FuelCell Energy Inc

FuelCell Energy Inc (NASDAQ: FCEL) is engaged in the manufacturing and selling of fuel cell products that convert chemical energy into electricity.

Investment Rationale – WATCH at USD 6.23

• According to the consensus estimates, FCEL will incur a loss for at least three more years.
• The revenue had shown a declining trend at a CAGR of around negative 9.52% from FY17 to FY20.
• Moreover, the revenue demonstrated a significant year-on-year decline during Q2 FY21 as well.
• The Company’s loss per share came out to be wider than that of the consensus estimates during Q2 FY21.
• From a technical standpoint, the stock is trading lower than the 20-day exponential moving average of USD 6.38, indicating that the stock could decline in the near term.

One Year Share Price Chart

 (Data Source: Refinitiv, Analysis by Kalkine Group)

Conclusion

Based on the weak fundamentals and unfavourable technical indicators, we have given a “WATCH” recommendation on FuelCell Energy Inc at the closing market price of USD 6.23 (as on 25 August 2021). However, if the clients already have this stock in their portfolio, they can look for booking profit (if bought at lower level) or hold it as per their own analysis and risk/return trade-off strategy.

eGain Corporation

eGain Corporation (NASDAQ: EGAN) deals with innovative Software as a service (SaaS) platform powered by deep digital, Artificial intelligence (AI), and knowledge capabilities.

On 01 September 2021, EGAN will release full-year FY21 results

Investment Rationale – HOLD at USD 11.27

• With regards to the balance sheet, the Company remained debt-free during FY21, while it had expected cash of USD 63 million at the year-end.
• EGAN had expected FY21 revenue to remain at or above the top-end of guidance, ranging from USD 77.3 million to USD 77.9 million.
• The company had been reporting profit from the last two quarters (Q2 FY21 & Q3 FY21), while the consensus estimates had forecasted a loss.
• From a technical standpoint, the 20-days exponential moving average of USD 11.12 is indicating an upside potential in the stock price.

One Year Share Price Chart

 (Data Source: Refinitiv, Analysis by Kalkine Group)

Conclusion

Based on the robust revenue guidance and consistent profit-making nature of the Company, we have given a “HOLD” recommendation on eGain Corporation at the closing market price of USD 11.27 (as on 25 August 2021).

Beam Global

Beam Global (NASDAQ: BEEM) produces sustainable technology for the electric vehicles.

Investment Rationale – HOLD at USD 27.94

• On the liquidity front, the current ratio of 13.97x remained significantly ahead of the industry median of 2.26x during Q2 FY21.
• The increasing demand for highly scalable EV infrastructure would brighten the growth prospects of the Company.
• BEEM had reported the largest second-quarter revenue since inception during Q2 FY21. Moreover, the Company had begged the largest single order from California’s Department of General Services for 52 systems.
• During Q2 FY21, the Company had increased the sales pipeline from USD 50 million to USD 75 million.
• The stock price is hovering between the lower Bollinger band and the middle Bollinger band, suggesting an upside potential in the stock price.

One Year Share Price Chart

(Data Source: Refinitiv, Analysis by Kalkine Group)

Conclusion

Based on the increase in the sales pipeline and favourable technical indicators, we have given a “HOLD” recommendation on Beam Global at the closing market price of USD 27.94 (as on 25 August 2021).

ADMA Biologics, Inc

ADMA Biologics Inc (NASDAQ: ADMA) is the end-to-end commercial biopharmaceutical company engaged in the development of plasma-derived biologics for the treatment of immunodeficient patients.

Investment Rationale – WATCH at USD 1.39

• On the profitability front, the Company had been consistently reporting a net loss from the last four years.
• According to the consensus estimates, the Company will remain loss-making for three more years.
• In terms of technical indicators, the MACD line remained lower than the signal line, indicating a correction in the stock price.
• Furthermore, the 20-days exponential moving average of USD 1.42 is indicating a correction in the stock price.

One Year Share Price Chart

 (Data Source: Refinitiv, Analysis by Kalkine Group)

Conclusion

Based on the loss-making nature of the Company and unfavourable technical indicators, we have given a “WATCH” recommendation on ADMA Biologics, Inc at the closing market price of USD 1.39 (as on 25 August 2021). However, if the clients already have this stock in their portfolio, they can look for booking profit (if bought at lower level) or hold it as per their own analysis and risk/return trade-off strategy.

Diffusion Pharmaceuticals Inc

Diffusion Pharmaceuticals Inc (NASDAQ: DFFN) is an innovative biopharmaceutical company focused on the treatment of acute shortage of oxygen. Moreover, the lead product candidate is not commercialized yet.

Investment Rationale – AVOID at USD 0.52

• The consensus forecast had suggested that DFFN would remain a loss-making company for at least four more years.
• The Company is in the development stage and has not reported any revenue yet.
• The stock price had plunged approximately 50% in the last one year.
• From a technical standpoint, the stock is trading lower than the 20-day exponential moving average of USD 0.53, indicating a correction in the stock price.
• The Return on Equity and Return on Assets remained in the negative territory during Q2 FY21.

One Year Share Price Chart

 (Data Source: Refinitiv, Analysis by Kalkine Group)

Conclusion

Based on the weak fundamentals and negligible revenue, we have given an “AVOID” recommendation on Diffusion Pharmaceuticals Inc at the closing market price of USD 0.52 (as on 25 August 2021). However, if the clients already have this stock in their portfolio, they can look for booking profit (if bought at lower level) or hold it as per their own analysis and risk/return trade-off strategy.

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