STOCKS TELEGRAPH

Tag: CTK STOCK

  • CooTek (Cayman) Inc. (CTK) Collapse After Hours on ADS Ratio Change Plan

    CooTek (Cayman) Inc. (CTK) announced on April 28, that it plans to implement an ADS ratio change with a similar effect as a 1-for-13 reverse ADS split. Following the news, the stock collapsed in the after-hours as it plunged much below its 52-week low of $0.1880. Registering a new low of $0.1652, the stock declined by 24.60% in the after-hours.

    Source: Corporate Finance Institute

    This downfall came after an upward move of 5.34% during the regular session. At the close of the regular trading, CTK was valued at $0.2191.

    CTK’s ADS Ratio Change Plan

    On Thursday, the company said that it plans to change the ADS ratio from ADS ratio of 1 to 50 Class A ordinary shares to the new ratio of 1 for 650 Class A shares. This means the same effect as the 1-for-13 reverse ADS split for the ADS holders of the company.

    In connection with the ratio change, the company will file a post-effective amendment to the ADS Registration Statement on Form F-6 with the SEC. Subject to the effectiveness of the statement, CTK expects the ratio change to be effective on or by May 9, 2022.

    Thus, following the effectiveness of the ratio change, every ADS holder will have to surrender and change every 13 ADS for one new ADS. Deutsche Bank Trust Company Americas will be responsible for the transaction as the depository bank for CTK’s ADS program.

    Moreover, the company does not plan to issue fractional shares in connection with the ratio change and will compensate the holders through proceeds from the sale of the fractional ADS entitlements.

    Additionally, the company expects the ADS trading price to proportionally go up after the ADS ratio change.

    What’s CTK Doing?

    While the company’s 2021 financials were not much impressive as its revenues declined YOY, it has made much progress since then to ensure growth. Late in December 2021, the company officially entered the metaverse with a female-oriented game world. This was followed by continuous development of its overseas business and optimization of its Chinese business. CTK is also working on expanding its publishing business through cooperation with third-party studios in addition to its self-developed mobile games. The company as well as analysts are expecting CTK to post meaningful net income for fiscal 2022 against net losses so far.

    Conclusion

    Following the announcement of its plan for ADS ratio change, CTK stock plunged to new lows in the after hours. Investors responded very negatively to the news of a ratio change similar to a 1-for-13 reverse ADS split.

  • CooTek (Cayman) Inc. (CTK) Rebounds After Hours Following a Steep Fall. What Happened?

    On April 14, the mobile apps and AI tech developer with hands in the metaverse, CooTek (Cayman) Inc. (CTK) stock rebounded in the after hours. This rebound came after a fall of over 10% in regular trading. Thus after closing the regular session at $0.2051, CTK soared to reach $0.2200 per share in the after hours. The stock was able to accumulate 7.26% in the late trading session.

    There is no official announcement from the company behind the sell-off or the rebound. Hence, it seems to have been triggered by external factors.

    What is going on with CTK?

    After being in a downtrend for a few days, CTK’s sell-off spiked on Friday as the stock declined by over 10%. Given that there is no announcement from the company, the sell-off was probably due to external factors like social media chatter and stock sentiment. Moreover, the ongoing audit-related issue between China and the U.S. might have played a role as well.

    In recent weeks, the concerns over the audit issue began to calm down as China began showing leniency. But congress is in no mood for compromise after being at an impasse for almost a decade. This could possibly trigger the kicking off of $1.4 trillion worth of Chinese firms from the U.S.

    The Rebound

    After plunging down to a low of $0.2000 per share, CTK rebounded in the after-hours on Friday. It seems investors are buying the dip in the stock to make some gains. Amid the once more growing concerns regarding the audit issue on top of the resurgence and lockdowns of Covid-19 in China, it is unclear how long will the rebound last.

    Market Analysis & CTK

    Chinese stocks have been gravely beaten down in the recent weeks while they were just recovering from Covid-19’s impact. Beijing’s ties with the Kremlin while one concern, the decade-long audit issue has been on the top charts recently.

    Source: Analytics Insight

    Other than this, the larger picture shows many possibilities of growth for CTK as it recently entered the metaverse market. Expanding its mobile apps and AI technological applications, the company inculcated its games and literature together to weave its own metaverse. Metaverse is one of the hottest buzzwords in tech these days. Moreover, with expected growth at a CAGR of 45.2%, metaverse could be the next trillion-dollar opportunity in technology.

    Conclusion

    While many heavy clouds loom in the sky over Chinese stocks, the huge market opportunity just might prove beneficial for CTK. Currently, the stock is enjoying a rebound after suffering a downfall.

  • CooTek (Cayman) Inc. (CTK) Soars Premarket on Latest Earnings & Senior Management Share Purchase

    On March 15, CooTek (Cayman) Inc. (CTK) declared its financial results for Q4 and fiscal 2021. Along with this, the company also posted about shares purchase by its senior management. Consequently, the stock was trending actively in the premarket with a gain of 37.98% at the last check.

    Source: Centage

    In the previous trading session on Monday, the stock suffered a loss of 11.57% as 2.25 million shares exchanged hands. After fluctuating between a high of $0.2249 and a low of $0.1951, the stock closed the session at a price of $0.1972 per share. The volume of the session remained below the average at 88%. Following the announcements today, the stock rebounded and had reached a value of $0.27 per share at the time of writing. The volume of the share traded in the premarket session was 4.5 million, well above the regular session’s average.

    The mobile applications and artificial intelligence technology developer, CooTek (Cayman) Inc. is based in China. Founded in 2008, the company has a market capitalization of $14.99 million with its 62.28 million outstanding shares.

    CTK’s 2021 Financial Results

    Net Revenues

    The company reported net revenues of US$53.0 million for Q4 and US$272.1 million for fiscal 2021. The net revenues marked a respective YOY decline of 48% and 38% for Q4 and fiscal 2021.

    Net Income/Loss

    Moreover, CTK had adjusted net income of $0.5 million in Q4 2021, against an adjusted net loss of $17.3 million in the year-ago period.

    The adjusted net loss was $10.2 million for fiscal 2021, against $42.0 million for fiscal 2020.

    Gross Profit

    Furthermore, the gross profit declined by 51% and 43% YOY for Q4 and fiscal 2021 respectively. Thus, the gross profit was $47.0 million for Q4 and $239.3 million for fiscal 2021.

    Share Purchase by Senior Management

    Today, the company also announced that its Chairman of Board, Karl Kan Zhang has shared his intention of purchasing up to $3 million of CTK’s ADSs for the next six months. Mr. Zhang plans to purchase the shares with his personal funds and will independently decide upon the share purchase and its terms.

    CTK’s Other Developments

    On January 28, the company announced that its mobile game, Love Fantasy has topped the list of Most Downloaded iOS Chinese Overseas Games in December 2021. In December, the game’s total downloads increased by 216.5% month-on-month to reach 2.5 million. Additionally, the game ranked second on the Most Downloaded Chinese Overseas Games on Google Play.

  • CooTek (Cayman) Inc. (CTK) Stock Plunging Deep in Premarket Following Announcement of Date of Financials Release.

    CooTek (Cayman) Inc. (CTK) Stock Plunging Deep in Premarket Following Announcement of Date of Financials Release.

    CooTek (Cayman) Inc. (CTK) is a leader in mobile internet business engaged in mobile gaming, virtual literature and novels, and scenario-based content apps. The company offers client-focused features, to make striking apps for the targeted clientele. One of the main and important products of the company to support 110 languages at a time is TouchPal smart input method.

    The price of CTK stock during regular trading on March 4, 2022, was $0.21 with a loss of 12.3%. At last check in the premarket on March 7, 2022, the stock plunged further by 9.3%.

    CTK: Events and Happenings

    On March 7, 2022, CTK reported that it will release its fourth-quarter 2021 financial statement ended December 31, 2021, on March 15, 2022. On January 28, 2022, CTK announced that it outdid in the list of December 2021 Most Downloaded iOS Chinese Overseas Games, with a total of up to 2.5 million downloads and a 216.5% monthly increase. On Google Play, it was positioned the second place on the list. On January 14, 2022, CTK updated on the receipt of the notification by NYSE regarding

    • Non-compliance with the NYSE’s standards due to its shareholders’ equity and total market capitalization.
    • Its due date for the submission of a business plan that demonstrated compliance is April 5, 2022,and
    • Its applicable cure period to reclaim compliance expires on July 5, 2023.

    CTK: Key Financials

    On December 8, 2021, CTK announced its unaudited financial statement for Q3 2021 ended September 30, 2021. Some of the important features are as follows

    Revenue 

    Net revenue in the third quarter of 2021 was $51.1 million corresponding to $105.7 million in the same quarter of 2020. The company recorded a decrease of 52% in its net revenue over the year. Also, it missed the revenue estimates by $31.3 million.

    EPS

    Net loss basic and diluted in Q3 2021 was $0.4 million or $0.0001 per share versus $22.0 million or $0.007 per share in the same quarter of 2020. The company observed a considerable decline in its net loss over the year and also EPS estimates remained in line with the estimations.

    Conclusion

    CTK stock downplayed 62% year-to-date as the company is still facing pandemic challenges. Its stock plummeted in the current premarket session as the company reported its financial statement release date. Also, the company is gearing for the release of the financial results and estimates revenue of about $49.6 million.

  • CooTek (Cayman) Inc. (CTK) stock Soars High After Hours. Any Reasons?

    On March 01, CooTek (Cayman) Inc. (CTK) stock jumped up by a further 56.10% in the after-hours while it remained bullish in regular trading as well. There is no official announcement or recent SEC filing to be attributed to the bullish momentum of the stock.

    During the regular trading session, the stock remained bullish with a good gain of 36.24% CTK stock closed the session at a value of $0.3203 per share while 21.5 million shares exchanged hands. The day saw a super heavy volume of 1,200% of its average 1.79 million shares. Following the gain in the regular session, the stock rose further high in the after-hours to reach $0.5000 per share. The after-hours session also saw a very heavy volume as 11.96 million shares traded hands.

    The mobile internet company, CooTek (Cayman) Inc. has a market capitalization of $15.8 million. Currently, the company has 62.28 million shares outstanding in the market.

    CTK stock Movement

    After trading in the red for a few days, near its recent, 52-week low, CTK stock became bullish on Tuesday. With no official reason for the movement, external factors like social media chatter and stock sentiment seem to be the driving force here. CTK stock has been marked as one of the top hot penny stocks this week by various stock analyst websites. It seems the investors are taking advantage of the stock’s low price as it had been trading fairly low and near its 52-week low price of $0.2000. The stock sentiment is another factor that could be at play here.

    Recent Developments

    On January 28, the company announced that its Love Fantasy mobile game has topped the list of Most Downloaded iOS Chinese Overseas Games in December 2021. The game saw 2.5 million downloads with a huge increase of 216.5% month-on-month. Moreover, the game ranked second on the list on Google Play with an increase of 238.1% in downloads.

    Source: Digital Information World

    With a rating of 4.9/5 on the App Store and 4.8/5 on Google Play, Love Fantasy targets female mobile gamers. It has an interactive romance storyline that is based on the explosive match-3 gameplay.

    CTK’s Q3 2021 Highlights

    In the third quarter of 2021, CTK reported net revenues of $51.1 million with a decline of 52% YOY.

    Moreover, the adjusted net income was $0.4 million in Q3 2021, against $20.5 million in the year-ago period.

    Additionally, the company’s gross profit also decreased to reach $42.0 million in Q3 2021, against $98.9 million in Q3 2020.

  • CooTek (Cayman) Inc. (CTK) stock Rebounds After Hours Following its Descend to 52-week Low

    CooTek (Cayman) Inc. (CTK) stock Rebounds After Hours Following its Descend to 52-week Low

    On January 18, CooTek (Cayman) Inc. (CTK) stock rebounded in the after-hours following its descend during the regular session. The stock had been falling down since before the company announced receiving a non-compliance letter from NYSE.

    During the regular session, the stock varied between $0.4135 and $0.3533 at 792.02K shares. CTK closed the session at $0.3550, losing a huge 13,69%. Following the big loss, the stock rebounded in the after-hours to gain 7.04%. Consequently, the stock was trading at $0.3800 per share in the after-hours on Tuesday.

    The mobile internet company, CooTek (Cayman) Inc. develops mobile applications and artificial intelligence technology. Currently, its 62.28 million outstanding shares trade at a market capitalization of $27.64 million.

    CTK Stock Movement and Reasons

    On January 14, the company announced receipt of the NYSE non-compliance letter. While the announcement was responsible for further fuelling CTK’s decline, it had been in the red even before that. While already being in the red, the addition of the non-compliance letter caused the stock to reach its new 52-week low. Hence, the stock dropped down to $0.3533 in Tuesday’s regular session. Therefore, this brought a good buying opportunity for investors. Resultantly, the stock rebounded in the after-hours on Tuesday.

    Overall, CTK stock has seen some major losses, as its lost 18.01% in the past five days alone. Moreover, the stock stands at a year-to-date loss of 42.21% while it subtracted a huge 86.90% last year.

    NYSE Non-Compliance Letter

    As per the announcement, the company received a non-compliance letter from the New York Stock Exchange, dated January 05, 2022. According to the letter:

    • The company is in non-compliance with the NYSE standards because of its total market capitalization and stockholders’ equity.
    • April 05, 2022, is the given due date for CTK to submit a business plan demonstrating compliance.
    • On July 05, 2023, the applicable cure period for regaining compliance will expire.

    Furthermore, the company is in non-compliance with NYSE’s continued listing standards as its total market capitalization has been below US$50 million for consecutive 30 days. Additionally, its stockholders’ equity is also less than US$50 million.

    Based on the announcement, the company is working on regaining compliance with NYSE listing standards.

    CTK Financial Highlights

    In the third quarter of 2021, the company’s revenues decreased 52% year over year to US$51.1 million. Comparatively, the year-ago quarter’s revenues were $105.7 million.

    CTK incurred a net loss of US$0.4 million in Q3 of 2021, against $22.0 million in the year-ago quarter.

  • CooTek (Cayman) Inc. (CTK) Stock in Recovery Mode as it Finally Turns Green in the After Hours

    CooTek (Cayman) Inc. (CTK) stock gained 22.15% in the after-hours, finally entering green after more than a week. The stock has been trading in the red since the company posted its Q3 earnings on December 08.

    In the regular trading session, the stock lost 10.37% at the closing price of $0.4831. The tides turned in the after-hours, as the stock went up to reach $0.5901 at 1.15M shares.

    Currently, the 62.28 million outstanding shares of CTK trade at a market capitalization of $36.22 million.

    CTK stock Movement

    The CTK stock has been in the red since a day before the company announced its Q3 earnings. The deficient earnings did nothing but plunge it further down in the red. Trading and closing below the price of $1.00 for a long time, resulted in the company receiving a non-compliance letter. Moreover, the company announced the receipt of the NYSE non-compliance letter on December 13. Hence, this news did not help the stock at all, as it continued to trade in the red. Consequently, the stock lost 25.68% in the previous five days alone.

    Currently, the stock seems to be finally rebounding after being in the red for so long. CTK started trading in the green during the aftermarket on Wednesday.

    Non-Compliance Letter

    On December 13, CTK announced receiving a letter from the New York Stock Exchange, dated December 06. As per the letter, CTK’s American Depository Shares (ADSs) price is below the compliance standard of $1.00 or above. Further, the non-compliance letter was issued as the ADSs closed at a price below $1.00 for over 30 days consecutively. Moreover, the company has six months to bring the ADS price to or above $1.00 for regaining compliance. If CTK failed to regain compliance within the due period, NYSE will start suspension and delisting protocol.

    Moreover, the company announced that it will monitor market conditions closely and overview its options.

    CTK’s Financials

    The company announced its third-quarter unaudited financial results on December 08, 2021. CTK had revenue of $51.1 million in the third quarter of 2021, against $105.7 million in the year-ago quarter. This shows a decrease of 52% year-over-year.

    Further, the gross profit margin decreased by 58% year-over-year to $42.0 million, against $98.9 million a year ago.

    In addition, the adjusted net income was $0.4 million, against $1.1 million in the previous quarter of 2021.