Microstrategy Inc.

Microstrategy Inc. (NASDAQ: MSTR) is a provider of enterprise analytics and mobility software solutions worldwide.

Key Highlights

• The company reported a growth of 13.35% in revenue to USD 125.35 million in Q2FY21 (ended June 30, 2021) compared to USD 110.58 million in Q2FY20.
• MSTR reported a net loss of USD 299.35 million in Q2FY21 in contrast to a net income of USD 3.39 million in Q2FY20.  
• On June 21, 2021, MSTR purchased 13,005 additional bitcoins for ~USD 489 million at an average price of ~USD 37,617 per bitcoin. As a result, the company's total holdings (as of June 21, 2021) amount to 105,085 bitcoins.
• The Debt/Equity ratio as of Q2FY21 was 27.78x, making a significantly leveraged balance sheet. The peer median stood at 0.24x.
• Stock is currently trading above its crucial long-term as well as short-term 50-day and 200-day SMA support levels, a bullish indicator.
• Stock is currently leaning towards the lower end of the 52-week range of USD 136.89 to USD 1,315.00.
• MSTR's share price has increased 222.61% and 397.13% in the past nine and twelve months.

Technical Price Chart (as of August 20, 2021). Analysis by Kalkine

Conclusion: The company's bottom-line performance deteriorated in Q2FY21 compared to the previous comparable period. Given the lackluster fundamentals, a significant surge in the stock price in the past twelve months and lack of visibility in bottom-line growth, we recommend an "Avoid" rating on the stock at the closing price of USD 716.56, up 5.96% as of August 20, 2021.

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

Odyssey Marine Exploration, Inc.

Odyssey Marine Exploration, Inc. (NASDAQ: OMEX) is engaged in the discovery and extraction of deep-sea mineral exploration services along with shipwreck cargo recovery and marine survey and exploration charter services.

Key Highlights

• The company reported a sharp decline of 64.93% in total revenue to USD 0.18 million in Q2FY21 (ended June 30, 2021) compared to USD 0.52 million in Q2FY20.
• Net loss for Q2FY21 reduced to USD 2.23 million from USD 4.10 million in Q2FY20.
• On June 14, 2021, OMEX’s Board appointed Christopher E. Jones as CFO and re-appointed Jay Nudi as the Principal Accounting Officer and Treasurer. 
• The company has a negative net worth of USD 63.90 million as of June 30, 2021.
• Stock is currently trading below its crucial long-term as well as short-term 50-day and 200-day SMA support levels, a bearish indicator.
• Stock is currently leaning towards the lower band of the 52-week range of USD 3.84 to USD 8.69.
• OMEX’s share price has increased 30.11% in the last twelve months.

Technical Price Chart (as of August 20, 2021). Analysis by Kalkine

Conclusion: Considering the decline in topline in Q2FY21, continued net losses, lackluster fundamentals, and unfavorable technical indications, we recommend an “Avoid” rating on the stock at the closing price of USD 5.79, down 0.01% as of August 20, 2021.

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