The9 Limited [NASDAQ: NCTY] gained 20.20% or 2.21 points to close at $13.15 with a heavy trading volume of 27906341 shares. The company report on June 4, 2021 that Skychain Secures Funding for 12 MW Crypto Hosting Facility in Birtle, Manitoba.
Vancouver, British Columbia–(Newsfile Corp. – June 4, 2021) – Skychain Technologies Inc. (TSXV: SCT) (OTCQB: SKTCF) (the “Company”) announces that it has arranged and successfully closed on the first tranche of securities of a private placement (the “Offering”) with The9 Limited (the “The9”) (NASDAQ: NCTY), an industry leader in crypto mining services.
As previously announced by the Company on April 21, 2021 and May 13, 2021, the Company entered into a financing agreement with The9 pursuant to which The9 agreed to subscribe for $2,000,000 of transferable, convertible debentures (the “Debentures”), at a price of $0.85 per Debenture, and $2,000,000 of units (the “Units”), at a price of $0.76 per Unit, of the Company for an aggregate investment of $4 million dollars (the “Proceeds”). Each Unit is comprised of one common share (a “Share”) and one transferable, share purchase warrant (a “Warrant”), and each Warrant is exercisable into a common share (a “Warrant Share”) at a price of $1.22 per Warrant Share at any time up to the close of business on the third anniversary of the closing (the “Closing”) of the Offering. The Company plans to use the Proceeds to develop its 12 MW cryptocurrency hosting facility located in Birtle, Manitoba.
It opened the trading session at $13.10, the shares rose to $16.25 and dropped to $12.40, the range by which the price of stock traded the whole day. The daily chart for NCTY points out that the company has recorded 335.43% gains over the past six months. However, it is still -544.61% lower than its most recent low trading price.
If we look at the average trading volume of 2.03M shares, NCTY reached to a volume of 27906341 in the most recent trading day, which is why market watchdogs consider the stock to be active.
Here is what top equities market gurus are saying about The9 Limited [NCTY]:
Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for NCTY shares is $3.50 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on NCTY stock is a recommendation set at 4.00. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.
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 1.96, with the Price to Sales ratio for NCTY stock in the period of the last 12 months amounting to 281.93.
Trading performance analysis for NCTY stock
The9 Limited [NCTY] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 6.82. With this latest performance, NCTY shares dropped by -31.62% in over the last four-week period, additionally plugging by 335.43% over the last 6 months – not to mention a rise of 77.73% 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 41.45, with the RSI for the last a single of trading hit 45.99, 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 20.73, while it was recorded at 11.95 for the last single week of trading, and 16.49 for the last 200 days.
The9 Limited [NCTY]: A deeper dive into fundamental analysis
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.
An analysis of insider ownership at The9 Limited [NCTY]
There are presently around $10 million, or 5.00% of NCTY stock, in the hands of institutional investors. The top three institutional holders of NCTY stocks are: CVI HOLDINGS, LLC with ownership of 223,913, which is approximately New of the company’s market cap and around 45.10% of the total institutional ownership; HUDSON BAY CAPITAL MANAGEMENT LP, holding 131,000 shares of the stock with an approximate value of $1.72 million in NCTY stocks shares; and SUSQUEHANNA INTERNATIONAL GROUP, LLP, currently with $1.34 million in NCTY stock with ownership of nearly New of the company’s market capitalization.
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 20 institutional holders increased their position in The9 Limited [NASDAQ:NCTY] by around 780,112 shares. Additionally, 4 investors decreased positions by around 91,735 shares, while 0 investors held positions by with 91,735 shares. The mentioned changes placed institutional holdings at 780,112 shares, according to the latest SEC report filing. NCTY stock had 20 new institutional investments in for a total of 780,112 shares, while 4 institutional investors sold positions of 91,735 shares during the same period.