Arcimoto Inc

Arcimoto Inc (NASDAQ: FUV) is the leading manufacturer of ultra-efficient and affordable electric vehicles.

Investment Rationale – WATCH at USD 16.13

• On the profitability front, the Company had incurred a net loss of approximately negative USD 4.7 million during Q1 FY21 as compared to negative 3.60 million for Q1 FY20.
• The Company had been widening the net loss from the last four years. Meanwhile, the consensus estimates indicated that FUV would remain loss-making for three more years.
• From a technical standpoint, the stock price is hovering around the upper Bollinger band, indicating a correction in the stock price.
• Moreover, the 14-day RSI (~60.31) is inching towards the overbought zone, indicating a correction in the stock price.

One Year Share Price Chart

 (Data Source: Refinitiv, Analysis by Kalkine Group)

Conclusion

Based on the weak profitability and unfavourable technical indicators, we have given a “WATCH” recommendation on Arcimoto Inc at the closing market price of USD 16.13 (as of 23 July 2021).

CleanSpark Inc

CleanSpark Inc (NASDAQ: CLSK) is a diversified software and intelligent energy services company.

Investment Rationale – WATCH at USD 13.48

• The Company has been consistently reporting a net loss for the last four years.
• The recent shutdown of 90% of China’s bitcoin mining capacity could have an adverse consequence on the CLSK’s operational efficiencies.
• The stock is highly volatile as it dropped by almost 50% on a YTD basis.
• From a technical standpoint, CLSK is sustaining lower than the 20-days exponential moving average of USD 14.98, indicating a correction in the stock price.

One Year Share Price Chart

 (Data Source: Refinitiv, Analysis by Kalkine Group)

Conclusion

Based on the dismal profitability and weak industry prospects, we have given a “WATCH” recommendation on CleanSpark Inc at the closing market price of USD 13.48 (as of 23 July 2021).

Spruce Biosciences Inc

Spruce Biosciences Inc (NASDAQ: SPRB) is a biopharmaceutical company focused on developing and commercializing novel therapies for rare endocrine disorders.

Investment Rationale – WATCH at USD 9.55

• The operations are not commercialized, and SPRB has not reported any revenue yet.
• SPRB had reported a wider net loss during Q1 FY21 as compared to Q1 FY20. Furthermore, the consensus estimates had indicated that the Company would remain loss-making for the next four years.
• The stock price had dropped almost 48% since its debut on NASDAQ on 09 October 2020.
• From a technical standpoint, SPRB is sustaining lower than the 20-days exponential moving average of USD 10.36, indicating a correction in the stock price.

Share Price Chart (since 09 October 2020)

 (Data Source: Refinitiv, Analysis by Kalkine Group)

Conclusion

Based on the negligible top-line business and weak profitability, we have given a “WATCH” recommendation on Spruce Biosciences Inc at the closing market price of USD 9.55 (as of 23 July 2021).

Future FinTech Group Inc

Future FinTech Group Inc (NASDAQ: FTFT) is engaged in the operation of a blockchain-based online shared shopping mall platform. 

Investment Rationale – Watch at USD 2.43

• All critical profitability metrics remained negative during Q1 FY21, while the industry medians were positive.
• The Company had demonstrated a significant drop in the top-line business during FY20 as compared to FY19.
• The stock price plunged almost 77% from the YTD high of USD 10.47 reached on 17 February 2021.
• From a technical standpoint, FTFT is trading lower than the 20-days exponential moving average of USD 2.75, indicating a correction in the stock price.

One Year Share Price Chart

 (Data Source: Refinitiv, Analysis by Kalkine Group)

Conclusion

Based on the volatile nature of the stock and a drop in top-line revenue during FY20, we have given a “WATCH” recommendation on Future FinTech Group Inc at the closing market price of USD 2.43 (as of 23 July 2021).

ENGlobal Corporation

ENGlobal Corporation (NASDAQ: ENG) is the leading provider of providing engineering and professional services to the energy industry.

On 05 August, the Company will release Q2 FY21 results.

Investment Rationale – WATCH at USD 2.48

• With regards to the top-line business, the Company had posted a significant decline in revenue during Q1 FY21 due to the decline in capital and maintenance spending by its client base.
• On the profitability front, the Company had reported a substantial decrease in quarterly net income during Q1 FY21.
• On the liquidity front, the current ratio of ENG stood at 1.96x during Q1 FY21, while the industry median was 2.08x.
• From a technical standpoint, ENG is trading lower than the 20-days exponential moving average of USD 2.72, indicating a correction in the stock price.

One Year Share Price Chart

 (Data Source: Refinitiv, Analysis by Kalkine Group)

Conclusion

Based on the weak liquidity profile and poor Q1 FY21 results, we have given a “WATCH” recommendation on ENGlobal Corporation at the closing market price of USD 2.48 (as of 23 July 2021).

*The reference data in this report has been partly sourced from REFINITIV.

Disclaimer

The advice given by Kalkine Canada Advisory Services Inc. and provided on this website is general information only and it does not take into account your investment objectives, financial situation and the particular needs of any particular person. You should therefore consider whether the advice is appropriate to your investment objectives, financial situation and needs before acting upon it. You should seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) as necessary before acting on any advice. Not all investments are appropriate for all people. The website www.kalkine.ca is published by Kalkine Canada Advisory Services Inc. The link to our Terms & Conditions has been provided please go through them. On the date of publishing this report (mentioned on the website), employees and/or associates of Kalkine do not hold positions in any of the stocks covered on the website. These stocks can change any time and readers of the reports should not consider these stocks as advice or recommendations later.