Stem Holdings (OTCMKTS:STMH) Stock Consolidates After The Big Jump
Shares of Stem Holdings (OTCMKTS:STMH) have been moving in a range after gaining over 23% in the past month.
Market Stats
On Wednesday, STMH stock moved down 0.63% to $0.1108 with more than 113K shares, compared to its average volume of 414K shares. The stock moved within a range of $0.0950 – 0.1108 after opening trading at $0.1023.
Earnings Recap
Vertically integrated cannabis operator, Stem Holdings (OTCMKTS:STMH) on February 23, 2022 announced financial results for quarter one of 2022 ending December 31, 2021.
Steve Hubbard, Interim CEO and CFO of Stem said that the financial results during the quarter demonstrate period of transition as it has divested e-commerce and delivery wholly owned subsidiary. Hubbard added that business decisions made with Driven Deliveries as well as other non-core assets puts the firm on a path of good working capital. He added that the firm has decided focusing on majority of resources to cultivate facilities in Oregon as well as retail stores in California. The company is anticipating much room for growth as it is producing at 50% capacity.
Stem Holdings confirmed that the revenue for first quarter of current fiscal was $4.9 million, which lower by 21% in comparison to previous year. It said that the net revenues after discounts was $4.2 million, a decrease of 20.1%. The company also had an impairment expense of $800 thousand related to impairment of investments. Additionally, it also had other income during three months ending December 31, 2021, of $2.4 million vis-à-vis expenses of $.3 million for the comparable period of 2020. Lastly, the firm said that it had working capital of about $1.3 million, including cash and cash equivalents of $3.3 million.
Key Quote
Steve Hubbard, Interim CEO and CFO of Stem, commented, “Our financial results during our fiscal first quarter 2022 reflects a period of transition as we divested our e-commerce and delivery wholly owned subsidiary on December 15, 2021. The recent business decisions we have made with Driven Deliveries and other non-core assets puts us on a path to positive working capital. We have decided to focus the majority of our resources on cultivation facilities in Oregon and retail stores in Oregon and California where, in particular, we have significant room for growth in the cultivation operations as we have recently been producing at less than 50% capacity.”
Traders Corner
STMH stock is trading above the 20-Day and 50-Day Moving averages of $0.11 and $0.11 respectively. However, the stock is trading below the 200-Day moving average of $0.24.
