Steve Clark

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.
Quest Resource Holding Corp (NASDAQ:QRHC)

Quest Resource Holding Corp (NASDAQ:QRHC) Makes Large Gains

Quest Resource Holding Corp (NASDAQ:QRHC)

Quest Resource Holding Corp (NASDAQ:QRHC) stock has gained over 70% after the waste management company released their Q3 2017 earnings report. QRHC shares gapped up to open at $1.48, then continued to rise to $2.91 before sellers stepped in. QRHC stock has been trading in a range between $1.90 and $2.10 since 10:30 AM EST. Volume is enormous. The stock normally trades about 38,000 shares per day, but with two hours left in today’s trading session, over 6.1 million shares have exchanged hands.

Quest Resource Holding Corp (NASDAQ:QRHC)

Quest Resource Q3 Financial Report

EPS for Q3 2017 was forecast by analysts at (-$0.07) and that is exactly what the company reported. Net loss improved by $1.3 million to (-$1.1) million compared with a net loss of (-$2.4) million for the third quarter of 2016. During the third quarter of 2017, operating expenses were $5.0 million, a decrease of $1.0 million, or 16%, compared with the third quarter of 2016. Adjusted EBITDA improved by $786,000 to $513,000 compared with a loss of (-$273,000) for Q3 2016.

Quest Resource Holding Corp (NASDAQ:QRHC) provides recycling and disposal services for a range of waste streams and recyclables generated by businesses. The company also operates social media and online digital platforms that contain information and instructions to recycle or properly dispose of household products and materials. Its services focuses on the waste streams and recyclables from big box, food chain, and other retailers.

QRHC Stock Performance

Year-to-date, QRHC stock is down over 50%. However, two investment forms cover Quest Resource Holding Corp (NASDAQ:QRHC) and both rate the shares as a “Strong Buy” with a consensus, one-year price target of $6.00. The stock’s 52-week low is $1.03, and its 52-week high is $3.00.

Quest Resource Holding Corp (NASDAQ:QRHC) has a market capitalization of less than $20 million but annual sales of over $175 million. Unfortunately, earnings have been challenging. In 2012 is lost (-$5.92) per share, and last year the loss was a more modest (-$0.55).

Stock dilution has been an issue for shareholders. In 2012, 7.12 million shares were outstanding. By the end of 2016, that number was 14.74 million.

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.

Don’t miss out! Stay informed on $QRHC and receive breaking news on other hot stocks by signing up for our free newsletter!

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.

MoSys Inc. (NASDAQ:MOSY)

MoSys Inc. (NASDAQ:MOSY) Spikes

MoSys Inc. (NASDAQ:MOSY)

MoSys Inc. (NASDAQ:MOSY) shares have spiked over 140%, to $1.60, on the back of massive volumes after the technology company reported Q3 2017 financial results. Volume has been huge. Currently, over 127 times the average share volume has traded today.

MoSys Inc. (NASDAQ:MOSY)

MoSys, Inc. (NASDAQ:MOSY) is a nano-cap ($5.4 million) fabless semiconductor company enabling leading equipment manufacturers of Cloud, networking, communications, and data center systems to address the continual increase in Internet users, data and services. The company’s solutions deliver data path connectivity, speed and intelligence while eliminating data access bottlenecks on line cards and systems scaling from 100G to multi-terabits per second.

MoSys Q3 Earnings

MoSys, Inc. (NASDAQ:MOSY)’s Q3 2017 net loss was $1.7 million, or ($0.22) per share, compared with a net loss of $4.0 million, or ($0.60) per share, for the previous quarter and a net loss of $4.7 million, or ($0.71) per share, for the same period in 2016. Total net revenue for Q3 2017 was $2.5 million, compared with $1.4 million for the previous quarter and $1.6 million for the third quarter of 2016. Product revenue for the third quarter was $2.2 million, compared with $1.1 million in the second quarter of 2017 and $1.2 million in the year-ago period.

Len Perham, President and CEO of MoSys, Inc. (NASDAQ:MOSY), “Our revenue growth in the third quarter was primarily driven by increased shipments to our largest Bandwidth Engine 2 customers. More specifically, the design wins with our lead security-appliance customer entered production in early 2017, and have been a significant driver of our increased revenue this past year. As part of our close collaboration with our lead customers, we have developed a solid backlog that extends out through 2018.”

MOSY Stock Performance

The consensus of analysts gave shares of MoSys, Inc. (NASDAQ:MOSY) a one-year price target of $2.00. That level has not been reached since late June, after which MOSY shares began a slide that saw the shares trade under the important $1 level for the majority of the trading sessions since the beginning of September.

MOSY shares have drastically underperformed the sector and market over the past year. Year-to-date MOSY shares are down over 70%. Over the past month, shares have dropped over 20%. Despite the poor performance, today’s spike has moved MOSY’s Relative Strength Index score to 83 – a figure well above the threshold normally considered for labeling a stock as “overbought”.

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.

Don’t miss out! Stay informed on $MOSY and receive breaking news on other hot stocks by signing up for our free newsletter!

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.

Marrone Bio Innovations Inc (NASDAQ:MBII)

Mixed Financial Results for Marrone Bio Innovations Inc (NASDAQ:MBII)

Marrone Bio Innovations Inc (NASDAQ:MBII)

Marrone Bio Innovations Inc (NASDAQ:MBII) (MBI) reported a Q3 2017 EPS loss of (-$0.27) against a consensus analyst estimate of (-$0.24), and a loss of (-$0.29) for Q3 2016. However, revenues increased 16%, and gross margins increased by 41% which has fueled a 11% gain in late-morning trading.

Marrone Bio Innovations Inc (NASDAQ:MBII)

Dr. Pam Marrone, CEO of Marrone Bio Innovations Inc (NASDAQ:MBII), made a statement regarding the company’s performance and future prospects “We experienced several noteworthy catalysts in the third quarter of 2017… Despite these major events, unfavorable weather conditions reduced the number of expected sprays in several of our key markets. Historically, the third quarter produces the lowest sales of the year and is the most unpredictable, evidenced by hurricanes Irma and Maria which significantly impacted our sales in Florida and Puerto Rico.”

Marrone Bio Innovations Inc (NASDAQ:MBII) develops and distributes pest management solutions on a global scale. Marrone Bio’s help customers operate more sustainably while improving plant health and increasing crop yields. The company currently has six commercially available products (Regalia®, Grandevo®, Venerate®, Majestene®, Haven™ and Zequanox®), with Stargus™ planned for launch later in 2017 as well as seven other product candidates in various stages of the company’s rapid development pipeline.

Marrone Bio Developments

The company received EPA registration for MBI-110 (Stargus) for specialty crops and Amplitude for row crops. MBI plans to launch Stargus in the United States market in 2017. As part of MBI’s collaboration with Evogene, transgenic plants carrying MBI’s insecticidal genes were developed and one candidate showed promising results (100% kill) against cabbage looper. Additional tests are in progress. Finally, the company signed new distribution agreements in Africa with regionally significant firms such as ÉLÉPHANT VERT in North Africa and Kenya Biologics in Kenya and Tanzania.

MBII Stock Performance

MBII stock dropped from the $2.50 level in late 2016, then met strong support at the $1 mark. Over the years, the company’s EPS and sales figure have trended positively. In 2012, the company had an EPS loss of (-$10.36). In the years that followed, losses continued by at smaller amounts. In 2016 the EPS loss was (-$1.26). Sales have trended upwards since 2012 when the company reported $7.1 million. By 2016 that number improved to $14 million.

The consensus of analyst gives MBII stock a one-year price target of $2.50. However, the stock’s 52-week high is $2.61. Three investment firms follow Marrone Bio Innovations Inc (NASDAQ:MBII). One rates MBII shares as a “Strong Buy” while two rate the stock as a “Hold”.

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.

Don’t miss out! Stay informed on $MBII and receive breaking news on other hot stocks by signing up for our free newsletter!

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.

China Ceramics Co Ltd (NASDAQ:CCCL)

China Ceramics Co Ltd (NASDAQ:CCCL) Racing Higher!

China Ceramics Co Ltd (NASDAQ:CCCL)

China Ceramics Co Ltd (NASDAQ:CCCL) stock is up over 50% on a volume figure that is almost 600 times the published daily average volume. China Ceramics Co Ltd (NASDAQ:CCCL) has a market capitalization of less than $10 million and 49% of their shares are held by insiders. Last year they recorded $119 million in sales.

China Ceramics Co Ltd (NASDAQ:CCCL)

China Ceramics Co Ltd (NASDAQ:CCCL) is based in Jinjiang, China. Through its subsidiaries, the company manufactures and sells ceramic tiles for exterior siding and interior flooring, and design in residential and commercial buildings. Its products are sold in the People’s Republic of China. The company sells its products under the Hengda, Hengdeli, Pottery Capital of Tang Dynasty, TOERTO, and WULIQIAO brands through a network of distributors, as well as directly to property developers.

Review of China Ceramics Business and Stock

Due to the small capitalization of China Ceramics Co Ltd (NASDAQ:CCCL), analysts are not covering CCCL shares and therefore there is a lack of earnings predictions. However, published accounts quote the company’s “book value per share” at $41.41. But what may be more noteworthy is that the same publications quote China Ceramics’ “cash per share” value at $0.00.

In 2012, China Ceramics Co Ltd (NASDAQ:CCCL) report an EPS of $14.38. However, the next four years resulted in annual per share losses of (-$0.12), (-$1.79), (-$21.38), and, in 2016 (-$17.55). Sales have, in general, trended downwards. In 2012, sales were reported at $217.7 million. However, by 2016 that sales figure was $119.6 million.

Today’s price action has sent the shares to a new 52-week high. CCCL stock opened today at $1.64 which was below yesterday’s close of $1.76. The shares rocketed up to reach a high of $$3.60 before sellers stepped in and sent the shares back down to current trading levels hovering around $2.65 at 11:11AM EST.

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.

Don’t miss out! Stay informed on $CCCL and receive breaking news on other hot stocks by signing up for our free newsletter!

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.

Cherokee Inc. (NASDAQ:CHKE) Explodes On Credit Facility Amendment

Cherokee Inc. (NASDAQ:CHKE)

Shares of Cherokee Inc. (NASDAQ:CHKE) gained 52.6% after the global brand marketing company announced the amendment, subject to satisfaction of certain conditions, of its senior secured credit facility. The amendment relieves the company from the burden of having to issue approximately $5.5 million in additional common stock.

Cherokee Inc. (NASDAQ:CHKE)

Credit Facility Amendment

The Chief Executive Officer, Henry Stupp, expects the agreement to allow the company to focus on growing the business for the long term. An agreement with lenders also marks an important step as Cherokee moves to stabilize its balance sheet and sustain liquidity.

“Over the last several months, we’ve taken several actions to focus on our core business fundamentals and high-growth brand opportunities. As a result, we are focused on reducing operating expenses and improving cash flow. We’re comfortable with our financial position and confident in our ability to meet our existing obligations,” said Mr. Stupp.

The amendment erases the need to exercise rights under a Common Purchase Agreement dated August 11, 2017. Cherokee Inc. (NASDAQ:CHKE) has since canceled a special meeting for shareholders that was to take place on November 28, 2017, to discuss the issuance of common stock.

The signing of the credit agreement appears to have strengthened investors’ confidence in Cherokee Inc. (NASDAQ:CHKE), be it in the short term. The stock has come under pressure in recent months having already dropped to this year’s lows. Cherokee is currently trading in a downtrend after losing more than 70% in market value since the start of the year.

It awaits to be seen if the stock will continue to trade higher given the credit facility amendment will provide greater financial flexibility, in addition, you to eliminate the obligation to call equity commitments.

Management Appointment

Separately, Cherokee Inc. (NASDAQ:CHKE) has confirmed the appointment of Mark Conway as the Chief Brand and Revenue Officer. Mr. Conway is to oversee the company’s business development, strategic brand planning, e-commerce and marketing. He joins the company with more than 20 years of retail experience.

“Mark joins us at a critical time in our growth trajectory as we harness ongoing transformations in the retail landscape and complete the integration of our acquisition of Hi-Tec. Going forward, Mark will play a key leadership role as we increase the penetration of our brand portfolio in multiple channels and synergize our business units,” said Mr. Stupp.

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.

Don’t miss out! Stay informed on $CHKE and receive breaking news on other hot stocks by signing up for our free newsletter!

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.

Aptose Biosciences Inc (NASDAQ:APTO)

New High for Aptose Biosciences Inc (NASDAQ:APTO)

Aptose Biosciences Inc (NASDAQ:APTO)

Aptose Biosciences Inc (NASDAQ:APTO) shares have hit a new 52-week high, are up over 17%, and trading around the $2 handle in mid-afternoon trading. Volume is heavy for the biotech’s shares as they are trading about seven times their daily average.

Aptose Biosciences Inc (NASDAQ:APTO)

Aptose Biosciences Inc (NASDAQ:APTO) is scheduled to be releasing their Q3 2017 earnings report tomorrow, November 14, 2017, after the close of trading. According to Zacks Investment Research, the consensus of analysts are expecting an EPS loss of (-$0.13) per share.

Canadian-based Aptose Biosciences Inc (NASDAQ:APTO) is a clinical-stage biotechnology company committed that develops personalized therapies designed to address unmet medical needs in cancer patients. Aptose is advancing new therapeutics focused on novel cellular targets on the leading edge of cancer treatment. The company’s pipeline of small molecule cancer therapeutics includes products designed to provide single agent efficacy and to enhance the efficacy of other anti-cancer therapies and regimens without overlapping toxicities.

APTO Stock Performance

Shareholders of Aptose Biosciences Inc (NASDAQ:APTO) have experienced a good year. Year-to-date, APTO stock is up over 22%, and for the year the gain is an even more impressive 65%. Analysts have given APTO stock a consensus, one-year price target of $3.15. The stock’s 52-week low was established last April at a price of $0.78. Today’s price action, should it hold, will establish a new 52-week high – besting the old mark of $1.79. Given the strong upward momentum of the stock, it is not surprising that the shares have a Relative Strength score of 77 – a level that most traders consider to be a sign of an “overbought” condition.

Aptose Biosciences Inc (NASDAQ:APTO) has no reported sales. Accordingly, their earnings have been negative since 2012. In the past three years, the per share losses have expanded. In 2014 the per share loss was (-$0.53), followed the next year by (-$0.97), and (-$1.15) for 2016.

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.

Don’t miss out! Stay informed on $APTO and receive breaking news on other hot stocks by signing up for our free newsletter!

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.

Biostar Pharmaceuticals Inc (NASDAQ:BSPM) Attempts a Close above $2

Biostar Pharmaceuticals Inc (NASDAQ:BSPM)

Biostar Pharmaceuticals Inc (NASDAQ:BSPM) stock is up over 20% and trading above a key $2 resistance level. Volume is heavy – nearly 30 times the listed daily average. No news has come out on the drug manufacturer, but observers are speculating that the market may be jumping in ahead of the company’s earnings release on November 20, 2017.

Biostar Pharmaceuticals Inc (NASDAQ:BSPM)

Biostar Pharmaceuticals Inc (NASDAQ:BSPM), headquartered in China, through its wholly owned subsidiary and controlled affiliates, develops, manufactures, and markets pharmaceutical and health supplement products for a variety of diseases and conditions. The Company’s most popular product is its XinAoxingOleanolic Acid Capsule, an over-the-counter medicine for chronic hepatitis B, a disease affecting approximately 10% of the Chinese population.

Biostar’s Business

The company has a current ratio of 1.3, which indicates it will be able to satisfy any debt obligations in the near term. While its cash/share figure is only $0.07, it has a book/share value of $14.43. According to reports, industry analysts are expecting Biostar Pharmaceuticals Inc (NASDAQ:BSPM) earnings to grow almost 80% this year.

Sales have taken a hit since 2014 when the company posted a figure of $61.4 million. That year represented the end of an uptrend in its sales. In 2015 the company reported sales of $27.1 million, and just $2.4 million for 2016.

BSPM Stock Performance

Over the past year, BSPM has lost over 50% of its value. In 2016, the stock struggled to remain over the $5 handle and any gains over that price quickly met with selling action. However, in the past quarter BSPM stock has gained around 20%. Further, analysts have a consensus, one-year price target of $7 on the shares. Currently, BSPM stock is trading 70% above its 52-week low of $1.18, but well below its 52-week high of $4.30.

Earnings have been disappointing for long-term holders of the shares. In 2015, the company posted a per share loss of ($11.36, but last year that shrank to (-$2.48). Dilution has been noticeable, but not cringe-worthy. In 2013 there were 1.37 million shares outstanding. But by 2016 the number was listed at 2.3 million.

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.

Don’t miss out! Stay informed on $BSPM and receive breaking news on other hot stocks by signing up for our free newsletter!

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.

Capricor Therapeutics Inc (NASDAQ:CAPR)

Traders Loving Capricor Therapeutics Inc (NASDAQ:CAPR)

Capricor Therapeutics Inc (NASDAQ:CAPR)

Capricor Therapeutics Inc (NASDAQ:CAPR) shares gapped up this morning and have gained over 20% from their Friday closing price on ten times their average daily volume. CAPR stock opened at $2.65, $0.38 above Friday’s close, and moved above the $3 handle within ten minutes. Sellers then came in and pushed the price down to $2.80 before the shares resumed their upward move. At the time of the writing, 10:15 AM EST, CAPR stock is trading around the $3 once again.

Capricor Therapeutics, Inc. (NASDAQ:CAPR) is a clinical-stage biotechnology company discovers, develops, and commercializes biological therapeutics for the treatment of rare disorders. Capricor’s lead drug candidate is, CAP-1002 – an “off-the-shelf” cell therapy that is currently in clinical development for the treatment of Duchenne muscular dystrophy. Capricor is also investigating the field of extracellular vesicles and is exploring the potential of CAP-2003, a cell-free, exosome-based candidate, to treat a variety of disorders.

On November 8, 2017, Beverly Hills, CA-based Capricor Therapeutics, Inc. (NASDAQ:CAPR) reported a Q3 2017 loss of (-$2.7). or (-$0.12) per share, on adjusted revenues of $313,000. The loss beat analyst expectations that forecasted a loss of (-$0.19) per share. The biotech firm also bested expectations in Q2 when actual earnings beat estimates by 11%.

CAPR Stock Performance

At the beginning of 2012 CAPR stock was trading above $20 before it went into a steady slide. Over the past year CAPR stock has experienced a wide range in its price. Its 52-week low is $0.63 but its 52-week high is $4.25.

Shareholders of Capricor Therapeutics, Inc. (NASDAQ:CAPR) have lagged the market as the stock is down 7% year-to-date. However, in the past quarter, shares have risen over 114%. That strong gain is reflected in CAPR’s Relative Strength Index score of 68 – just below the level of 70 which many traders believe to be the threshold figure for an “oversold” condition.

Losses have plagued the company since 2012 when they posted a EPS of (-$0.21), followed by annual EPS losses of (-$0.85), (-$0.53), (-$0.81), and, for 2016, (-$1.01). Sales were on a positive slope from 2013 when it reported a figure of $500,000. By 2015 that number grew to $5.5 million, but declined in 2016 to $4 million.

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.

Don’t miss out! Stay informed on $CAPR and receive breaking news on other hot stocks by signing up for our free newsletter!

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.

Avid Technology, Inc. (NASDAQ:AVID)

Avid Technology, Inc. (NASDAQ:AVID) Q3 Earnings Beat Estimates

Avid Technology, Inc. (NASDAQ:AVID)

Shares of Avid Technology, Inc. (NASDAQ:AVID) gained 26.24% after the global media technology company reported better than expected Q3 2017 financial results. Revenues and bookings exceeded guidance in the quarter. Strong improvement in adjusted EBITDA allowed the company to post a fourth consecutive quarter of positive cash flow.

Avid Technology, Inc. (NASDAQ:AVID)

AVID Investors Reaction

Investors reacted to the stellar financial results by pushing the stock from this year’s lows to $5.10 a share. The stock is up by more than 10% for the year. Avid Technology, Inc. (NASDAQ:AVID) faces resistance at the $5.50 mark above which it could make a to this year’s highs of $6 a share.

Renewed investor interest in the stock is as a result of the company exceeding guidance in all its key metrics. According to Chief Executive Officer, Louis Hernandez, Jr., completion of transformation should allow Avid technology to drive profitable growth as well as increase revenue visibility and cash flow.

AVID Q3 Results

For the three months ended September 30, 2017, Avid technology bookings came above the upper end of guidance at $102.8 million. Constant currency bookings totaled $107.9 million which were in line with guidance. GAAP Revenue was $105.3 million above the upper end of guidance. Gross margin came in at 57.3%.

Net income in the quarter came in at $72,000 as adjusted free cash flow came in at $0.5 million at the upper end of the guidance. Adjusted free cash flow for the first nine months rose to $55.7 million,

According to the Chief Executive Officer, customers ranging from the largest media enterprise continue to adopt Avid Technology, Inc. (NASDAQ:AVID)’s innovative solutions.

“With our cloud-enabling MediaCentral platform, enterprises are unlocking greater strategic value from their Avid partnership as we help them to achieve new economies of scale while they work to engage audiences on any device with increasing amounts of content,” said Mr. Hernandez.

Q4 Outlook

During the quarter, Avid Technology, Inc. (NASDAQ:AVID) signed several multi-year enterprise deals with large customers, including Viacom and NHK. Total licenses for the MediaCentral platform increased 27% year-over-year to 51,000. Direct digital bookings with individual creative professionals increased 35% year-over-year.

For the fourth quarter Avid Technology, Inc. (NASDAQ:AVID) expects bookings to range between $118 and $132 million. Revenue, on the other hand, should range between $103 and $113 million.

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.

Don’t miss out! Stay informed on $AVID and receive breaking news on other hot stocks by signing up for our free newsletter!

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.

Real Industry Inc (NASDAQ:RELY)

Real Industry Inc (NASDAQ:RELY) Shares Take Dive

Real Industry Inc (NASDAQ:RELY)

Real Industry Inc (NASDAQ:RELY) stock cratered on Friday, losing over 65% on a volume figure that was almost 90 times the listed daily average. RELY shares gapped down to open at $1 from their Thursday close of $1.70, then went on to make a new 52-week low of $0.25 before closing at $0.65.

Sherman Oaks, CA-based Real Industry Inc (NASDAQ:RELY) is a holding company that seeks to create a sustainably profitable business acquiring companies that meet strict metrics with regards to value and structure. Our business strategy also seeks to take advantage of Real Industry’s U.S. federal net operating loss tax carryforwards of $916 million.

The company, through its subsidiaries, is involved in aluminum melting, processing, recycling, and alloying activities in the United States and internationally. The company operates in two segments, Real Alloy North America and Real Alloy Europe. It processes scrap aluminum and by-products. It manufactures wrought, cast, and specification or foundry alloys. The company serves the automotive, consumer packaging, aerospace, building and construction, steel, and durable goods industries, as well as wrought alloy producers, foundries, and casters.

Real Industry Business

Real Industry Inc (NASDAQ:RELY) reported sales of $1.25 Billion for 2016. However, the company has a market capitalization of less than $20 million. Earnings have been negative since 2012 when the company posted a per share loss of (-$0.34). By 2016, that loss had grown to (-$3.71).

Unfortunately, the earnings losses were not the only headwind experienced by shareholders. In 2014 the company had 13.4 million shares outstanding. In the next two years the company issued more shares, thereby diluting shareholder equity, and by the end of 2016 the number of outstanding shares was listed at 28.72 million.

RELY Stock Performance

In mid-2016, RELY shares were hitting resistance at $9. A steady slide in the share price ensued and by August shares were meeting support around $1.75. Then, On Friday, RELY shares plummeted below the $10 handle. That level is not just important psychologically, the NASDAQ Market has rules that mandate a share’s bid price remain over $12 for a specified amount of time or else the stock could be de-listed.

Year-to-date, RELY stock has lost over 90% of its value. In the past week it has lost 64% of its value. However, the two firms that follow Real Industry Inc (NASDAQ:RELY) rate RELY shares as a “Strong Buy” with a consensus, one-year price target of $5.

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.

Don’t miss out! Stay informed on $RELY and receive breaking news on other hot stocks by signing up for our free newsletter!

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.