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Water Tower Research

Research from Water Tower Research

Water Tower Research is a leading equity research firm that provides research on micro, small and mid cap companies.

Water Tower Research was founded by Wall Street veterans after witnessing a fundamental shift in the investment research industry with the result being a declining knowledge base among investors, a lack of awareness and a shrinking pool of fundamental research being conducted on companies across the small-cap and micro-cap spectrum. The same issues are now increasingly occurring in the mid-cap space. This sea change within the investment community is impacting not only the companies themselves but also current shareholders and potential investors. With significantly less active sell-side sponsorship by Wall Street, a substantial information gap has developed between companies and various constituents in the financial community. The net result is fewer channels for insight and information to flow between companies and investors.

Equity Research Firm

Equity Bottom-Up

Ainos, Inc. is a diversified healthcare company. The Company engages in the discovery and development of novel biopharmaceuticals, technologically medical treatments, and consumer products, as well as provides treatments of neoplastic, viral, and autoimmune diseases. Ainos operates in the United States and Taiwan.

<ul><li>Ainos business and priorities. The medtech company has three key technology platforms: (1) AI Nose point of care testing (POCT); (2) Low dose interferon-α Veldona; and (3) Synthetic RNA in early discovery stage.</li><li>Priorities for AI Nose are Ainos Flora (POCT diagnostic for women vaginal health and STIs) and a health monitor system for elderly care in co-development.</li><li>Veldona will focus on oral warts in HIV+ patients and Sjogren’s syndrome, in addition to cat FCGS (gum disease) for animal health.</li></ul>

Ainos business and priorities. The medtech company has three key technology platforms: (1) AI Nose point of care testing (POCT); (2) Low dose interferon-α Veldona; and (3) Synthetic RNA in early discovery stage.Priorities for AI Nose are Ainos Flora (POCT diagnostic for women vaginal health and STIs) and a health monitor system for elderly care in co-development.Veldona will focus on oral warts in HIV+ patients and Sjogren’s syndrome, in addition to cat FCGS (gum disease) for animal health.

Ainos, Inc. Water Tower Hour Recap: AI Nose for POCT Diagnostics and Much More

HighPeak Energy, Inc. operates as an exploration company. The Company offers petroleum engineering, geology, geophysics, drilling, and land financing services. HighPeak Energy serves customers in the United States.

<ul><li>We are updating our estimates to reflect actual 2Q24 NYMEX reference prices of $80.66/bbl for oil and $2.32/MMBtu for natural gas.</li><li>Oil accounts for 78% of our 2Q24 oil production estimate and 98% of our 2Q24 revenue estimate.</li><li>Management’s FY24 production outlook is 43.0-47.0 MBOE/d (Figure 1). 1Q24 production averaged 49.7 MBOE/d (80% oil). </li></ul>

We are updating our estimates to reflect actual 2Q24 NYMEX reference prices of $80.66/bbl for oil and $2.32/MMBtu for natural gas.Oil accounts for 78% of our 2Q24 oil production estimate and 98% of our 2Q24 revenue estimate.Management’s FY24 production outlook is 43.0-47.0 MBOE/d (Figure 1). 1Q24 production averaged 49.7 MBOE/d (80% oil). 

HighPeak Energy, Inc. - Free Cash Flow Tailwind

Thematic (Sector/Industry)

<ul><li>Heavy lithium. Halfway through the year, the S&amp;P 500 has appreciated 15.4% YTD, driven by the strong performance of the Magnificent Seven, even as the remaining 490+ companies saw their stock prices move more in line with the Russell 2000, which itself posted an 7.8% gain YTD.</li><li>Over the same timeframe, the WTR-CMI Index delivered a disappointing 4.4% gain under the weight of lithium and graphite companies losing 36-62% of their value due to collapsing lithium and synthetic graphite prices, driven by slower growth of EVs and steel production and liquidation of excess inventories by customers, built over the course of 2022-23.</li><li><p>Sticky costs remain as pricing power wanes. Over the course of 2022-23, many companies experiencing a rapid rise in raw material costs, driven by higher petrochemical prices and rising costs of transportation and logistics aggressively raised prices in an attempt to preserve profits, if not profit margins. </p></li></ul>

Heavy lithium. Halfway through the year, the S&amp;P 500 has appreciated 15.4% YTD, driven by the strong performance of the Magnificent Seven, even as the remaining 490+ companies saw their stock prices move more in line with the Russell 2000, which itself posted an 7.8% gain YTD.Over the same timeframe, the WTR-CMI Index delivered a disappointing 4.4% gain under the weight of lithium and graphite companies losing 36-62% of their value due to collapsing lithium and synthetic graphite prices, driven by slower growth of EVs and steel production and liquidation of excess inventories by customers, built over the course of 2022-23.Sticky costs remain as pricing power wanes. Over the course of 2022-23, many companies experiencing a rapid rise in raw material costs, driven by higher petrochemical prices and rising costs of transportation and logistics aggressively raised prices in an attempt to preserve profits, if not profit margins. 

Mat-Chem Notes - Between a Rock and a Hard Place - 2H24 Outlook

<ul><li>Enrolled first subject in feline oral disease study, paving way for animal health opportunity.</li><li>The randomized, double- blind Veldona animal study will enroll 30 cats with feline chronic gingivostomatitis (FCGS) at a single Taiwan clinical site.</li><li>Two dosage groups, a low dose (6,000 IU) and high dose (12,000 IU), will be evaluated. The first enrolled subject will be dosed later this week. </li></ul>

Enrolled first subject in feline oral disease study, paving way for animal health opportunity.The randomized, double- blind Veldona animal study will enroll 30 cats with feline chronic gingivostomatitis (FCGS) at a single Taiwan clinical site.Two dosage groups, a low dose (6,000 IU) and high dose (12,000 IU), will be evaluated. The first enrolled subject will be dosed later this week. 

Ainos, Inc. - Veldona Animal Study Enrolls First Subject, Marking a Good Start

<ul><li>Equity analysts spend most of their time trying to get a handle on what is going to happen over the next 12-24 months for the companies that they follow.</li><li>Much of the focus is on ‘the numbers’. But sometimes it’s useful to pause and take some time to think about the big picture factors that could affect the industries and companies we care about.</li><li>In this industry report, we talk about five of the current themes and one trend we have been thinking about, with an eye on how they may affect the furniture and furnishings industries (both residential and contract/commercial) going forward</li></ul>

Equity analysts spend most of their time trying to get a handle on what is going to happen over the next 12-24 months for the companies that they follow.Much of the focus is on ‘the numbers’. But sometimes it’s useful to pause and take some time to think about the big picture factors that could affect the industries and companies we care about.In this industry report, we talk about five of the current themes and one trend we have been thinking about, with an eye on how they may affect the furniture and furnishings industries (both residential and contract/commercial) going forward

WTR Furniture/Furnishings 2H24 Industry Outlook

Water Tower Research
Research from Water Tower Research
• Water Tower Research

Ainos, Inc. Water Tower Hour Recap: AI Nose for POCT Diagnostics and Much More

The medtech company has three key technology platforms: (1) AI Nose point of care testing (POCT); (2) Low dose interferon-α Veldona; and (3)...

Water Tower Research

HighPeak Energy, Inc. - Free Cash Flow Tailwind

We are updating our estimates to reflect actual 2Q24 NYMEX reference prices of $80.66/bbl for oil and $2.32/MMBtu for natural gas.

Water Tower Research

Mat-Chem Notes - Between a Rock and a Hard Place - 2H24 Outlook

Over the same timeframe, the WTR-CMI Index delivered a disappointing 4.4% gain under the weight of lithium and graphite companies losing 36-62% of...

Water Tower Research

Ainos, Inc. - Veldona Animal Study Enrolls First Subject, Marking a Good Start

Positive results would support a pivotal field study for animal drug approval in Taiwan, marking a good start in Veldona animal drug development...

Water Tower Research

WTR Furniture/Furnishings 2H24 Industry Outlook

Equity analysts spend most of their time trying to get a handle on what is going to happen over the next 12-24 months for the companies that they...

Water Tower Research