03-25-2021, 02:41 AM
Fluent (FLNT) - Highly volatile + Market Psychology play
<!-- SC_OFF --><div class="md"><p>I should point out that <em>this is my first DD</em>, and that this <strong>IS NOT FINANCIAL ADVICE</strong>, I am simply condensing information that I've found and am using myself. <strong>DO YOUR OWN RESEARCH.</strong></p> <p>My DD focuses on financials, with some of the theory I've picked up over the past few weeks of looking into the markets/investing/trading. I'll try to keep it concise;</p> <p>Fluent (FLNT) focuses on being "grounded in marketing innovation" (<a href="https://www.fluentco.com/about-us/">Source</a>), with their motto being "Enabling advertisers to identify, win and keep the best customers for their business". Fluent (FLNT) is partnered with over 500 clients, and according to the information on their website, this includes Fortune 500 brands.</p> <p>On the 29th of April 2020, Fluent (FLNT) has announced plans to accelerate international expansion in response to increased demand from advertisers.</p> <p><strong>Pros;</strong></p> <p>- <strong>RSI is in the oversold territory</strong>, currently sitting at 32.44 at the time of writing this post.</p> <p>- <strong>200 SMA</strong> is above the current price, along with the <strong>50SMA</strong> and <strong>20SMA</strong> being above each other, which is suggesting, from my knowledge, a bullish trend.</p> <p>- <strong>Current Ratio</strong> (Assets/Liabilities) is <strong>over 1.5</strong> (1.70 to be exact).</p> <p>- Current trading volume is at ~275,000, meaning that it is relatively easy to buy and sell, unlike some of the penny stocks, meaning that the market order you place will likely go through at the price you've put it, and you won't have to wait for longer periods of time before your order eventually goes through.</p> <p>- The <strong>Beta factor</strong> is sitting at 3.07, meaning that this stock is <strong>highly volatile</strong> compared to the market - If the market goes up by 10%, it would be expected to see the shares of FLNT to go up by ~30%, and vice versa.</p> <p>- <strong>Institutional ownership at 30.80%</strong></p> <p>- High <strong>increases in EPS</strong> this year (226%) and projections for next year (50%), along with increased sales over past 5 years (85%).</p> <p><strong>Cons;</strong></p> <p>- It has been recently (17.03.2021) <strong>downgraded from 'Outperform' to 'Market Perform'</strong> by Barrington Research, due to the slowdown in the growth for the fourth-quarter. The management claims that their decision "... to limit its business to higher-quality advertising traffic..." <strong>may result in being beneficial in the long term</strong> (<a href="https://www.fool.com/investing/2021/03/17/why-fluent-stock-was-slammed-on-wednesday/?source=eptyholnk0000202&utm_source=yahoo-host&utm_medium=feed&utm_campaign=article">Source</a>). Consequently, some of the investors have decided to exit their positions, leading to a drop from ~6.85 to ~5.70, and currently sitting at ~4.40 at the time of writing this post.</p> <p><strong>Information worth noting;</strong></p> <p>- Key levels to pay attention to from my understanding; ~4.25, ~6.00, ~7.20.</p> <p>- <a href="https://editorial.azureedge.net/miscelaneous/gvelazquez-20171010-market-cycle-emotion-636432987191782895.jpg">Market Psychology</a>, from the DD, I'm thinking that this stock may be at either the <strong>'Panic' stage</strong> or the <strong>'Capitulation' stage</strong>, and taking into consideration that the stock is being oversold, there may be a price jump coming up, as it is closing in on a key support level (~4.25).</p> <p>- Institutional ownership might be a key factor to pay attention to as well, as we all know, <strong>smart money is many steps ahead of us</strong>, and they have the means to move the price with ease with further investments, or by exiting their positions.</p> <p>Lastly, I'm gonna repeat myself - <strong>Do your own research. I am not a financial advisor, I do not take responsibility for your decisions, this information is publicly available.</strong></p> <p>Also, any constructive criticism on my first DD? Much appreciated.</p> </div><!-- SC_ON --> submitted by <a href="https://www.reddit.com/user/ADK-KND"> /u/ADK-KND </a> <br/> <span><a href="https://www.reddit.com/r/investing/comments/mc8nea/fluent_flnt_highly_volatile_market_psychology_play/">[link]</a></span> <span><a href="https://www.reddit.com/r/investing/comments/mc8nea/fluent_flnt_highly_volatile_market_psychology_play/">[comments]</a></span>Kind Regards R
<!-- SC_OFF --><div class="md"><p>I should point out that <em>this is my first DD</em>, and that this <strong>IS NOT FINANCIAL ADVICE</strong>, I am simply condensing information that I've found and am using myself. <strong>DO YOUR OWN RESEARCH.</strong></p> <p>My DD focuses on financials, with some of the theory I've picked up over the past few weeks of looking into the markets/investing/trading. I'll try to keep it concise;</p> <p>Fluent (FLNT) focuses on being "grounded in marketing innovation" (<a href="https://www.fluentco.com/about-us/">Source</a>), with their motto being "Enabling advertisers to identify, win and keep the best customers for their business". Fluent (FLNT) is partnered with over 500 clients, and according to the information on their website, this includes Fortune 500 brands.</p> <p>On the 29th of April 2020, Fluent (FLNT) has announced plans to accelerate international expansion in response to increased demand from advertisers.</p> <p><strong>Pros;</strong></p> <p>- <strong>RSI is in the oversold territory</strong>, currently sitting at 32.44 at the time of writing this post.</p> <p>- <strong>200 SMA</strong> is above the current price, along with the <strong>50SMA</strong> and <strong>20SMA</strong> being above each other, which is suggesting, from my knowledge, a bullish trend.</p> <p>- <strong>Current Ratio</strong> (Assets/Liabilities) is <strong>over 1.5</strong> (1.70 to be exact).</p> <p>- Current trading volume is at ~275,000, meaning that it is relatively easy to buy and sell, unlike some of the penny stocks, meaning that the market order you place will likely go through at the price you've put it, and you won't have to wait for longer periods of time before your order eventually goes through.</p> <p>- The <strong>Beta factor</strong> is sitting at 3.07, meaning that this stock is <strong>highly volatile</strong> compared to the market - If the market goes up by 10%, it would be expected to see the shares of FLNT to go up by ~30%, and vice versa.</p> <p>- <strong>Institutional ownership at 30.80%</strong></p> <p>- High <strong>increases in EPS</strong> this year (226%) and projections for next year (50%), along with increased sales over past 5 years (85%).</p> <p><strong>Cons;</strong></p> <p>- It has been recently (17.03.2021) <strong>downgraded from 'Outperform' to 'Market Perform'</strong> by Barrington Research, due to the slowdown in the growth for the fourth-quarter. The management claims that their decision "... to limit its business to higher-quality advertising traffic..." <strong>may result in being beneficial in the long term</strong> (<a href="https://www.fool.com/investing/2021/03/17/why-fluent-stock-was-slammed-on-wednesday/?source=eptyholnk0000202&utm_source=yahoo-host&utm_medium=feed&utm_campaign=article">Source</a>). Consequently, some of the investors have decided to exit their positions, leading to a drop from ~6.85 to ~5.70, and currently sitting at ~4.40 at the time of writing this post.</p> <p><strong>Information worth noting;</strong></p> <p>- Key levels to pay attention to from my understanding; ~4.25, ~6.00, ~7.20.</p> <p>- <a href="https://editorial.azureedge.net/miscelaneous/gvelazquez-20171010-market-cycle-emotion-636432987191782895.jpg">Market Psychology</a>, from the DD, I'm thinking that this stock may be at either the <strong>'Panic' stage</strong> or the <strong>'Capitulation' stage</strong>, and taking into consideration that the stock is being oversold, there may be a price jump coming up, as it is closing in on a key support level (~4.25).</p> <p>- Institutional ownership might be a key factor to pay attention to as well, as we all know, <strong>smart money is many steps ahead of us</strong>, and they have the means to move the price with ease with further investments, or by exiting their positions.</p> <p>Lastly, I'm gonna repeat myself - <strong>Do your own research. I am not a financial advisor, I do not take responsibility for your decisions, this information is publicly available.</strong></p> <p>Also, any constructive criticism on my first DD? Much appreciated.</p> </div><!-- SC_ON --> submitted by <a href="https://www.reddit.com/user/ADK-KND"> /u/ADK-KND </a> <br/> <span><a href="https://www.reddit.com/r/investing/comments/mc8nea/fluent_flnt_highly_volatile_market_psychology_play/">[link]</a></span> <span><a href="https://www.reddit.com/r/investing/comments/mc8nea/fluent_flnt_highly_volatile_market_psychology_play/">[comments]</a></span>Kind Regards R