China Xiangtai Food Co., Ltd. (PLIN) stock, an emerging food processing company, continued to rise in the pre-market trading session today on May 11, 2021, without any particular activity or news related to it.PLIN stock price saw a push of 23.73% today to reach $0.928 a share as of this writing. PLIN stock inched up by 1.06% at the previous closing. Let’s deep dive to explore more of it.
There is no specific news or announcement by the PLIN stock in recent days to explain the bullish sentiment. We don’t find any announcement even in this whole year by the PLIN stock to relate something to the recent trend. Also, there are no signs of analysts upgrades or increased per share targeted price of the PLIN stock to justify this bull. This left some investors wondering what to make of it all. In such situations, it is better to know the previous developments and financial position to understand a bit about any particular stock.
Financial View of PLIN stock:
The last news we find about China Xiangtai Food is its financial results for the fiscal year ended June 30, 2020, which PLIN stock announced on December 21, 2020, the highlights of which are given below.
- Revenues surged by 11.6% from the fiscal year 2019 to reach $110.6 million in fiscal 2020.
- Gross profit of $7.2 million for PLIN stock was reduced at that time by 17.0% as compared to 2019.
- The gross margin moved back from 8.7% in 2019 to 6.5% in 2020.
- PLIN stock suffered a net loss of $4.9 million in 2020 as compared to net income of $4.4 million in 2019.
- Basic and diluted loss per share for PLIN stock was$0.14 as compared to basic and diluted earnings per share of $0.24 in 2019.
- PLIN stock had cash and cash equivalents of $1.5 million as of June 30, 2020, while these were $3.2 million on the same date of 2019.
On December 17, 2020, PLIN stock did announce a sales agreement with Chongqing Yongyaoge Technology Co., Ltd. In order to supply CYT products worth $3.5 million. At that time, the CEO of the China Xiangtai had assured that PLIN stock would continue such developments to expand its business and maintain its growth.
PLIN stock is enjoying the bullish sentiment so far despite the absence of any specific news related to it. Such rises and falls don’t last forever as it is a universal truth, and no one can deny this fact. So, it is better to understand the company’s fundamentals, balance sheet, past developments, and future growth before making any decision.