already has as well as borrowing from its credit. 

Mariani commented, “Redeeming the bonds will save PR around US$24.5 million in interest expense once any credit facility borrowings are paid back with free cash flow.”

The analyst also pointed out that Permian’s co-CEOs had previously given up some stock during the last equity deal. The co-CEOs had sold 4 million shares in the deal. However, the co-CEOs stated that they are both dedicated to keeping at least 12 million shares each. Mariani opined that this is close to current ownership levels.

With his Buy rating, Mariani also gave Permian a target price of US$17, stating, “Our US$17 price target for PR is based on a 4.8x multiple of our 2024 DACF estimate, which is based on US$77 WTI oil and US$2.75 HH gas. Impediments to our target include lower-than-expected commodity prices and failure to hit production targets.”

Important Disclosures:

1. This article does not constitute investment advice and is not a solicitation for any 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. Each reader is encouraged to consult with his or her personal financial adviser and perform their own comprehensive investment research. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company.

For additional disclosures, please click here.

Disclosures for Roth MKM, Permian Resource Corp., March 6, 2024

Regulation Analyst Certification (“Reg AC”): The research analyst primarily responsible for the content of this report certifies the following under Reg AC: I hereby certify that all views expressed in this report accurately reflect my personal views about the subject company or companies and its or their securities. I also certify that no part of my compensation was, is or will be, directly or indirectly, related to the specific recommendations or views expressed in this report.

Disclosures: The price target and rating history for Permian Resources Corp. prior to February 1, 2023 reflect MKM’s published opinion prior to the acquisition of MKM Partners, LLC by Roth Capital Partners, LLC.

ROTH Capital Partners, LLC expects to receive or intends to seek compensation for investment banking or other business relationships with the covered companies mentioned in this report in the next three months. The material, information and facts discussed in this report other than the information regarding ROTH Capital Partners, LLC and its affiliates, are from sources believed to be reliable, but are in no way guaranteed to be complete or accurate. This report should not be used as a complete analysis of the company, industry or security discussed in the report. Additional information is available upon request. This is not, however, an offer or solicitation of the securities discussed. Any opinions or estimates in this report are subject to change without notice. An investment in the stock may involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. Additionally, an investment in the stock may involve a high degree of risk and may not be suitable for all investors. No part of this report may be reproduced in any form without the express written permission of ROTH. Copyright 2024. Member: FINRA/SIPC.

By ForexTime

Article by ForexTime

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

By ForexTime 

• FXTM launches 6 new stock indices
• 11 of FXTM’s 18 total indices hit all-time peaks so far in 2024
• TW50 index is latest to join the record-high party
• TW50 historically outperformed many Asian/European peers
• Less-volatile TW50 may be more suited for risk averse traders

This week, FXTM launched 6 new stock indices.

This now brings FXTM’s tally to 18 different stock indices to choose from.

And the TW50 index made it a debut to remember!

Since launching across FXTM’s trading platforms yesterday …

The TW50 has posted its highest-ever intraday price of 1647.5 today (Tuesday, March 5th)!

This index, which tracks Taiwanese stocks, also appears on course to close the day above 1640 for the first time in its history!

FUN FACT: Of the 18 stock indices currently offered by FXTM, 11 have already hit their respective all-time peaks so far in 2024.

What is a stock index?

Imagine a stock index being a basket of many different stocks.

The index measures the overall performance of those stocks inside that “basket”.

What does the TW50 stock index track?

FXTMs TW50 stock index tracks the performance of the FTSE Taiwan RIC Capped Index.

This index aims to capture the overall performance of 119 different large- and mid-cap stocks in Taiwan.

3 key things to know about the TW50 index:

1) Taiwan Semiconductor Manufacturing is the largest member of the TW50 index!

Taiwan Semiconductor Manufacturing (TSMC), accounts for 21% of the total index.

Hence, with the mania over artificial intelligence in full swing (AI is expected to be a major earnings driver for chipmaking companies), the boost to TSMC’s share prices have helped push the TW50 to a fresh all-time peak.

2) Performs better than many Asian/European counterparts

So far in 2024, the FTSE Taiwan RIC Capped Index has climbed by 5.8%.

Amongst the 6 Asian stock indices offered by FXTM …

TW50 is the second-biggest gainer on a year-to-date basis (at the time of writing).

First place belongs to the JAP225 index (up 20% year-to-date), while the CN50 index is in third place (+4.3% year-to-date).

For a longer historical timeframe, the FTSE Taiwan RIC Capped Index has surged by 64.8% since 16th June 2000.

NOTE: The FTSE Taiwan RIC Capped Index was launched on 29 September 2017. However, historical data is only available from June 2000 onwards.

That has the TW50 index comfortably beating European stock indices such as the EU50, the FRA40, and even the UK100 over the same period (16th June 2000 – present)!

3) Lower Volatility

The creators of this index, FTSE Russell, intended for its FTSE Taiwan RIC Capped Index to have relatively more stability (less volatile).

This is done by more evenly distributing the weights assigned to the stocks on this index across 10 different industries (e.g. tech, financial, industrial, etc).

NOTE: To be clear, tech stocks still account for 60% of the TW50, making it a tech-heavy index.

Since June 2000, this TW50 index has an average 30-day volatility reading of 19.28.

Over the same period, the TW50 has demonstrated less risk of crazy price swings (volatility) on average compared to:

• NAS100: 23.16
• JAP225: 21.29
• HK50: 21.07
• GER40: 20.49
• EU50: 20.20

(numbers above are 30-day volatility figures)

Hence, while traders may have less of a chance at stunning gains on outsized upswings, the TW50’s more-stable performance could also lower the risk of jaw-dropping losses from sharp unexpected declines.

In short, given its less-volatile nature, risk-averse traders may find the TW50 index more suited for them.

How much higher can TW50 climb?

Over the next 12 months, Wall Street analysts expect that the FTSE Taiwan RIC Capped Index can add on another 100 index points to reach 1745.8.

If so, that represents a further 6% of potential gains for the TW50.

However, given its stunning, TSMC-fuelled ascent of late, this index could be ripe for a technical pullback in the near future.

After all, its 14-day Relative Strength Index (RSI) is already well above the 70 threshold which marks textbook “overbought” conditions.

Article by ForexTime

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

“Every major peak gets cinematic treatment”

By Elliott Wave International

Back in early 2021, the meme stock craze was going strong.

As you’ll recall that craze was all over the news and revolved around favorite stocks promoted by largely novice traders via social media. This January 27, 2021 New York Times news item sums up the frenzy surrounding one of those stocks:

‘Dumb Money’ Is on GameStop, and It’s Beating Wall Street at Its Own Game

GameStop shares have soared 1,700 percent as millions of small investors, egged on by social media, employ a classic Wall Street tactic to put the squeeze — on Wall Street.

A few days later, after GameStop shares had fallen hard, the February 2021 Elliott Wave Financial Forecast, a monthly publication which provides analysis of major U.S. financial markets, offered this warning:

Every major peak gets cinematic treatment and the current one is no exception. … The Wall Street Journal reported, “Netflix, MGM Race to Produce Projects About GameStop Saga.”

After that big decline in Gamestop shares in late January and early February 2021, the share price did bounce back, but has since fallen dramatically. Even so, some traders are not fazed, which is testimony to the high degree of overall optimism toward financial markets.

The recently published February Elliott Wave Financial Forecast provides an update with this chart and commentary:

The sustained public tolerance for falling prices is well illustrated by the resilience of retail demand for GameStop shares. GME is down 88% from its intraday high of $120.75 on January 28, 2021. But the faith in GME as a vehicle for wealth continues. … On January 22, TheStreet’s “meme maven” columnist added a host of “Reasons to Buy GameStop.” There’s just no quenching the demand for GME shares.

Again, this speaks to the high degree of optimism toward the market as a whole and our latest analysis of the main U.S. stock indexes is something you need to see for yourself.

As you might imagine, the main way Elliott Wave International analyzes financial markets is by employing the Elliott wave model.

If you’d like to learn the details of the Wave Principle, read Frost & Prechter’s definitive text on the subject, Elliott Wave Principle: Key to Market Behavior. Here’s a quote from this Wall Street classic book:

In the 1930s, Ralph Nelson Elliott discovered that stock market prices trend and reverse in recognizable patterns. The patterns he discerned are repetitive in form but not necessarily in time or amplitude. Elliott isolated five such patterns, or “waves,” that recur in market price data. He named, defined and illustrated these patterns and their variations. He then described how they link together to form larger versions of themselves, how they in turn link to form the same patterns of the next larger size, and so on, producing a structured progression. He called this phenomenon The Wave Principle.

Would you like to read the entire book for free?

All that’s required for free access to the online version of the book is a Club EWI membership. Club EWI is the world’s largest Elliott wave educational community and is free to join. Members enjoy complimentary access to a wealth of Elliott wave insights regarding financial markets, investing and trading.

Follow this link to read the book for free: Elliott Wave Principle: Key to Market Behavior.

Source: Streetwise Reports  (2/26/24)

Artificial intelligence (AI) and digital wallet provider firm Fobi AI Inc. announced it is one of ten companies picked from 1,500 applicants for the Comcast NBCUniversal SportsTech Accelerator program. Find out why one technical analyst says this company’s stock is about to break out into a bull market.

The six-month program gives company officials opportunities to collaborate with leading sports brands like NBC Sports, NASCAR, the Premier League, the PGA Tour, Sky Sports, Comcast Spectator, and U.S. Olympic sports organizations, Fobi AI said.

Since it started in 2021, alumni of the SportsTech program have achieved 132 pilots, partnerships, and commercial deals with consortium partners.

“It’s an extraordinary opportunity for us to not only enhance our visibility but also establish direct connections within the partner network,” Fobi AI Chief Executive Officer Rob Anson said.

Fobi AI leverages AI, automation, and analytics to deliver data-driven, real-time applications to deliver speed, connectivity, and interoperability, according to its investor presentation. With recent acquisitions, the company is expanding its presence in the rapidly expanding digital wallet market dominated by companies like Apple and Google.

“But you certainly wouldn’t think so to look at its stock price and, like it or not, these wallets look set to be the future and to be introduced rapidly,” wrote Technical analyst Clive Maund on February 20.

“But you certainly wouldn’t think so to look at its stock price and, like it or not, these wallets look set to be the future and to be introduced rapidly,” wrote Technical analyst Clive Maund on February 20.

Over the past year, Fobi AI’s share price has decreased 83% from CA$0.51 on Feb. 24, 2023, to CA$0.085 on February 23, 2024.

However, Maund said that based on its one-year arithmetic chart, “factors have been in play for many weeks, suggesting that a breakout into a new bull market is incubating, and, furthermore, that it is likely to happen soon.”

Allowing Co.’s to Align Solutions With Potential Partners

In the SportsTech Accelerator program, the company will work with SportsTech advisors and learn market strategy, commercial business alignment, and adaptive business modeling.

“Every facet of our decision-making process aims to unlock startups that can become ‘scale-ups’ ready to impact the world of sports,” said Jenna Kurath, vice president of startup partnerships and head of Comcast NBCUniversal SportsTech. “The SportsTech program focuses not only on tackling complex business challenges for a vast cross-section of some of the world’s most recognized sports brands, but it additionally prepares founders to build sustainable businesses.”

The program is set to begin March 4 in Florida with behind-the-scenes looks at Universal Studios Florida, NASCAR’s Daytona International Speedway, and coverage of the PGA Tour and other sporting events.

This will allow the companies “to identify how to align their technology solutions to the business and operational needs of partners,” Comcast NBCUniversal noted in a release.

“The capstone of the program will take place at Rally Innovation in Indianapolis on August 27-28, 2024, where this year’s founders will showcase their tech innovations, putting a spotlight on their scale-up traction during the program to garner new business opportunities across the broader sports industry,” the release noted.

The Catalyst: Growth of Sectors Here to Stay

The AI and mobile wallet sectors are here to stay and are expected to be the focus of big growth. The company’s investor presentation said AI will generate US$15 trillion in revenue by 2030 and increase business efficiency by 40%. Four out of five companies say AI is a top priority in their business strategy.

By 2026, about 5.2 billion mobile wallet passes will be in use, it said. About 85% of wallet passes are never deleted (while 71% of apps are), and four out of five customers abandon transactions that require apps.

The continued emergence of digital credential digital wallet solutions is “at the forefront of everything that we hear about today,” Anson said in Fobi AI’s conference call with the media about its earnings in January.

Anson said the company operates in 150 countries and provides more than 100 million digital wallets.

“We’ve seen tremendous growth, not just in, of course, the scale of the product, but obviously now from international support with our acquisitions that we’ve made to date and the addition of some of our international tech resource team,” Anson said.

Last year, the company acquired the leading Spanish digital wallet agency Wallet-Com and the leading European digital wallet company Passwortks SA.

“This agreement with Wallet-Com not only marks Fobi’s fifth wallet pass acquisition but also the strategic acquisition of a leading digital wallet agency that will help reinforce Fobi’s strength and scale as a global wallet pass leader,” Anson said when the Wallet-Com transaction was announced. “This collaboration not only broadens our global footprint but also opens doors to exciting new prospects and innovative opportunities.”

Analyst: ‘Upside Breakout Soon’

The mobile wallet market was valued at about US$7.42 billion in 2022 and is expected to grow at a compound annual growth rate (CAGR) of 28.3% from 2023 to 2022, Grand View Research said in a report.

The COVID-19 pandemic had a positive effect on the market, researchers said.

“The pandemic pushed digital transactions and mobile payments across the world,” the report said. “It has accelerated the growth of the e-commerce industry toward new customers, firms, and types of products. For instance, according to the Census Bureau’s Annual Retail Trade Survey (ARTS), in the U.S., sales in the e-commerce sector surged by 43% or (US$)244.2 billion in 2020, the first year of the pandemic.”

Maund agreed that the AI and mobile wallet industries were huge growth markets. In the company’s one-year chart, the downtrend of Fobi AI’s stock has “morphed into a bullish Falling Wedge,” and downside momentum has eased during that period, he noted.

The third bullish factor is the buildup in upside volume since the end of 2023.

“This quite aggressive and persistent buying has been draining off the supply at these levels at quite a rapid rate, setting the stage for an upside breakout soon,” Maund wrote.

That tilt toward upside volume has also driven the Accumulation line higher, the analyst said.

“These factors together make a strong case for an upside breakout soon,” Maund wrote.

Ownership and Share Structure

According to the company, about 20% is held by insiders, including the CEO Anson, who has 4.35% personally and 15.45% through Fobisuite Technologies Inc. The rest is with retail.

Fobi AI’s market cap is CA$15.9 million, with 176.65 million shares outstanding, and 141.87 million free floating. It trades in a 52-week range of CA$0.58 and CA$0.07.

Important Disclosures:

1. Fobi AI Inc. has a consulting relationship with an affiliate of Streetwise Reports, and pays a monthly consulting fee between US$8,000 and US$20,000.
2. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Fobi AI Inc.
3. Steve Sobek wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee.
4.  This article does not constitute investment advice and is not a solicitation for any 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. Each reader is encouraged to consult with his or her personal financial adviser and perform their own comprehensive investment research. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company.

For additional disclosures, please click here.

Contributor Disclosures:

1. Author Certification and Compensation: [Clive Maund of clivemaund.com] is being compensated as an independent contractor by Street Smart, an affiliate of Streetwise Reports, for writing this article. Maund received his UK Technical Analysts’ Diploma in 1989. The recommendations and opinions expressed in this content accurately reflect the personal, independent, and objective views of the author regarding any and all of the designated securities discussed. No part of the compensation received by the author was, is, or will be directly or indirectly related to the specific recommendations or views expressed.
2. Statements and opinions expressed are the opinions of the author and not of Streetwise Reports, Street Smart, or their officers. The author is wholly responsible for the accuracy of the statements. Streetwise Reports requires contributing authors to disclose any shareholdings in, or economic relationships with, companies that they write about. Any disclosures from the author can be found below. Streetwise Reports relies upon the authors to accurately provide this information and Streetwise Reports has no means of verifying its accuracy.

Clivemaund.com Disclosures

The above represents the opinion and analysis of Mr. Maund, based on data available to him, at the time of writing. Mr. Maund’s opinions are his own, and are not a recommendation or an offer to buy or sell securities. As trading and investing in any financial markets may involve serious risk of loss, Mr. Maund recommends that you consult with a qualified investment advisor, one licensed by appropriate regulatory agencies in your legal jurisdiction and do your own due diligence and research when making any kind of a transaction with financial ramifications. Although a qualified and experienced stock market analyst, Clive Maund is not a Registered Securities Advisor. Therefore Mr. Maund’s opinions on the market and stocks can only be construed as a solicitation to buy and sell securities when they are subject to the prior approval and endorsement of a Registered Securities Advisor operating in accordance with the appropriate regulations in your area of jurisdiction.