Intellia Therapeutics Inc

Intellia Therapeutics Inc (NASDAQ: NTLA) is a genome editing company focused on the development of potentially curative CRISPR/Cas9-based therapeutics.

Investment Rationale – EXPENSIVE at USD 155.39

• The stock price is highly volatile as it had shown an upside movement of more than 100% in the last two months.
• NTLA had reported a wider net loss during Q2 FY21 as compared to Q2 FY20. Furthermore, the top-line revenue also witnessed a significant decline during Q2 FY21.
• The Return on Equity and Return on Assets remained in the negative territory during Q2 FY21.
• According to the consensus estimates, the Company would remain a loss-making for four more years (FY21 to FY24).
• From a technical standpoint, the stock price is hovering between the middle Bollinger band and upper Bollinger band, indicating a correction in the stock price.

One Year Share Price Chart

 (Data Source: Refinitiv, Analysis by Kalkine Group)

Conclusion

Based on the decline in the top-line revenue and weak profitability levels, we have given an “EXPENSIVE” recommendation on Intellia Therapeutics Inc at the closing market price of USD 155.39 (as on 13 August 2021).

Crocs Inc

Crocs Inc (NASDAQ: CROX) is one of the leading providers of casual lifestyle footwear accessories for men, women, and children.

Investment Rationale – EXPENSIVE at USD 146.59

• The delta variant of the Covid-19 pandemic would have an adverse impact on the US footwear industry.
• The stock is trading very close to the 52-week high, which could raise doubts regarding the upside potential.
• From a technical standpoint, a 14-day RSI of ~80.82 is in the overbought zone and indicating a correction in the stock price.
• The stock price is hovering around the upper Bollinger band, suggesting a correction in the stock price.

One Year Share Price Chart

(Data Source: Refinitiv, Analysis by Kalkine Group)

Conclusion

Based on the overstretched valuations, and unfavourable technical indicators, we have given an “EXPENSIVE” recommendation on Crocs Inc at the closing market price of USD 146.59 (as on 13 August 2021).

eXp World Holdings, Inc

eXp World Holdings, Inc (NASDAQ: EXPI) is a cloud-based residential real estate company.

Investment Rationale – WATCH at USD 49.25

• On the profitability front, the operating margin and the net margin remained lower than the respective industry median over the last five quarters. (Q2 FY20 to Q2 FY21).
• In terms of a technical indicator, the current price of EXPI is sustaining between the upper Bollinger band and the middle Bollinger band, indicating a correction in the stock price.
• Furthermore, the 14-days RSI of ~62.33 is inching towards the overbought zone and indicating a correction in the stock price.
• The stock went ex-dividend on 13 August 2021.

One Year Share Price Chart

 (Data Source: Refinitiv, Analysis by Kalkine Group)

Conclusion

Based on the lower profitability levels as compared to the industry and unfavourable technical indicators, we have given a “WATCH” recommendation on eXp World Holdings, Inc at the closing market price of USD 49.25 (as on 13 August 2021).

Arcturus Therapeutics Holdings Inc

Arcturus Therapeutics Holdings Inc (NASDAQ: ARCT) is the leading clinical-stage messenger RNA medicines Company.

Investment Rationale – Expensive at USD 48.02

• The stock price had shown a jump of more than 50% in the last 15 trading sessions boosted by the clinical trials results.
• From a technical standpoint, the stock is hovering between the middle Bollinger band and the upper Bollinger band, indicating a correction in the stock price.
• The Company had reported a wider net loss during Q2 FY21 as compared to Q1 FY20. Moreover, the net loss came out to be more than the consensus estimates during Q2 FY21.
• As ARCT is making revenue from licensing fees only, any disruption in the strategic partnership may significantly impact the top-line business.
• ARCT had shown a significant decline in the top line revenue during Q2 FY21 as compared to Q2 FY20.

One Year Share Price Chart

 (Data Source: Refinitiv, Analysis by Kalkine Group)

Conclusion

Based on the weak fundamentals and overstretched valuations, we have given an “EXPENSIVE” recommendation on Arcturus Therapeutics Holdings Inc at the closing market price of USD 48.02 (as on 13 August 2021).

Lordstown Motors Corp

Lordstown Motors Corp (NASDAQ: RIDE) is engaged in the development and manufacturing of light duty electric trucks.

Investment Rationale – AVOID at USD 5.37

• The Company had not reported any revenue yet.
• From a technical standpoint, the 20-days exponential moving average of USD 6.61 is indicating a correction in the stock price.
• The Company had reported a wider net loss during Q2 FY21 as compared to Q1 FY20. Moreover, the consensus estimates indicated that the Company would remain loss-making for three more years.
• RIDE had anticipated a decline in the liquidity levels by the end of Q3 FY21.

One Year Share Price Chart

 (Data Source: Refinitiv, Analysis by Kalkine Group)

Conclusion

Based on the weak fundamentals and negligible revenue, we have given an “AVOID” recommendation on Lordstown Motors Corp at the closing market price of USD 5.37 (as on 13 August 2021).

Regen BioPharma Inc

Regen BioPharma Inc (OTC: RGBP) is a biotechnology company focused on the immunology and immunotherapy space.

Investment Rationale – AVOID at USD 0.03

• The Company had reported negligible revenue from the last five years.
• The Company had not released latest financial figures for FY21, creating doubt regarding the earning potential of RGBP. The latest Q1 FY21 results (period ended 31 December 2020) was released on 05 August 2021.
• The stock price is highly volatile as it had shown an upside movement of around 19% in a single day.
• From a technical standpoint, the 14-days RSI stood at ~61.98, indicating that the stock could decline in the near term.

One Year Share Price Chart

  (Data Source: Refinitiv, Analysis by Kalkine Group)

Conclusion

Based on the volatile nature of the stock and weak profitability, we have given an “AVOID” recommendation on Regen BioPharma at the closing market price of around  USD 0.03 (as on 13 August 2021).

Powerbridge Technologies Co Ltd

Powerbridge Technologies Co Ltd (NASDAQ: PBTS) provides software services to corporate and government customers.

Investment Rationale – WATCH at USD 1.58

• The stock is highly volatile as it dropped by almost 25% in a single day.
• In terms of a technical indicator, the stock price of PBTS is hovering between the upper Bollinger band and middle Bollinger band, indicating a correction in the stock price.
• PBTS had reported a wider net loss during FY20 as compared to FY19.
• The Return on Equity and Return on Assets remained in the negative territory during FY20.

One Year Share Price Chart

 (Data Source: Refinitiv, Analysis by Kalkine Group)

Conclusion

Based on the volatile nature of the stock and weak profitability, we have given a “WATCH” recommendation on Powerbridge Technologies Co Ltd at the closing market price of USD 1.58 (as on 13 August 2021). 

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

*Dividend Yield may vary as per the stock price movement.