Troika Media Group, Inc.

Troika Media Group, Inc. (NASDAQ: TRKA) is a consumer engagement and customer acquisition consulting and solutions company. The Company is a professional services company that architects and builds enterprise value in consumer facing brands. It provides three brand and customer acquisition solutions through one organization that has three core Business Solutions Pillars: brand building and activation; marketing innovations and enterprise technology, and performance and customer acquisition.

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Key Business highlights

• Troika Media Group, Inc. has received a Staff Delisting Determination from the Listing Qualifications Department of the Nasdaq Stock Market. The company has been notified that Nasdaq has decided to delist its securities from the Nasdaq Capital Market due to its failure to maintain a minimum bid price of USD 1.00 per share for thirty consecutive business days.
• Troika Media Group plans to appeal to the Staff Determination by requesting a hearing before a Nasdaq Hearings Panel to seek continued listing while working towards compliance with the minimum bid price rule. As part of its strategy to regain compliance, the company intends to conduct a reverse stock split. The reverse stock split, subject to applicable law and Nasdaq rules, aims to enhance shareholder value and attract a broader audience of institutional investors and brokerage firms. The company also believes it will facilitate debt reduction and optimize its capital structure. However, there is no guarantee of the outcome of the hearing or the successful completion of any transactions.
• Reported financial results for quarter ending March 31, 2023:
• Troika Media Group (TMG) reported impressive financial results for the three months ending March 31, 2023. Revenues surged by 276% to USD 59.0 million, with a significant contribution from the fully operational Converge subsidiaries acquired in March 2022.
• Gross profit increased by 122% to USD 8.8 million. TMG's Adjusted EBITDA also improved, rising by 227% to USD 1.5 million, driven by enhanced EBITDA of USD 11.5 million.
• However, the period did incur non-recurring costs related to Blue Torch financing, restructuring charges, and non-recurring Series E equity costs, which are expected to continue until TMG finalizes its strategic plan. These positive results showcase TMG's growth and success in generating substantial revenue and profitability.

Technical Observation (on the daily chart)

With a past year correction of almost 83.02%, the price has been in a persistent downward trend over the last year, with the medium-term downward trend evident by 27.02% correction in previous six months. Also, the momentum indicator RSI (14 period) displays a value of 39.83, indicating some consolidation or some further correction. Price is currently below the 21-day SMA and 50-day SMA trend-following indicators, which can serve as dynamic short-term resistances.

Individuals can evaluate the stock based on the support and resistance levels provided in the report in case of keen interest taking into consideration the risk-reward scenario.

Markets are trading in a highly volatile zone currently due to certain macro-economic issues and prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing.

Related Risk: This report may be looked at from a high-risk perspective and a recommendation is provided for a short duration. This report is solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc.

How to Read the Charts?

The Green colour line reflects the 21-period simple moving average (SMA) while the red line indicates the 50- period simple moving average (SMA). SMA helps to identify existing price trends. If the prices are trading above the 21-period and 50-period moving average, then it shows prices are currently trading in a bullish trend.

The Black colour line in the chart’s lower segment reflects the Relative Strength Index (14-Period) which indicates price momentum and signals momentum in trend. A reading of 70 or above suggests overbought status while a reading of 30 or below suggests an oversold status.

The Blue colour bars in the chart’s lower segment show the volume of the stock. The volume is the number of shares that changed hands during a given day. Stocks with high volumes are more liquid than stocks with lesser volume as liquidity in stocks helps in easier and faster execution of the order.

The Orange colour lines are the trend lines drawn by connecting two or more price points and used for trend identification purposes. The trend line also acts as a line of support and resistance.

Technical Indicators Defined: -

Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.

Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock.

Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices. 

The reference date for all price data, currency, technical indicators, support, and resistance levels is May 25, 2023. The reference data in this report has been partly sourced from REFINITIV. 

Abbreviations

CMP: Current Market Price

SMA: Simple Moving Average

RSI: Relative Strength Index

USD: United States dollar 

Note: Trading decisions require a thorough analysis by individual. Technical reports in general chart out metrics that may be assessed by individuals before any stock evaluation. The above are illustrative analytical factors used for evaluating the stocks; other parameters can be looked at along with additional risks per se. Past performance is neither an indicator nor a guarantee of future performance.