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.