STOCKS TELEGRAPH

Author: ST Staff

  • Longeveron Inc. (LGVN) stock plunged in the Pre-market, Here is why?

    The stock of Longeveron Inc. (LGVN) saw a huge decrease in its value in the pre-market after gaining significantly in the last 2 weeks. It lost its value by more than 15% from its previously closed value to reach $22.19. In the last trading session, the stock closed at $26.25. The average volume of the stock traded in the trading session was around 22.40 million.

    The reasons for the loss in LGVN stock:

    Previous two weeks or since the mid of November, it’s been a roller coaster ride for Longeveron Inc. (LGVN) stock. In the mid of November, many investors on different social media sites like Reddit, Discord, and Twitter, etc. cited that the shares of Longeveron are a potential candidate for a short-term profit-skimming stock. They argued the reason for its low float and high short interest percentage. Within a couple of days, the stock skyrocketed and did not stop gaining value and it reached an all-time high of more than $42 a share from $2.92 within 1 week.  The total trading volume of the stock reached an all-time high of 100 million in a single trading session.

    But the reason for the surge of its stock was not just a Reddit trend, the company also showed some performance in terms of new developments when FDA approved Longeveron’s Lomcel-B, which is a treatment of rare pediatric Disease of a heart condition that threatens the life of newly born children. As the company really relies on approvals from the FDA for regularizing its treatments which greatly affects its profitability. This approval also played a significant role in its stock gain.

    Financial highlights of their 3rd quarter results:

    • LGVN announced revenue of $0.23 million, which is a year-to-year decrease of 87%. The revenue in the same quarter of last year was $1.87 million.
    • The net loss of the company was reported to be $4.86 million; this is a year-to-year increase in the loss of 417%. Last year in the 3rd quarter the loss was reported to be $0.93 million in total.
    • The only good thing in the financial report was its increase in cash and cash equivalents which was $9.74 million. This is an increase of almost 600%. The previous year in the same quarter the company had cash in hand of $1.39 million in total.

    Conclusion:

    LGVN is required to increase its revenue. The upcoming quarters will be crucial for its stock. if the company increased its revenue with the sales of its new product it will increase its profitability and it will be good for the investors to invest in its stock.

  • Li Auto Inc. (LI) stock is gaining its value in the Pre-market, Here is why?

    The stock of Li Auto Inc. (LI) stock surged in the pre-market after the company announced the new monthly record set for delivering vehicles. After the news hit the market, the stock of the company saw a gain of 6.06% in its value to reach $37.60. The stock closed at $34.48 in the last trading session. The average volume of the stock traded in the last trading session was approximately 8.16 million.

    Reasons for Li Auto Inc. (LI) stock gain:

    There are a couple of reasons for this significant increase in the value of Li auto stock, the one is achieving a new milestone in the month of November and the other is its recently announced unaudited financial statement of their 3rd quarter of 2021.

    Today on 1st December 2021, Li Auto stock announced that the company has set a new record of delivering a maximum number of vehicles in a span of a single month. They said the company delivered 13,485 Li ONEs in the month of November. This is a year-year increase of 190.2%. With this, the company announced that they are the first domestic premium brand to achieve a milestone of delivering 10,000 vehicles in a single month in China. This implies the fact that the people of china trust a local car manufacturer brand and their Li ONE is one of the best choices for large SUV users.

    Another reason is their recently announced unaudited financial statements which showed some positive number that increased the trust of the investors in their stock. Below are the highlights of their unaudited financial report.

    Highlights of their 3rd quarter unaudited financial report:

    • The total revenue of Li auto stock was announced to RMB 7.78 billion or US$1.21 billion. This is an increase of 209.7% from the same quarter of the last year’s 2020 revenue of RMB2.51 billion.
    • The revenue from the sales of vehicles in the 3rd quarter of 2021 was reported to be RMB7.39 billion or USD$1.15 billion. This is an increase of almost 200% from the third quarter of last year’s revenue of RMB2.46 form vehicles.
    • The gross margin of the company was 23.3%. Last year in the same quarter the gross margin was 19.8%.
    • The net loss company reported is RMB21.5 million or USD$3.3 million. This is a significant decrease of 79.9% in the loss as compared to a loss in the third quarter of 2020. The loss in the 3rd quarter of 2020 was RMB106.9.
    • As of 30th September, 2021, the company had cash and cash equivalents of RMB48.83 billion or US$7.58 billion.

    Conclusion:

    Li auto stock is showing phenomenal performance and is expected to achieve high revenues in the future. This increased the trust of the investors in its stock which ultimately increased its value and is expected to gain more in the future if the performance remains consistent.

  • Athersys, Inc. (ATHX) stock gaining today, Here is why?

    The stock of Athersys, Inc. (ATHX) gained significantly in the current market following news that the report which is Placebo-Controlled, its Clinical Trial of Evaluating MultiStem Cell Therapy for Acute Respiratory distress syndrome (ARDS) was issued in the journal Intensive Care Medicine. The stock gained 5.39% in value to reach $1.07. At the end of the last trading session, the stock was closed at $1.02. The average volume of stock traded in the trading session was 1.74 million in total.

    Why has ATHX stock gained value today?

    The company issued a report that the double-blind placebo controlled trial phase ½ of MUST-ARDS evaluates the safety and efficacy of MultiStemcell therapy in patients that have ARDS. The study showed that the treatment was well observed in the clinical trial and it showed no signs of allergy and serious adverse reactions. The study also showed that in the trial it was observed that higher median ICU-free and ventilator-free days in the entire MultiStem cell recipients than the placebo group with respect to the 28-days timespan. Other major developments were found in the study which showed a positive breakthrough in the research done by the company. The results of the study layered a foundation for the FDA to grant the Regenerative Medicine Advanced Therapy (RMAT) for the Athersys, Inc. (ATHX) ARDS program. This made the investors think seriously about the stock of Athersys and it saw an increase in the trading volume of the stock.

    Financial Highlights of their 3rd quarter:

    • As of 30th September 2021, the company announced revenue of $4.8 million. The revenue in the same quarter of 2020 was $0.01 million. This is a significant increase of 5,472%.
    • The company announced the research and development expense of $17.2 million, the R&D expense in the same quarter of last year was $18.5 million.
    • The net loss was reported to be $16.2 million. The net loss in the same quarter of 2020 was $22.5 million.
    • As of 30th September 2021, the company had cash and cash equivalent equal to $49.67 million.

    Conclusion:

    After the news hit the market, the stock of the company skyrocketed in the Pre-market and gained value. When the treatment will roll out in the market, this is expected to bring a significant increase in the revenue for the company. So investors are expecting to get a solid increase in the capital gain of the stock.

  • CTI BioPharma Corp. (CTIC) stock gains value in Pre-market, Here is why?

    The stock of CTI BioPharma Corp. (CTIC) gained value In Pre-market. The stock gained its value by 3.76% to reach $2.76. At the end of the last trading session, the stock closed at $2.48. The average volume of stock traded in the last trading session was around 1.02 Million.

    Reasons for the CTIC stock gain:

    The reason for the stock gain could be linked to the stock analysts’ and investors’ expectations. They are forecasting that the stock should reach $5 in December. This increased the interest of many investors and the average volume of stock trading in the market increased to more than 1 million. This sudden increase in the trading volume of its stock could bounce back and the stock could see a decline in the trend.

    The other reason could be linked to its rise in the stock when the company announced that they grant an equity award to its 9 new employees as equity inducement awards. As a result of which the employees will receive an option to purchase 162K shares of CTI BioPharma Corp. (CTIC) common stock.

    Financial highlights of 3rd quarter:

    • The revenue of the CTI BioPharma Corp. (CTIC) was zero in the 3rd
    • The company reported a net loss of $24.18 million in the quarter ended on 30th September 2021.
    • The loss increased due to the increase in the expense of research and development.
    • The operating income was reported to be $23.38 million.
    • The change in cash increased by $23.40 million.
    • Due to which the company’s cash in hand and cash equivalents reached $95.28 million as of 30th September 2021. This is a change of 110.32% from the same quarter of the previous year. In the 3rd quarter of 2020, the company had cash and cash equivalents of $45.30 million.

    Conclusion:

    Many analysts are suggesting that CTI BioPharma Corp. (CTIC) is a strong sell at the moment. The increasing trading volume of stock could negatively affect the price of the stock. The company is expecting to come up with major developments in terms of the development in the PRE-VENT vaccine for the treatments of the severe COVID cases, although in the previous trials it did not achieve the desired results. They are working on its development and if the vaccine showed positive results, it would benefit their stock position in the market.

  • NRx Pharmaceuticals, Inc. (NRXP) stock is declining in pre-market, here is why?

    NRx Pharmaceuticals, Inc. (NRXP) stock is declining in pre-market, here is why?

    NRx Pharmaceuticals, Inc. (NRXP) stock declined by 2.81% to reach $6.56 in the pre-market. The stock gained a value of 30% in the last 5 days. At the end of the last trading session, the stock closed at $4.50. The average volume of stock traded in the trading session was 3.47 million.

    Reasons for the stock gain:

    This sudden change in the past 5 days occurred due to the positive results of their effectiveness of the vaccine against covid-19.NRx Pharmaceuticals said that their vaccine BriLife was found to be effective in the phase 2 trials. The vaccine was observed to respond the same against the delta variant of the virus as it responded to the original virus. It is expected from the results that the new vaccine will be effective against the delta variant as well as all the variants of concern.

    The company is all set to commence the next trials of their vaccine after getting a positive response from the phase 2 results. In the phase 2 results, it showed that 11 participants’ samples showed that it was effective in neutralizing antibodies in the original coronavirus. It was also tested for the antibodies to the delta variant and it was found that out of 11 samples, 10 showed that it had neutralized the Delta variant.

    Financial highlights of third quarter:

    • The company reported an R&D expense of $6.3 million.
    • Their general and administrative expense in the third quarter was $13.8 million out of which $9.3 million was non-cash expense in the form of stock-based compensation and consulting fees.
    • Net loss for the 3rd quarter was reported to be $20.8 million.
    • As of 30th September 2021, the company had cash of approx. $38.9 million. They said they have enough cash to meet the expenses for the next 1 year.

    Conclusion:

    NRx Pharmaceuticals, Inc. (NRXP) had other developments in the third quarter like developing medicine for patients diagnosed with suicidal bipolar disorder, BriLife vaccine against covid-19 and its variants, and ZYESAMI a medicine for the treatment of respiratory failure after the contact of COVID-19. The NRx Pharmaceuticals, Inc. (NRXP) expects good revenue in terms of any of its products sales in the next couple of years.

  • Ocugen, Inc. (OCGN) stock is declining today, Here is why?

    Ocugen, Inc. (OCGN) stock is declining today, Here is why?

    The stock of Ocugen, Inc. (OCGN) declined in the current market. The stock was traded at 9.15% less than the previously closed value to reach $6.45. At the end of the last session, the stock closed at $7.10. The average volume of stock traded in the regular trading session was around 50.37 Million.

    Reasons for the Ocugen, Inc. (OCGN) stock decline

    At the start of this month when the World Health Organization (WHO) approved the company vaccine named Covaxin for Emergency Use Listing (EUL), the investors could have been noticed to cash on the news. The stock of the company saw a significant increase in its value crossing $15 per share. But after this significant peak, the stock of Ocugen, Inc. (OCGN) plunged due to the fact that if we see it through the investor lens there is not much space left in the market to dominate the scene. Because if we analyze the commercial aspect of the scenario it is not sure that at the time when the FDA will approve the Covaxin how much of the room will be left in the market, as the leading companies like Pfizer have already reached the majority of the audience. Covaxin is likely to get approved in the mid of 2022, which seems like it will not bring much revenue for the company to significantly affect its profitability.

    The other reason for its decline today is the reason that FDA stated that they are issuing a hold, investigational new drug application (IND) on the Covaxin to evaluate the specific deficiencies and how to address those deficiencies. Covaxin is currently authorized for use against Covid-19 by WHO in 17 countries and expects that its pending authorization for its use in 60 other countries will be approved. But in North America, the vaccine is put on hold as of now by the FDA.

    Highlights of 3rd quarter results

    • As of 30th September 2021, the company reported no revenue.
    • The company’s net loss in the 3rd quarter was reported to be $10.76 million.
    • The company had cash and cash equivalents of $107.35 million.
    • R&D expenses were around $6.3 million.
    • The net loss per share was reported to be$0.05.

    Conclusion

    The company is looking forward to the authorization by WHO to use its vaccine in more than 60 countries. But as of now, their major concern is the clinical hold of the FDA on Covaxin. Their major rival Pfizer has already dominated the market and it would not be easy for Ocugen, Inc. (OCGN) to grab a share in the market as most people have gone through the second dose of the vaccination. Their biggest concern would be the approval for authorization by WHO to use its vaccine in 60 other countries.

  • Carnival Corp (CCL) declined in Pre-market, here is why?

    Carnival Corp (CCL) declined in Pre-market, here is why?

    The stock of Carnival Corp (CCL) declined in the Pre-market. The stock lost almost 10.52% from the previous closed value in the pre-market to reach $18.04. In the last trading session, the stock closed at $20.15. The average volume of stock traded in the session was around to be 29.41 million. Let’s dig into the reasons behind the decline of the Carnival Corp (CCL) stock decline.

    Reasons for the stock decline:

    In the last 5 trading days, the stock lost 4.18% as of 25 November 2021. There was no specific reason linked to the decline of its stock. The investors were focused on skimming some profit after the stock went a bit high in recent weeks. The reason for the stock stability was the news by Pfizer when they announced positive news regarding their anti-viral treatment for Covid-19. But this just helped the stock to gain stability for a temporary period.

    Another reason which made the investors reluctant while investing in the stock of Carnival Corp (CCL) was its long-term debt. As of the 3rd quarter of 2021, the company had long-term debt of $28 billion. This long-term debt was $9 .7 billion at the end of 2019. This significant increase in the long-term debt made the investors realize that the company would limit the shareholders’ returns in the long run.

    Highlights of 3rd quarter:

    • The revenue of Carnival Corp (CCL) was reported to be $546 million.
    • As of August 2021, the net loss company reported was $2.84 Billion.
    • The company’s net profit margin was -519.41%.
    • As of August 2021, the company had cash and cash equivalents of $7.15 Billion.
    • At the end of the 3rd quarter of 2021, the company’s debt was reported to be $28 billion.

    Conclusion: Should the investors be optimistic about Carnival Corp (CCL) stock?

    Before the pandemic, the stock value was $51 per share, but as of today, it’s valued at $20. This is a loss of more than 55%. The stock was the first stable during the start of this year due to the vaccination but after the delta variant the stock declined more than 30% of its value. The stock will regain in the future after the tourism situation normalizes or proper antiviral treatment is approved by the FDA, which will increase the flow of the customers. This stock is now considered attractive at this value for investors to invest in in the long run.

  • TD Holdings, Inc. (GLG) stock is soaring today, here is why?

    The stock of TD Holdings, Inc. (GLG) declined by 1.51% in the current market in comparison to the previously closed value to reach $0.55. At the end of the previous trading session, the stock closed at $0.54. The average volume of stock traded in the trading session was around 2.92 Million.

    Major developments in the company:

    On 11 November 2021, TD Holdings, Inc. (GLG) announced that they entered into a security purchase agreement or SPA with their two affiliates plus some accredited investors for a private placement of its restricted common shares worth approx. $45.5 Million. The company plans to use the funds as working capital and meet other corporate expenses.

    TD Holdings, Inc. (GLG) also said that they are entering into a non-binding letter of intent or LOI with China’s leading trading platform for online-offline e-commerce commodities. TD Holdings, Inc. (GLG) showed intent to acquire between 30-65% equity interests of Shenzhen Tongdow Internet Technology Co., Ltd. Both the companies agreed on setting the value of STIT between $145 million to $180 million.

    Reason for the stock decline:

    For the past 5 years, the company is at a constant loss. This year’s first two quarters were profitable. The company made a profit for the first time in a while. The stock of the company was seen to be as low as $0.34 from the all-time high of $17.40. Previous two quarters’ profits are extremely good, which is bringing the trust of the investors back and the trading volume of the shares has increased significantly.

    Financial Highlights of 3rd quarter report:

    • Revenue of the company was reported to be $54.77 million. This is a 697% gain from the revenue of the same quarter of the last year.
    • Net income of the company was $0.46 million for the quarter ended on 30th September 2021.
    • Diluted EPS was zero.
    • The company had cash in hand and cash equivalents of $4.9 million.

    Conclusion:

    After reporting the continuous loss for the company, the last 3 quarters were comparatively better for TD Holdings, Inc. (GLG) because it reported a net income for the first time in a while. However, the financial analysts have forecasted the price to go up as high as $60. But this requires the company to be consistent with its performance.

  • Faraday Future Intelligent Electric Inc. (FFIE) stock is declining, here is why?

    The stock of Faraday Future Intelligent Electric Inc. (FFIE) is declining in the current market. The stock was traded at $6.12 and declined 6.70% from the previously closed value. When the last trading session closed the stock closed at $6.57. The average volume of the stock traded in the trading session was around 1.87 Million. The reason could be linked to the investigation started by its board of directors in response to the fraud allegations and delay of quarter 3 results due to this specific reason.

    Delay of the quarter 3 results and inaccurate disclosures allegations:

    This year the company went public and they announced some forecasted reports for their upcoming financial quarter and business development. A data mining company also invested $25 million just before the electric startup went public. The company’s stock was going on an upward trajectory as they announced some big numbers in electric SUV’s reservations by the customers.

    But J Capital accused the company of lying about those reservations. After which the Faraday Future Intelligent Electric Inc. (FFIE) announced a special committee of independent directors and hired a law firm to investigate the allegations. J Capital also accused the electric start-up founder JiaYuetingunfairly of taking advantage of the recent public listing.

    Financial highlights:

    The company is yet to announce its results for the 3rd quarter of 2021. This delay is due to the fraud allegations made against them. The board of directors wants to investigate the matter before announcing the 3rd quarter results.

    However, the company announced that they lost $280 million in the 3rd quarter but affirms that they should deliver the goal in July 2022. Their financial results for the 2nd quarter were:

    • Revenue is zero.
    • Net loss was $52.78 Million.
    • Total cash in hand was reported to be $52.53 Million.

    Conclusion:

    The Faraday Future Intelligent Electric Inc. (FFIE) says that they are continuously working in order to complete the investigation, but they are not sure about the duration of the investigation, its outcome, or how it affects their financial results. The results of the investigation will have a strong effect on the credibility of the company and if the allegations prove to be true it will cost huge money to the investors who invested in Faraday Future Intelligent Electric Inc. (FFIE) stock.

  • Spark Networks SE (LOV) stock gained today, here is why?

    The stock of Spark Networks SE (LOV) gained value in the current market trading session. The stock gained 14.98% from the previously closed value to reach $3.07. At the end of the previous trading session, the stock closed at $2.65. The average volume of the stock traded in the trading session was around 266.26K. The reason for the stock gain could be linked to the release of its financial statements a week ago.

    The release of quarterly report effect on its stock:

    LOV stock released its 3rd quarter report on 15th November 2021. After the release of their financial report and its plans for their new developments like introducing new features, Zoosk Live is one of the top brands of Zoosk. The company also plans to return $3 million in debt which is a sign of the company’s strength; investors are taking interest in its stock. Their stock is gradually increasing since 15th November. The sudden interest of investors in its stock increased the trading volume for a short period which caused a sudden decline but after the number returned to the average volume, the stock started to gain value gradually.

    Financial highlights:

    • The total revenue of the company was $52.3 million in this quarter. In the same quarter of the year 2020, the revenue was reported to be $60.8 million.
    • The company reported a Net Loss of $2.7 million. In the same quarter of the previous year, the Net loss was $0.1 million.
    • Their adjusted EBITDA was reported to be $5.0 million. This was $7.6 million in the same quarter of the last year.
    • The company reported a total cash and cash equivalent to be $12.4 million.
    • As of the 3rd quarter, the company’s total debt was $84.7 million. Their total debt till the end of the year 2020 was $99.1. This is a decline of $14.4 million in total debt. The company plans to pay more debt in the next quarter.

    Business insights:

    • The company reported that its top 4 brands brought 50% of the total revenue.
    • Their 5th largest brand Zoosk is gradually pacing towards bringing more traffic as its traffic increased by 50% in this quarter after the launch of the new feature Zoosk Live. The company expects that the new subscriber base will bring revenue making it profitable.
    • The company reiterates 2021 full-year revenue guidance from $219 million to $223 million.
    • The company reiterates 2021 full-year adjusted EBITDA guidance from $27 million to $30 million.

    Conclusion:

    After the release of its financial statements the company stock’s trading volume increased due to the interest of the investors, but the price started to take pace after the trading volume set back to the average number. The company’s new subscribers base is expected to bring more revenue for the company which could increase its profitability.