STOCKS TELEGRAPH

Tag: Internet of Things

  • Orbsat Corp. (OSAT) Stock Skyrockets Following Announcement of Partnership with Alibaba.com

    Orbsat Corp. (OSAT) stock prices were down by 5.39% at the end of July 12th, 2021, bringing the price per share down to USD$6.67. Subsequent premarket fluctuations have seen the stock surge by 77.06%, bringing it up to USD$11.81.

    Partnership with Alibaba

    The company announced on July 13th, 2021 that its Global Telesat Communications (GTC) unit had entered into an agreement with Alibaba.com. The B2B e-commerce website owned by the Chinese multinational technology company, Alibaba Group, specializes in e-commerce, retail, internet, and technology. Making use of the world’s largest B2B e-commerce website, Alibaba.com, GTC will be a Gold-Supplier. Alibaba.com boasts a network of global active business partners of more than 26 million, which serve customers across 190 countries in 19 different languages. The company receives over 340,000 product inquiries and 20,000 RFQs on a daily basis.

    Details of Collaboration

    Having been designated the highest level on Alibaba.com, OSAT finds itself in the most trusted seller category, which significantly expands the scope of its around-the-clock e-commerce presence with the launch of its latest global storefront. The company anticipates launching the new storefront during the third quarter of 2021, made possible by an extensive range of satellite IoT and connectivity products.

    OSAT Product Portfolio

    Among these products are the company’s specialized satellite tracking products, some of which are operated with the use of OSAT’s numerous ground station-based network processors. These can be used to track and monitor the location of a myriad of remote assets, including, but not limited to, cars, trucks, trailers, boats, containers, and animals. The company’s catalog of more than 500 products and connectivity services is set to be available on Alibaba.com by the start of the first quarter of 2022.

    Scope of Partnership

    The onset of the global pandemic and the ensuing closures and social restrictions has resulted in an explosion in online shopping, with e-commerce gaining unprecedented traction. The company is confident that e-commerce is the way of the future and is poised to consolidate its online presence with the recent partnership. Furthering this strategy, OSAT intends to secure new integration alliances, including joint commerce structures with additional connectivity partners.

    Future Outlook for OSAT

    Armed with the potentially massively profitable partnership, OSAT is keen to continue to allocate resources towards adapting to a pandemic and post-pandemic economy. Investors are hopeful that the company will effectively consolidate and expand its market footprint in successful efforts to facilitate significant and sustained increases in shareholder value.

  • Tuya, Inc. (TUYA) Stock Rises Inexplicably as Latest Potential Target of Meme Stock Phenomenon

    Tuya, Inc. (TUYA) Stock Rises Inexplicably as Latest Potential Target of Meme Stock Phenomenon

    Tuya, Inc. (TUYA) stock prices were up by 9.12% as of the market closing on July 9th 2021, bringing it up to USD$20.35.Subsequent premarket fluctuations have seen the stock inch up by another 1.23%, bringing it up to USD$20.60.

    MWC Exhibition

    June 28th 2021 saw the company announce its exhibition at the Mobile World Congress, which was held in Barcelona from June 28th 2021 to July 1st 2021. The exhibition showcased the company’s Smart cellular and Bluetooth communication capabilities, facilitating the exposure of TUYA’s myriad of connectivity solutions. The industry’s biggest and most significant exhibition was attended by thousands of developers and enterprises from around the world.

    Trading Volume Activity

    Despite the expanded scope of businesses offered by the exhibition, the company’s stocks’ recent activity remains a mystery. With the company having been plummeting since July 2nd, the volume of shares traded went as far as more than one million in the red. Premarket fluctuations on the 9th of July 2021 saw a reversal and sharp increase in the volume of shares traded being bought. This comes despite any recent news coverage of company developments or changes in fundamentals.

    Contextualizing TUYA’s Gains

    Rather, in the absence of apparent motivating factors, TUYA seems to be the latest target of the meme stock phenomenon which has been seeing a massive resurgence in the stock markets. Driven by retail investors who target underperforming companies, the absence of underlying reasons to rationally invest in the company goes as far as to see companies with obvious reasons to not invest in being pumped and inflated.

    Meme Stock Phenomenon

    The companies selected in the meme stock phenomenon are usually ones that indicate a high short interest, signaling institutional investors’ confidence in the company’s stock price falling. Seeking to capitalize on this confidence and upturn the hold of institutional investors, retail investors coordinate to execute a short squeeze that has seen large firms lose billions and sometimes even cross the brink of bankruptcy. Given the nature of the movement, these gains in stock prices are rife with inherent volatility and risk.

    Future Outlook for TUYA

    Armed with the fortuitous surge in the value of its equity despite the lack of recent developments or changes in fundamentals, TUYA is poised to capitalize on the additional opportunities afforded to it as the latest target of the meme stock phenomenon. The company is keen to use the increased exposure to leverage to its advantage in order to usher in more organic growth.

  • Cemtrex, Inc. (CETX) Stock Among Stocks Being Targeted in Resurgence of Meme Stock Phenomenon

    Cemtrex, Inc. (CETX) Stock Among Stocks Being Targeted in Resurgence of Meme Stock Phenomenon

    Cemtrex, Inc. (CETX) stock prices continue their upward trend, having ended the July 9th, 2021 trading day at USD$1.49, a 13.64% increase. Subsequent premarket fluctuations have seen the stock rise another 15.44%, bringing it up to USD$1.72.

    Revenue Reports

    CETX reported USD$9.3 million in revenue for the quarter ended March 31st 2021, representing a year-over-year decrease of 24% from the USD$12.1 million reported for the same time period of 2020. The yearly difference is largely attributable to the devastating effects resulting from the onset of the coronavirus pandemic causing shutdowns and the limiting of business operations. The Advanced Technologies segment revenues for the quarter were down 11% to USD$5.5 million, while the Industrial Services segment revenues were down 36% to USD$3.8 million.

    Net Income Improvements

    Net income for the quarter was reported at USD$2.5 million for the quarter, up significantly from the net loss of USD$1.6 million reported in the prior year quarter. This year-over-year difference is largely attributable to various income items exclusive to the 2021 quarter, including a one-time settlement agreement, as well as unrealized gains on marketable securities.

    Traded Volume Increase

    The company reported cash and cash equivalents in the amount of USD$15.6 million as of March 31st 2021, indicating a comfortable liquidity position. Nevertheless, the steep climb of volume of shares traded from the low thousands to upwards of one million over a course of days is not adequately contextualized by the company’s recent financials. Rather, the absence of any other recent news or changes in fundamentals makes the stocks recent activity highly contentious.

    Meme Stock Phenomenon

    In the absence of recent developments, it seems likely that the stock finds itself the target of the meme stock phenomenon that has been captivating the markets again as of late. Driven by retail investors, the movement has seen underdog companies being targeted for a short-term pump and dump. Companies that indicate a high short interest find their stock prices being inflated artificially with little to no reason in the coordinated short squeeze. Rife with inherent risk and volatility, the movement is not consistent or reliable. Moreover, in most cases it seems a very large correction on a very short timeframe.

    Future Outlook for CETX

    Nevertheless, armed with the fortuitous surge in equity value provides the company the exposure to capitalize on the addition opportunities it finds at its disposal. Current and potential investors are hopeful that management will be able to leverage the resources at their disposal to facilitate more organic growth over the long term.