Highway Holdings Limited (NASDAQ:HIHO) Stock Continues to Trade Lower: A Good Opportunity?
Highway Holdings Limited (NASDAQ:HIHO) dropped 8%, and in a week, the stock has lost 18%. The company released its Q4 2021 and year-end financial results reflecting the impact of the military coup in Myanmar and COVID-19 on its operations.
Equally, the company faces general components and raw materials shortages, including electronic components and semiconductor chips. Net sales in the quarter were $1.8 million, a drop from $2.9 million in 2020, with the decline attributed to a factory closure in Myanmar for two weeks following the military coup in the country. The company reported a net loss of $551,000 or $o.14 per share during the quarter.
Net sales dropped from $12.6 million a year ago to $9.2 million in fiscal 2021, with a net loss of $461,000 or $0.12 per share. CEO Roland Kohl said that fiscal 2021 results were impacted most in Q4 by the material shortages experienced globally, delayed video gaming products manufacture deferred from November 2020, and the decline in sales to some European clients. So in the coming months, HIHO is a stock to watch.
Market Reaction:
On Monday, HIHO stock decreased 8% at $3.56 with more than 59k shares, compared to its average volume of 68K shares. The stock has moved within a range of $3.4701 – 3.9000 after opening the trade at $3.90. Over the past 52-week, the stock has been trading within a range of $2.4200 – 5.8200.
