1) FingerMotion Inc

NASDAQ: FNGR

5.05 USD +0.47 (10.26%) today

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Why do we like this stock?

1. Strong Insider Ownership and Transaction

  • Insider Own: A notably high insider ownership of 48.57% could suggest that the individuals managing and operating the company have significant skin in the game, which can align interests with the shareholders.
  • Insider Trans: Positive insider transactions (9.31%) indicate that insiders are buying more shares than they are selling, which may signal their confidence in the future performance of the company.

2. Sales Growth

  • Sales past 5Y: Remarkable growth in sales over the past 5 years (182.67%) suggests the company has been expanding its business and revenue streams successfully.
  • Sales Q/Q: A substantial quarter-over-quarter sales growth of 150.64% is a bullish signal, indicating that the company is generating significantly more revenue compared to the previous quarter.

3. Potential Upside in Stock Price

  • Target Price: The target price is set at 5.00, which is slightly above the current price of 4.90, presenting a potential upside if the company reaches the expected performance.
  • 52W Low: The stock has surged 385.01% from its 52-week low, which can be a sign of strong momentum or recovery.
  • Perf Half Y: A remarkable performance over the half-year, providing a return of 215.02%, indicates a solid uptrend and might be a good sign for momentum investors.

Cautionary Notes:

Despite the potential upsides, it's crucial to consider several concerning points as part of a balanced approach:

  • Profitability: A negative profit margin of -17.79% and negative ROA and ROE indicate the company is not currently profitable and is not effectively utilizing its assets or equity from a profitability standpoint.
  • Forward P/E: A very high forward P/E ratio of 163.29 suggests that the stock might be overvalued, assuming the company meets its forward earnings expectations.
  • Negative EPS: Both trailing and next quarter EPS are negative, indicating the company is not generating positive earnings and could struggle to meet investor expectations.
  • Perf Year: A negative annual performance of -24.64% might be a red flag concerning its yearly trend.

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Disclaimer: Investing always comes with risks, and thus, a comprehensive analysis, including fundamental and technical aspects, should be considered. Always remember that everything posted here is made for entertainment purposes only and is not financial advice.

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