Canoo Inc.

Canoo Inc. (NASDAQ: GOEV) operates as a mobility technology company engaged in designing and manufacturing Electric Vehicles (EV). It has developed a highly modular Multi-Purpose platform that allows it to quickly innovate and bring new products to market lower than the competitors.

Key Highlights

• The company didn't report any revenue in Q3FY21 (ended September 30, 2021); however, it reported revenue of USD 2.55 million in Q3FY20.
• As a result, GOEV's net loss expanded to USD 80.88 million during Q3FY21 vs. USD 23.39 million in Q3FY20.
• As of September 30, 2021, the company had cash and cash equivalents of USD 414.90 million, with no outstanding debt.
• Its ROE in Q3FY21 was -16.4%, whereas the peer median stood at 1.8%.
• On November 15, 2021, GOEV announced the expansion of its Oklahoma operations to include new R&D, software development, customer support, and financing centres. GOEV aims to generate a minimum of 700 jobs through this investment.
• Stock is currently trading above its crucial short-term (50-day) and long-term (200-day) SMA support levels, a bullish indicator.
• The stock is currently leaning towards the lower band of its 52-week range of USD 5.75 to USD 24.90.
• GOEV's stock price increased 52.85% in the past six months.

Technical Price Chart (as of November 23, 2021). Analysis by Kalkine

Conclusion: The company's performance further deteriorated in Q3FY21 compared to the previous comparable period. Given the lackluster fundamentals and lack of visibility into the topline as well as bottom-line growth, we recommend an "Avoid" rating on the stock at the closing price of USD 11.54, up 0.96% as of November 23, 2021.

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

Neptune Wellness Solutions Inc.

Neptune Wellness Solutions Inc. (NASDAQ: NEPT) is a health and wellness company engaged in developing a natural, plant-based consumer products portfolio.

Key Highlights

• The company reported a YoY decline of 38.24% in revenues to USD 15.73 million in Q2FY22 (ended September 30, 2021) compared to USD 25.47 million in Q2FY21.
• NEPT's net loss reduced to USD 13.96 million during Q2FY22 vs. USD 21.96 million in Q2FY21.
• As of September 30, 2021, the company had cash and cash equivalents (including short-term investments) of USD 30.86 million and total debt of USD 18.45 million.
• Its net margin in Q2FY22 was -88.7%, whereas the peer median stood at 8.2%.
• On November 23, 2021, Sprout Foods, Inc., a subsidiary of NEPT, relaunched its website at "www.sproutorganics.com". The new site features a fresh look and feels for the Sprout brand, which is carried over into packaging, an updated logo, a reset of the brand's tone and voice, and a direct line for purchase with customers via e-commerce.
• Stock is currently trading below its crucial short-term (50-day) and long-term (200-day) SMA support levels, a bearish indicator.
• The stock is currently leaning towards the lower band of its 52-week range of USD 0.60 to USD 4.55.
• NEPT's stock price decreased 70.0% in the past nine months.

Technical Price Chart (as of November 23, 2021). Analysis by Kalkine

Conclusion: Considering the decline in topline in Q2FY22, continued net losses, lackluster fundamentals, and unfavorable technical indications, we recommend an "Avoid" rating on the stock at the closing price of USD 0.51, down 1.58% as of November 23, 2021.

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