Sign InGenius Group's Stock Faces Volatility Amid Potential Spinoff Effects
Summary
Genius Group Limited's stock (GNS) closed at $1.07 on September 1, 2023, with a 6.96% decrease for the day, and although it has experienced highs and lows within the year, its current situation and potential trend make it a more speculative investment, leading to a rating of 'Hold' for existing investors and a caution for new investors due to market uncertainties and volatility.
1. Overview
Genius Group Limited (GNS) last closed on September 01, 2023, with a trading price of $1.07. The stock price underwent a change of -0.08 (-6.96%), pushing it to the range between $1.02 and $1.18 for the day. Despite the daily fluctuations, GNS still has some distance to cover as it has reached highs and lows of $7.99 and $0.30 respectively within the year. The market cap stood at $68.34 million.
2. Trading Volume and Volatility
The trading session reported a volume of 9.54 million shares, slightly above its average volume of 8.97 million, indicating increased trader interest. The high Average True Range (ATR) of 29.73 suggests significant price volatility and risk. Nevertheless, with a support and resistance level set at $1.04 and $1.18 respectively, the stock shows signs of price stability at current levels, with its stop-loss placed at $1.00.
3. Technical Analysis
The Relative Strength Index (RSI14) for GNS stands at 42, hinting neutral momentum with no immediate overbought or oversold conditions. The 50-day moving average of $0.89 is below its recent closing price, giving the stock a bullish short-term outlook. However, the 200-day moving average at $1.62 is significantly higher than the final trade price, suggesting a bearish longer-term trend.
The positive MACD (3-month) value of 0.31 indicates bullish momentum in the short term, but it is recommended to take this with considering that the stock is trading below its 200-day moving average.
4. Fundamental Analysis
GNS shows negative earnings per share of -2.84, resulting in a negative Price/Earnings ratio of -0.38, reflecting financial difficulties in terms of profitability. Nevertheless, the recent news about the record date for Genius Group's spinoff hinted at an increased trading activity ahead.
5. Recent News and Events
As reported, Genius Group had the record date for the spinoff of Entrepreneur Resorts Ltd (ERL) on Aug 31st. The settled shareholders of GNS as of that date will receive shares of ERL, and this could influence future trading patterns. The stock was also mentioned in a list of "Penny Stocks To Buy Under $1" as offering potential high-risk, high-reward opportunities.
6. Predictions and Stock Evaluation
Considering the above technical and fundamental analysis and the recent developments, the stock is expected to witness volatile trading in the next session dated September 05, 2023. However, the effects of the spinoff could cause a lot of unpredictable movement in the stock price. GNS's current situation and potential trend put it in a more speculative category of investment.
Consequently, Genius Group Limited's stock would be rated as a 'Hold' for those investors who are already in a position, due to current market uncertainties and volatility. However, new investors may want to wait for a more definitive trend or favorable financial performance results before considering an entry point into the stock. In this context, it should also be noted that investing in penny stocks which GNS falls under, usually carries higher levels of risk.
