The9 Limited [NCTY] is 545.76% higher this YTD. Is it still time to buy?

The9 Limited [NASDAQ: NCTY] closed the trading session at $22.86 on 04/12/21. The day’s price range saw the stock hit a low of $22.42, while the highest price level was $29.59. The company report on April 9, 2021 that The9 Signed a Legally Binding Memorandum of Understanding on the Additional Purchase of Bitcoin Mining Machines.

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The9 Limited (Nasdaq: NCTY) (“The9”), an established Internet company, announced that it signed a legally binding Memorandum of Understanding (the “MOU”) with an unrelated Bitcoin mining machine owner to purchase Bitcoin mining machines by the issuance of Class A ordinary shares. This batch of Bitcoin mining machines consists of 2,000 units of AvalonMiners with total hash rate of approximately 100PH/S. According to the MOUs, The9 will issue approximately 8,127,390 Class A ordinary shares (equivalent to 270,913 ADSs) to the sellers based on The9 share price of US$24.81 prior to the MOU, with a lock up period of 6 months. The number of Class A ordinary shares to be issued is subject to certain price adjustment mechanisms to be assessed 6 months after the signing of the definitive agreements. The9 will designate an independent valuation firm to conduct examination and assessment of the Bitcoin mining machine fair market value, and will make adjustment to the number of Class A ordinary shares to be issued if needed.

The9 also announced that it completed the signing of the definitive agreements for 12,246 units of Bitcoin mining machines with total hash rate of approximately 288PH/S. The number of Class A ordinary shares to be issued is calculated with reference to the fair market values on the valuation reports issued by an independent valuation firm and The9 share price prior to the respective Memorandums of Understanding signing date. The9 will issue a total number of 9,387,840 Class A ordinary shares (equivalent to 312,928 ADSs) to the sellers, with a lock up period of 6 months.

The stocks have a year to date performance of 545.76 percent and weekly performance of -24.65 percent. The stock has been moved at 603.60 percent over the last six months. The stock has performed -62.11 percent around the most recent 30 days and changed 77.35 percent over the most recent 3-months.

If compared to the average trading volume of 2.76M shares, NCTY reached to a volume of 4172878 in the most recent trading day, which is why market watchdogs consider the stock to be active.

Here’s what leading stock market gurus have to say about The9 Limited [NCTY]:

JP Morgan have made an estimate for The9 Limited shares, keeping their opinion on the stock as Neutral, with their previous recommendation back on November 13, 2009. The new note on the price target was released on June 18, 2009, representing the official price target for The9 Limited stock. Previously, the target price had yet another drop from $17 to $11, while Roth Capital kept a Hold rating on NCTY stock. On January 27, 2009, analysts increased their price target for NCTY shares from 16 to 20.

The Average True Range (ATR) for The9 Limited is set at 7.01, with the Price to Sales ratio for NCTY stock in the period of the last 12 months amounting to 4111.82.

NCTY stock trade performance evaluation

The9 Limited [NCTY] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -24.65. With this latest performance, NCTY shares dropped by -62.11% in over the last four-week period, additionally plugging by 603.60% over the last 6 months – not to mention a rise of 407.89% in the past year of trading.

Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for NCTY stock in for the last two-week period is set at 36.80, with the RSI for the last a single of trading hit 31.32, and the three-weeks RSI is set at 41.11 for The9 Limited [NCTY]. The present Moving Average for the last 50 days of trading for this stock 41.28, while it was recorded at 26.38 for the last single week of trading, and 14.57 for the last 200 days.

The9 Limited [NCTY]: An insightful look at the core fundamentals

Operating Margin for any stock indicates how profitable investing would be, and The9 Limited [NCTY] shares currently have an operating margin of -17909.40 and a Gross Margin at -30.16. The9 Limited’s Net Margin is presently recorded at +63421.40.

Reflecting on the efficiency of the workforce at the company, The9 Limited [NCTY] managed to generate an average of $1,222,833 per employee. Receivables Turnover for the company is 0.08 with a Total Asset Turnover recorded at a value of 0.01.The9 Limited’s liquidity data is similarly interesting compelling, with a Quick Ratio of 0.10 and a Current Ratio set at 0.10.

The9 Limited [NCTY]: Insider Ownership positions

There are presently around $2 million, or 0.60% of NCTY stock, in the hands of institutional investors. The top three institutional holders of NCTY stocks are: SUSQUEHANNA FUNDAMENTAL INVESTMENTS, LLC with ownership of 50,200, which is approximately New of the company’s market cap and around 45.10% of the total institutional ownership; PALOMA PARTNERS MANAGEMENT CO, holding 37,519 shares of the stock with an approximate value of $0.86 million in NCTY stocks shares; and WELLS FARGO & COMPANY/MN, currently with $91000.0 in NCTY stock with ownership of nearly New of the company’s market capitalization.

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Positions in The9 Limited stocks held by institutional investors increased at the end of June and at the time of the June reporting period, where 3 institutional holders increased their position in The9 Limited [NASDAQ:NCTY] by around 91,719 shares. Additionally, 5 investors decreased positions by around 350,110 shares, while 0 investors held positions by with 350,094 shares. The mentioned changes placed institutional holdings at 91,735 shares, according to the latest SEC report filing. NCTY stock had 3 new institutional investments in for a total of 91,719 shares, while 4 institutional investors sold positions of 350,109 shares during the same period.

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