The Daily Buzz: The Action Starts to Heat Up (CRWD, TCNNF, STXS)

admin - September 5, 2019

Crowdstrike Holdings Inc (NASDAQ:CRWD) is an interesting stock seeing some recent declines in front of earnings on later today (Thursday). This is one of the most dramatic traders’ stocks in the market thus far in 2019, with wide swings and plenty of liquidity on a regular basis.

Heading into earnings, one has to look with a bit of concern on the multiple – with the stock trading at 36 times sales at present. But the longer term growth curve is the anchor for that multiple, and may be on solid footing, with analysts likely looking at a series of upward revisions as the quarterly reports flow forward over the next two years. However, even under those conditions, we may be a bit too rich. Hence, hedging the rosy outlook in front of the report, we see a recent sharp pullback in shares.

As far as the context, the company guided for Q2 revenue up 87% yr/yr, +8% Q/Q and Q1 rev was up 104%. Last year, Q2 rev grew 24% Q/Q, and Q3 rev is expected to grow “only” 68%. In other words, one can expect some big numbers. The question is all about where market assumptions lie.

Crowdstrike Holdings Inc (NASDAQ:CRWD) frames itself as a company that develops security solutions in the United States.

It offers Falcon platform, a cloud based security solution that protects workloads across on-premise, virtualized, and cloud-based environments running on various endpoints, such as laptops, desktops, servers, virtual machines, and IoT devices. The company also provides Threat Graph, a cloud-based graph database. CrowdStrike Holdings, Inc. was founded in 2011 and is headquartered in Sunnyvale, California.

Traders will note a slide in share pricing for the listing in recent action. Moreover, the stock has registered increased average transaction volume recently, with the past month seeing 21% over what the stock has registered over the longer term. Traders should note this as important due to the relatively small float size in the stock (not even 20M shares). One is wise to respect the dynamic this may create — a restricted trading float and a jump in trading volume can crimp supply and push share prices higher.

CRWD has a significant war chest ($175.1M) of cash on the books, which stands against about $302.7M in total current liabilities. One should also note that debt has been growing over recent quarters. CRWD is pulling in trailing 12-month revenues of $298.6M. In addition, the company is seeing major top-line growth, with y/y quarterly revenues growing at 103.2%.

 

 

Trulieve Cannabis Corp (OTCMKTS:TCNNF) is an interesting oversold play to watch for a coming turnaround in the much-beleaguered cannabis space. The signs are there.

In terms of recent catalysts, the company just announced that it hasopened the doors of a new Clearwater Beach location on Friday, August 16th. According to the release, the new storefront marks another milestone as the company’s 31st physical Florida location opens its doors and expands access to patients in Clearwater Beach.

TCNNF engages in the cultivation, possession, distribution, and sale of medical cannabis in the United States. It offers a suite of Trulieve branded products with approximately 125 SKUs, including nasal sprays, capsules, concentrates, syringes, and cannabis flower in tamper-proof containers for vaporizers, topical creams, tinctures, and vape cartridges.

The company distributes its products to Trulieve branded stores (dispensaries) in Florida, as well as takes orders online and by phone for delivery. As of November 20, 2018, the company operated 21 dispensaries. Trulieve Cannabis Corp. is headquartered in Quincy, Florida.

As noted above, TCNNF just announced that it has opened the doors of a new Clearwater Beach location on Friday, August 16th. The context for this announcement is a bit of a bid, with shares acting well over the past five days, up about 6% in that timeframe.

TCNNF pulled in sales of $77.5M in its last reported quarterly financials, representing top line growth of 157.6%. In addition, the company is battling some balance sheet hurdles, with cash levels struggling to keep up with current liabilities ($70.6M against $82.6M, respectively).

“When we were getting started back in 2016, Clearwater was our second store. Just over three years and 28 stores later, our Clearwater location remains one of our busiest dispensaries in the state with a patient base that has remained loyal and committed through the growing process. Having the opportunity to open a dispensary in nearby Clearwater Beach enables us to serve those loyal patients by providing an additional option for meeting their medical needs,” said Trulieve CEO Kim Rivers. “Since day one, our mission has been to ensure patients across Florida have access to high-quality, safe, and effective relief and this new Clearwater Beach location will continue to support that mission.”

 

 

Stereotaxis Inc (OTCMKTS:STXS) launched higher in Wednesday’s trading action in a clear technical breakout. But the move wasn’t technical in nature in terms of its roots. According to company materials, the company’s common stock has been approved for listing on the NYSE American.

According to the release, “the company’s common stock will begin trading on the NYSE American exchange under its current symbol, “STXS,” at the open of trading on Sept. 6, 2019. The company’s common stock will continue to trade on the OTCQX until the close of the market on Sept. 5, 2019.”

Stereotaxis Inc (OTCMKTS:STXS) designs, manufactures, and markets robotic systems and instruments for the treatment of abnormal heart rhythms in the United States and internationally.

Its products include Niobe ES robotic magnetic navigation system that enables physicians to complete interventional procedures by providing image guided delivery of catheters through the blood vessels and chambers of the heart to treatment sites; and Vdrive system, which offers navigation and stability for the diagnostic and therapeutic devices designed to enhance interventional procedures.

The company also offers Odyssey solution, a real-time information solution to manage, control, record, and share procedures across networks. In addition, it provides disposables and other accessories, such as QuikCAS automated catheter advancement disposables for the remote advancement of electrophysiology catheters; and CARTO RMT navigation and ablation system, CELSIUS RMT, NAVISTAR RMT, NAVISTAR RMT DS, NAVISTAR RMT THERMOCOOL, and CELSIUS RMT THERMOCOOL irrigated tip diagnostic/ablation steerable tip catheters.

Further, the company’s disposables and other accessories include V-CAS and V-CAS Deflect catheter advancement systems; and V-loop circular and V-Sono ICE catheter manipulators. The company markets its products through direct sales force, distributors, and sales agents. Stereotaxis, Inc. was founded in 1990 and is headquartered in St. Louis, Missouri.

The stock has been acting well over recent days, up something like 29% in that time. Shares of the stock have powered higher over the past month, rallying roughly 66% in that time on strong overall action.

Stereotaxis Inc (OTCMKTS:STXS) generated sales of $6.8M, according to information released in the company’s most recent quarterly financial report. That adds up to a sequential quarter-over-quarter growth rate of -3% on the top line. In addition, the company is battling some balance sheet hurdles, with cash levels struggling to keep up with current liabilities ($8.5M against $12.8M, respectively).

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