Share Movement: CoinAnalyst Stock (COYX.CN)
With the current bearish sentiment hampering the general Canadian markets, it is always good to take the time to look for companies with solid fundamentals that will enjoy significant growth. Coinanalyst stock is a part of these companies and we will analyze the recent information provided by the company and the share data. Coinanalyst provides up-to-the-minute access to information and data that matters and moves markets.
Coinanalyst is looking to dive into another hot market, NFTs. CoinAnalyst announced an agreement on January 11, 2022, with RockStock Equities Inc. They are acquiring all of the issued and outstanding shares in RockStock’s capital.
Rockstock empowers artists through a state-of-the-art app platform that allows them to directly monetize their music, create “pay-per-view” performances, and participate in the exciting new world of NFT revenue generation. For the fans, it is an opportunity to connect with and support the artists they love through a multi-genre online competition and participate in profit opportunities by purchasing Artist Security Tokens and NFTs.
To proceed with the acquisition, Coinanalyst will purchase all of the shares of RockStock for $937,500 through the issuance of 3,750,000 common shares of the COYX at a deemed price of $0.25 per share. Suppose at the end of the six month period immediately following the Transaction’s closing, RockStock has developed a minimum viable product. In that case, the company will issue an additional 250,000 Common Shares at a deemed price of $0.25 per share.
There are currently 73.4M outstanding for 80M shares fully diluted. Investors will like the small number of fully diluted shares, which means we can see more considerable variations when there is volume. 5,520,000 shares are locked by insiders, representing 7.5% of the float. We could consider this number quite low but still exceptional for an emerging company. We did not see any buying or selling from insiders for the last 3 months. Last year, we witnessed insiders granting stock options for an exercise price of $0.20. It represents a 100% upside compared to the current share price. It will be interesting to see what actions the company will trigger to reach the exercise price level.
Additionally, Investors saw this data. We will see a wall at $0.20. Currently, there are three orders representing more than 130k shares. Below this ask, selling orders aren’t imposing, which indicates it will be easy for the stock price to climb when volume comes.
Coinanalyst went public on November 1st, 2021, opening at CAD $0.30. Since then, the stock has endured a 63% downtrend and is trading around CAD $0.10. During this short timeframe, the stock price witnessed its all-time high at $0.31 (reached on November 11th) and an all-time low of $0.095 (reached on February 11th and again on February 18th).
Investors are still bearish entering COYX. The Simple MA (200) is at $0.15 and clearly above the Simple MA (20), at $0.11. We might see consolidation around this price until the company shares bullish news or a crossing done by the Simple MA (20). The RSI level indicates that the stock price is in the oversold territory because its RSI (25.27) went under 30. The Bollinger Bands inform us that we could potentially see daily fluctuations between $0.10 to $0.12.
The average volume steadily increased from 78k shares traded (30-day ADV) to 98k (10-day ADV). Surprisingly, the intraday volume on Thursday remained incredibly low. It did not only happen to COYX but to many companies traded on junior exchanges. With the economy’s uncertainty, investors await to receive positive news.
Let us take a look at the fair valuation of the company compared to its peers. To measure this data, we will use the Price/Sales ratio. The lower this ratio is, the more a company is close to its fundamentals. Coinanalyst currently has a P/S ratio of 7.7. In this type of industry, it is usually common to see high data. Besides, COYX’s ratio is relatively low. If we take a look at other companies’ P/S ratio:
- DigiMax’s P/S is at 36,
- Bluesky Digital’s P/S is at 3,
- BIGG Digital’s P/S is at 14
Just by the P/S ratio, COYX’s share price could go higher without being overvalued.
Quant Reports gives to COYX a fair valuation of $0.21, a 3/5 star rating and indicates, according to its estimates the company is undervalued.
In 2022, the company plans to have a 590% growth subscription and a 436% growth for 2023, which will directly increase its income. In regards to projected financials, Coinanalyst has a revenue target of CAD 17M for the year 2023. This would represent a growth of 1898% in only two years.
Thanks to this data shared by the company, if we consider there aren’t any large dilutions and roughly remain near the same number of outstanding shares, we could target a stock price of $2 by the end of 2023.
With the low volume and the current downtrend, investors may wait for positive news to start an entry point. Besides, the stock is consolidating around $0.11. We could see this level for some time, depending on the company’s ability to share news and the general crypto-markets sentiment to turn optimistic.
This article solely expresses the opinion of the writer which might be disagreeing with the other writers of Money,eh?. Moreover, the writer doesn’t own shares of the Company.
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