$FNGR showing insane reverseNASDAQ:FNGR historically has a nice recovery when WEEKLY time frame settles in. Expecting minimum 100-150% bounce. may be 1-2 weeks away from confirmation, watch MACD for green momentum reverse.
FNGR trade ideas
$FNGR Post Crackdown BoomChina recently announced that it is halving its tax on stock trading effective Monday, August 28th in an attempt to boost its stock market. This announcement could have major implications for Chinese stocks since Chinese ADRs tend to run along with their stock on the Chinese exchange. One of the Chinese stocks that may run this week is FingerMotion, Inc. (NASDAQ: FNGR) given its popularity among traders thanks to its naked short squeeze potential. In light of this, FNGR stock could be an extremely profitable swing trade this week.
FNGR Fundamentals
Looking to boost its stock market and bolster investor confidence, the Chinese government decided to decrease its stock trading tax by 50% from .1% to .05% on August 28th. According to Xie Chen, a fund manager at Shanghai Jian Investment Management Co, this tax cut is set to provide a short-term boost to Chinese equities, however, such a boost will not have much effect in the long run. That said, a short-term boost may be what FNGR stock needs for a naked short squeeze to occur as it may witness higher than average volume. For this reason, FNGR stock is one to watch closely this week.
FNGR Financials
According to its Q1 2023 report, FNGR’s assets decreased QoQ from $17.5 million to $14.5 million mainly due to its cash balance falling from $9.2 million to $5.4 million. This drop in cash is mainly the result of the company’s cash burn since it burned through $2.5 million in operating cash flow in Q1, as well as repaying $1.1 million in convertible notes. As for its liabilities, the company witnessed a decline from $4.5 million to $607 thousand thanks to accrual and other payables falling from $1 million to $453 thousand.
When it comes to revenue, the company experienced a significant YoY growth, increasing from $4.8 million to $12.1 million. This growth was a a result of its telecommunication products and services which generated $12 million in revenue in Q1. It is however worth noting that in Q1 the company’s cost of revenue was $11.5 million which meant that it only generated $662 thousand in gross profits. That said, this figure is a YoY increase from the $377 thousand it reported in Q1 2022. Expenses, on the other hand, remained relatively the same at 1.8 million. As a result, the company’s net loss decreased YoY from $1.4 million to $1.2 million.
Technical Analysis
FNGR stock is in a neutral trend, with the stock trading in a sideways channel between $3.82 and $4.71. Looking at the indicators, the stock is below the 200 and 50 MAs which is a bearish sign, but above the 21 MA which is a bullish sign. Meanwhile, the RSI is neutral at 52 and the MACD is neutral as well.
As for the fundamentals, China’s decision to cut trading taxes by 50% is a major catalyst for FNGR stock and other Chinese stocks. In this way, Chinese stocks could soar over the course of this week. Given the popularity of FNGR stock as a naked short squeeze play, it might run the most out of other Chinese stocks. For this reason, investors could wait for the stock to break through the 50 MA resistance with a pullback to enter long positions to capitalize on the stock’s potential run this week.
FNGR Forecast
Chinese stocks are poised to spike this week following China’s decision to cut stock trading taxes by 50%. This catalyst is likely to incentivize Chinese traders to buy stocks in mass which should reflect on their ADRs. Given FNGR stock’s popularity due to its naked short squeeze potential, it could very well have the best run out of Chinese stocks which makes it one to watch closely this week.
$FNGR Post Crackdown Boom Chinese stocks are gaining momentum with a bullish zeal after China ended its 2 year long tech crackdown. As a result, Chinese tech stocks could be poised to run this week thanks to this industry wide catalyst. A possible way to capitalize on this potential run could be going long on FingerMotion, Inc. (NASDAQ: FNGR). As a Chinese telecom company with a low float, FNGR stock could result in massive gains for investors this week considering its history to run alongside other Chinese stocks.
FNGR Fundamentals
FNGR is a telecommunication specialist that offers a wide range of products and services. At present, the company offers mobile phones and complementary services such as data plans, loyalty points/redemption services, and subscription plans. As a telecom specialist, FNGR stock could be poised to run as a result of China ending its tech crackdown.
Bullish Fervor
In late 2020, China started its multi-year regulatory overhaul of Alibaba Group Holding Limited (NYSE: BABA) which developed into a crackdown on Chinese tech companies. However, that crackdown appears to have reached its end after the Chinese government fined BABA nearly $1 billion. While one would expect BABA stock to fall as a result of the fine, the opposite happened with BABA stock climbing 9.1% due to the bullish sentiment regarding the end of China’s tech crackdown. This bullish fervor might be a prelude to an industry wide catalyst that could result in Chinese tech stocks including FNGR to run over the course of this week.
Possible Short Squeeze?
A reason FNGR stock could be a prime candidate to run this week due to this catalyst is its short squeeze potential. In late 2022, FNGR launched an investigation into naked short selling that might be occurring in the stock and hired ShareIntel, Christian Levine Law Group, and Warshaw Burstein to oversee the investigation.
The fact that FNGR went through the trouble of hiring these institutions means that there could be a high probability regarding the legitimacy of its claim. If these allegations are true, the stock may soar as a result of a short squeeze due to the end of China’s tech crackdown and its low float of 39 million which makes the stock move quicker on volume.
FNGR Financials
According to FNGR’s 2022 annual report, the company’s assets increased significantly from $10.36 million in 2021 to $17.54 million in 2022. This drastic improvement in total assets was reflected in FNGR’s cash balance which also increased from $461.9 thousand to $9.24 million. It is also worth noting that FNGR’s liabilities decreased during that time from $5.27 million to $4.57 million. Given that the company’s cash balance far outweighs its total liabilities, FNGR is in a strong financial position.
In terms of revenues, FNGR experienced an increase from $22.9 million in 2021 to $34 million in 2022. Having said that, the company’s operating expenses increased from $7.68 million to $8.98 million which could be attributed to the company growing its operations. In light of this, FNGR’s net loss increased YoY from $4.9 million to $7.5 million.
Technical Analysis
FNGR Stock is in a bullish trend and is trading in an upward channel. Looking at its indicators the stock is currently above its 200, 50, and 21 MAs which is a bullish indication. Meanwhile, the RSI is overbought at 79 and the MACD is bullish to the upside.
As for the fundamentals, FNGR stock is likely to run over the course of this week thanks to the end of China’s tech crackdown since Chinese stocks tend to move in sympathy with each other. Given that the RSI is overbought at the moment, investors could expect FNGR to pull back near its $4.71 support as the RSI recalibrates before running again due to the increasingly bullish sentiment surrounding Chinese tech stocks.
FNGR Forecast
With China ending its tech crackdown, Chinese tech stocks including FNGR are likely to soar this week as Chinese stocks usually run together. However, what makes FNGR stock a prime candidate to see more percentage gains than other Chinese tech stocks is the combination of its low float and the likelihood of a short squeeze given that the stock may be seeing naked short selling activity. For these reasons, FNGR is one to watch closely this week for a continuation of its run.
$FNGR Hot China Tech Stocks This MonthFingerMotion, Inc. (NASDAQ: FNGR) is a Chinese tech company with a main focus on mobile payment and recharge platform solutions. Over the past 2 weeks, FNGR stock has been one of the hottest China tech stocks thanks to its parabolic run from $.62 to nearly $10 over that period. Based on this run, many investors are speculating FNGR could be a prime short squeeze candidate in the short term. Despite this, FNGR could be one of the China tech stocks to watch in the long-term thanks to its ongoing endeavors in the fintech industry.
FNGR Fundamentals
Insurance Technology Platforms
As a leading provider of top-up and SMS service providers in China, FNGR has the potential to realize major revenues by monetizing its database of more than 560 million users. For this reason, FNGR developed its technology platform – Sapientus – to analyze these data and offer these analytics to advertisers. To develop this platform, FNGR has been working with a number of partners over the past year to interpret consumer insights via big data algorithms and applying behavioral analytics. In this way, Sapientus could help in developing new innovations and commercial applications in the fintech sector.
With this in mind, FNGR is already in an agreement with major Asian reinsurer Pacific Life Re to develop its model. This collaboration has led FNGR to advance its algorithms with auxiliary data which would add more capabilities to its analytics. As a result, these capabilities would lead to more robust results for commercial applications.
In addition to this collaboration, FNGR has been in a research alliance with global reinsurer Munich Re to enhance understanding of morbidity and behavioral patterns in the Chinese market. Through this collaboration, both companies are aiming to add value for both insurers and insurance customers by offering better technology, products, and customer experience. By combining Munich Re’s experience and Sapientus’ capabilities, FNGR could help insurers make better claim management decisions while increasing underwriting efficiency. At the same time, FNGR could allow insurers to have a better understanding of potential behavioral risks and risk tendencies. In light of this, FNGR stock could be one of the most valuable China tech stocks as its platform could revolutionize the insurance industry.
Meanwhile, FNGR also has a risk rating services platform for the insurance industry built on an API integrated with its partners’ core systems. This API is also linked to a data repertoire and analytic framework that provides insurance companies with real-time rating feedback. Given the potential of this platform, FNGR is continuously upgrading and enhancing the API to capitalize on more commercial opportunities with its partners.
On that note, Sapientus has already been granted 7 patents by the National Copyright Administration of China (NCAC) for its algorithms, technological infrastructure, and insurance applications. As these platforms are based on extensive research with major players in the insurance industry, FNGR could be one of the China tech stocks poised for significant growth upon the roll out of these platforms.
Device Protection Insurance
As for its upcoming core business, FNGR launched its mobile device protection products in China which are being distributed by Chinese carriers as embedded, value-added features to their plans. These products will be launched first in the province of Henan which has a mobile subscriber base of 90 million. Meanwhile, the company plans for further rollouts in other provinces over the coming months targeting 1.2 billion subscribers since these products are set to be offered through China Unicom and China Mobile who dominate the Chinese market. Based on this, FNGR could be poised to realize record revenues in future if it manages to secure a significant share of these markets.
With this in mind, FNGR has a competitive advantage in the Chinese market as most mobile device protection products in China are limited to broken screen protection. Meanwhile FNGR’s products include three levels of protection including screen damage, mechanical breakdown, and device trade-in solutions. In light of this, FNGR’s products could witness high demand once it becomes available in all Chinese provinces.
Looking to leverage its offerings, FNGR partnered with a globally renowned, NYSE-listed Fortune 500 insurance company. Through this partnership, FNGR could significantly improve its brand awareness since it would be aligned with a major player in mobile protection products. Considering the company’s focus on this business, FNGR could be well-positioned for financial growth in the future – making it one of the China tech stocks worth watching in the long-term.
Funding
To facilitate the roll out of these products in China, FNGR entered into a funding agreement with Lind Global Fund II, LP to receive $4 million in gross proceeds. While these funds will be mainly allocated to fund the mobile device protection business, FNGR also intends to use these funds in multiple high growth initiatives currently underway. With the company securing this pivotal funding, FNGR stock could be one of the China tech stocks worth holding onto for the long-term as it could soar in the future.
FNGR Financials
According to its Q1 report, FNGR’s assets declined to $9.2 million compared to $10.3 million in the previous quarter. However, FNGR’s cash on hand increased from $461.0 thousand to $805.5 thousand. Meanwhile, FNGR reported a slight increase in liabilities to $5.4 million from $5.2 million in Q4. As for revenues, FNGR witnessed a decline as it reported $4.8 million compared to $5.9 million a year ago. At the same time, operating costs increased to $1.8 million from $1.4 million last year. Based on this, FNGR’s net loss increased from $909.5 thousand to $1.4 million.
Technical Analysis
FNGR stock is currently trading at $7.38 and has supports near 6.84, 4.71, and 1.48. Meanwhile, the stock shows resistances near 8.07 and its 52-week high at 9.36. As one of the hottest China tech stocks, FNGR soared nearly 1400% over the past 2 weeks and continues to gain traction among investors.
FNGR has recently retested its resistance multiple times without breaking through that level which could indicate a drop near the support in the near term. However, such a drop could be momentarily as investors have been willing to add shares near the support recently. Considering that the stock is trading above its MAs and VWAP, FNGR could be poised to continue running this week. However, it should be noted that there is a gap near $3.5 that could be filled in the near future which could present an entry point for bullish investors.
Accumulation is holding steady after a recent downward trend thanks to investors taking profits as the stock ran to nearly $10 and the MACD is bearish. The RSI is holding at 56 which could indicate a strong run in the near term. As for its share structure, FNGR has an OS of 42.8 million and a float of 23.6 million.
FNGR Forecast
While FNGR is gaining investors’ attention thanks to its impressive run over the past 2 weeks, the company’s fundamentals offer an intriguing investment opportunity for investors. Currently, FNGR is working to make mobile device protection insurance its core business. Considering that this market is already worth $10.6 billion annually in China, FNGR’s revenues could be well-positioned to receive a major boost as the company will offer its products through major carriers in China.
Moreover, FNGR’s insurance technology platforms could position the company as a global leader since Sapientus’ capabilities could revolutionize the insurance industry. With the company working with global leaders in the insurance sphere to develop these platforms, FNGR could be set to secure contracts with other major insurers which would increase the stock’s value significantly. In light of this, FNGR stock could be one of the China tech stocks to watch closely over the coming months in anticipation of the roll out of its new products.
