In a significant move to broaden its market presence, Tekcapital portfolio company Innovative Eyewear (NASDAQ:LUCY) has announced the availability of its Lucyd Lyte frames on Target.com.

Tekcapital has made a number of announcements regarding developments for Innovative Eyewear in 2024; today’s may just be the most important one, both in terms of potential revenue generation and the delivery on Innovative Eyewear’s strategy to focus distribution through retail outlets.

The partnership with Target.com brings Lucyd ChatGPT-enabled smart eyewear to one of the largest retail platforms in the United States. Target Corporation, with its vast network of nearly 2,000 stores across the country and a robust online presence, serves millions of US customers daily.

By securing a place on Target.com, Innovative Eyewear gains access to a massive customer base, potentially exposing its smart eyewear products to millions of new consumers nationwide.

“Target is a long-time favourite retailer of mine, as well as millions of loyal customers in the US,” said Harrison Gross, CEO of Innovative Eyewear

“Their focus on product quality, style and accessibility makes Target.com an ideal channel partner for our smart frames. We look forward to upgrading Target guests’ eyewear.”

Innovative Eyewear, which develops and retails smart eyewear under well-known brands such as Lucyd®, Nautica®, Eddie Bauer®, and very shortly, Reebok®, has achieved a step-change in revenue generation this year.

The company has outlined a growth strategy to focus on retail distribution in order to reach millions of consumers. Securing a listing on Target.com does just that.

Nvidia shares were down in the US premarket after the company reported eagerly anticipated quarterly earnings overnight. 

In many respects, Nvidia was set up to fail going into results. Simply beating analyst earnings expectations is not enough for Nvidia. Their importance to the AI trade means markets want to see the chip maker smash estimates by many billions, even if they doubled revenue compared to a year ago. 

“The most important earnings release in the entire history of the world – at least if you believe the hype beforehand – saw NVDA deliver both top- and bottom-line beats, coupled with better-than-expected third quarter guidance, as well as promising news on the delivery of the new ‘Blackwell’ chip,” said Michael Brown Senior Research Strategist at Pepperstone.

“While those at Nvidia earnings watch parties (bubble sign, perhaps!?) would’ve been pleased with the earnings slate, market participants appeared rather disappointed, with NVDA ending the after-hours session 7% softer, having failed to meet what, in hindsight, was an impossibly high bar that investors had set.”

The sharp ascent in the share price over the past two years means the investors are ultra-sensitive to any suggestion of a slowdown in momentum.

Nvidia trades at an earnings multiple considered to be rich compared to historical averages. With such a high valuation, earnings have to run higher faster just for Nvidia shares to stand still.

That said, there weren’t any major concerns with last night’s report and today’s drop is likely a round a profit taking after a meteoric rise in the stock.

“Revenue jumped 122% year-over-year to $30.04 billion, and its data centre revenue grew 154% to $26.3 billion, both smashing through estimates. Nvidia also announced an additional $50 billion buyback program, signalling its confidence in what’s ahead after ending the quarter with a massive cash balance of $34.8 billion,” Josh Gilbert, Market Analyst at investment platform eToro summarised.

As well as recent finanical performance, Nvidia provided insight into the rollout of its new Blackwell chips, saying it will sell billions of dollars in the coming periods. In addition, investors would have been encouraged to hear the Nvidia CEO in his traditionally bullish mood on last night’s earnings call, highlighting robust demand from the world’s largest tech companies.   

“The market may be disappointed not to see a bigger beat on its outlook given what is now almost unattainable expectations, but the bottom line here is that the long-term story remains intact, demand remains huge and the Juggernaut that is Nvidia rolls on,“ Gilbert said.

The FTSE 100 was in full-blown wait-and-see mode on Wednesday as investors prepared for Nvidia earnings after the US bell.

Nvidia’s remarkable dominance in the chips supply to fuel the AI boom has made it the ultimate bellwether for the AI theme, which has been responsible for much of the US equity rally since the beginning of 2023.

For investors, the outcome of tonight’s earnings is almost binary. If Nvidia misses earnings expectations, or only just meets expectations, global equities are likely to come under significant pressure. A beat of earnings expectations will signal the AI trade is still intact and will likely send stocks higher.

Given the potential for large, unpredictable swings later today, its understandable investors held off making big bets on Wednesday and the FTSE 100 was down 0.1% at the time of writing.

“Naturally, NVDA earnings after the close hold the key to the near-term direction for global equities, and risk appetite, coming at a time when risks around the AI theme appear to become more equally-balanced and, of course, with the S&P just inches away from a fresh record high,” explained Michael Brown Senior Research Strategist at Pepperstone.

“Derivatives price a punchy +/- 9.7% swing in NVDA stock in the 24 hours following the quarterly report, equivalent to a staggering $280bln worth of market cap in either direction. As has been the case for the entirety of earnings season, strong guidance will need to accompany revenue and EPS beats in order to unlock significant after-market gains.”

Although the FTSE 100 has very little in the way of direct exposure to Generative AI, investor sentiment will be driven by this evenings results. However, as we’ve seen in recent weeks, London’s leading index may experience a smoother ride to the upside or downside due to the defensive composition of the index.

The index’s defensive nature has again been evident this week, with the FTSE 100 holding above 8,300, supported by oil stocks amid rising tensions in the Middle East. 

There was little in the way of standout movers on Wednesday. Prudential was a notable gainer after announcing half-year results. Shares in the Asia-focused company rose 1% on the announcment of rising new business profits, but falling operating profits.

“Prudential’s big pivot to Asia over the last decade, which culminated in the shedding of its US and European operations in 2021, isn’t playing out as the company would have hoped,” said Russ Mould, investment director at AJ Bell.

“The insurance giant went to less mature markets in the pursuit of growth, betting on an emergent middle class having increased appetite for financial products and services, but in key geographies like mainland China and Hong Kong, that growth is proving elusive. Zero-Covid policies didn’t help and the subsequent uncertain recovery in the Chinese economy has only compounded things.”

Despite slow progress in China, Prudential increased in dividend and said it has seen sales momentum pick up after June.

Only capitalised at just £48.3m, the shares of Condor Gold (LON:CNR and TSX:COG) could well be in for an early uplift in price. 

Analysts at its broker, SP Angel, currently have a valuation out on the group’s shares of 97p, which is some four times its 23.5p market price. 

The Business 

It is a gold exploration and development company with a focus on Nicaragua, where its principal asset is the La India Project, which is a large, highly prospective land package of 588 sq.km comprising of 12 contiguous and adjacent concessions. 

La India For Sale 

Almost two years ago, in late November 2022, the company announced that following a robust and economically attractive Feasibility Study on the La India open pit, it had appointed Hannam and Partners to seek a buyer for the assets of the company.  

In mid-May this year the company issued an Update on the Sale of its Assets. 

It stated that, as at 16^th May 2024, eight companies were under Non-Disclosure Agreements, five non-binding offers having been received and three site visits completed.  

The company went on to note that although none of the non-binding offers had progressed to firm proposals at that date, it was in advanced discussions with one gold producer, while two other parties were actively reviewing the company’s assets.  

A further Update on the potential was issued at the end of last month, with the company reporting that there were eleven companies under NDA’s, with it having received five non-binding offers, while three site visits had been completed.  

In addition, it had also received an additional formal expression of interest in July. 

Chairman and largest shareholder, with 26.1% of the group’s equity, Jim Mellon stated that: 

“There remains substantial interest from gold producers to acquire the Company’s assets.  

Wholly owned, fully permitted, construction ready gold mines with potential production of 150,000 oz gold per annum, in major Gold Districts, with the land and a new SAG Mill package purchased and a construction period of only 18 months are rare.  

There are currently eleven companies under NDAs, five non-binding offers received and three site visits completed.  

Whilst discussions have ceased with one gold producer previously referred to, the Company is now focused on active discussions with three other gold producers, one of which we consider the preferred bidder.  

Companies under NDAs have access to a virtual data room, which includes all drill data, technical studies to Feasibility Study level, details of permits to construct and operate a mine and financial models.  

While the sales process is taking longer than anticipated, new enquires continue to be received.  

Record gold prices of over US$2,400 oz gold in recent weeks compared to a US$1,600 oz gold price used in the Feasibility Study, materially improves project economics.  

The Board remains confident that a binding agreement can be reached and Investors will be updated in due course.  

Meanwhile, the entire Board, including the executive, will continue to give their full attention to obtaining the best outcome possible for all investors.” 

Analyst’s View 

At SP Angel, the company’s broker, a trio of its analysts – John Meyer, Simon Beardsmore and Sergey Raevskiy – note that the company is advancing the sale process for its advanced stage, 2.3m oz La India gold project in Nicaragua and the surrounding exploration areas.  

The 2022 feasibility study describes development of an open pit mine at La India as the first phase of development producing approximately 82,000oz pa of gold.   

Expansion through the subsequent development of already permitted satellite pits and of underground mining has the potential to increase output to around 150,000oz pa. 

 A completed feasibility study and in-place development permits provides a successful acquirer with an opportunity for rapid development of an advanced gold project with expansion potential and further exploration prospects.  

The analysts state that using SP Angel’s long-term gold price forecast of $2,450/oz, they estimate that the NPV10% of Condor Gold’s planned initial development of an open pit mine on the La India vein at around $287m, which would be equivalent to 97p a share. 

In My View 

The recent strong rise in the price of gold provides an excellent backdrop for investors to perceive the value of Condor Gold’s shares. 

The potential sale process has taken some time, but it does feel as though it is coming closer to a conclusion, which could really push upwards the group’s value. 

The shares were up to 37p on 7^th May this year, before drifting back and stabilising now at around the 23.5p level. 

With so many interested parties, combined with the yellow metal’s soaring value, I do feel it would be wrong to dismiss what could well be a dramatic potential uplift when any offers come to fruition. 

Helix Exploration has announced the successful completion of drilling operations at its Clink #1 well in the Ingomar Dome Project.

The drilling reached its Target Depth of 8,030 feet ahead of schedule and under budget. During the drilling process, the company encountered elevated levels of helium in the drilling muds throughout the entire sedimentary column.

This discovery provides strong evidence for the presence of helium across all targets, reinforcing the potential of the Ingomar Dome Project as a viable helium source.

Investors will be pleased to learn Helix Exploration detected significantly elevated hydrogen levels in the drilling muds, particularly within the Cambrian strata. Hydrogen concentrations reached as high as 103,000 parts per million (10.3% H2), indicating the presence of a substantial hydrogen system in these ancient rock layers.

The company is now preparing to commence wireline logging and extended flow testing to further assess the concentrations of both helium and hydrogen.

These upcoming appraisal activities will be crucial in determining the commercial viability of the discovered resources and could potentially position Helix Exploration at the forefront of both helium and hydrogen production in Montana.

“We are delighted to report the safe and successful completion of the drilling of our maiden exploration well at Clink #1 delivered ahead of time and below budget. Drill operations took 11 days from spud to Target Depth, completing well ahead of the 2-3 week guidance provided,” said Bo Sears, CEO of Helix Exploration.

“We are highly encouraged by anomalous helium identified in all target strata, indicating that we have elevated levels of helium throughout the sedimentary column. Additionally, the discovery of anomalously high hydrogen shows within Cambrian strata is a welcome development. A number of highly elevated readings up to 103,000ppm (10.3%) suggest a significant level of hydrogen in the lower part of the system. This will need to be fully investigated before any conclusions on economic potential can be drawn.

“We are now moving directly onto preparing the well for wireline logging and appraisal via extended flow testing and will keep the market updated as we learn more about the helium and hydrogen system identified in mud-shows at the Ingomar Dome Project.”