Let’s start the week by looking at last week’s fund flows from ETF.com:

Both SPY and QQQ had outflows last week, although QQQ’s was massive. IWM stands in contrast. This partially explains why small-caps are doing better than larger caps right now. The long end of the treasury market also had a decent inflow of fresh capital.Only defensive sectors had outflows last week — which is interesting since these securities are rising relative to others. Financial services had the largest inflow. This is a bit odd since this sector is probably about to report increased losses and delinquencies caused by the Spring lockdowns. The other inflows were modest, relatively speaking.

Europe is experiencing a virus resurgence (emphasis added):

Earlier in the week, France, Europe’s second-largest economy, downgraded its forecast for the pace of expansion for the last three months of the year from an already minimal 1 percent to zero. Overall, the national statistics agency predicted the economy would contract by 9 percent this year.

The diminished expectations are a direct outgrowth of alarm over the revival of the virus. France reported nearly 19,000 new cases on Wednesday — a one-day record, and almost double the number the day before. The surge prompted President Emmanuel Macron to announce new restrictions, including a two-week shutdown of cafes and bars in Paris and surrounding areas.

In Spain, the central bank governor warned this week that the accelerating spread of the virus could force the government to impose restrictions that would produce an economic contraction of as much as 12.6 percent this year.

This is the same scenario that several Fed governors have warned about: a rising number of virus cases force localities to issue orders that slow economic growth. It’s a very real possibility this fall as flu season gets underway.

It’s been a volatile couple of months for most gold producers as the correction in the price of gold (GLD) has taken a bite out of many miners’ share prices. Great Panther Mining (NYSEMKT:GPL) is one of the names that has run into some selling pressure with the stock correcting 25% from its August highs. While this has likely left some investors that overpaid for the stock frustrated, the good news is that the stock just came off another solid quarter, with quarterly production of 39,800~ gold-equivalent ounces (GEOs). Given the higher metals prices and improved operations this year, we’ve seen analysts pull their earnings estimates higher, with FY2021 annual EPS estimates now sitting at $0.21. While I see more attractive producers elsewhere in the sector, I see Great Panther as a Speculative Buy at $0.72, given its very reasonable valuation.

(Source: Company Website)

Great Panther Mining released its preliminary Q3 production results last week and reported quarterly production of 39,800~ GEOs, a 3% increase from the 38,500~ GEOs produced last quarter. The company’s flagship Tucano Mine has now produced 93,400 ounces of gold year-to-date, and the mine remains on track to meet its FY2020 production guidance midpoint of 125,000 ounces. While the share price has been under pressure recently due to the sector-wide slump, it’s worth noting that Great Panther has only gotten more attractive as earnings estimates have continued to climb over the past two months. Based on current estimates of $0.21 for FY2021, the stock is trading at just below 5x FY2021 annual EPS estimates. Let’s take a closer look at the most recent quarter below:

(Source: Company News Release)

Beginning with the company’s Tucano Mine in Brazil, it was a relatively soft quarter, with gold production coming in at 31,800~ ounces vs. 35,400~ ounces

Back in March, in a Herculean effort to create liquidity, the Federal Reserve pledged a multi-trillion dollar expansion of its balance sheet through the purchase of a broad swath of securities. In September Chair Jay Powell declared that interest rates would stay at or near zero through 2023.

This largesse has finally come to REITs. Here are just a few recent examples of the action.


Earlier this month, Health Trust of America (HTA) announced issuance of $800MM 2.00% ten-year notes. They will use the proceeds to redeem $300MM 3.7% notes due 2023, reducing annual interest expense by $5.1MM (increasing income by $0.0233/share). On 9/22 they increased their dividend. On 9/23 they reinstated a $300MM share repurchase program which will further increase FFO/share.


On 9/18 Healthcare Realty Trust (HR) announced the issuance of $300MM 2.05% Senior Unsecured Notes due 2031. Simultaneously, they announced the redemption of $250MM 3.75% Senior Notes due 2023. While the 1.7% lower coupon of the new notes will save them ~$4.2MM/annum in interest expense ($0.031/share), the $21.5MM early extinguishment charge HR will take in the 4th quarter makes the maneuver look a little dubious.


Even bolder, On 09/07, Interxion (Digital Realty’s recently acquired European unit) announced a strategic land acquisition in Madrid. On 09/09, they acquired Altus IT to establish a business presence in Croatia. On 09/14, they simultaneously announced the redemption of €300MM 4.75% Guaranteed Notes due 2023 and that they would pay for the redemption with the issuance of €1.05B super cheap, long dated debt. Not done yet, and this is where it gets really interesting, on 09/15 they announced the redemption of Digital’s 5.875% Series G Preferred Stock.


On August 20 UHM Properties (UMH), a small cap REIT in the manufactured housing sub-sector, announced the completion of a $106MM

Great American Insurance Group announces the retirement of Ronald (Ron) J. Brichler, Executive Vice President within its Property & Casualty Group, effective January 2021.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20201007005816/en/

Ronald (Ron) J. Brichler (Photo: Business Wire)

Mr. Brichler began his 44-year career at American Financial Group in 1976. He held various positions within Great American’s Finance and Corporate Development departments, and in 1984, became the CFO for Great American’s insurance brokerage subsidiary, American Business Insurance. In 1988, he assumed leadership of the Property & Casualty Group’s Specialty Human Services Division before moving to the Crop Division as Divisional President. As President of the Crop Division, Mr. Brichler was instrumental in growing that division into the largest business within the Property & Casualty Group, as well as one of the largest in the crop insurance industry. In 1998, he was promoted to a Group Reporting Officer, a position he has held for more than 20 years. During his tenure, he worked with almost every property and casualty business and provided leadership to multiple strategic initiatives for the Company.

Mr. Brichler is a past Chairman of the Board of Directors of both the American Association of Crop Insurers (AACI) and National Crop Insurance Services (NCIS).

About Great American Insurance Group

Great American Insurance Group’s roots go back to 1872 with the founding of its flagship company, Great American Insurance Company. Based in Cincinnati, Ohio, the operations of Great American Insurance Group are engaged primarily in property and casualty insurance, focusing on specialty commercial products for businesses, and in the sale of traditional fixed and indexed annuities in the retail, financial institutions, broker-dealer and registered investment advisor markets. Great American Insurance Company has received an “A” (Excellent) or higher rating from the A.M. Best Company for more

a close up of a computer keyboard: Lemonade logo displayed on smartphone laying on top of computer keyboard.

© Source: Stephanie L Sanchez / Shutterstock.com
Lemonade logo displayed on smartphone laying on top of computer keyboard.

Lemonade (NYSE:LMND) has sloped down since its IPO, but there’s reason to be hopeful about Lemonade stock at these levels.

a close up of a computer keyboard: Lemonade logo displayed on smartphone laying on top of computer keyboard.

© Provided by InvestorPlace
Lemonade logo displayed on smartphone laying on top of computer keyboard.

Big data is radically transforming how we do business. Data collection and interpretation is becoming easier and more accessible. As a result, companies now have more raw data than ever before, and it is helping businesses make more informed decisions. That’s why Lemonade stock has become such an attractive play in the insurance sector.

Lemonade is a new company that is operating within a very competitive market. But the business model sets it apart from its peers.

Lemonade leverages big data and artificial intelligence to improve the underwriting process, detect fraud, and process claims. Due to this efficient and sustainable model, it looks more attractive than peers Allstate (NYSE:ALL) and Berkshire Hathaway (NYSE:BRK.A, NYSE:BRK.B) — especially if you are forward-looking.

Although Lemonade stock is trading at very high multiples, I would still class shares a bargain, considering they are at a 43% discount to their 52-week high of $96.51. And that in terms of revenue growth, it stands head and shoulders above its peers.

Lemonade Stock Is a Growth Stock With a Solid Story

chart, line chart: Chart showing the revenue growth rates in the insurance market and how it correlated to share price spikes in Lemonade stock

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Chart showing the revenue growth rates in the insurance market and how it correlated to share price spikes in Lemonade stock

Source: Chart by Faizan Farooque, data from filings and analyst reports

Peter Sondergaard, Senior Vice President, Gartner, has said, “Information is the oil of the 21st century, and analytics is the combustion engine.” Long story short, data is a big