The market is absolutely on fire… Stocks like JOBY and ACHR have joined the party. That's right…we're at the flying car stage of the market euphoria. But they are not the only stocks to keep on your radar. There's also AERWINS Technologies (NASD: AWIN)... A recent pump that's down nearly 97% YTD. Is it so ugly…it's good? You'll have to read about it to find out. AERWINS Technologies (NASD: AWIN) 1-month trading range: $0.332 - $0.7440 Typical average daily volume: 511.7K Float: ~ 52.4 million AERWINS Technologies Based in Japan, AERWINS Technologies Inc. is revolutionizing the air mobility industry by developing and manufacturing cutting-edge platforms. Who has time to worry about bumper-to-bumper traffic anymore? AERWINS produces open sky, hoverbikes, and drones. And by the looks of the images…it is straight out of a Hollywood SCI-FI flick.  Source: Aerwins The XTURISMO is like a flying motorcycle. And it was featured in the BBC Science Focus article, "The 19 most mind-blowing science stories of 2022." Then there's C.O.S.M.O.S. – a UAV including drones and air mobility platform that enables proper planning, monitoring, and management of aircraft condition. It ensures the safety of surrounding environments and operators, which are key drivers of the automatic operation of UAVs. And if that doesn't do it for you… The company also dabbles in shared computing services, blockchain verification, and AI algorithm generation services. That's what I call covering all the bases. But what about their financials…are they making any dough?  Source: Aerwins The company recently made headlines on Monday, July 17, 2023, when it announced a blueprint for a revolution in personal transportation– XTURISMO, which it believes will be ready to launch to market later this year after receiving the necessary approval from the Japan Civil Aviation Bureau (JCAB). Financials  Source: Stockanalysis.com Believe it or not…AWIN is a revenue-producing company. However, that's the only bright spot after digging through the numbers. There are some major red flags, including: - Declining Revenues: The company's revenue has been on a consistent decline from 2020 to the TTM period. This trend is alarming as it indicates that the company's sales are decreasing, and it might struggle to maintain its market position or find new growth opportunities.
- Negative Operating Income: The company has been operating at a loss for the past four years, with a noticeable widening of the loss from 2020 to the TTM period. This indicates that the company's day-to-day operations are not generating enough revenue to cover the operating expenses, which is unsustainable in the long run.
- Negative Net Income and Earnings Per Share (EPS): The company consistently loses money, reflected in its negative net income and EPS. This is a significant concern as it directly affects the return to the shareholders.
- Increasing Total Debt: The company's total debt has risen substantially from 2020 to 2021, although it has been reduced in the TTM period. The high debt levels can make it difficult for the company to raise further capital and increase its financial risk.
- Negative Free Cash Flow: The company's free cash flow has remained negative, which suggests that it's not generating enough cash from its operations to support its investment activities and capital expenditures.
Promoter Activity I received word about AWIN from one promoter. Here are there main highlights of the company: - The company has made a cutting-edge hoverbike and won awards from the Global Innovation Competition.
- It has a strategic partnership that could spread the company's influence throughout the Middle East.
- It recently added some key players to its board of directors.
- The promoter claims it's a low float which could create volatility and opportunity.
- Its recent price action could be pointing to some key support levels.
The promotional campaign lasted from 7/16 to 7/17. For their efforts, the promoter received a cool $25 G's. Straight to the Facts This company is hemorrhaging money. But you know what? It doesn't matter much because this market is going crazy right now. All it needs is a solid PR, and this thing will run. Believe it or not, traders are eating up flying vehicle companies. Look at Joby Aviation which is up 151% over the last quarter. That said, AWIN is worth putting on your watchlist. Always at your service, Baron Von Stocks |
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