After losing over 88% of their value over the previous year, traders are wondering if they are seeing signs of life in shares of Inpixon (NASDAQ:INPX). Yesterday INPX shares closed at $0.39, then briefly shot up to break through the $0.50 level before sliding back to end the day at $0.44. Volume for the software company was about four times its daily average.
Palo Alto, CA-based Inpixon (NASDAQ:INPX) provides, globally, data analytics services to commercial entities and governments. It offers AirPatrol, a location-based security and marketing platform for wireless and cellular devices to detect, monitor, and manage the content and behavior of smartphones, tablets, and other mobile. The company also provides enterprise computing and storage, virtualization, business continuity, networking, and information technology business consulting services.
While the technology company has posted an impressive month in which it has gained over 91%, issues continue to worry investors. To begin with, share dilution has been an annual problem. In 2013 there were 820,000 outstanding shares. That number has increased every year and in 2016 the number of outstanding shares was 1.74 million – more than double their 2013 figure. Still, from 2013 to 2015, Inpixon (NASDAQ:INPX) had increasing year-on-year sales. For 2013, sales were at $50.6 million and in 2015 the reported sales were $67 million. But in 2016, sales fell to $53.29 million.
Earnings have been in a downward trajectory since 2012. That year there was a per share loss of (-$0.74). That per share loss increased each of the following years and in 2016 stood at (-$15.17).
Commonly used ratios are not looking good either. The company, according to recent reports, has a cash per share value of just $0.07. Further, the book value per share is -0.84. When one looks at the entirety of the shares it is not a wonder that INPX shares have fallen so far from their 52-week high of $11.08.
I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.
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About the author: Steve Clark is a 23-year Wall St professional with stints in M&A, risk management, and algorithm trading. Steve keeps his head in the game by looking for, and writing about, small companies that often get overlooked by the big investment firms.