Diamond Hill Capital recently released its Q1 2020 Investor Letter, a copy of which you can download below. The Diamond Hill Small Cap Fund posted a return of -36.17% for the quarter, underperforming its benchmark, the Russell 2000 Index which returned -30.61% in the same quarter. You should check out Diamond Hill Capital's top 5 […]

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Of all the controversial plays on Wall Street, penny stocks take the cake. The risk-tolerant flock to these names as the potential for share prices to grow from pocket change to more than a few dollars is too tempting to ignore.That said, these tickers aren’t without their pitfalls. Some investors avoid them entirely, arguing that the bargain price tags are too good to be true. Rather, the fact that shares are trading at such low levels could reflect problems lying beneath the surface, whether it be poor fundamentals or overpowering headwinds. So, how are investors supposed to distinguish between the long-term winners and those set to come up short? One strategy is to follow the activity of the pros.Enter Israel “Izzy” Englander, who is widely known for his impressive stock picking abilities. Englander expressed interest in the stock market since he was young, and in 1989, co-founded hedge fund Millennium Management with Ronald Shear. Using a broad range of strategies involving a variety of predominantly liquid asset classes, Englander was able to take the $35 million the fund was started with and turn it into $43.49 billion in assets as of June 1, 2020. With an estimated net worth of 6.6 billion in 2020, it’s no wonder Wall Street focus locks in on the guru when he makes a move.Looking to Englander for inspiration, we ran three penny stocks the hedge fund manager snapped up recently through TipRanks’ database to get the analyst community’s take on them. It turns out that each has received Buy ratings from analysts and boasts huge upside potential.Precigen, Inc. (PGEN)Focused on advancing the next generation of gene and cell therapies, Precigen uses precision technology to target urgent and intractable diseases, with its primary therapeutic areas being immuno-oncology, autoimmune disorders and infectious diseases. Given its $3.49 share price, some believe that now is the ideal time to get on board.Among PGEN’s fans are Englander and Millennium. The fund recently pulled the trigger on the stock for the first time, buying up 997,181 shares. As for the value of this new position, it comes in at $3,390,000.JMP analyst Jason Butler is also taking a bullish approach. The analyst wrote in a recent note to clients that key clinical data readouts are coming up in the second half of 2020. Looking at the trials for both PRGN-3005 in ovarian cancer and PRGN-3006 in AML and MDS, they are progressing right on schedule.“Importantly, both programs maintain 100% manufacturing success rate (point-of-care, overnight manufacturing). We believe further confidence in the robustness of the manufacturing process can be inferred from FDA’s decision to now allow the lymphodepletion and non-lymphodepletion arms to enroll concurrently,” Butler commented.Additionally, the company announced that the FDA accepted the Investigational New Drug application for its PRGN-2009 candidate, an immunotherapy for HPV+ cancer. Using PGEN’s AdenoVerse platform as well as a gorilla adenoviral vector, repeat dosing is possible, and the Phase 1/2 trial is set to kick off this calendar year. With preclinical models showing monotherapy activity with PRGN-2009 and enhanced activity with combinations that could target tumors non-responsive to checkpoint inhibitors, Butler is optimistic that the candidate will be effective.If that wasn’t enough, interim results from ActoBiotics’ AG019 in Type 1 diabetes and top line Phase 1 results for INXN-4001 in heart failure are slated for release in 2H20. Combine additional cost reductions at its MBP Titan subsidiary, sufficient cash to fund the company well into 2021 and no impacts from COVID-19, and you get a thumbs up from Butler.To this end, Butler rates PGEN an Outperform (i.e. Buy) along with a $13 price target. This target conveys his confidence in PGEN’s ability to soar 272% in the next year. (To watch Butler’s track record, click here) Turning now to the rest of the Street, it has been relatively quiet when it comes to other analyst activity. Only one other rating was issued recently, but it was also bullish. With a $9 average price target, the upside potential lands at 158%. (See PGEN stock analysis on TipRanks)BiomX (PHGE)Developing bacteriophage-based therapies, BiomX targets bacteria that affect the appearance of skin, as well as chronic diseases like inflammatory bowel diseases, primary sclerosing cholangitis and cancer. Currently going for $4.71 apiece, its share price could present a unique buying opportunity.Englander didn’t miss out on the chance to get in on the action. Adding a new PHGE position to the fund in Q1, Millennium snapped up 150,961 shares, with the holding valued at $1,057,000.Weighing in on BiomX's growth prospects for Cantor, analyst Kristen Kluska acknowledges that due to COVID-19, there are new timelines for the company's clinical trials. Initial BX002 Phase 1 data (IBD) is now expected in Q4 2020, with Phase 2 data for BX001 (acne) coming in Q2 2021.BiomX recently provided more detail regarding the design of the IBD trials. The initial first in human PK Phase 1a trial will look at 24 patients over two cohorts (BX002 with and without proton pump inhibitors – PPI) and placebo, with the endpoints focusing on the detection of viable phage in stool and the effect of PPI. Going forward, Kluska believes this data readout could potentially drive upside for PHGE.Looking at the Phase 1 results for BX001 in acne that were published in March, the candidate was able to generate a larger reduction in C. acnes for patients with high sebum baseline levels compared to the placebo. Kluska notes that BiomX has incorporated these findings into the Phase 2 trial, and should the therapy produce 10-20% more reductions in lesions than the placebo, it would be a major positive. She added, “Thus, we view this as a significant catalyst for BiomX shares, as results could trigger the global cosmetic company moving forward toward a commercialization plan.”The good news doesn’t end there. “Additional work is being studied with CRC, and the next goal by 1Q21 is to see whether the company can synergistically use phage with a payload with checkpoint inhibitors in mouse models of cancer. In light of many recent pharmaceutical partnerships with microbiome companies, the team sees other areas where XMarker could be used in disease diagnosis or companion diagnostics, which might include IBD, liver disease, NASH, and skin indications,” Kluska stated.With BiomX boasting two-plus years of cash on hand, the deal is sealed for Kluska. As a result, the analyst reiterated an Overweight (i.e. Buy) rating and $19 price target. Should the target be met, a twelve-month gain of 303% could be in store. (To watch Kluska’s track record, click here) BiomX has slipped under most analysts’ radar; the stock’s Moderate Buy consensus is based on just two recent ratings. The average price target stands tall at $8.13, which suggests room for almost 400% upside. (See BiomX stock analysis on TipRanks)Agile Therapeutics (AGRX)Last but not least we have Agile Therapeutics, which focuses on addressing the unmet health needs of women. With one already approved product, Twirla, that provides women with a contraceptive option that doesn’t require taking a daily pill or committing to a longer-lasting method, several members of the Street believe its $2.80 share price looks like a steal.Standing squarely in the bull camp, Englander just upped the ante. Boosting its AGRX position by a whopping 1,204%, Millennium purchased an additional 1,281,855 shares. This move brought the total size of the holding to 1,388,336 shares, with the value landing at $2,582,000.Covering the stock for Oppenheimer, 5-star analyst Leland Gershell points out that during the COVID-19 storm, AGRX hasn’t been sitting idly by. While the onset of the pandemic extended the pre-launch period for Twirla, with the actual launch expected in Q4 2020, this isn’t necessarily a bad thing.“Extended pre-launch window of time appears to be to AGRX's benefit, allowing the company to curate sales professionals who bring skill sets well-adapted to both in-person communication as well as virtual engagement. Initial launch strategy to geographically align with areas most favorable to patient access,” Gershell explained. In addition, the company recently contracted for sales personnel and services with Syneos and inVentiv.Twirla's pre-validation batch has already been completed, with commercial batch manufacturing set to kick off in the next few months, and thus, the company has been laying the groundwork for coverage and reimbursement. “While still early for managed care agreements to be executed, discussions are progressing… Despite patch category to be shared w/MYL's Xulane, we see Twirla's advantages (most importantly, low hormonal dose) as favorable to coverage prospects as well as prescriber/patient choice,” Gershell stated.Speaking to its commercialization plan, Gershell is especially interested to see if AGRX will offer a patch replacement program. This would provide women with the ability to remain protected without the inconvenience of needing to obtain another prescription if a patch is lost, unlike the case with Xulane.To sum it all up, Gershell said, “With an approved product that we project will achieve 2024E sales of ~$340 million, an enterprise value of just ~$210 million, and cash runway through 2021, we view AGRX as attractive.”Based on all of the above, it’s no wonder Gershell reiterated his Outperform call. With an $8 price target, shares could climb 186% higher in the next twelve months. (To watch Gershell’s track record, click here) All in all, other analysts echo Gershell’s sentiment. 4 Buys and no Holds or Sells add up to a Strong Buy consensus rating. Given the $7.50 average price target, the upside potential comes in at 168%. (See Agile stock analysis on TipRanks) To find good ideas for penny stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.

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(Bloomberg) — Delta Air Lines Inc. is returning to the bond market within weeks of its last visit, looking to support its liquidity and repay outstanding debt.The carrier is selling five-year unsecured bonds that may yield around 8%, according to a person with knowledge of the matter. The notes are expected to carry high-yield ratings, but the offering is being marketed by investment-grade debt syndicates, the person said, asking not to be identified as the details are private.Delta borrowed $3.5 billion in April through a sale of five-year secured bonds, pledged by domestic slots at New York airports and those at Heathrow in London, but Wednesday’s offering comes with no collateral protection. It’s a sign of how much the market has rallied since then for Delta to merely announce an unsecured offering, especially when the stakes for strong collateral have never been so high.U.S. airlines have been focused on raising capital since the coronavirus pandemic and related travel restrictions nearly wiped out travel demand in April. Southwest Airlines Co. has tapped the bond market three times this year, while others like United Airlines Holdings Inc. have sold new shares. JetBlue Airways Corp. is currently marketing a $500 million term loan. Delta has raised more than $10 billion since early March, including proceeds from a bond sale in April and two term loans, according to a filing Wednesday. The $5.4 billion the company received under the Cares Act includes a $3.8 billion grant and a $1.6 billion loan. The notes sold in April last traded around 107 cents on the dollar to yield 5.4%, according to Trace.The Atlanta-based carrier has cut operating expenses by 50% versus 2019, in part as more than 40,000 workers have taken unpaid leaves, and expects to reduce daily average cash burn to $40 million by the end of this month from $100 million at the end of March.Delta has slashed flying capacity this quarter by 85% from a year ago and expects revenue to plummet 90%, it said in the filing. Passenger demand across the industry will likely stay below pre-pandemic levels through 2023, according to S&P Global Ratings.Goldman Sachs Group Inc. and Morgan Stanley are managing the bond sale, the person said.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

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(Bloomberg) — Simon Property Group Inc. is terminating its $3.6 billion bid to buy Taubman Centers Inc., arguing that its rival mall owner has breached the merger agreement by not taking steps to mitigate the fallout from the coronavirus pandemic.Simon said in a statement on Wednesday it has “exercised its contractual rights” to terminate the deal, which was announced in February before the pandemic battered malls. The company said it was asking a court to declare that Taubman has suffered a “material adverse event” and “breached the covenants in the merger agreement.”Taubman didn’t immediately respond to a request for comment.Taubman’s shares plunged more than 40% to $26.70 after the statement was released. Its shares have been trading below the proposed deal price of $52.50 for months, raising speculation that the deal was in trouble.Simon also dipped on Wednesday, dropping as much as 4.5% to $82.57. Its shares had rallied recently on hopes for a faster than expected economic recoveryProspects for bricks-and-mortar retail have changed dramatically since the deal was announced. Stay-at-home orders to curb the spread of Covid-19 have shuttered stores, pushing consumers deeper into online shopping.Landlords, already pressured by declining foot traffic and retailer bankruptcies, may face a wave of new vacancies as the pandemic forces more tenants out of business.For months, analysts and industry observers have speculated that Simon would seek to get a lower price for a deal that was announced weeks before the U.S. economy was shuttered by the pandemic, which has been particularly hard on malls and retailers.The move by Simon on Wednesday could be a renegotiating tactic, according to Lindsay Dutch, an analyst at Bloomberg Intelligence.“If Taubman’s stock drops by a certain amount, maybe they would try to go renegotiate,” Dutch said.While Americans stuck inside for months have shown a willingness to return to stores, there are major challenges ahead for enclosed malls.Simon argued in the statement that Taubman had failed to make “essential cuts” in operating expenses and capital expenditures and that the company’s properties have been hit particularly hard by the outbreak.“Taubman’s significant proportion of enclosed retail properties located in densely populated major metropolitan areas, dependence on both domestic and international tourism at many of its properties, and its focus on high-end shopping have combined to impact Taubman’s business disproportionately due to the Covid-19 pandemic when compared to the rest of the retail real estate industry,” Simon said.(Adds quote from analyst.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

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It isn't hard to find love when there's no competition. Match Group Inc (NASDAQ: MTCH) is the only online dating service on the public markets, but last resort or not, it's found itself a mate.The Rating: Morgan Stanley analysts Lauren Cassel and Brian Nowak initiated coverage on Match with and Overweight rating and a $103 price target.The Thesis: Lockdown was a lonely experience for many single Americans. A lifting of their forced solitude may inspire a rush to the apps."We see a long and growing runway for growth given demographic tailwinds and greater adoption of online dating," the analysts wrote, citing a global addressable market of about 600 million with 3.5% compound annual growth.The coronavirus impetus compounds other favorable trends for dating apps, including a peak in the U.S. single population, an increase in young daters as a proportion of the single population, and the continued global penetration of internet and smartphone access.Overall, Morgan Stanley anticipates 13% subscriber growth over the next five years, with Match nearly doubling its global payer penetration driven by international subscriptions."We view MTCH as a must-own structural grower in early innings with dominant market share," Cassel and Nowak wrote. "As singles crave human interaction in a post COVID world, we model accelerating 2021 sub growth."MTCH Price Action: At the time of publication, Match traded down marginally around $89.Related Links:Study: More Harassment Seen In LGBT Online Dating9 Countries Using Online Dating The MostPhoto courtesy of Tinder.Latest Ratings for MTCH DateFirmActionFromTo Jun 2020Morgan StanleyInitiates Coverage OnOverweight May 2020CitigroupMaintainsBuy May 2020BMO CapitalMaintainsMarket Perform View More Analyst Ratings for MTCH View the Latest Analyst Ratings See more from Benzinga * BofA Upgrades Occidental, Downgrades Chevron * This 5M Malibu Property Includes A Decked-Out Cabana And Recording Studio * 6 Slack Analysts On Q1 Results, Billing Numbers, Microsoft Competition: 'An Unexpected Dichotomy'(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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Apple Inc. (NASDAQ: AAPL) is going to let its customers turn in their old Mac devices at its retail outlets in US and Canada in exchange for credit for a new device or balance on the Apple gift card starting this month, Bloomberg reported Tuesday.What Happened The consumer electronics company told its retail employees that the program will come into effect on June 15 in the United States and June 18 in Canada, according to Bloomberg.The trade-in facility is already available for other Apple devices, including the iPhone, iPad, and Apple Watch.Mac devices accounted for about 10% of Apple's revenue in 2019 at $25.7 billion, and according to Bloomberg, the move could further boost the computer sales.Price Action Apple shares closed nearly 3.2 higher at $343.99 on Tuesday, the record highest price in history. The shares added another 0.4% in the after-hours session at $345.40 in the after-hours session.See more from Benzinga * Big Tech Reaches New Record Heights At The Stock Market * IBM Discontinues Facial Recognition Technology, Says It Can't Condone 'Racial Profiling' Or 'Mass Surveillance' * Apple Gets Patent For Socially-Distanced Group Selfies(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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The Federal Reserve is set to announce its latest policy decision on Wednesday afternoon.

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Tesla Inc’s chief executive Elon Musk said that it is time to bring its Semi commercial truck to “volume production”, as the U.S. electric vehicle maker ramps up vehicle production after a brief virus-related shutdown. “Production of the battery and powertrain will take place at Giga Nevada,” Musk said in an email seen by Reuters.

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Hertz (HTZ) has announced that it has received a letter from the New York Stock Exchange (NYSE) revealing plans to delist Hertz’s common stock from the exchange. Shares in HTZ are down 12% in Wednesday’s pre-market trading.According to an SEC filing made by Hertz, NYSE Regulation reached its decision after Hertz disclosed on May 22, 2020 that it has commenced voluntary petitions for reorganization under chapter 11 of the Bankruptcy Code.Hertz says it has appealed the determination and has requested a hearing before the NYSE. “At this time, the common stock of the company will continue to be listed and trade on the NYSE pending resolution of such appeal” Hertz says.The company adds that there can be no assurance that the NYSE will grant its request for continued listing at the hearing and therefore “whether there will be equity value in the company’s common stock.”Despite an impressive rally over the last few days, Hertz has seen its stock plunge 73% in value year-to-date. The troubled car rental company has a bearish Moderate Sell consensus from the Street with 2 recent hold ratings and 4 sell ratings. (See Hertz stock analysis on TipRanks).The average analyst price target stands at just $2.33, indicating a further 44% downside potential lies ahead. Deutsche Bank’s Chris Woronka has a hold rating on Hertz and $3 price target, saying “it’s difficult to fundamentally analyze the company” due to the bankruptcy proceedings.While the “reopening trade” for stocks set to improve post-lockdown has become popular, Woronka nevertheless finds himself “questioning the true depth of the buying in what increasingly feels like a capitulation-type short squeeze being exacerbated by high frequency trading programs.”Related News: Beleaguered Hertz Sinks 36% In After-Market On Bankruptcy Protection Filing Hertz Down 11% After-Hours As Carl Icahn Sells Stake At $1.8B Loss Global Airlines Are Set To Lose $84.3 Billion In 2020, IATA Says More recent articles from Smarter Analyst: * Pfizer’s Abrocitinib Candidate Shows Positive Results In Kids With Atopic Dermatitis * Ford, Volkswagen Ink Major Joint Project Agreement, Includes New Electric Vehicle * RWE, Thyssenkrupp Plan Hydrogen Production Partnership – Report * Genmab Shares Rise 5% In Pre-Market On Oncology Partnership With AbbVie

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