This company i.e Westwater Resources Inc (WWR) based on the development of US mineral resources, which is necessary to clean energy production. It is focused on the graphite battery and dependent on the energy sources which are more reactive to our environment. Their differentiate propositions consist of US domestic graphite stock, graphite products like a lithium-ion battery, lead-acid battery, alkaline battery, etc. With ROA & ROE being negative around -13.29 & -28.84%, investors are losing their confidence showing low volumes in the recent past.
Few Eyes on a low performing stock – Black Sheep in the industry
WWR: Technicals
WWR Stock is flowing in a range-bound movement i.e 3.2 – 3.3 over the last few months having very low volumes. The RSI trends have shown very less movement, trailing around 40-48 which implies that a hold position is recommended for the existing investors. The company’s announcement of battery graphite sales caused the price to take a further dip. Overall indicators represent no direction of it, either it will cause a further downtrend if such scenario continues.
Financials
While analyzing numbers for the last three years, Westwater Resources Inc (WWR) has increased its assets by 43.5% YoY basis. Equity has been raised in last year which has caused the number of shares to a massive increase. There has been a slight decrease in quarterly cash flows while the company maintains its ending cash flow to a considerable amount (118,969,000 USD). Net liabilities are also less as compared to its assets therefore it can be concluded that the company has some plans to outperform its operations or expand it in the near future
Key Stock Features
Westwater Resources Inc (WWR) is realizing losses in the last few years which is reflected in the stock price traded at NASDAQ (i.e 3.23). The enterprise value of WWR is also negative 5.38M. The company has acquired no such dividend or stock split strategy to boost shareholders’ holder’s trust instead they have raised more equity from them. It seems that the company has enough cash to tackle liquidity crises but they have to take drastic measures to increase operations and convert losses to profitability. Stock has 52 high/low of 11.45 & 3.05 USD respectively.
WWR: Recommendation
WWR has proved to be an odd stock in its peer, this happened due to loss nature and less operations by country than expected by their shareholder. The company has raised enough capital last year which seems to have some plans by senior leadership. It won’t be bad to AVOID entry in this script for a certain period. Any investor or trader would choose this script once the company performs well in its fundamentals which sooner or later affects its stock price.