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Akoustis Diplexer, UDC 2Q21 & New Fortress update schedules, and more +3

09:05 14-Jul-21

New Fortress has followed up with the official announcement that it has commenced operations in Mexico.  This heralds a substantial new revenue stream, so expect Golar to hold on to a significant portion of its NFE shares for the time being.  It also serves as a proving point for the New Fortress ISOFlex containerization system, which means we're entering a no news is good news stage for the company.  I do expect good things from that innovation, though.

Akoustis has announced a WiFi 6E diplexer development order using chip scale packaging from a tier-1 PC chipset maker.  First samples are expected to ship in 1Q22, and development volumes are usually trivial.  So there is no immediate impact.  However, this represents its first business beyond discrete RF filters, and the interest is still a vote of confidence for Akoustis.

Universal Display has scheduled its second quarter report for the evening of August 5th.  Average analyst estimates are for 87 cents of EPS from $127M of revenue, increasing to $145M.  OLED shares are well off the highs we saw early in the year despite posting good number, but still nowhere near bargain territory.  With competition continuing to develop, I will prioritize Energy Recovery's call over UDC's that evening, even though I expect UDC to continue posting good numbers.

Of much more interest will be New Fortress Energy's investor update at 11am on July 21st.  Golar's lockup will have expired by then and there's a lot going on with natural gas and New Fortress.  I will certainly listen to what management has to say and give a report on any impact to GLNG, which dipped back below $12.50 today, well below my $15 projection for its fair value.

Finally, there is the news that Ebix is linking its AnnuityNet platform to Producer Management Portal of the Depository Trust & Clearing Corporation.  DTCC may not be a household name to retail investors but it is the clearing house for nearly all major American market participants.  The Ebix annuity business hasn't been big enough to break out and this is only for compliance purposes.  However, some big wins have been brewing, and given what's going down in credit markets, this first-of-its-kind integration leads me to wonder if that's about to change.

The change in institutional investing is being mirrored in changes to Virtu's alternative trading system.  I'm not surprised that such arcane news didn't help VIRT today, but it shows how the company is remaining nimble and response to a changing market.  As mentioned on Monday, it's set to change further with Democrats taking the first step toward tax policy in their new budget package while the administration works abroad.

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