Clover Health Investments Corp

Clover Health Investments Corp (Nasdaq: CLOV) is a health care technology entity that improves medical outcomes by analysing health data to lower costs for patients.

On 11 August 2021, CLOV is likely to announce Q2 FY21 results.

Investment Rationale – AVOID at USD 8.62

• In terms of financials for Q1 FY21
  • Total revenue grew 21% year-over-year to US$200.3 million
  • However, GAAP loss was US$48.4 million compared to US$28.2 million in Q1 FY20.
• Scott+Scott Attorneys at Law LLP is investigating whether certain directors and officers of Clover Health Investments for breaching fiduciary duties to SCH III and its shareholders.
• As of 31 March 2021, CLOV had approximately US$1,077,399 in accumulated deficit.
• From a technical standpoint, the current market price is sustaining below the 20-day EMA (USD 9.78), reflecting a bearish price momentum.
• In the last one year, CLOV’s s price has fallen ~23.04%, reflecting significant underperformance against the benchmark, Nasdaq index.

Share Price Chart

 (Data Source: REFINITIV, Analysis done by Kalkine Group)

Conclusion

Based on the significant losses, bearish price momentum, and macroeconomic uncertainties, we have given an “AVOID” stance on Clover Health Investments Corp at the closing price of USD 8.62 (as on 22 July 2021), while we look forward to reviewing its Q2 FY21 results.

Butterfly Network Inc

Butterfly Network Inc (NYSE: BFLY) develops a single probe whole-body ultrasound system, Butterfly iQ. The Company has been focusing on remotely managing health conditions through its proprietary Ultrasound-on-Chip™ technology.

On 9 August 2021, BFLY has scheduled its Q2 FY21 results for release.

Investment Rationale – WATCH at USD 10.99

• On 12 July 2021, BFLY has appointed Dr. Andrei Stoica and David Ramsey as Chief Technology Officer and Chief Information Officer, respectively.  
• On 13 May 2021, BFLY unveiled its Q1 FY21 results, and reported
  • Revenue of US$12.4 million, compared to US$8.7 million in Q1 FY20.
  • Operating expenses were US$60.2 million, compared to US$23.7 million in Q1 FY20 due to higher headcount and costs associated with the business combination.
  • Net loss reduced to US$0.7 million, compared to a net loss of US$24.4 million during Q1 FY20.
• From a technical standpoint, the current market price is sustaining below the 20-day EMA (USD 11.99), reflecting a bearish price momentum.
• In the past six months, BFLY’ s price has fallen ~48.48%, reflecting significant underperformance against the benchmark index.

Share Price Chart

 (Data Source: REFINITIV, Analysis done by Kalkine Group)

Conclusion

Even in FY21, BFLY expects to report net loss and adjusted EBITDA loss. Moreover, the recent change in leadership positions can impact the Company’s vision and growth strategy. The Company has made significant investments to expand its market presence; however, macroeconomic instabilities and inflationary market conditions might restrict its growth potential.

Based on the history of losses, higher operating expense, and challenging market conditions, we have given a “WATCH” stance on Butterfly Network Inc at the closing price of USD 10.99 (as on 22 July 2021), while we look forward to reviewing its Q2 FY21 results.

Nano Dimension Ltd

Nano Dimension Ltd (Nasdaq: NNDM) provides machinery for the fabrication of Additively Manufactured Electronics for electromechanical subassemblies.

Investment Rationale – AVOID at USD 6.52

• In Q1 FY21, NNDM reported a slight increase in revenue; however, comprehensive losses widened over four times.
• The resurgence in Covid-19 cases can materially impact its financial performance, while the trading conditions are already volatile.
• From a technical standpoint, the current market price is sustaining below the 20-day EMA (USD 7.09), reflecting a bearish price momentum.
• In the past 6 months, NNDM’s s price has fallen ~54.69%, reflecting significant underperformance against the benchmark, Nasdaq index.

Share Price Chart

 (Data Source: REFINITIV, Analysis done by Kalkine Group)

Conclusion

Based on the uncertain outlook, history of losses, challenging market conditions, we have given an “AVOID” stance on Nano Dimension Ltd at the closing price of USD 6.52 (as on 22 July 2021), while we look forward to reviewing how it reduces its high operating expenses.  

Ageagle Aerial Systems Inc

Ageagle Aerial Systems Inc (AMEX: UAVS) produces advanced drone systems and solutions for the unmanned aerial vehicle industry.

Investment Rationale – AVOID at USD 3.99

• In Q1 FY21, UAVS reported aggravated losses against Q1 FY20. As of 31 March 2021, the Company had an accumulated deficit of US$23.8 million.
• The Covid-19 pandemic has disrupted its supply chain and manufacturing capabilities. The recessionary market conditions could also impact its ability to raise capital on favourable terms.
• From a technical standpoint, the current market price is sustaining below the 20-day EMA (USD 4.50), reflecting a bearish price momentum.
• In the past six months, UAVS’s s price has fallen ~71.27%, reflecting significant underperformance against the benchmark, NYSE AMS index.

Share Price Chart

 (Data Source: REFINITIV, Analysis done by Kalkine Group)

Conclusion

Based on the material impact of Covid-19 pandemic, greater operating costs, legal expenses, and limited financial resources, we have given an “AVOID” stance on Ageagle Aerial Systems Inc at the closing price of USD 3.99 (as on 22 July 2021), while we look forward to reviewing how the Company will tackle the Covid-19 associated challenges.

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