This is an update on a very disappointing investment.
I’ve rarely had any penny stocks on the site but RIWI Corporation was on the site from July b2020 until I believe the end of 2021. Unfortunately the price in that time has slipped from $2.95 to $0.70.
It’s had a lot of turmoil and it has lost money for the past two calendar years. It’s now looking a little more promising as it made a tiny profit in Q3 and appears set for profit going forward.
I wanted to update it because I still own it. I won’t add it back on the list with a full report unless someone wants me too.
At this point those holding it in a taxable account could sell for tax-loss purposes. Or just hold it and see how it does next year.
I’ll just post here the Summery cell from my updated analysis.
| SUMMARY AND RATING: This is a very small software company. It has recently gone through some turmoil with the founder relinquishing the CEO role, 5 longer term directors leaving, a change of auditors and incurring losses in 2021, 2022 and 2023. The current value ratios, in isolation, would suggest a rating of Sell. It provides and sells a complex data service that is not easy to understand. Its data is intended to provide timely indications of changes in public attitudes. This can be used to predict elections. It can also indicate changes in attitudes towards carbon taxes, virus lockdowns, vaccinations and many other things. It has a relatively small but growing number of customers.
The insider trading signal is mixed as an early venture capital investor has sold out its position with some sales at low prices while the new CEO bought shares and the new CFO bought a tiny amount both around 50m cents.. The earnings trend has been quite negative but it returned to about break-even in the latest quarter. The company explains that the lower profits are due to investments in sales employees and in technology to grow the business. Executive compensation appears to be reasonable but Board compensation was quite high. On a positive note, the company has ample cash and no debt and therefore is in no danger at all financially for the foreseeable future. At this time we would rate it highly speculative Weak Sell / Hold at best. This company is suitable a modest investment / holding at most. Those holding it may wish to retain it given that things do seem set to improve going forward. |