 Kintara Therapeutics' earnings are in the red but impressive FDA approvals could satisfy an extreme upside potential to bring them solvent... ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ |
| | Written by Keala Milles 
At first glance, it might seem like Kintara Therapeutics Inc (Nasdaq: KTRA) would not be a good investment. After all, analysts gave the stock a HOLD rating after its Q3 earnings report in November. However, that rating alone is not enough to understand the full scope of possibility in its future, which suggest big things to come.
Recent Numbers are Disappointing But Not The Whole Picture
First of all, the stock has been in decline since December 9, 2022; it was a somewhat sharp fall. The biggest change occurred over a few days, from around $15 on Dec 9 to around $8 on Dec 14. At that point, the stock bounced back and leveled off before slipping a little to its current value, hovering around $7.50 per share.
But, again, it seems as though the stock may be stabilizing here. On top of that, even though the stock took a tumble, it is still roughly 25% above the 52-week low. More importantly, the stock is up nearly 25% over the last quarter, so even as its most recent decline was quite dramatic, the pending recovery could be just as intense. That said, the 52-week high is $42, so the stock has a bit of a climb, but from what we can extract from the analyst ratings, breaking through this range is almost certain.
And yes, KTRA's earnings are indeed in the negative. In fact, earnings for Q3 2022 are currently around -$3.50 (missing the consensus estimate by $2.00). However, current projections suggest earnings will grow to $0.07 by next year. That is an earnings boost of more than 100%, which is particularly attractive as it was on track from the improvement over the same value one year ago. As reported in the Q3 2021 earnings report, earnings per share came in at -$6.50. KTRA's next reporting date is February 10, 2023.
High Upside Potential Suggests KTRA Outlook Could Shift Dramatically
This is not the end of it, though. Analysts have also given the stock a consensus price target of $150. While this makes sense when comparing the historical data against projected earnings, the fact that it represents an upside of 1,921.56%—while earnings are still in the negative—is nothing short of astonishing. Stocks of this size and youth (its IPO launched in August 2020) do not tend to make such significant leaps quickly, especially after suffering such a notable decline. And that is what makes this stock worthy of its HOLD rating.
KTRA has a beta rating of 1.19, which means it is only slightly more volatile than the overall Standard & Poor's 500 index. This comes at a time when Kintara stock has been outperforming the S&P. Earlier in the month of December, for example, KTRA was up nearly 12% while the S&P was down about 0.16%. Of course, KTRA's value has dropped far more than the S&P, as a whole, this last year (approximately -72% vs. -16%), but the fact it is making up more ground speaks to its long-term potential.
How the Kintara Drug Pipeline Could Boost Stock Value
Kintara Therapeutis Inc is a small-cap, clinical-stage drug development company. Their main focus is anti-cancer therapies for treating cancer patients. The company has two late-stage, Phase III-ready treatments in the works. First, there is REM-001, a late-stage photodynamic therapy for treating cutaneous basal cell carcinoma nevus syndrome and metastatic breast cancer.
And secondly, they have VAL-083, which targets DNA to treat drug-resistant [solid] tumors (including glioblastoma multiforme), and also solid tumors (including non-small cell lung cancer and ovarian cancer).
With that in mind, Kintara recently received Fast-Track Designated status, from the FDA, for REM-001, in late November 2022. This is likely why the stock made a great leap forward, jumping from $3.50 (the 52-week low; and, effectively, the historical bottom) around that time. It may also be contributing to the dramatic positive outlook for KTRA stock. In addition, more than 40 successful Phase 1 and 2 clinical trials for VAL-083 (demonstrating anti-cancer activity) should help to boost interest in their brand and, of course, their stock.
In addition, VAL-083 is probably why the stock spiked again in mid-December, just a few weeks after receiving its FTD status for REM-001. On December 15, 2022, Kintara received an official Orphan Drug Designation (ODD) for Val-083. The ODD program gives “orphan” status to any drug intended to treat, diagnose, or prevent a rare disease that affects no more than 200,000 people. An ODD provides a drugmaker with developmental incentives like tax credits and seven-year marketing exclusivity, pending FDA approval.  Read This Story Online |  Gold just broke another record - a classic flight-to-safety signal that the smartest money on Wall Street is already acting on. With the NASDAQ pricing in optimism over fundamentals and global tensions continuing to rise, a market correction could arrive without warning.
Our research team just released a free crash-protection guide identifying which stocks and sectors can hold strong even when the broader market crumbles. Download your free crash protection guide today |
| Written by Jea Yu 
Power generation and energy storage systems maker Generac Holdings Inc. (NASDAQ: GNRC) stock has been a heartbreaker. Shares were trading at a high of $524.31 just over a year ago before shares fell to a new weekly lower low of $86.29 in late December, falling below its pre-pandemic levels.
With a rare bomb cyclone storm affecting 200 million people in the country, the fear of losing power could be a driver for shares to bounce. Known for manufacturing power generation systems for residential and commercial markets, its products are relatively unappreciated until the power goes out. It owns a 60% share in the telecom backup generation space and competes with heavy equipment and generator manufacturers Caterpillar Inc. (NYSE: CAT) and Cummins Inc. (NYSE: CMI).
Aging Power Grids
Just like fire extinguishers are largely ignored until a fire breaks out. Aging power grids have become more vulnerable to high-impact weather-related events, from hurricanes to ice storms and polar vortexes. Global decarbonization efforts have also introduced the clean and renewable energy megatrend combined with home electrification to be a robust future growth driver. It hopes to join the likes of clean energy aggregators like Enphase Energy Inc. (NASDAQ: ENPH) and SolarEdge Technologies Inc. (NASDAQ: SEDG), participating in the Grid 2.0 megatrend.
Install and Activation Constraints Capping Growth
The Company has suffered from a labor shortage of qualified installers to install and activate their home standby generators. Generac CEO Aaron Jagdfeld specified that despite strong end customer demand for home standby generators, the install capacity lagged production output.
He noted, "The ability to install contractors to fully service the demand for backup power from homeowners continues to be constrained by labor availability, permitting in utility-related delays, and shortages in certain materials needed to complete an installation."
Installer Remedies
They are trying to remedy these problems by providing resources for existing dealers to expand labor forces and additional installation training for non-dealer contractors. As a result, its dealer network has grown 40% from pre-pandemic levels from 6,200 to 8,500.
He stated, "We are working to streamline home standby projects by creating universal permitting packages and replicating past successes in simplifying approval processes from certain local utilities." They are also intensifying efforts to expand their overall dealer count and have shorter production times.
Ugly Duckling
GNRC has been in a slow decline since peaking at $281.50 in August, with barely any weekly market structure low (MSL) buy triggers, as nearly every successive week resulted in a lower low. There was a higher body low for a weekly MSL trigger on a breakout above $104.54, assuming the body close stays above $91.95.
A body close under will mean a lower low, and the candle count resumes until a higher low is made. The weekly 20-period exponential moving average (EMA) continues to fall at $143.75, followed by the 50-period MA at $219.75. To show how oversold the stock has been, the weekly stochastic fell under the 20-band oversold level in August and has since been smothered under the 20-band for over four months straight.
The candlestick bodies have been getting smaller, indicating smaller ranges that can help solidify a base. Pullback supports are $90.30, $84.86, $75.50, $69.02 and $60.69.
Profit Generator
On Nov. 2, 2022, Generac released its fiscal Q3 2022 results for the quarter ending in September 2022. The Company reported an earnings per share (EPS) profit of $1.75, excluding non-recurring items, beating consensus analyst estimates for a profit of $1.64 by $0.11. In addition, revenues grew 15.4% year-over-year (YoY) to $1.09 billion, matching consensus analyst estimates.
Residential sales rose 9% to $644 million. Commercial & Industrial product sales rose 20% to $311 million. In addition, the Company acquired an industrial internet of things (IoT) platform developer Blue Pillar which develops software solutions to enable distributed energy generation monitoring and control.
Falling Short
Generac CEO Aaron Jagdfeld admitted the net sales fell short of its prior expectations. He commented, "Commercial & Industrial product sales continued to experience strong growth during the quarter, but Residential product sales began to slow as installation capacity constraints in our distribution network led to higher field inventory levels for home standby generators.
This has resulted in lower orders than expected from our channel partners even as we've seen sequential improvements in several key metrics for the home standby category."
He noted that the loss of a large clean energy product customer negatively impacted shipments of clean energy products. Home standby order headwinds are expected to persist through the first half of 2023; secular growth and clean energy megatrends support its 'Powering a Smart World' enterprise strategy.
In-Line Guidance
Generac gave in-line revenue guidance for fiscal full-year 2022 in the range of $4.56 billion to $4.63 billion versus $4.59 billion consensus analyst estimates. The Company expects a net income margin between 9% to 10% for the year. This includes the $55.3 million pre-tax charge in Q3. In addition, the Company took a minority stake in WATT Fuel Cell Corp. They generate power without combustion and low emissions through an electrochemical process that derives hydrogen molecules from readily available sources like propane, hydrogen, and gas.
Analysts Reactions
Guggenheim maintained a Buy rating on the shares but lowered its price target to $120 from $180 on Dec. 21, 2022. Before that. Robert Baird downgraded shares to Neutral, dropping its price target to $119 from $122. Stifel transferred coverage at a Hold rating with a $98 price target based on 9X its 2023 EBITDA forecast. Read This Story Online |  Frontieras is using patented FASForm technology to convert coal into hydrogen, diesel, jet fuel, and fertilizer - without burning it - targeting $2.1 trillion in combined markets.
With a $150M investment commitment from GEM, over $30M raised from private investors, a NASDAQ ticker reserved, and an $850M flagship facility breaking ground in West Virginia, 2026 is shaping up as a pivotal year. The share price is set to increase after August 6. Join over 12,000 shareholders and invest at $9.01 per share today |
| Written by Chris Markoch 
This article highlights three high-yield dividend stocks that investors will want to consider buying in 2023. Investors are expecting another volatile year. And owning dividend stocks is a time-honored way to stay invested during market volatility.
Because these companies pay shareholders a percentage of their profits regularly, these stocks can be a reliable source of income for value investors. And when the market is in a slump, growth investors know that reinvesting dividends is a way to boost your total return.
That makes a company's dividend yield a key metric for evaluating dividend stocks. But here’s where investors need to be careful. Sometimes a high dividend yield suggests that a company is not using its available cash efficiently. The worst-case scenario can signal that a company is in financial trouble.
That’s not the case with these three stocks, which each present an intriguing case for investors in 2023.
This Chip Company's Investments Are Ready to Pay Off
Intel Corporation (NASDAQ: INTC) - Intel has been an underperformer in the market this year. Shareholders have seen the share price get sliced nearly in half in 2022. Supply chain disruptions and a weakening economy continue to weigh heavily on the semiconductor sector.
The macroeconomic conditions drowned out Intel’s positive story. Intel is the largest domestic chip maker. That means the company will benefit from the CHIPS Act passed by the U.S. Congress in July 2022.
The company’s investments to improve its U.S. manufacturing capacity took a heavy bite out of its bottom line. But the company is guiding to better earnings in 2023. If those estimates are correct, it will support analysts’ estimates for a 24% gain in the stock price. And investors continue to get a dividend with a 5.58% yield.
Fears About this Company's Dividend May be Overstated
AT&T Inc. (NYSE: T) - AT&T may seem like a curious choice for this list. The company's heavy debt load has caused some investors to consider it a dividend trap. But, while the concerns about the company’s debt have merit, it will not be made worse by rising interest rates.
AT&T has recently proposed to form a joint venture with Blackrock Inc. (NYSE: BLK) that would allow AT&T to essentially lease fiber-optic networks from Blackrock, which would, in turn, fund the rollout. This would help bring broadband to an estimated 1.5 million customers in underserved markets. And it would give AT&T a growth path that wouldn’t interrupt its plans to deleverage.
Assuming that’s true, the company’s dividend, which currently pays a yield of 6%, looks safe. Analysts are projecting a stock price growth of 20% in 2022.
Here's Where to Invest if the Energy Sector Remains Strong
Energy Transfer LP (NYSE: ET) - If you’re looking for a more traditional high-yield dividend stock, you may find Energy Transfer very appealing. The company operates as a master limited partnership, ensuring investors of a predictable dividend.
However, ET stock may increase if you believe the energy sector will remain strong in 2023. The company operates midstream with natural gas and crude oil assets in 41 states and Canada. Many analysts forecast that demand for crude oil will rise, which means higher oil prices.
All of that works in favor of a company like Energy Transfer. And analysts are forecasting a 17% rise in earnings for the company in 2023. Add a dividend yield of 8.96%, and Energy Transfer looks like a strong buy for investors.
Read This Story Online |  Frontieras (FASF) has developed technology that extracts hydrogen, diesel, and fertilizer from coal without burning it - targeting a $2.1 trillion addressable market. The company just broke ground on its $850M flagship facility in West Virginia and has its NASDAQ ticker reserved.
Their first Reg A+ round was oversubscribed by $25M and reopened due to investor demand. Over 12,000 investors have already joined, and the share price increases after August 6. Become an early-stage shareholder in Frontieras before the price increases |
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