STOCKS TELEGRAPH

Author: ST Staff

  • TurkcellIletisimHizmetleri A.S. (TKC) stock is worth a buy or not? Here is the reason

    TurkcellIletisimHizmetleri A.S. (TKC) stock is worth a buy or not? Here is the reason

    TurkcellIletisimHizmetleri A.S. (TKC) stock slightly declined today. The stock was traded in the current market at $3.67; this is an 8.70% decrease from the previously closed value of the last trading session. The stock closed in the last trading session at $4.07.

    Financial Highlights of TRC’ 3rd quarter:

    • The revenue of the company was reported to be TRY 9,354.2 Million. This is a 22.3% increase from the 3rd quarter of 2020. Last year it was TRY 7,649.5.
    • The gross margin of the company is 50.7%. In the same quarter of 2020, it was 51.3%.
    • The EBITDA is TRY 4,029.8 million for the 3rd quarter of 2021. In the previous year’s same quarter, the EBITDA was TRY 3,394 million.
    • The net income company reported in the third quarter of 2021 is TRY 1,429 million. It is an increase of 18% as compared to the 3rd quarter of 2020 net income of TRY 1,211 million.

    TRC Operational highlights:

    • The subscriber base increased by 1.2 million.
    • The postpaid subscribers increased by 464K.
    • 4G data users increased to 84%.
    • The sales brought by the Digital channels were 16.5% of the total revenue.

    What next?

    The above numbers seem good for any telecom company, but there is one thing where the company lacks behind. This is its debt leverage, which is only 0.9x. The average industry number of debt leverage is around 2.5x. This makes it very weird for a telco operator to have such low debt leverage. The reason could be linked to the comparison between its prices in Turkish Lira and USD. The depreciation of the Turkish Lira against the dollar is has increased consistently. The company has kept the prices of subscription services in accordance with the inflation rate.

    Conclusion

    The TurkcellIletisimHizmetleri A.S. (TKC) stock seems to be a good stock for investors in the long run. The company has although proven itself to be consistent in paying dividends over the last decade. The decline in the shares of the company could not be linked to its performance its numbers look good for telco operators. The general reason could be the dislike of Turkish stocks by the investors as of now. The GDP of Turkey is expected to grow which will definitely have a positive effect on its stock.

  • PagSeguro Digital Ltd. (PAGS) stock increasing in pre-market, Here’s why?

    PagSeguro Digital Ltd. (PAGS) stock increasing in pre-market, Here’s why?

    The stock of PagSeguro Digital Ltd. (PAGS) was traded 4.85% higher in pre-market. In the previous trading session, the stock closed at $27.63. The company recently announced its results for the 3rd quarter of its fiscal year.

    PAGS: Financial Highlights:

    • The revenue of the company increased significantly by 55.8% from the same quarter of the previous year. This year it was reported to be R$2,775.8 million.
    • PagSeguro reported a net income of R$321.5 million in the e3rd quarter, which is a 22.1% increase from the same quarter of 2020.
    • Their non-GAAP net income was reported to be R$418.7 million, this is a 26.7% increase as compared to the 3rd quarter of 2020.
    • The company’s adjusted EBITDA was announced to be R$741 .5 million in the 3rd quarter of 2021, this is an increase of 39.8% as compared to the 3rd quarter of 2020.
    • As of 30th September 2021, the company had cash and cash equivalents of R$1,640.1.

    PAGS: Operational highlights:

    • The number of merchants increased by 0.1 million. As of 30th September 2021, the active merchants were 7.7 million.
    • The number of active users increased by 1 million, reaching a total number of active users to 12.2 million as of 3oth September 2021.
    • The consolidated TPV growth rate was 85.8% from the last year’s same quarter. In this quarter it was R$125.6 billion, it was R$67.6 billion in the same quarter of the last year.’
    • The acquiring TPV growth rate was 49.1% in this quarter, it was R$66.8 billion in this quarter as compared to R$44.8 billion in the 3rd quarter of 2020.
    • PagBank TPV increased 158.15. it was reported to be R$58.8 billion in this quarter as compared to R$22.8 billion in the 3rd quarter of 2020.

    Conclusion:

    After the company announced its results for the3rd quarter of 2021 which ended on 30th September 2021, the stock of the company gained value in the market. But a couple of days later the stock of the company plunged in the market. This scenario could be linked to the excessive trading volume of the shares that resulted in the decline of the stock.

  • Astra Space, Inc. (ASTR) gained in the current market, Here is why?

    Astra Space, Inc. (ASTR) gained in the current market, Here is why?

    The stock of Astra Space, Inc. (ASTR) gained in the current market as soon as the news hit the market that their rocket reached for the very first time in orbit. The stock price in the current market reached $13.18, gains 38.27% from the previously closed value. In the last trading session, the stock closed at $9.53. The average volume of stock traded in the trading session was around 3.08 Million.

    ASTR rocket reaches orbit for the first time and its effect on their company’s stock

    Astra space, a rocket manufacturing company announced on 20 November 2021 that Astra reached orbit. The company’s rocket reached the target orbit in 9 minutes after liftoff. After the news hit the market, the stock gained a value of almost 37% in the premarket today. Elon Musk, the SpaceX founder and CEO also congratulated AstraSpacefor achieving an important milestone. He wrote in a tweet to Astra that “Congrats! Orbit is not easy”. With this Astra Space enter the club of companies that achieved to reach orbit with a privately funded rocket. Before Astra Space, Virgin Orbit and Rocket Lab were the only ones to reach orbit with privately funded rockets.

    Astra Space, Inc. (ASTR) Financial Highlights of 3rd quarter

    • The company announced a GAAP Net loss was $16.2 million for the 3rd quarter that ended on 30th September 2021.
    • Their adjusted Net loss was $34.5 million.
    • The company announced its EBITDA loss to be #32.9 million.
    • The company reported a capital expenditure of $9.9 million.
    • The company’s cash and cash equivalents were reported to be $378.7 million.

    Major Business achievements in the 3rd quarter:

    • Astra Space conducted their commercial test launch of LV0006 for SpaceForce on 28 August 2021.
    • The company started to expand the Alameda production facility and the company expects that the first phase of the expansion project will finish by the end of the 4rth quarter.
    • Astra Space achieved orbital ignition of the first-in-space electric propulsion system, acquired from Apollo Fusion.
    • The company announced that they expanded their talented team, the added team members are the former employees from Apple, Google, Maxar, and Blue Origin.

    Conclusion:

    Astra Space, Inc. (ASTR) achieved an important milestone to reach orbit after many failed attempts. After this success, the investors took a high interest in their stock, which resulted a significant gain in their stock. With such massive successes, Astra Space, Inc. (ASTR) could be another favorite tech company for investors to invest.

  • BIMI International Medical Inc. (BIMI) stock falling today, Here is why?

    The BIMI International Medical Inc. (BIMI) stock value was $0.88 at the last check today, which is an 8.99% loss from the last closed value. When the last trading session ended the stock closed at $0.97. The average volume of stock traded in the trading session was around 16.13M.

    Reason for the stock gaining value

    BIMI International Medical Inc. (BIMI) recently announced its unaudited financial statements for the 3rd quarter of 2021. This could be linked to the stock catching the interest of the investors which ultimately resulted in a slight increase in their stock value.

    BIMI Stock: The Unaudited Financial Highlights of 3rd Quarter

    • The revenues of the company increased by 345% in this quarter as compared to the same quarter of last year. This year’s quarterly revenue was reported to be $13.78 million, while the revenue in the same quarter of the last year was approx.$3.09 million.
    • The gross profit was also increased by a significant number. It was reported by an increase of 688.7%. This year’s 3rd quarter gross profit was $2.02 million while the gross profit in the 3rd quarter of last year was $257,278.
    • The net loss of the company was $1.70 million in the 3rd quarter of 2021.
    • The company had cash and working capital of $209,803 and $2.12 million respectively.

    Effect of the income statement on BIMI Stock

    Although, No major plans or developments have been announced by the company for its recent future. But its 3rd quarter report positively affected the stock of BIMI. The investors were seen to take interest in its stock after the positive trend of BIMI International Medical Inc. (BIMI) stock after the company announced their unaudited financial statement for the 3rd quarter of 2021. The main reason could be taken as its massive increase in the revenue and gross profit which reported to increase of 345% and 688.7%, respectively.

    Conclusion

    The company expects that its revenues would increase in the 4th quarter of this year. Investors should really keep in mind the growth rate of the company which is a massive number. This could benefit investors who looking for a gain in the long run.

  • Foot Locker, Inc. (FL) stock slightly declined today, Here is why?

    The stock of Foot Locker, Inc. (FL) declined by approx. 9.35% from the value it closed in the last trading session. The stock was closed at $57.56 in the last trading session.

    Reason for the FL stock decline

    Today Foot Locker, Inc. (FL) announced its result for the third quarter of this year. The financial statement was positive but there was news that resulted in the decline of its stock. The reason for the decline of its stock was the supply chain. The company said that despite the holidays they were ready for the operations and to meet the customers’ demand but they faced supply chain issues which resulted in the decline of the stock.

    Financial Highlights of Foot Locker, Inc. (FL) Stock 3rd quarter

    • The company’s sales were reported to be $2,189 million. This is an increase of 3.9% from the same quarter of the last year which was $2,106 million.
    • The company reported a net income of approx. $158 million.
    • The gross margin of the company expanded by 380 basis points to reach 34.7%
    • Foot Locker, Inc. (FL) cash and cash equivalent was reported to be $1,339 million. Their debt was $560 million at the end of 3rd

    Major achievements in the 3rd quarter

    • Foot Locker, Inc. (FL) completely acquired Atmos for $360 million, which is subjected to customary adjustments.
    • The company’s 3rd quarter showed a very strong performance, the sales increased by 3.9%
    • In the 3rd quarter, the company opened 32 new stores. They remodeled or relocated 29 stores.
    • The company repurchased $129 million worth of 2.75 million shares.
    • They also completed their acquisition of WSS by investing $737 million.

    What next?

    Foot Locker, Inc. (FL) says that they are positive in regards to meeting the customer’s demand in the holidays, despite having the supply chain barriers in the 4rth quarter.

    Conclusion

    After the announcement of financial statements, the stock of Foot Locker, Inc. (FL) is declining due to the above mention reasons. No doubt the company looks strong on the balance sheet and its financial results are promising but the sudden supply chain barriers caused the stock to slightly decline. It news was not welcomed by the investors and they seemed a bit conscious while trading in its stock. There is a hope that the company will solve the problem of supply chain barriers.

  • UWM Holdings Corporation (UWMC) stock gained in Pre-market, Here is why?

    The shares of UWM Holdings Corporation (UWMC) saw a significant gain in the Pre-market. The stock was traded at $6.60 which is 19.57% gain from the previously closed value. In the last trading session, it closed at $5.52. The average volume of shares traded in the session was approximately 2.31M.

    Reason for the gain in the UWMC stock

    The company yesterday announced that they will accelerate the process of stock buyback from the public market in Lieu of lastly announced secondary offering and concurrent stock repurchase.

    Financial highlights of 3rd quarter

    • As of 30th September 2021, the total originations increased by 16% from the previous year’s same quarter. This year it was $63 billion and last year it was $53 billion.
    • In the 3rd quarter, the purchase originations were $26.5billion, which is a 119% increase as compared to the last year’s same quarter which was $12.1 billion.
    • The net income in the 3rd quarter was reported to be $329.9 million.
    • As of 30th September 2021, the total equity was reported to be $3 billion as compared to the last year’s same quarter which was $2 billion.

    UWMC Operational highlights

    • The company managed to maintain an average application close time to be 19 days in this quarter, while the industry average is 43 days during the same quarter.
    • The company delinquency 1.01% 60 plus days and forbearance rates is 0.83%, which is quite better than the average industry number i.e. 3.93% and 2.62% respectively.
    • The company executed Private Label Security of $1.7 billion. They sold MSRs on loans with a total unpaid principal balance of around $22.7 billion for proceeds of around $269.9 million.

    Technological update

    • UWM Holdings Corporation (UWMC) in the 3rd quarter launched three new technologies. The purpose is intended to speed-up the process of loans and helps the independentmortgage brokers to grow their business.
    • The Source which is a search engine for mortgage, it learns from past activities and searches that allow every UWM broker client to create a personalized hub to customize and analyze the information which is most significant to them. It could vary from pricing matrices to GSE guidelines.

    Conclusion:

    The financial statement of the company seems strong, and its future plans and developments are also future oriented. Its stock seems a significant choice for investors to invest in the long run.

  • Westwater Resources Inc (WWR): Trading below MACD line – Why ?

    This company i.e Westwater Resources Inc (WWR) based on the development of US mineral resources, which is necessary to clean energy production. It is focused on the graphite battery and dependent on the energy sources which are more reactive to our environment. Their differentiate propositions consist of US domestic graphite stock, graphite products like a lithium-ion battery, lead-acid battery, alkaline battery, etc. With ROA & ROE being negative around -13.29 & -28.84%, investors are losing their confidence showing low volumes in the recent past.

    Few Eyes on a low performing stock – Black Sheep in the industry

    WWR: Technicals

    WWR Stock is flowing in a range-bound movement i.e 3.2 – 3.3 over the last few months having very low volumes. The RSI trends have shown very less movement, trailing around 40-48 which implies that a hold position is recommended for the existing investors. The company’s announcement of battery graphite sales caused the price to take a further dip. Overall indicators represent no direction of it, either it will cause a further downtrend if such scenario continues.

    Financials

    While analyzing numbers for the last three years, Westwater Resources Inc (WWR) has increased its assets by 43.5% YoY basis. Equity has been raised in last year which has caused the number of shares to a massive increase. There has been a slight decrease in quarterly cash flows while the company maintains its ending cash flow to a considerable amount (118,969,000 USD). Net liabilities are also less as compared to its assets therefore it can be concluded that the company has some plans to outperform its operations or expand it in the near future

    Key Stock Features

    Westwater Resources Inc (WWR) is realizing losses in the last few years which is reflected in the stock price traded at NASDAQ (i.e 3.23). The enterprise value of WWR is also negative 5.38M. The company has acquired no such dividend or stock split strategy to boost shareholders’ holder’s trust instead they have raised more equity from them. It seems that the company has enough cash to tackle liquidity crises but they have to take drastic measures to increase operations and convert losses to profitability. Stock has 52 high/low of 11.45 & 3.05 USD respectively.

    WWR: Recommendation

    WWR has proved to be an odd stock in its peer, this happened due to loss nature and less operations by country than expected by their shareholder. The company has raised enough capital last year which seems to have some plans by senior leadership. It won’t be bad to AVOID entry in this script for a certain period. Any investor or trader would choose this script once the company performs well in its fundamentals which sooner or later affects its stock price.

  • Cloopen Group Holding Limited (RAAS) stock declined in the After-Market, here is why

    Cloopen Group Holding Limited (RAAS) stock was traded at $4.29 in after-market, declining -1.61% from the last close. In the last trading session, the stock was closed at $4.36. The average volume of shares traded in the trading session was around 1,497,496. Below are the details of their 3rd quarter.

    Financial overview of their Unaudited 3rd quarter:

    • The revenue of the Cloopen Group Holding Limited (RAAS) was $42.9 million which is a 44.3% increase from the previous year’s same quarter.
    • Gross margin of the company was reported to be 43.5% as compared to the last year’s 3rd quarter which was 38.1%.
    • The Net loss company reported was $17.4 million or RMB112.2 million. In the same quarter of the last year the net loss was RMB93.9 million.
    • The Adjusted EBITDA loss was $9.1 million, which is a 59.6% increase.
    • Operating expenses increased by 51.5%. In this year’s 3rd quarter the company reported Operating expenses to be $36.9 million or RMB237.8 million, while the operating expenses were RMB157 million.

    RAAS: Milestones achieved in the 3rd quarter of 2021

    • As of 30 September 2021, the numbers of active customers were 12,224 and the large-enterprise customers were 219 as of the same date.
    • The revenues of the company from cloud-based contact center (CC) saw an increase of 125%.
    • Cloopen Group Holding Limited (RAAS) and Tencent cloud decided to enter into a Cooperation Framework Agreement to form a long-term partnership

    Impact of the results of 3rd quarter on its RAAS stock

    As soon as the news hit the market, the value of the shares of Cloopen Group Holding Limited (RAAS) increases by 17.10% in the Pre-market. The investors were seen to response in a good way to its stock after the company announced its unaudited financial statement for the 3rd quarter of 2021.

    Conclusion

    The financial statements show positive growth of Cloopen Group Holding Limited (RAAS), and it is expected to grow at the same pace. Financial experts are forecasting that the company’s growth rate in the 4th quarter is expected to be around 26-28%.

  • Baudax Bio, Inc (BXRX): Warning Signs Ahead – A Trap?

    Apparently, Baudax Bio, Inc (NASDAQ: BXRX)) refers to a pharmaceutical company that intends to develop and market products for acute care settings. The company brings the optimum level solutions to patients, healthcare providers for its therapeutic options. Last year, FDA has approved its renowned product ANJESCO for moderating severe pain in its patients. It seems to be a penny stock with a market cap of around 39.26 Million sounds much risky for a new investor trading at NASDAQ.

    Trading at 52 week low with lowest volumes – RED ALERT

    BXRX: Technicals

    Trading a penny stock with very low volumes at the lowest share price is as risky as swimming in an ocean with full sharks. BXRX seems to break its lower locks soon as it has low volumes. The company has not performed to its benchmark. A share price of fewer than 50 cents is worth nothing too big institutional investors. This stock is trading a range bound (0.4-0.6 USD) so market players can enter this script once an upward or downward trend is identified.

    Baudax Bio: Third Quarter 2021 Business Highlights

    BXRX product ANJESCO’s revenue has shoot up to 40% in the 3rd quarter as compared to the 2nd quarter, which indicates the demand is increasing over this limited span of time. Baudax Bio, Inc (BXRX) has completed a clinical phase of the dose-escalation study of Agent BX1000 (Neuromuscular blocking agent). The company embraces 24.9 Million USD cash reserves. Overall results shown a net loss of 5.7 Million with a negative (diluted) EPS clocked at 0.2$ per share. Numbers indicate difficult times but it can be a short term as demand seems to be increasing which would ultimately increase the company’s operations in near future.

    Baudax Bio: Peer & Industry Comparison

    Growth forecasts while comparing with peer companies indicate a bright future of this company by having 25.3x (price to earning forward). 1 year EPS growth rate also shows a 56.6% increase while comparing it with the overall health care sector of 19.5%, hence company would recover losses in upcoming quarters and holders would realize a good return soon.

    BXRX: Fundamentals & Recommendation

    The company seems to be cash-rich in investments with 30,342,000 USD in last year. The company has increased its common shares in last year to 48,688,000. Depreciation and intangible amortization have turned a gross profit to loss situation for the company and such amounts are increasing as the year passes. The company has taken action in financing common & preferred shares, hence the cash flow used is positive (12,602,000 USD). In a nutshell, BXRX is trading at a very risky level of fewer than 0.5 USD which is quite near to a 52 week low. This has caused much uncertainty in short term, better fundamental positions would give a spark in it so one should just wait for the correct time to enter in its long position. Short sellers can enter at this level with a mindset of profit-taking in a range-bound level (0.2-0.4).

  • Calithera Biosciences, Inc. (CALA) stock gained in the Pre-market, Here is why?

    Calithera Biosciences, Inc. (CALA) shares gained value in the Pre-market. The stock was traded at $1.04 in the Pre-market which is a 13.64% increase from the previously closed value. In the previous trading session, the stock closed at $0.92. The total volume of the shares traded in the last trading session was averaged to be 2.48 million.

    Why did the stock of Calithera Biosciences, Inc. (CALA) decline?

    Last Friday, the stock was hit severely by the news that the company is terminating its phase 2 KEAPSAKE trial. The trial was stopped due to the lack of evidence of clinical benefit observed in the patients. The main purpose of the study was to find out the safety and anti-tumor activity of telaglenastat plus standard of care chemo-immunotherapy. To find out this as front-line therapy for stage 5 non-squamous non-small cell lung cancer harboring KEAP1 NRF2 mutation. The obtained data showed that the treatment did not show any clinical benefit. The company says that the termination of the program will help them to save the cost of $10-15 million.

    CALA: Financial overview of their 3rd quarter:

    • As of 30th November 2021, the net revenue for the third quarter was $6.8 million.
    • Cash, cash equivalents, and investments all combined were $84.5 million.
    • The research and development expenses for the third quarter were reported to be $11.6 million. In the same quarter of the last year, it was $18.2 million.
    • The operating expenses were reported to be $6.3 million. In the same quarter of the last year, this expense was $4.7 million.
    • The net loss for the third quarter was reported to be $11.2 million.

    Operations highlights:

    • CALA acquired clinical-stage dual mTORC 1/2 inhibitor sapanisertib and SYK inhibitor mivavotinib from Takeda Pharmaceuticals.
    • The company announced the termination of phase 2 telaglenastat KEAPSAKE clinical trial in patients with NSCLC with genetic mutations in KEAP1/NRF2 saying it did not resulted in any clinical benefits.
    • The interim data from phase 1b clinical trial of CB-280 in patients with cystic fibrosis was presented at NACFC.

    Conclusion

    The stock of Calithera Biosciences, Inc. (CALA) is in a declining phase due to the above mentioned reasons. The company says that the cash, cash equivalents, and investments will be sufficient enough to carry out their operating plan the next year.