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Stock In Spotlight: CTI Industries Corporation (CTIB)

CTI Industries Corporation (CTIB)

On close of Tuesday trading session, CTI Industries Corporation (CTIB) spotted a change of -30.00% and settled at the share price of $1.82. CTIB stock observed the trading of 1073900 shares, while an average trading volume registered with 566.32K shares. Volume can offer useful information when day trading. If for nothing else, use volume to help isolate stocks you want to day trade. Ideally, your day-trading stocks should have lots of average volume so you can enter and exit easily.

Volume can also be used to analyze the trend of a stock, helping to assess the likelihood that the trend will continue to reverse. Volume analysis isn’t perfect and it offers only supplemental information, so you don’t need to feel pressured to start analyzing volume to day trade successfully.

While checking a profitability indicator, net profit margin in past twelve months sitting at -16.70% whereas operating profit margin at observed -6.00%. The company gross profit stands with 16.60%. ROE is -141.90%. ROE, or net profit divided by equity capital, shows profit earned in comparison with shareholder money. The higher the ratio, the more efficient the company is in using shareholder capital. ROA is at -21.40%. ROA, or net profit by total assets, shows how efficient the management is at using assets to generate earnings. ROI is -5.60%.

Presently RSI indicator value is noted at 61.17. RSI compares the magnitude of recent gains to recent losses to see if an asset is oversold or overbought. RSI is plotted on a scale of 0-100. Generally, if it is above 70, the stock is considered overbought and so one can look to sell it. Similarly, an RSI of less than 30 indicates the stock is oversold and can be bought.

Shares of CTI Industries Corporation (CTIB) have been seen trading -25.76% away from the 200-day moving average and 71.61% off the 50-day moving average while 97.23% off the 20-day moving average. One of the widely used tools is the simple moving averages. When the price of the stock rises above the moving average, it’s a buy signal, and when the price falls below the moving average, it is a sell signal. The stock is currently trading -56.04% away from the 52-week high and separated 354.89% from the 52-week low.

The stock recorded 39.11% monthly volatility. For the last week, the stock has an average volatility of 78.43%. 48.86% of shares are owned by insiders’ investors and 4.40% shares are owned by institutional investors. Current Ratio of 1, describes the coverage current assets of the company provide for the current liabilities. Quick Ratio is listed at 0.4. Quick Ratio (Acid Test): Same as Current Ratio but does not include inventory in the current assets since inventory can be hard to quickly convert to liquid cash when needed. The stock revealed LT Debt/Equity of 0.66 and Total Debt/Equity Ratio is 5.84.

CTI Industries Corporation (CTIB) on January 6, 2020 proclaimed that it entered into a significant new investment arrangement that it expects will enable the Company to implement its strategic and financial plans. In conjunction with this investment, CTI intends to execute an amendment with its bank to modify its credit facility and has submitted its first plan to regain compliance with continued listing standards to Nasdaq.

On January 3, 2020, CTI entered into an agreement to sell up to $5 million of convertible preferred stock to a new strategic investor. The first $2.5 million is expected to be funded on or before January 10, 2020, while the balance of $2.5 million is will close after certain conditions are met. The most notable conditions are a change in the Company’s name from CTI Industries Corporation to Yunhong CTI Ltd., as well as shareholder approval of the transaction. The preferred stock will be convertible into common stock at $1 per share. The new investor also has the right to appoint a new Company board member.

CTI had been operating under a Forbearance Agreement with its primary lender due to certain prior defaults. This agreement was scheduled to terminate on January 10, 2020. Along with this investment, CTI and the lender intend to enter into an amended agreement designed to incorporate this new investment into an ongoing credit facility, including new loan covenants.

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