Powerbridge Technologies Co. Ltd.

Powerbridge Technologies Co. Ltd. (NASDAQ – PBTS) is a Chinese firm that specializes in providing corporate and government customers with software applications and technology solutions and services. The firm creates and builds cloud based Powerbridge BaaS Services for all participants in the global trading ecosystem.

Key Highlights

• Declining Financials: Despite a 32.69% rise in revenues from 20.10 million to 26.66 million on a year-over-year basis, Powerbridge Technologies Co Ltd's net income fell 69.22 percent from a loss of 10.79 million to a greater loss of 18.25 million.
• Limited Financial data availability: The last official financial data available is from the SEC filing of FY2020. FY2021 financial year results and annual reports will be released in the month of July 2022, then only determining the current financial position of the firm.
• Significant increase in short interest in the month of March: Short interest totaled 2,770,000 shares as of March 31st, up 22.0 percent from the previous total of 2,270,000 shares. The days-to-cover ratio is now 1.2 days, based on an average daily volume of 2,350,000 shares. Short sales account for around 10.8% of the company's shares.
• Technical Analysis: The share is down almost 93% from last year’s high of USD 3.65. The current closing price is below both short-term (50-day) SMA and long-term (200-day) SMA, with the next important support at USD 0.28 and resistance at USD 0.34.

One-year Technical Price Chart (as of April 26, 2022). Source: REFINITIV, Analysis by Kalkine Group

Conclusion

Powerbridge Technologies Co. Ltd. is a company with poor fundamentals and stock is hovering in a long-term bearish zone from the technical analysis standpoint. There is no backing fundamental or strong technical on which a decision can be made to enter as of now.

We recommend an "Avoid" rating on the stock at the closing price of USD 0.31 as of April 26, 2022.

One-year Technical Price Chart (as of April 26, 2022). Source: REFINITIV, Analysis by Kalkine Group

Note 1: The reference data in this report has been partly sourced from REFINITIV.  

Note 2: Investment decisions should be made depending on the investors' appetite for upside potential, risks, holding duration, and any previous holdings. Investors can consider exiting the stock if the Target Price mentioned as per the valuation has been achieved and subject to the factors discussed above. 

Note 3: The report publishing date is as per the Pacific Time Zone.