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A Quartet of Portfolio Holdings in the Spotlight

Digital Turbine will report earnings, Ovintiv announces senior management changes and Antares Pharma and Durect Corp. will make presentations.
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Stocks Under $10 holding Digital Turbine Inc. (APPS:Nasdaq; $6.06; 1.26% of portfolio) is set to report fiscal fourth quarter and fiscal 2020 full-year results next Tuesday, June 2, after the closing bell. There will be a related conference call at 4:30 p.m. ET that day hosted by CEO Bill Stone. Interested investors can access that call at 855-238-2713 from within the United States and at 412-542-4111 from elsewhere. The call also will be webcast live and then archived at the "Investor Relations" tab of the firm's website.

The consensus of six analysts who cover this name is for fourth-quarter earnings per share of $0.04 (their estimates range from $0.03 to $0.05) on revenue of $38.45 million (all six are between $38.25 million and $38.9 million). As readers can see, there is not a lot of difference in professional opinion on just where these numbers will land. If these numbers do indeed turn out to be accurate, they would amount to earnings growth of one penny per share on sales growth of 41%. This is why we are in the name in the first place. It may be worth noting that Canaccord Genuity's Austin Moldow reiterated his "buy" rating on the name this week ahead of the report while reducing his target price from $12 to $11. Given that the portfolio's target is just $7.90, I think I can live with that reduction.

Other News Events

Meanwhile, three other names held by the portfolio either have made news or will be in the spotlight next week.

First up, once again, is Ovintiv Inc. (OVV:NYSE; $8.24; 4.29%). The energy producer announced some changes at the senior level of management that will take effect as of June 30, so these are planned moves, not sudden knee-jerk reactions to anything negative as far as I can tell. On June 30 Peter A. Dea will replace Clayton H. Woitas as chairman of the board. Dea has served on the board since 2010 and has been in this business for more than 30 years. Ovintiv's president, Michael McAllister, is also set to retire at that time. The role of president will be assumed by current CEO Doug Settles, who has had his finger on everything Ovintiv has done this year as well as last and from all appearances has done a superb job of late as the industry went through severe pain, both Covid-19 and sector-related. Upon Woitas leaving his role, a new member of the board will not be announced and the director ranks will be reduced from 12 to 11. We here at the portfolio still have a $10 price target on OVV.

Second, the portfolio has two names set to present next week at the Jefferies 2020 Virtual Health Care Conference. Antares Pharma Inc. (ATRS:Nasdaq; $2.91; 0.91%) President and CEO Robert F. Apple will appear on Tuesday, June 2, at 10 a.m. ET. The next day, June 3, Durect Corp. (DRRX:Nasdaq; $2.38; 1.55%) President and CEO James E. Brown presents at 10 a.m. ET. Brown intends to make himself available for virtual one-on-one meetings with institutional investors and/or analysts upon request. Both firms expect to broadcast their own presentations live under the "Investors" tabs at their respective corporate websites. The Stocks Under $10 portfolio rates both stocks as 2's with a price target of $5.25 on ATRS and a price target of $4 on DRRX.

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