Founder Collective, a seed-stage fund formed 11 years ago in Cambridge, Ma., has closed its newest fund with $85 million. Earlier today, we talked with the firm’s general partners — Eric Paley, David Frankel, Micah Rosenbloom — to learn more about it. Among o…
Montage Resources Corporation (NYSE:MR) (the "Company" or "Montage Resources") today has provided updated operational and financial guidance in response to current market conditions.
Montage Resources Corporation (NYSE:MR) (the "Company" or "Montage Resources") today is pleased to announce it has entered into a new consolidated gas gathering agreement and has added downside protection to natural gas prices in 2020 and 2021 through incremental hedges recently executed.
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Investors always look for companies with a high level of profitability regardless of the present market condition.
Montage Resources Corporation (NYSE:MR) (the "Company" or "Montage Resources") today announced preliminary first quarter 2020 production, an updated hedge portfolio position and first quarter 2020 earnings release schedule.
Penny stocks are controversial, to say the least. When it comes to these under $5 per share investment opportunities, Wall Street observers usually either love them or hate them. The penny stock-averse point out that while the bargain price tag is tempting, there could be a reason shares are trading at such low levels like poor fundamentals or insurmountable headwinds.However, the other side of the coin has merit as well. Naturally, with these cheap tickers, you get more bang for your buck in terms of the amount of shares. On top of this, other more expensive and well-known names aren’t as likely to produce the colossal gains that penny stocks are capable of.Given the nature of these investments, Wall Street analysts recommend doing some due diligence before pulling the trigger, noting that not all penny stocks are bound for greatness.With this in mind, we’ve dipped into the TipRanks database to find three penny stocks that offer a solid combination of risk and reward. With a low point of entry, and at least 30% upside potential, these stocks offer investors a chance to maximize their possible share appreciation while minimizing their initial outlay.Montage Resources Corporation (MR)We’ll start in the oil and gas sector, where Montage Resources is a small-cap player in Appalachia. The company engages in hydrocarbon exploration, production, and transport, with natural gas and crude oil operations in Pennsylvania, Ohio, and West Virginia. Montage boasts 325 actively producing wells and over 195,000 undeveloped acres.The company finished 2019 with a gangbusters quarter, seeing EPS come in at 85 cents and revenues hit $174.1 million. EPS was a whopping 608% over the forecast. Both numbers were also up significantly year-over-year, by 67% and 34% respectively. Looking ahead to the Q1 report, due out in May, MR is projected to show an EPS of 25 cents.Despite the strong finish to 2019, MR shares are down 40% in 2020. That share depreciation has brought MR down to an attractive point of entry, just $4.82 per share. It’s not often that investors will find an oil play with so low a share price. Given the industry’s ability to generate both cash and profits, even when prices are down, it points to high potential from this company.Roth Capital analyst John White agrees. He writes, “We estimate MR will generate $32 million of free cash flow in 2020… We note the bulk of this free cash flow, $20.4 million, occurs in 1Q due to robust production and much higher commodity prices versus the remaining quarters.”But cash flow isn’t the only reason to buy into Montage. White also notes that while the world’s major oil suppliers are moving to cut production and boost prices, the cuts may not last – and if they resume their crude oil price war, Montage is well-positioned to gain: “Assuming OPEC+ continues to add incremental crude oil supply into a market with declining oil demand, we think gas weighted names have a positive outlook compared to oil weighted names and MR is 81% gas…”In line with his outlook on the company, White gives MR shares a $6.50 price target implying an upside of 35%. He has also upgraded his stance on the stock, moving from Neutral to Buy. (To watch White’s track record, click here)In general, the rest of the Street has an optimistic view of MR. The stock’s Strong Buy status comes from the 4 Buy ratings and a single Hold issued in the past 3 months. The upside potential lands at 25%. (See Montage stock analysis on TipRanks)McEwen Mining (MUX)From the black gold, we’re on to the yellow variety. McEwen Mining, based in Toronto, is another small-cap company in the natural resources sector, this time mining for both gold and silver in North and South America. The company pulled 174,420 gold equivalent ounces out of the ground last year, and generated a gross profit of $9 million.In an unfortunate note, McEwen last month announced that it would scale down operations at two major mines, the Black Fox in Canada and Gold Bar in Nevada. Mexican operations would be unaffected by the scale back. The Black Fox mine was brought back to full capacity, starting on April 14. The mine scale backs coincided with the company’s withdrawal of forward guidance for 2020 production. The company cites the ongoing COVID-19 epidemic as the reason – and associated mine shut-downs at two sites in Argentina. McEwen did not issue new production guidance for the year.Gold and silver, however, remain highly sought-after commodities, and the long-term outlook for the stock remains upbeat. Heiko Ihle, writing from H. C. Wainwright, says of the stock, “While the firm previously encountered a tumultuous FY19 that involved several operational issues, we note that the problems faced in FY20 thus far are mostly out of its control. In short, we continue to believe that we are on the cusp of a bull market for gold and that the current share price represents an attractive entry point."Ihle reiterates his Buy rating on MUX shares. While he did lower the price target from $2 to $1.75, he still sees an impressive 73% upside potential here. (To watch Ihle’s track record, click here)McEwen has a unanimous analyst consensus rating, with 4 recent Buy reviews adding up to a Strong Buy. The company is a true penny stock, selling for only $1.01 per share in New York. The average price target shows the reward potential of a fundamentally sound penny stock: at $2.29, it indicates room for an incredible 127% upside for this year. (See McEwen Mining stock analysis on TipRanks)Quantum Corporation (QMCO)We’ll wrap up this list with another small-cap company, this time in the tech sector. Quantum Corp offers storage and archiving solutions for data streams, in both digital and virtual environments. The company’s products allow customers to store, preserve, and protect digital data for the long term.Digital data storage is an essential service in today’s information age, and QMCO showed that in its last fiscal third-quarter report. The company turned a profit – its second in a row – and beat the earnings forecast by a wide margin. EPS came in at 7 cents, against estimates of only 1 cent. Net income nearly doubled, rising form $4.7 million to $9 million, derived from total revenue of $103.3 million. Gross margin was the best metric reported, at 45.6%, reflecting a value approach to selling a favorable product mix.Craig Ellis, who reviewed the company for B. Riley FBR, notet: “We reflect sustained near-term business disruption in lower F1Q product sales, but then increase F2Q-4Q growth. Second, we believe relaxed F4Q loan amendments augur well for similar forward adjustments, noting MCHP (Neutral, $70 PT) recently achieved similar with key covenants. Third, we are unsurprised with logistics impacts to near-term product deliveries, an issue AMAT conveyed two weeks ago. We materially reduce near-term Product revenue but now expect a stronger snap-back beginning in F3Q20, for a v-shaped downturn and recovery for QMCO.In line with his positive assessment of the company’s status, Ellis gives QMCO a Buy rating with a $6.25 price target, suggesting a 60% growth potential for the stock. (To watch Ellis’ track record, click here)QMCO is another stock with a unanimous analyst consensus rating. The Strong Buy rating is based on 3 Buy reviews. The average price target, $5.75, indicates a premium of 47% from the current share price of $3.90. (See Quantum stock analysis at TipRanks)To find good ideas for penny stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.
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Investors need to pay close attention to Montage Resources (MR) stock based on the movements in the options market lately.
Zacks.com featured highlights include: Opera, Montage Resources and BWX Technologies
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Investors are still uncertain just where the stock market is headed. Essentially, there are two competing opinions right now. One says that we’re just in a bear market rally, and that the worst is yet to come. The other thesis states that the current rally is real, and will mature into a new bull cycle as the economy restarts in the second half.Writing from JPMorgan, Marko Kolanovic, the investment bank's quant analyst, holds fast to that optimistic view. Kolanovic believes that epidemiological data suggests we are past the worst of the coronavirus spread, justifying the lifting of social and business restrictions. And that will open up economic activity, which will then find stimulus from low Fed interest rates and increased government ‘pump priming’ spending.Kolanovic sees the stimulus policies as more important than Q1’s weak earnings, writing, “The combined suppression of the risk free rate and credit spreads by the Fed likely has a bigger positive impact on equity valuation, compared with the negative impact of the temporary earnings loss.”Kolanovic is not the only JPM analyst who sees potential in the stock markets. The firm’s equity analysts have been working overtime to find the stocks best positioned to lead a potential bull rally. We’ve used the TipRanks database to pull up three of their stock picks, to find out why the JPM experts are tapping them for over 30% growth.KAR Auction Services (KAR)The first stock on our list belongs to a company in the second-hand vehicle market. KAR Auction Services operates a marketplace – both online and in the physical world – for used vehicles. The company sells to both individual and business buyers, people looking for a car to drive and garages looking to source parts for the shop floor. KAR sold over 3.7 million vehicles in 2019, bringing in $2.8 billion in auction revenue.KAR shares have been hit hard by the coronavirus epidemic. The combination of economic shutdowns and social lockdowns have not just put a hold on car sales – they have simply reduced the need for vehicles.Q1 earnings showed a 6% reduction in revenue, to $645.5 million, and a collapse in net income to $2.8 million from $15.3 million in the year-ago quarter. As noted, these steep reductions are attributable to the effects of the pandemic response. KAR shares are still down 38% year-to-date, badly underperforming the broader markets.However, JPM’s analyst Ryan Brinkman believes the current downturn is the time to buy in to KAR shares. The low price offers an attractive point of entry, and the stock has a clear path forward when economic activity resumes. Brinkman writes, “We believe that once stay-at-home orders are lifted and the situation moves from being one of a unique public health crisis to that of a more familiar economic downturn, aftermarket end-markets, including auctions, will earn their reputation for resiliency. People will drive again substantially similar to before, and volumes will return to salvage auctions.”Along with that optimistic assessment, Brinkman upgrades KAR from Neutral to Buy. His $19 price target suggests a strong 46% upside potential in the next 12 months. (To watch Brinkman’s track record, click here)Overall, KAR shares hold a Moderate Buy rating from the analyst consensus, which breaks down into 4 Buy reviews and 3 Holds. While the analyst corps is somewhat divided, their average price target is in line with Brinkman’s. (See KAR stock analysis at TipRanks)J2 Global Communications (JCOM)Next up is an internet communications company. J2 Global owns a diverse portfolio of 40+ online content brands, including IGN, Mashable, PCMag, BabyCenter, Everyday Health among others. In addition, J2 also runs a Cloud Service business, offering eFax and eVoice among other online services. The company boasts nearly $1.5 billion in annual revenue, and saw Q4 earnings rise to $2.19 per share.The Q4 earnings were the highest in two years, and capped a full year of rising earnings. Q4 is typically J2’s strongest quarter, while Q1 is typically the weakest, so the $1.35 estimate for Q1 earnings is less indicative of poor performance than one may think at first. On an important note, that Q1 estimate represents a modest increase of 1.5% year-over-year.JCOM shares’ price performance has roughly mirrored the broader market’s during the past three months. JCOM lost 35% in the initial slide, and has risen 21% from its trough.Initiating coverage of the stock for JPM, Cory Carpenter set a Buy rating, with a $105 price target that indicates room for 32% upside growth. (To watch Carpenter’s track record, click here)Supporting his stance, Carpenter notes the company’s strong Cloud position, writing, “We believe Cloud Services is well positioned to capitalize on growing security & privacy needs, with bundling & cross-sell potential, and we like that Digital Media monetizes through multiple rents—ads, subs, & affiliate commerce.”Key drivers for Carpenter's bull thesis include: "1) Total growth strategy drives sustainable growth, with $1B+ capital to deploy [...] 2) Diversified portfolio of leading Cloud Services & Digital Media brands. [...] 3) Strong FCF generator with M&A flywheel. JCOM prioritizes FCF, not growth at all costs, which it largely redeploys into M&A. JCOM’s 40% EBITDA margin is driven by Cloud Services’ ~50% margin and Digital Media’s ~35% margin."Carpenter is broadly in line with the rest of Wall Street, which has assigned JCOM more "buy" ratings than "holds" over the past three month -- and sees the stock growing about 26% over the next 12 months, to a target price of $101.30. (See J2 Global stock analysis on TipRanks)Montage Resources Corporation (MR)Last on our list is a small-cap hydrocarbon exploration and production company. Montage is based in the Appalachian region of Pennsylvania, Ohio, and West Virginia, where it operates natural gas and crude oil drilling wells. Montage holds over 195,000 undeveloped core acres, and operates 325 actively producing horizontal wells. The value of the company’s holdings is clear from its stock performance; in the last three months, while the markets have generally slid into a bear cycle, MR shares have gained 55%.Even with the COVID-19 epidemic and the collapse of oil markets, MR was able to increase its net daily production during Q1, reaching 6610.7 MMcfe. This was above both company guidance and analyst estimates. Quarterly income of $62.7 million also beat the expectations. The company has curtailed some production in low-margin crude oil, to compensate for the soft oil market prices.Analyst Arun Jayaram, reviewing MR for JPM, upgraded his stance on the shares from Neutral to Buy. His $8 price target implies a 43% upside growth potential for the coming year. (To watch Jayaram’s track record, click here)Jayaram is clear on his reasons for upgrading this stock. He says of MR, “We expect the market to largely look through negative estimate revision risk to 2020 forecasts to the emerging bullish natural gas narrative in 2021… Meanwhile, the company’s FCF yield of 23% leads the peer group and is well above the peer group average of 10%...”The Strong Buy analyst consensus on MR shares is based on 5 recent reviews, including 4 Buys and a single Hold. The company’s strong natural gas production is tangible asset, and its enviable free cash flow is attractive for investors. Shares are selling for $5.59, while the average price target of $6.22 suggests a modest upside of 1.6%. (See MR stock analysis at TipRanks)To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.
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Montage Resources' (MR) acreage in the Marcellus and Utica shale plays are expected to have placed it well for significant output growth in the to-be-reported quarter.
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Montage Resources (MR) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
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Montage Resources (MR) expects 65% of its budget to be used in the first half of the year.
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Montage Resources (MR) delivered earnings and revenue surprises of -25.00% and -2.69%, respectively, for the quarter ended March 2020. Do the numbers hold clues to what lies ahead for the stock?
In the latest trading session, Montage Resources (MR) closed at $6.09, marking a +1.67% move from the previous day.
Montage Resources Corporation (NYSE:MR) (the "Company" or "Montage Resources") today announced its first quarter 2020 operational and financial results and updated full year 2020 guidance. In addition, the Company will be posting an updated investor presentation to its corporate website.