Q: KWE has been quite quiet and the shares have fallen substantially. Given the geopolitical situation, I would have thought that it would garner more interest. Your thought, please.
5i Research Answer:
KWE is a micro-cap company ($19.66M market cap) and although its operations are relevant in today's environment, small-cap and mid-cap stocks have been hit the hardest in the latest selloff. The company is not profitable, and while its balance sheet and liquidity are strong, it is beginning to burn through its cash to fund its operations. Its latest few quarters showed negative revenue growth, and we would like to see some positive momentum in the company's financials before we would expect this name to turn around.