TDH Holdings, Inc. (PETZ) stock continues its fall in the premarket currently being at $3.80 while it was closed at $3.88 (i.e. -8.92%) on November 5, 2021. The company said Wednesday it raised approximately $9.9 million in gross proceeds by selling15,000,000 common shares priced at $0.64 per share and warrants $0.01 per warrant to purchase 30,000,000 common shares, with the warrants being exercisable at $1.47 per share. This announcement resulted in an aftermarket surge of 195.78% in the price of PETZ stocks. This dramatic bullishness of the stock leads to profit takers closing their profits and hence, starting the decline in the company’s stock price.
More about TDH Holdings
Founded in April 2002, TDH Holdings, Inc. is a PRC-based company specializing in the development, manufacturing, and sales of pet foods and products in China and beyond. The company offers 200 products, including various product lines like pet chews, dried pet snacks, wet canned food, dental health snacks, and baked pet biscuits.
PETZ Earnings
The company declared unfathomable financial results in April 2021 for the fiscal year 2020, showing a huge financial loss. The company’s revenues showed a decrease of 93.55% i.e. a meagre $0.82 million in the fiscal year 2020 from $12.65 million in the fiscal year 2019. The company attributed the decrease in total revenues mainly due to a decline in sales of products on part of uncompetitive sale prices making the products less attractive to the customers. PETZ also listed reasons like partial suspension of overseas E-commerce business because of estimated gross loss; suspension of production and operations due to defaults on loan repayments.
Better cost management and halt on taking unprofitable orders resulted PETZ to decrease its gross loss i.e. $0.04 million gross loss in the fiscal year 2020 as compared to $1.52 million gross loss in the fiscal year 2019. Furthermore, the operating loss was $1.93 million for 2020 while it was $6.96 million in 2019. A net loss of $0.02 per share or $0.87 million was attributed to common stockholders as compared to a net loss of $0.41 per share or $8.63 million, for 2019.
Will the fall in PETZ stock sustain?
Previously the annual general meeting was supposed to be held on October 28, 2021, but later a postponement of the Annual General Meeting was announced, which is now to be held on December 28, 2021. While penny stocks like TDH Holdings are more volatile and have somewhat unclear movements as compared to the larger companies, the end of the fiscal year 2021 would be crucial to the future trajectory of the stock. While different analyst do suggest bullishness in PETZ stock for the long term, as it has been going up since its inception, the upcoming days will clarify whether or not the bearishness will sustain PETZ in near future.
