See MNGA balance sheet:
Retained earnings is indeed negative by a whopping minus $27,903,000.
If insiders such as Carla Santilli start buying the stock instead of selling that might be a positive indicator so long as the buying exceeds that long history of insider selling. Not yest.
If the negative retained earnings is not offset by cash (which it is not in this case), avoid the stock like the plague.
1. PEG ratio over 3.0. Potential of returning to PEG of 1.0. PEG 3.0 assumes 300% growth.
2. Negative free cash flow is not good.
3. Asian regulatory trends do not favor unnecessary businesses such as this one.
Just reviewed this one because it has dropped significantly.
If Carla stops dumping at the 10,000 to 20,000 shares per week and starts buying, you might consider this to be a penny stock at best. But, for now, Carla is dumping.
The first numbers to look at on a penny stock is retained earnings and cash.
If retained earnings is negative run to the exits unless the cash offsets the negative.
MNGA sure looks like the plague to me.
If the merger does not go through.
If the Affordable Care Act is torn apart.
All health insurance stocks will plummet to where they were prior to ACA passage.
Note: They have all risen over 100 percent since ACA was signed into law.
Reclassification of generic form based on data.
Question is on impact. No idea.
Must be worth challenging the FDA.
PEG ratio is 1.91 which equates to 11.10 stock value.
(which, unfortunately, does not factor in legal costs & retrofitting settlements)
To value a stock divide the current stock price by its PEG ratio.
In this case divide 20 by 1.91.
Change of CEO does not change financial risk or reputation of company in eyes of the public.
Take a look at LCI, 2B market cap.
Rolling chart over time, currently low in cycle.
PEG ratio less than 1.0 with excellent growth history.
Beats estimates, no debt, $6 / share cash, superior balance sheet.
Growth approach is acquisition of small generic opportunities and it continues to work.
Conservative management of financials / balance sheet but with super growth over time.
Rare opportunity for investors.
Oil & gas industry may have one massive backlog of used equipment on fire sale prices.
Some drillers need the money to survive as they downsize.
Did JP Morgan just put a new price target of $80 on Deere?
That could be far off in either direction.