Baosheng Science and Technology InnovationLtd's declining ROCE trend over five years is concerning. Despite reinvestment, the lack of significant sales increase and high current liabilities to total assets ratio introduce risk, making it a less promising multi-bagger investment option.
The mix of a low ROE and high debt usage is unattractive. Investors should consider a company's potential performance if borrowing becomes challenging, as credit markets fluctuate.
The company's low P/S ratio and underwhelming revenue outlook are causing its share price to drop. Investors believe the potential for revenue improvement doesn't justify a higher P/S ratio. These conditions form a barrier for the share price.
The shrinking ROCE trend, insufficient sales growth despite reinvestment, and high dependence on short-term creditors question the firm's growth prospects. Therefore, seeking substantial returns elsewhere may be more fruitful. Additionally, two company warning signals have been detected.
Baosheng's stock faced a recent dip of 5.9%, hinting at fundamental issues. While it might provide a buying opportunity, there are 3 potential warning signs for investors, two of which are significant.
Baosheng Science And Technology Innovation Stock Forum
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