Blue-Chip

Steer Clear of These US-Listed Stocks - DNA, RGS, MBRX

February 18, 2022 | Team Kalkine
Steer Clear of These US-Listed Stocks - DNA, RGS, MBRX

Ginkgo Bioworks Holdings, Inc.

Ginkgo Bioworks Holdings, Inc. (NYSE: DNA) is developing a platform that will allow consumers to program cells with the same ease as computers. The company's platform is market agnostic, allowing biotechnology applications in various industries, including food and agriculture, industrial chemicals, and medicines.

Key Highlights:

  • Due to the progress of programs with existing and new clients, as well as the introduction of biosecurity products, the firm recorded a substantial increase in total revenues to USD 77.61 million in Q3FY21 (ending September 30, 2021) from USD 13.30 million in Q3FY20.
  • However, its net losses widened to USD 102.41 million in Q3FY21 from USD 26.13 million in Q3FY20.
  • The company's accumulated deficit has increased to USD 697.27 million as of September 30, 2021, from USD 467.88 million as of September 30, 2020.
  • DNA has been operated at a lower gross margin of 71.3% in Q3FY21 compared to the industry median of 85.3%.
  • As a loss-making enterprise, the company has generated negative EBITDA, operating, and net margins compared to positive industry margins.
  • The stock is currently trading below its crucial short-term (50-day) and long-term (200-day) SMA support levels, and its RSI Index is at 35.93, indicating a bearish trend.
  • Stock is leaning towards the lower band of the 52-week range of USD 4.34 to USD 15.86.
  • Its stock price fell 64.54% and 52.06% in the past three and six months, respectively.

One-Year Technical Price Chart (as of February 18, 2022; 11:23 AM ET). Analysis by Kalkine Group

Conclusion: Considering the substantial increase in losses, weak margins, unclear outlook, and other technical indicators, we recommend an "Avoid" rating on the stock at the current price of USD 4.77, down 3.44%, as of February 18, 2022, at 11:23 AM ET.

*The reference data in this report has been partly sourced from REFINITIV.

 

Regis Corporation

Regis Corporation (NYSE: RGS) is a beauty salon company that owns, franchises, and operates salons across North America and the United Kingdom. The outlets offer mass-market salon products and services, such as haircutting, styling, and hair coloring. The great majority of its salons in North America are located in strip malls, shopping centers,          and Wal-Mart stores, and cater to budget-conscious clientele.

Key Highlights:

  • The company reported a 32.65% decline in total revenues to USD 70.26 million in Q2FY22 (ended December 31, 2021) from USD 104.32 million in Q2FY21, due to a deterioration in company-owned salon sales.
  • The company witnessed a decline in net losses to USD 4.93 million in Q2FY22 from USD 32.88 million in Q2FY21.
  • As of September 30, 2021, its debt/equity ratio was 5.07x, compared to the industry median of 0.40x, indicating a solvency risk to its balance sheet.
  • Stock is currently trading between its crucial short-term (50-day) and long-term (200-day) SMA support levels, and its RSI Index is at 57.74, indicating an overbought zone.
  • Stock is leaning towards the lower band of the 52-week range of USD 1.30 to USD 13.92.
  • The stock is highly volatile as it has shown a significant drop of 82.09% in the past twelve months.

Three-Year Technical Price Chart (as of February 18, 2022; 11:28 AM ET). Analysis by Kalkine Group

Conclusion: Considering the volatile nature of the stock, fall over in topline, highly leveraged balance sheet, and other technical indicators, we recommend an "Avoid" rating on the stock at the current price of USD 1.845, down 4.90%, as of February 18, 2022, at 11:28 AM ET.

*The reference data in this report has been partly sourced from REFINITIV.

  

Moleculin Biotech, Inc.

Moleculin Biotech, Inc. (NASDAQ: MBRX) is a clinical-stage pharmaceutical business focused on developing therapeutic candidates for the treatment of highly resistant malignancies and viruses. Annamycin, the WP1066 Portfolio, and the WP1122 Portfolio are the company's three primary technologies, which feature a total of five therapeutic candidates, three of which have shown human action in clinical trials.

Key Highlights:

  • The company is yet to report any revenue from its operations.
  • The company's net losses widened to USD 4.38 million in Q3FY21 from USD 3.40 million in Q3FY20. Since its beginning, the company has incurred net losses, and the prospects aren't looking promising due to a lack of commercial revenues.
  • The company's accumulated deficit has increased to USD 69.98 million as of September 30, 2021, from USD 56.92 million as of September 30, 2020.
  • The company is constantly issuing common stock and warrants, diluting existing shareholders' holdings and reducing their ownership in the company.
  • The stock is currently trading below its crucial short-term (50-day) and long-term (200-day) SMA support levels, and its RSI Index is at 29.39, indicating a bearish trend.
  • Stock is leaning towards the lower band of the 52-week range of USD 1.31 to USD 5.03.
  • Its stock price fell 39.09% and 51.62% in the past three and six months, respectively.

Three-Year Technical Price Chart (as of February 18, 2022; 11:22 AM ET). Analysis by Kalkine Group

Conclusion: Considering the substantial increase in losses, lack of clarity in topline, bleak outlook, and other technical indicators, we recommend an "Avoid" rating on the stock at the current price of USD 1.34, down 3.60%, as of February 18, 2022, at 11:22 AM ET.

*The reference data in this report has been partly sourced from REFINITIV.


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