What to do with this one?...Stock is now at 0.45 .....
I have read your previous answers regarding this question , that it is better to simply move on... is this advice still valid? Will it have to undergo a reverse split to stay listed?
On the same note, TD Web broker indicates this stock is followed by 6 analysts ....all rate it as a buy with avg PT of around $3.40..... How is this possible and could you please comment on how these targets could actually be justified from an analysts perspective....any speculation on how they arrive at these numbers? I find the ratings quite puzzling.
thx
A reverse split would not surprise us here. It is now less than $75M market cap, and such small companies can be hard to attract investors' attention. Meanwhile, revenue is falling and losses are widening. We still think moving on is the best call. On the analysts side, we can't offer much here. Having a 615% return to an average target price is ridiculous. Usually, this is explained as analysts 'abandon' their losers and small companies, but in this case all seven analysts revised their notes less than six weeks ago. It is situations like this that lessen analysts' credibility. Our cynical answer would be that EGLX is going to need more capital soon, and the analysts want to keep the company executives happy so that they can get a shot at some investment banking fees.