Cloudflare Inc

Cloudflare Inc (NYSE: NET) is engaged in the software business and provides a wide range of network services to businesses.

Investment Rationale – EXPENSIVE at USD 125.47

• NET is currently trading at the 52-week high point, making it difficult for the stock price to show any further upside potential.
• The Company had widened the net loss during H1 FY21 and Q2 FY21 when compared with an equivalent period of 2020.
• NET had consistently reported a net loss from the last four years. Moreover, the consensus estimates had indicated that it would report a net loss for three more years.
• From a technical standpoint, a 14-day RSI of ~74.21 is falling in the overbought zone and indicating a correction in the stock price.
• Moreover, the stock price is hovering around the 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 overstretched valuation and weak profitability levels, we have given an “EXPENSIVE” recommendation on Cloudflare Inc at the closing market price of USD 125.47 (as on 10 August 2021).

EPAM Systems Inc

EPAM Systems Inc (NYSE: EPAM) is focused on software product development and providing digital platform engineering services to clients worldwide.

Investment Rationale – EXPENSIVE at USD 604.22

• On the profitability front, the EBITDA margin remained lower than the industry median of 18.7% from the last five quarters.
• The stock is trading near the 52-week high which could raise doubts regarding the upside potential.
• From a technical standpoint, a 14-day RSI of ~79.01 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 EPAM Systems Inc at the closing market price of USD 604.22 (as on 10 August 2021).

Hive Blockchain Technologies Ltd

Hive Blockchain Technologies Ltd (NASDAQ: HVBT) is engaged in the mining of digital currencies and provide infrastructure solutions in the blockchain industry.

Investment Rationale – WATCH at USD 3.09

• The transformation of the Ethereum 2.0 network could dent the growth of HVBT.
• In terms of a technical indicator, the current price of HVBT is sustaining around the upper Bollinger band, indicating a correction in the stock price.
• Furthermore, the 14-days RSI of ~63.75 is inching towards overbought zone and indicating a correction in the stock price.
• HVBT was unable to file annual financial results for FY21 by the stipulated timeline of 29 July 2021.

One Year Share Price Chart

 (Data Source: Refinitiv, Analysis by Kalkine Group)

Conclusion

Based on the delay in the filing of FY21 annual report and unfavourable technical indicators, we have given a “WATCH” recommendation on Hive Blockchain Technologies Ltd at the closing market price of USD 3.09 (as on 10 August 2021).

Immunovant Inc

Immunovant Inc (NASDAQ: IMVT) is a clinical-stage biopharmaceutical company focused on enabling normal lives for patients with autoimmune diseases.

Investment Rationale – WATCH at USD 8.09

• From a technical standpoint, a 20-days exponential moving average of USD 9.07 is indicating a correction in the stock price.
• The Company had reported a wider net loss during FY21 as compared to FY20.
• The Company had not generated any revenue as the drugs had not been commercialized yet.
• According to the consensus estimates, IMVT will remain loss-making for four more years.

One Year Share Price Chart

 (Data Source: Refinitiv, Analysis by Kalkine Group)

Conclusion

Based on the weak fundamentals and negligible top-line revenue of the Company, we have given an “WATCH” recommendation on Immunovant Inc at the closing market price of USD 8.09 (as on 10 August 2021).

Argo Blockchain PLC

Argo Blockchain PLC (OTC: ARBKF) is a UK-based cryptocurrency Mining Company.

Investment Rationale – WATCH at USD 1.76

• The Company is accused of purchasing a strip of land in Texas for almost 100 times of the actual value.
• On the profitability front, the operating margin and the net margin remained lower than the respective industry median of 14.3% and 11.0% during FY20.
• With regards to the leverage position, the debt-to-equity ratio of ARBKF stood at 0.31x during FY20, while the industry median was 0.25x.
• From a technical standpoint, the stock is hovering between the upper Bollinger band and the middle Bollinger band, indicating that the stock could decline in the near term.

Share Price Chart (since 17 December 2020)

 (Data Source: Refinitiv, Analysis by Kalkine Group)

Conclusion

Based on the volatile Bitcoin price and unfavourable technical indicators, we have given a “WATCH” recommendation on Argo Blockchain PLC at the closing market price of USD 1.76 (as on 10 August 2021).

BIT Mining Ltd

BIT Mining Ltd (NYSE: BTCM) is a cryptocurrency mining company.

On 17 August 2021, BTCM will release Q2 FY21 results.

Investment Rationale – WATCH at USD 7.60

• The stock is highly volatile as it dropped by almost 67% in the last five months.
• In terms of a technical indicator, the stock price of BTCM is hovering above the upper Bollinger band, indicating a correction in the stock price.
• Furthermore, the 14-days RSI of ~63.72 is inching towards the overbought zone, which indicated that the stock price could decline in the near term.
• BTCM had consistently reported a net loss from the last four years.
• The revenue had shown a downward trend during FY20 as compared to FY19.

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 BIT Mining Ltd at the closing market price of USD 7.60 (as on 10 August 2021). 

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