Bit Brother Limited (NASDAQ: BTB) serves as a chemical manufacturer, which usually involves in the manufacture and distribution of organic compounds. The company contains PCT/OCT downstream products which are used for pharmaceuticals, agrochemical, dye and other related items. Revenue for the company comes from the stores being directly operated. Having a market capitalization of 93.77 Million dollars, it is considered as a Micro-cap (penny) stock at NASDAQ.
Penny stock (Movers) – Day traders first love?
BTB: Technicals
As far as stock technical are concerned, BTB is highly volatile in price volume comparison. It readily affects any external news impacting the nature of business of Bit Brothers. It has shown a wavy pattern in the chart which indicates the volume of stock being traded in the index. The buy range would be below 2.0 USD for short term trade. Profit takings should be done at each resistance level. The short term price movement suggests between 1.8-2.5 USD.
BTB: Beta & Trader’s & Invetor’s Interest
Apparently, Beta of this stock has reached to 1.35 (5Y monthly) which indicates the price variance as compared to overall index fluctuation. It seems to be a trader’s friendly stock as the volume has ticked around 76.05 Million shares as on today. One would buy this stock at each dip (considering the trend) and should realize profits at the peak level. Short sellers should play an active role in the behavior of this stock. As far as investor is concerned, one should avoid it or hold the share until it hits its 52 week high.
BTB: News Impact
Recently, company has complied the Nasdaq minimum bid price requirements therefore closing bid price reached to 1 USD which shall be implemented from October 20 to Novemeber 2, 2021.
The press release has also shown some forward looking statements which involves some assumptions so company’s actual results may differ materially from the forward statements. Few months before, direct offerings (15 Million ordinary shares & warrants at excise price of 1.5 USD per share) has been announced by Bit Brothers limited which resulted to a price drop. All such news plays a pivotal role in the stock price movement.
BTB: Fundamentals & Recommendation
The company has enough cash (698 Million USD) which seems to enough to tackle liquidity issues. Last year, Earnings are in negative (42.64) which resulted due to pandemic situations. From 2017, company has recovered its earnings and profitable earnings can be seen in near future (EPS growth rate is 54.8%). The adjusted PEG is in negative (-0.67).
