So , This caught my eye as an offering play . The product looks cool but the website is lacking in terms of what products they actually have . Lots of glamour, not a lot of facts as to what the products are.
As a result I would up getting most of my info from WIMI financials . That's when I realized that this is actually a "potential" gem .
I will go over that shortly but first the basics that brought me here , this is an offering based play . They all vary , there are many types of offerings so I like to due extra diligence and make sure I understand the fine print , even then its still easy to miss small details sometimes.
Basically ...WIMI just raised 83.8 Million in a registered direct offering. The buying party was sold 11,173,335 units but they were actually sold ADR's for a purchase price of $7.50 which can be used to acquire 2 class B ordinary shares under the agreement . But also 1 ADR also gives buyer the right to purchase 0.4 of a warrant to purchase one ADS at an exercise price of US$8.50 per ADS ( I think, feel free to clarify that warrant part in comments if I got it wrong, that detail is pretty oddly worded in report) .
So basically , the buyers got a "bonus" deal there . Because they agreed to pay $7.50 when the price of common shares was actually 15% higher and the buyers actually in a sense got a "2 for 1" deal and a slice of warrant to the side for dessert. The common share holders did not get a good deal, they just were given a side of the cold leftovers , AKA dilution .
But that does not necessarily mean that this is not a buy because the financials are quite favorable and the technicals are resting on support . I am not going to quote too much financial data , I strongly suggest you go look at their financial statements, they are pretty impressive.
Revenue YoY Trends up significantly 66% increase from 2017 to 2019 , good net profit as well .
Operating income trends up
Net income trends up
Total assets trends up
Total liability trends down ( very nicely too)
Cash from operating activities trends up
Please do look at the statement's those are just the basics , would not want you to base your decision solely on them , they alos are based on the results from 2017 to 2019 as 2020 annual results are not yet filed , but quarterly looked like it was right on track for a continuation of those results.
So in summary :
Good financials
Offering not so good
Nonetheless , Price sitting at support
Bounce possible
WIMI Website sucks . Get info from financials instead .
Good luck ~
As a result I would up getting most of my info from WIMI financials . That's when I realized that this is actually a "potential" gem .
I will go over that shortly but first the basics that brought me here , this is an offering based play . They all vary , there are many types of offerings so I like to due extra diligence and make sure I understand the fine print , even then its still easy to miss small details sometimes.
Basically ...WIMI just raised 83.8 Million in a registered direct offering. The buying party was sold 11,173,335 units but they were actually sold ADR's for a purchase price of $7.50 which can be used to acquire 2 class B ordinary shares under the agreement . But also 1 ADR also gives buyer the right to purchase 0.4 of a warrant to purchase one ADS at an exercise price of US$8.50 per ADS ( I think, feel free to clarify that warrant part in comments if I got it wrong, that detail is pretty oddly worded in report) .
So basically , the buyers got a "bonus" deal there . Because they agreed to pay $7.50 when the price of common shares was actually 15% higher and the buyers actually in a sense got a "2 for 1" deal and a slice of warrant to the side for dessert. The common share holders did not get a good deal, they just were given a side of the cold leftovers , AKA dilution .
But that does not necessarily mean that this is not a buy because the financials are quite favorable and the technicals are resting on support . I am not going to quote too much financial data , I strongly suggest you go look at their financial statements, they are pretty impressive.
Revenue YoY Trends up significantly 66% increase from 2017 to 2019 , good net profit as well .
Operating income trends up
Net income trends up
Total assets trends up
Total liability trends down ( very nicely too)
Cash from operating activities trends up
Please do look at the statement's those are just the basics , would not want you to base your decision solely on them , they alos are based on the results from 2017 to 2019 as 2020 annual results are not yet filed , but quarterly looked like it was right on track for a continuation of those results.
So in summary :
Good financials
Offering not so good
Nonetheless , Price sitting at support
Bounce possible
WIMI Website sucks . Get info from financials instead .
Good luck ~
Comment:
News out today about a partnership with Toyota , should be a good day :)
Comment:
News about Toyota partnership clearly not received well by investors as WIMI has broken down further , we seem to have just held feb support though and selling volume is very limited , relative volume for today is 0.71 at time of writing . I would like to see support hold and hopefully WIMI can turn up , stop set at 4.98 .
Comment:
Tightened stop to 5.68 , not too happy with how its preforming today , hopefully buyers can push us up for a close above 10EMA.
Trade closed manually:
Got out at cost on this , not liking the price action ...
艾力克~