Urban One
Urban One (UONEK) is a radio broadcasting company with a focus on US African American audiences. The company owns 55 stations and climbing in 15 core urban markets in the US.
The stations provide music, news and discussions that pulls in audiences of its targeted demographic that appeal to its advertising clients that are boosting revenue for the company.
Streaming is great – but terrestrial broadcasting is still a major force right now and for a time to follow.
And note that the company also plugs into smart speakers and other venues, so it is accessible across both traditional radios and digital formats.
Daily Chart of Urban One — Source: TradingView
Revenue is now surging back after some challenges from last year – with the recent quarter reporting a major gain of 41.6%.
Urban One Revenue Growth — Source: Bloomberg
The stock sat around for much of this year only to begin to surge this past spring.
It has returned 387.2%. But don’t let this scare you, as it is cheap – really cheap as it is priced now at a discount to trailing sales by 30%.
And company insiders are believers, as they own 63.1% of the outstanding shares – a very good sign of further progress for the company and the stock.
And here is the SSI score for the company:
- Surge score: 99/100
- % Above 52-wk low: 621%
- MFI reading: 54
- Sales growth: +42%
- Triple momentum: yes
With a Surge Score of 99/100, this is the cream of the crop in regard to momentum.
The targeted broadcasting station company made a huge move the first half of the year, but shares have been consolidating since June.
Price is now tightening, and volume is drying up – a good sign that supply is no longer coming to market and profit-taking has been exhausted.
A move to new highs could trigger another leg higher with little resistance.
My trigger to buy would be a move above last week’s high at 6.25.
F45 Training Holdings
F45 Training Holdings (FXLV) is a fitness services company that focuses on local facilities that are done via franchises.
Fitness is a continuing want by nearly everyone in the US and beyond. And for all of those wanting fitness, there are a similar number that are looking for a short-cut for more efficient regimens that will get them to their goals.
The lockdowns were not good for the company, but that is past. Now, we’re eyeing the return for in-person treatments – complete with fee paying customers that will fuel franchise sales and franchise fees.
Daily Chart of F45 Training Holdings — Source: TradingView
This stock shows how a post IPO dip can quickly reverse to surge higher. Company insiders now own 30.8% of the outstanding shares – and they’ve been buying in the market, adding 8.2% to their ownership.
They see value in the stock with their own cash.
Here’s the SSI score for the company:
- Surge score: N/A
- % Above 52-wk low: 24%
- MFI reading: N/A
- Sales growth: N/A
- Triple momentum: N/A
The company as noted is a major fitness franchise with major backing and support from minority-owner, Mark Wahlberg, of film and television (as well as amateur golf) fame.
Since this is a recent IPO issue, many of our traditional stock surge metrics are not available. But IPOs have been performing fantastic lately and breaking out of early consolidation bases.
There is clear supply (sell orders) near the 17.00 mark. I would buy on a breakout above 17.10 with a stop at 15.95.
Inotiv
Inotiv (NOTV) is a contract research company that does the grunt work for the pharmaceutical, biotech and medical device companies.
So much has to be done to make the US Food and Drug Administration (FDA) happy with new products as well as ongoing testing and reviews that the company carved out a very nice niche to get this done under contract for fee income.
Inotiv Revenue Growth — Chart Source: Bloomberg
Revenue growth is huge with the recent quarter reported at a gain of 45.2%. And for the past five years, revenue continues to expand at 70.8% on a compound annual growth rate basis (CAGR).
Daily Chart of Inotiv — Source: TradingView
Company insiders own a chunk of the stock at 16.5% of the outstanding shares with more bought recently adding 2.5% to their overall holdings.
Here’s the SSI score for the company:
- Surge score: 99/100
- % Above 52-wk low: 536%
- MFI reading: 41
- Sales growth: +45%
- Triple momentum: yes
The company is another high-flyer in the 99th percentile for momentum.
Double-digit sales growth and improving margins are driving investors to this small-cap drug developer.
Given the 412% surge over the last 12 months, it is not surprising that the 25-32 consolidation range is a bit wider for this stock.
But we don’t need to give it that much room to see if this trade is a winner.
I’m looking for a breakout to new highs above 31.99 to trigger the trade. Once executed, I will work a stop beneath the most recent swing low.
As of this afternoon, this would be 28.20. That would be my stop unless shares continue lower before breaking out.
