Day: January 6, 2021

NEVDF – Nevada Copper Announces Further Ramp-Up Progress & Closing of Credit Facility Increase

YERINGTON, Nev., Jan. 06, 2021 (GLOBE NEWSWIRE) — Nevada Copper Corp. (TSX: NCU) (OTC:NEVDF) (“Nevada Copper” or the “Company’’) is very pleased to announce a steady increase in performance from the Pumpkin Hollow underground project (the “Underground Project”).
Performance HighlightsMine Hoisting. In December, the Company hoisted 36,000 tons of ore, an increase of over 60% from November.   During the first week of January 2021, electrical and instrumentation commissioning of the main hoist system was completed, allowing the main hoist to operate at the full production speed of 1,800 ft per minute, with hoisting rates in January targeted to increase by 200% – 300%.Recovery rates. In December, the average concentrate recovery was 86% including a number of days that reached above the Company’s target of 90%.Lateral development. Monthly lateral development for December increased to approximately 1,200 ft, which is an increase of over 37% from November. A significant increase is expected in January with the main shaft online.Geotechnical Stability. Geotechnical boundaries and properties of the East North orebody have been verified by the recent underground drilling and development drifting. As expected, the resulting geotechnical modeling has confirmed the stability of the East North ore body.Production. The Company expects to reach steady-state production of approximately 5,000tpd by mid-2021.
Nevada Copper CEO Mike Ciricillo comments, “The team continues to improve the performance both at the mine and processing plant, evidenced by the operational metrics for December. Most importantly, they have done it safely. In addition, the commissioning of the main hoist system is progressing well, with the shaft reaching its full production speed further enabling the ramp-up to our goal of 5,000 tpd of hoisted material. We are well on our way to show the potential of the Pumpkin Hollow Underground Project.”Closing of Credit Facility IncreaseOn December 30, 2020, the Company closed the previously announced amendment to its existing senior credit facility with KfW IPEX-Bank, which included a US$15M increase in the loan amount and a deferral of US$26M of planned debt service until 2023. Also on that date the Company drew down the full US$15M amount of the increase.Qualified Persons
The information and data in this news release was reviewed by Greg French, C.P.G., and David Sabourin, P.E, for Nevada Copper, who are non-independent Qualified Persons within the meaning of NI 43-101.
About Nevada CopperNevada Copper (TSX: NCU) is a copper producer and owner of the Pumpkin Hollow copper project. Located in Nevada, USA, Pumpkin Hollow has substantial reserves and resources including copper, gold and silver. Its two fully permitted projects include the high-grade underground mine and processing facility, which is now in the production stage, and a large-scale open pit project, which is advancing towards feasibility status.NEVADA COPPER CORP.
Mike Ciricillo, President and CEOFor further information contact:
Rich Matthews, Investor Relations
Integrous Communications
+1 604 757 7179
Cautionary LanguageThis news release includes certain statements and information that constitute forward-looking information within the meaning of applicable Canadian securities laws. All statements in this news release, other than statements of historical facts are forward-looking statements. Such forward-looking statements and forward-looking information specifically include, but are not limited to, statements that relate to mine development, production and ramp-up plans and the expected results thereof.Often, but not always, forward-looking statements and forward-looking information can be identified by the use of words such as “plans”, “expects”, “potential”, “is expected”, “anticipated”, “is targeted”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates”, or “believes” or the negatives thereof or variations of such words and phrases or statements that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved. Forward-looking statements or information are subject to known or unknown risks, uncertainties and other factors which may cause the actual results and events to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements or information.Forward-looking statements or information are subject to a variety of risks and uncertainties which could cause actual events or results to differ from those reflected in the forward-looking statements or information, including, without limitation, risks and uncertainties relating to: the ability of the Company to complete the ramp-up of the Underground Project within the expected cost estimates and timeframe; the state of financial markets; the impact of COVID-19 on the business and operations of the Company; history of losses; requirements for additional capital and no assurance can be given regarding the availability thereof; dilution; adverse events relating to milling operations, construction, development and ramp-up, including the ability of the Company to address underground development and process plant issues; ground conditions; cost overruns relating to development, construction and ramp-up of the Underground Project; loss of material properties; interest rates increase; global economy; limited history of production; future metals price fluctuations; speculative nature of exploration activities; periodic interruptions to exploration, development and mining activities; environmental hazards and liability; industrial accidents; failure of processing and mining equipment to perform as expected; labor disputes; supply problems; uncertainty of production and cost estimates; the interpretation of drill results and the estimation of mineral resources and reserves; changes in project parameters as plans continue to be refined; possible variations in ore reserves, grade of mineralization or recovery rates from management’s expectations and the difference may be material; legal and regulatory proceedings and community actions; the outcome of disputes with the Company’s contractors; accidents; title matters; regulatory approvals and restrictions; increased costs and physical risks relating to climate change, including extreme weather events, and new or revised regulations relating to climate change; permitting and licensing; volatility of the market price of the Company’s common shares; insurance; competition; hedging activities; currency fluctuations; loss of key employees; other risks of the mining industry as well as those risks discussed in the Company’s Management’s Discussion and Analysis in respect of the year ended December 31, 2019 and in the section entitled “Risk Factors” in the Company’s Annual Information Form dated May 15, 2020. Should one or more of these risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in forward-looking statements or information. The forward-looking information and statements are stated as of the date hereof. The Company disclaims any intent or obligation to update forward-looking statements or information except as required by law.The Company provides no assurance that forward-looking statements and information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements and information.

MRNA – Why Moderna Stock Surged Today

What happened

Shares of Moderna (NASDAQ:MRNA) climbed 6.5% on Wednesday after the European Commission granted a conditional marketing authorization (CMA) for its COVID-19 vaccine. 

So what

The CMA will allow the drug to be given to adults aged 18 and older throughout the European Union. To accelerate the rollout, the European Medicines Agency (EMA) ordered an additional 80 million doses of Moderna’s vaccine, bringing its total order to 160 million doses. The first deliveries are scheduled to start next week.

A person in medical protective gear is holding a vial labeled coronavirus 2019.

Moderna scored another regulatory victory on Wednesday. Image source: Getty Images.

“I want to thank the European Commission for its engagement and endorsement and the EMA for its recommendation, which is another significant moment in our company’s history,” said Moderna CEO Stéphane Bancel in a press release.

Now what

Moderna is hopeful that its vaccine will be effective against new coronavirus strains that have emerged in recent months. Coronavirus mutations first discovered in the U.K. and South Africa are proving to be even more contagious than previous versions of the virus. Government officials in the U.K., Israel, and other areas have reimposed strict lockdowns in recent days aimed at slowing the spread of the disease.

Should Moderna’s drug prove effective at combatting these new coronavirus strains, the biotech could receive even more orders from governments around the world in the weeks ahead.

HBOSF – Eastwest Announces Resignation of CFO and Appointment of Interim CFO

PENTICTON, BC / ACCESSWIRE / January 6, 2021 / Eastwest Bioscience Inc. (TSXV:EAST) (“Eastwest” or the “Corporation“) announces that the Corporation has appointed Ciska Asriel to serve as interim Chief Financial Officer, in addition to her regular duties as Chief Operating Officer. Ms. Asriel will replace Paul Marjerrison as Chief Financial Officer and the Corporation would like to thank Mr. Marjerrison for his dedicated service.

Ciska Asriel is the current Chief Operating Officer of the Corporation. Ms. Asriel has degrees in Economics, Finance and Computer Science with an MBA in International Business. Before joining EastWest as a Co-Founder and Chief Operating Officer, Ms. Asriel worked as a consultant, senior analyst and project manager for small companies as well as major firms including Deloitte. Her career experience is with project management, data analysis and business development in industry sectors including information technology, retail franchise operations, automotive franchise operations and insurance, global shipping and most recently software engineering and the development of mobile applications. Ms. Asriel’s appointment is subject to approval by the TSX Venture Exchange.

About EastWest Bioscience Group

EastWest Bioscience is a vertically integrated wellness company with a multitude of business units and assets that allow for a seed-to-sale supply chain management. We source our raw material, process, manufacture, test, brand, market, and distribute our products to our customers in Canada, the United States, and beyond.


“Rodney Gelineau”
Chief Executive Officer and Director

TSXV – Symbol: EAST

For Further Information

Company Website:
Contact: Rodney Gelineau on 1-800-409-1930 or [email protected].


CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION: This news release includes certain “forward-looking statements” under applicable Canadian securities legislation. Forward-looking statements include, but are not limited to, statements with respect to the appointment of certain officers. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking statements. Such factors include, but are not limited to: management’s perceptions of the anticipated timeline in which the new appointment is complete, results of operations, operational matters, historical trends, current conditions and expected future developments, as well as other considerations that are believed to be appropriate in the circumstances. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. The Corporation disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

SOURCE: Eastwest Bioscience Inc.

RBLX – Roblox raises $520 million at $29.5 billion valuation, will go public through direct listing

User-generated game platform Roblox has raised $520 million in a new round of funding, and it will still go public through a direct listing where the company’s existing shareholders directly sell shares to investors. The private funding deal values Roblox at $29.5 billion.

The direct listing offering, or DPO, circumvents the usual initial public offering (IPO) process, which can be costly. Roblox hasn’t said when that DPO will actually happen yet, but it announced the funding round ahead of that future DPO.

On December 22, the U.S. Securities and Exchange Commission said it would permit companies to raise capital through direct listings. This enables the San Mateo, California-based company’s existing shareholders (investors, employees, and executives) to float its shares on an exchange without hiring investment banks to underwrite the transaction as an IPO. It saves on underwriter fees, and companies that follow the direct listing process can avoid restrictions such as lockup periods that prevent insiders from selling their shares for a defined period of time.

Roblox sold its shares in a Series H funding round at $45 per share to Altimeter Capital and Dragoneer Investment Group. The company will use its proceeds to grow itself and build a “human co-experience platform that enables shared experiences among billions of users.”

“We’re thrilled to welcome Altimeter, Dragoneer and the other new investors,” said Roblox CEO David Baszucki in a statement. “We look forward to working with all of them as we continue our mission to build a human co-experience platform that enables shared experience, from play to work, and learning among billions of users.”

Roblox had said earlier that it filed a confidential draft registration statement with the U.S. Securities and Exchange Commission for a traditional IPO. Last year, the company raised $150 million in venture funding from Andreessen Horowitz in a deal announced in February. Its valuation at that time was $4 billion.

Measurement firm Sensor Tower said that Roblox saw 159.6 million installs globally from across the App Store and Google Play in 2020, up 43% from a year ago, when it had 111.4 million installs in 2019. Last year, consumer spending in the mobile version of the game more than doubled from the previous year, reaching over $1 billion in revenue globally. In Sensor Tower’s recent report on holiday spending, it found that Roblox was the highest-earning mobile game in the U.S. this Christmas, reaching $6.6 million in gross revenue, up 40.4% from a year ago.

The game industry is one of the few economic sectors that is doing well during the pandemic. Game engine maker Unity raised $1.3 billion at a $13.6 billion valuation in an IPO on September 18, even though it is losing money. Unity’s shares are up more than 60% since trading began. Skillz, which turns games into skill-based cash reward competitions, is planning to go public at a $3.5 billion valuation through a special public acquisition company (SPAC).

Baszucki and Erik Cassel founded Roblox in 2004, enabling just about anyone to make Lego-like characters and build rudimentary games. Before that, in 1989, Baszucki and Cassel programmed a 2D simulated physics lab called Interactive Physics, which would later on influence the approach for Roblox.

Financial results

Wonder Woman: The Themyscira Experience inside Roblox.

Above: Wonder Woman: The Themyscira Experience inside Roblox.

Image Credit: Roblox

In its earlier filing, Roblox said it has grown to more than 31.1 million daily active users. The platform now has nearly seven million active developers. As of September 30, developers had created more than 18 million different experiences (or games) on Roblox, and the community visited more than 12 million of those experiences.

For the period ended September 30, Roblox had 31.1 million daily active users, compared to just 17.6 million in 2019 and 12 million in 2018. The hours engaged was 22.2 billion for the nine months ended September 30, compared to 10 billion in the same period in 2019 and 9.4 billion in 2018.

Measurement firm Sensor Tower said that since 2014, Roblox has seen 447.8 million installs and $2 billion in consumer spending on mobile.

For the nine months ended September 30, revenue was $588.7 million, compared with $349.9 million a year earlier and $488.2 million in 2018. Bookings (which include revenue that will be recognized later) were $1.2 billion for the nine months ended September 30, up 171% compared to $458 million a year earlier. The company attributed that growth in part to demand from users stuck at home during the pandemic.

The company reported a loss of $203.2 million in the nine months ended September 30, compared to a loss of $46.3 million a year earlier. Cash from operations was $345.3 million for the nine months ended September 30, compared with $62.6 million a year earlier.

Roblox shares revenues with its game creators, enabling high school students and young adults to make money. For the 12 months ended September 30, more than 960,000 developers earned Robux, or virtual cash that can be converted into real money, on Roblox. There were 1,050 who earned more than $10,000, and nearly 250 who earned more than $100,000. When users exchange Robux for money, Roblox takes a 30% share of the transaction.

About 34% of sales comes from the Apple App Store and 18% comes from Google Play. The average lifetime of a paying Roblox user is about 23 months. Among the risk factors Roblox faces is ensuring a civil environment for children online, which isn’t easy given all the different ways online systems are attacked.

Baszucki is a big fan of the metaverse, the universe of virtual worlds that are all interconnected, like in novels such as Snow Crash and Ready Player One. At our GamesBeat Summit event in April, Roblox’s Matt Curtis talked about the tools the company is building in order to make its version of the metaverse happen. Baszucki is speaking at our metaverse event on January 27.

The metaverse is the same goal that Epic Games, maker of Fortnite, is reportedly chasing after as well, as are numerous other companies. But Roblox is doing just fine as a platform for user-generated content. Many of its top-10 games are getting billions of plays. As of September 30, Roblox had 830 employees, up 275 from a year earlier. It also has 1,700 trust and safety agents across the world.

“While once viewed as a gaming platform, Roblox has emerged as a definitive global community connecting millions of people through communication, entertainment and commerce,” said Altimeter CEO Brad Gerstner in a statement. “And as the world moves toward a hybrid future – where online and offline community and learning co-exist, we are proud to back a values-driven business that takes seriously its obligation to build an inclusive, creative, and positive community.”

Altimeter manages more than $15 billion in assets, while Dragoneer manages more than $12 billion in assets.

“Roblox has built a unique and imaginative virtual experience with a growing, loyal community, and we’re excited to have the opportunity to support the company at this stage of its development,” said Marc Stad, a managing partner of Dragoneer Investment Group, in a statement. “We look forward to partnering with the Roblox team as they continue to execute on a compelling growth strategy and capitalize on the substantial opportunities ahead.”


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LGIH – LGI Homes Announces Record December, Fourth Quarter, and Year End 2020 Home Closings and Provides 2021 Home Closings and Active Communities Guidance

THE WOODLANDS, Texas, Jan. 06, 2021 (GLOBE NEWSWIRE) — LGI Homes, Inc. (NASDAQ: LGIH) today announced an all-time record for home closings during a single month with 1,630 homes closed in December 2020, representing year-over-year growth of 54.9%. In addition, the Company announced record-breaking quarterly home closings of 3,408 during the fourth quarter of 2020 compared to 2,515 home closings in the fourth quarter of 2019, a 35.5% increase year-over-year. The Company closed 9,339 homes in 2020 surpassing its previous annual record of 7,690 home closings in 2019 by 21.4%.
“December capped a pivotal year for our Company, and we are extremely pleased with our results,” said Eric Lipar, the Company’s Chief Executive Officer and Chairman of the Board. “Our ability to build and close the homes in our backlog, as well as additional homes sold during the quarter, exceeded our expectations. We delivered a record-breaking 1,630 closings in December. Notably, this is more homes than we closed in all of 2013, the year we went public. Additionally, we closed 3,408 homes in our fourth quarter, which is more than we closed in all of 2015.”The Company had 116 active selling communities at the end of December 2020.“As we start 2021, we continue to see strong demand in all of our markets and maintain our positive view on the long-term outlook for homeownership. As a result of our outstanding performance in 2020 and dynamics related to the COVID-19 pandemic, our focus in 2021 will be on maintaining our industry-leading returns and margins while building our land supply with a view to expanding our community count in 2022. We expect to have between 112 and 120 active communities at the end of 2021. Based on this range and our expectation to maintain our industry-leading absorptions, we expect full year 2021 home closings to be between 9,200 and 9,800,” Lipar concluded.The Company’s 2021 home closings and year-end active selling communities guidance assumes that general economic conditions, including interest rates and mortgage availability, and average home sales price, construction costs, availability of land, land development costs and overall absorption rates in 2021 are similar to those in 2020. In addition, this guidance assumes that governmental regulations relating to land development, home construction and COVID-19 are similar to those currently in place. Any further COVID-19 governmental restrictions on land development, home construction, home sales or home closings could negatively impact the Company’s ability to achieve this guidance.About LGI Homes, Inc.Headquartered in The Woodlands, Texas, LGI Homes, Inc. engages in the design, construction and sale of homes in Texas, Arizona, Florida, Georgia, New Mexico, Colorado, North Carolina, South Carolina, Washington, Tennessee, Minnesota, Oklahoma, Alabama, California, Oregon, Nevada, West Virginia and Virginia. Since 2018, LGI Homes has been ranked as the 10th largest residential builder in the United States based on units closed. The Company has a notable legacy of more than 17 years of homebuilding operations, over which time it has closed more than 45,000 homes. For more information about the Company and its new home developments, please visit the Company’s website at StatementsAny statements made in this press release that are not statements of historical fact, including statements about the Company’s projected 2021 home closings and year-end active selling communities and possible future results of operations, are forward-looking statements within the meaning of the federal securities laws, and should be evaluated as such. These forward-looking statements can be identified by the use of forward-looking terminology, including the terms “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “forecast,” “goal,” “intend,” “may,” “objective,” “plan,” “potential,” “predict,” “projection,” “should,” “will” or, in each case, their negative, or other variations or comparable terminology. For more information concerning factors that could cause actual results to differ materially from those contained in the forward-looking statements please refer to the “Risk Factors” section in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2019, including the “Cautionary Statement about Forward-Looking Statements” subsection within the “Risk Factors” section, the “Risk Factors” and “Cautionary Statement about Forward-Looking Statements” sections in each of the Company’s Quarterly Reports on Form 10-Q for the quarters ended March 31, 2020, June 30, 2020 and September 30, 2020, and subsequent filings by the Company with the Securities and Exchange Commission. The Company bases these forward-looking statements and projections on its current expectations, plans and assumptions that it has made in light of its experience in the industry, as well as its perceptions of historical trends, current conditions, expected future developments and other factors it believes are appropriate under the circumstances and at such time. As you read and consider this press release, you should understand that these statements are not guarantees of future performance or results. The forward-looking statements and projections are subject to and involve risks, uncertainties and assumptions and you should not place undue reliance on these forward-looking statements or projections. Although the Company believes that these forward-looking statements and projections are based on reasonable assumptions at the time they are made, you should be aware that many factors could affect the Company’s actual results to differ materially from those expressed in the forward-looking statements and projections. The Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. If the Company does update one or more forward-looking statements, there should be no inference that it will make additional updates with respect to those or other forward-looking statements.CONTACT:
Joshua D. Fattor
Vice President of Investor Relations
(281) 210-2619

LMND – Lemonade Stock Promises To Deliver Juicy Profits For Investors

Before I get into the details of the opportunity in Lemonade (NYSE:LMND), I want to talk about the entire market. LMND stock has a bright future, but  there’s a lot of extrinsic risk because, astonishingly, Wall Street is thriving while Main Street is struggling.

Lemonade logo displayed on smartphone laying on top of computer keyboard.

Source: Stephanie L Sanchez /

Mom-and-pop businesses are dying while larger corporations are booming. I don’t just mean Amazon (NASDAQ:AMZN) or Zoom (NASDAQ:ZM); all indices have been breaking records for months. Bulls are only selling company A to buy company B. Small caps made new highs and tech stocks fell as bears went on vacation in a year where they could have had their way.

For LMND stock in particular, the price range has been tightening so a move is coming. If a dip materializes it would make for a good entry opportunity.

I don’t condone having blind faith in the fact that stocks will continue rallying this year. There are plenty of reasons to be cautious, but absolutely no reason to be shackled by fear.

The safety net from central banks around the world has never been stronger. Leaders have no option but stay committed to reflating our economies. They opted to shut the world down and break it last March, so this is the price they pay.

The current conditions will remain favorable to real estate transactions for months if not years. There’s absolutely no way that the governments can afford to let interest rise again anytime soon. If we get an equity correction, the bulls will buy the dips.

LMND Stock Has a Bright Future Ahead

Lemonade (LMND) Stock Chart Showing Tightening Range

Source: Charts by TradingView

Needing insurance is nothing new, but it is time for fresh ideas and that’s where Lemonade comes in. In my previous write up from mid-December my call was to buy and it delivered 60% gains. But that doesn’t mean that the upside potential is over.

While I like the perfect timing that I had last month, I don’t dislike LMND stock here either. Nothing has changed but the entry level. The range is tightening so there will be a move soon, which could be lower. And this is still a stock to own for the long haul.

The days of doing insurance the old fashioned way are numbered and LMND stock is the best play on the future. The market is obviously massive so there is no need to offer the proof of its addressable size or viability. Big legacy competitors will have to adjust and adapt. Much like Tesla (NASDAQ:TSLA) disrupted how the auto industry does business, Lemonade will cause ripples. I don’t mean by the EV type change but rather how they produce and market their product. LMND is not reinventing insurance offerings per se but more so how they tailor and automate it to fit individual customers.

The Market Demands Providers Evolve

Young people have different demands; take my own 19-year old son. He wouldn’t even entertain going into an office to buy a policy. I could probably bribe him into making a call, but it would take weeks to get done. But if I point to an app he’d get it done in a blink. The company website says “Instant Everything” and that’s what it will take.

Lemonade is hitting on all the buzz-themes of the future. It’s quick, automated and makes use of super smart code to better serve the client and the company. How can you not believe it would have a rosy future given all this potential? It would take an extremely bad string of luck to fail. Management would have to commit one flub after the other. Or the market environment would have to drastically veer off course and neither of those scenarios are likely.

My assumptions remains that the smartest course of action here is to hold LMND stock for at least another 12 months. By then we’ll have a better idea of its true potential. Meanwhile those who are versed in options can sell covered calls. A stock owner can sell a July covered calls and collect premiums while they wait.

On the date of publication, Nicolas Chahine did not have (either directly or indirectly) any positions in the securities mentioned in this article. 

Nicolas Chahine is the managing director of

DBI – Why Designer Brands Stock Jumped 11% Today

What happened

Shares of Designer Brands (NYSE:DBI) finished up 11% today as part of a broad wave of retail stocks that gained after Democrats reclaimed the Senate last night, winning two elections. After winning the House and the presidency in November, the victory last night means it will be much easier for the Biden administration to implement its agenda.

Among the moves it is expected to make is handing out $2,000 stimulus checks as was recently debated in Congress but blocked by Senate majority leader Mitch McConnell. After last night’s results, McConnell will no longer be majority leader.

Designer Brands, which is the parent of DSW, finished the day up 11.1%. The SPDR S&P Retail ETF (NYSEMKT:XRT), meanwhile, rose 4.1%, and the small-cap index Russell 2000 gained 4% even as the Nasdaq fell, showing a rotation into recovery stocks, including retailers, on the news.

A woman looking at shoes in a shoe store

Image source: Getty Images.

So what

In a terrible year for retailers, Designer Brands was one of the worst performers as the stock finished 2020 down 51%. Shares plunged in March when the country went into lockdown, and never really recovered.

However, the news last night seems to have convinced investors that retailers like Designer Brands will recover faster than they otherwise would, as a number of other beaten-down retailers like Macy’s and Gap also rose sharply. In addition to $2,000 stimulus checks, the new government is likely to be more generous with relief spending, including things like enhanced unemployment payments and business loans, which should help encourage consumer spending and speed up the overall recovery once the pandemic ends.

Now what

Designer Brands’ sales have fallen sharply during the pandemic, and its performance is likely to stay that way until the pandemic ends and consumers feel safe shopping in stores. In its most recent quarter, comparable sales tumbled 30%, and it reported an adjusted net loss of $19 million.

Additionally, its debt has expanded from $190 million last February to $337 million, meaning the company will face elevated interest payments even once business is back to normal. Given that — and the shift in demand to e-commerce competitors — it will be difficult for the stock to return to its pre-pandemic levels.