Rivian Automotive, Inc.
Rivian Automotive, Inc. (NASDAQ: RIVN) is an electric car and accessory company that designs, develops, and manufactures category-defining vehicles and accessories.
RIVN went listed on November 10, 2021, at an initial offering price of USD 78.00.
On February 1, 2022, the Company announced its fourth-quarter and full-year financial results for 2021 will be revealed on March 10, 2022.
Key Highlights:
- The Company spent USD 83 million to generate sales of USD 1 million in Q3 FY21, compared to NIL in Q3 FY20, resulting in a reduction in top-line business.
- In Q3 FY21 and Q3 FY20, the Company incurred operating expenses of USD 694 million versus USD 288 million, resulting in considerable increases in losses of USD 1233 million versus USD 288 million.
- The COVID-19 pandemic's cascading effects have influenced its business and operations, from building development to equipment installation to vehicle component procurement.
- As a new entrant into the automotive business, the Company may find it challenging to compete in this industry.
- From a technical viewpoint, the Stock is currently trading below its crucial support level of 50 days SMA, indicating a bearish trend.
- The Stock is trending lower within its 52-week range of USD 50.00 to USD 179.46.
Stock Recommendation
Considering the operational and financial performance, continuing losses, competition risk, other risk factors and unfavourable technical indicators, we recommend a "Watch" rating on the Stock at the closing price of USD 60.95, up 4.44% as of February 8, 2022.
RIVN’s Technical Price Chart (Source: REFINITIV, Analysis by Kalkine Group)
*The reference data in this report has been partly sourced from REFINITIV
Park City Group, Inc.
Park City Group, Inc. (NASDAQ: PCYG) provides software as a service. The business and its subsidiaries create, market, and support proprietary software. On February 02, 2022, the Company announced to publish financial report earnings for Q2 FY22 on February 14, 2022.
Key Highlights:
- The Company recorded a decline in revenue by 12.74%, from USD 45.59 million in Q1 FY22 to USD 52.25 million in Q1 FY21.
- As of September 30, 2021, the Company had USD 20.4 million in cash and cash equivalents, compared to USD 24.1 million as of June 30, 2021, resulting from a net decline of USD 3.7 million.
- The Company may see difficulties predicting the amount of service and technological resources that customers of new offerings will require. If it underestimates the needed resources, the quality of service will suffer, lowering the product's value.
- The Company’s net income to common shareholders increased to USD 0.8 million in Q1 FY22 compared to USD 0.41 million in Q1 FY21.
- The Stock is trading towards the upper band of the 52-week range of USD 4.80 to USD 8.64, resulting in an overbought zone.
- From a technical viewpoint, the 14 days RSI level is ~72.51, indicating bearing momentum.
Stock Recommendation
Based on the decrease in revenue, decline in cash, associated risks related to business, and bearish technical indicators. We suggest keeping an eye on this Stock as the price is in the overbought zone. Hence, we recommend a "Watch" rating on the Stock at the closing price of USD 8.35, down 2.95% as of February 8, 2022.
PCYG’s 1-Year Technical Price Chart. (Source: REFINITIV, Analysis by Kalkine Group)
. *The reference data in this report has been partly sourced from REFINITIV.
Disclaimer - This report has been issued by Kalkine Pty Limited (ABN 34 154 808 312) (Australian financial services licence number 425376) (“Kalkine”) and prepared by Kalkine and its related bodies corporate authorised to provide general financial product advice. Kalkine.com.au and associated pages are published by Kalkine.
Any advice provided in this report is general advice only and does not take into account your objectives, financial situation or needs. You should therefore consider whether the advice is appropriate to your objectives, financial situation and needs before acting upon it.
There may be a Product Disclosure Statement, Information Statement or other offer document for the securities or other financial products referred to in Kalkine reports. You should obtain a copy of the relevant Product Disclosure Statement, Information Statement or offer document and consider the statement or document before making any decision about whether to acquire the security or product.
You should also seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) as necessary before acting on any advice in this report or on the Kalkine website. Not all investments are appropriate for all people.
The information in this report and on the Kalkine website has been prepared from a wide variety of sources, which Kalkine, to the best of its knowledge and belief, considers accurate. Kalkine has made every effort to ensure the reliability of information contained in its reports, newsletters and websites. All information represents our views at the date of publication and may change without notice.
Kalkine does not guarantee the performance of, or returns on, any investment. To the extent permitted by law, Kalkine excludes all liability for any loss or damage arising from the use of this report, the Kalkine website and any information published on the Kalkine website (including any indirect or consequential loss, any data loss or data corruption). If the law prohibits this exclusion, Kalkine hereby limits its liability, to the extent permitted by law, to the resupply of services.
Please also read our Terms & Conditions and Financial Services Guide for further information.
On the date of publishing this report (referred to on the Kalkine website), employees and/or associates of Kalkine and its related entities do not hold interests in any of the securities or other financial products covered on the Kalkine website unless those persons comply with certain safeguards, procedures, and disclosures.
Kalkine Media Pty Ltd, an affiliate of Kalkine Pty Ltd, may have received, or be entitled to receive, financial consideration in connection with providing information about certain entity(s) covered on its website.