Investors Face Risky Decision: Silvergate Stock – Near-Death Experience or Deep Discount Bargain?
January 17, 2023
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EXPERIENCE ($ASX:EXP): Silvergate Capital Corporation is a financial services company that provides banking and lending services to cryptocurrency companies. It has recently seen a significant decline in its stock price, leading some investors to question whether Silvergate Stock is a near-death experience or a deep discount bargain. The decline in Silvergate Stock can be attributed to a number of factors, including the volatile nature of the cryptocurrency market and the company’s decision to enter into the cryptocurrency banking space. Silvergate’s stock price has declined significantly over the past year, leading some investors to question whether it is a risky investment. On the one hand, Silvergate Stock could be viewed as a near-death experience. The company’s stock price has declined significantly and the company is heavily exposed to the volatile cryptocurrency market.
Additionally, there is no guarantee that Silvergate will be able to turn its fortunes around and increase its stock price. On the other hand, Silvergate Stock could be viewed as a deep discount bargain. Despite its recent struggles, the company has strong fundamentals. Furthermore, some investors may view the stock as an attractive opportunity due to the potential upside if the company is able to stabilize its operations and turn its fortunes around. While there is no guarantee that the company will be successful in its efforts to stabilize its operations and increase its stock price, it could certainly present an attractive opportunity for investors willing to take on additional risk.
Share Price
Media coverage of the stock has been mostly positive lately, as on Wednesday, the stock opened at AU$0.2 and closed at AU$0.2, up by 2.1% from the last closing price of 0.2. This could mean investors are feeling optimistic about the future of the stock.
However, despite the positive news, there are still risks involved with investing in Silvergate stock. The company has yet to turn a profit and its financial situation is uncertain at best. There’s also no guarantee that the stock will continue to rise, as there are many external factors that could influence its performance. It’s important for investors to weigh the risk against the potential reward when considering investing in Silvergate stock. If they believe the stock has the potential to grow over time, then it could be worth taking a risk on it. If the stock does take off, investors could stand to make a nice return on their investment. On the other hand, if the stock fails to perform, investors could end up losing their entire investment. They must carefully consider the risks and rewards before making any investment decisions. With the right research and due diligence, investors can make an informed decision that’s best for them. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Experience. More…
| Total Revenues | Net Income | Net Margin |
| 55.82 | -13.58 | -21.5% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Experience. More…
| Operations | Investing | Financing |
| 3.02 | -46.95 | 48.92 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Experience. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 188.69 | 64.77 | 0.16 |
Key Ratios Snapshot
Some of the financial key ratios for Experience are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| -29.8% | -22.5% | -31.6% |
| FCF Margin | ROE | ROA |
| -14.2% | -8.6% | -5.8% |
VI Analysis
EXPERIENCE is a company whose fundamentals reflect its long term potential. The VI Star Chart reveals that EXPERIENCE has an intermediate health score of 6/10, which suggests that the company is likely to safely ride out any crisis without the risk of bankruptcy. Also, EXPERIENCE is strong in liquidity, medium in asset quality, growth, profitability and weak in dividend. This makes EXPERIENCE a ‘rhino’, which is a type of company that has achieved moderate revenue or earnings growth. Investors who are looking for moderate growth and income in the medium term may be interested in such companies. They typically have a more diversified portfolio than a growth investor and are willing to take on some risk in exchange for the potential of higher returns over the long term. These investors may also be attracted to EXPERIENCE’s relatively low debt levels, which can help reduce the risk associated with investing in the company. Overall, EXPERIENCE’s fundamentals make it an attractive option for investors who are looking for moderate returns and lower risk. The company’s strong cashflows and manageable debt levels position it well to weather any economic downturns, making it an appealing choice for those looking for a stable investment. More…
VI Peers
Experience Co Ltd is a leading provider of adventure experiences in Australia and New Zealand. The company offers a range of services including skydiving, hot air ballooning, bungee jumping, and white water rafting. The company has a strong market presence in both countries and is the market leader in terms of market share. However, the company faces stiff competition from SkyCity Entertainment Group Ltd, Hotel Grand Central Ltd, and InvoCare Ltd.
– SkyCity Entertainment Group Ltd ($NZSE:SKC)
SkyCity Entertainment Group Ltd is a gaming and entertainment company based in New Zealand. The company operates casinos, restaurants, bars, and hotels. It also has a convention centre and an online gaming platform. The company’s market cap is 2.05B as of 2022 and its ROE is 3.48%.
– Hotel Grand Central Ltd ($SGX:H18)
Hotel Grand Central Ltd is a hotel operator based in Hong Kong. The company operates a portfolio of hotels in major cities across Asia Pacific, including Hong Kong, Singapore, Beijing, Shanghai and Tokyo. The company is listed on the Hong Kong Stock Exchange and has a market capitalisation of HK$6.7 billion as of July 2020. The company’s shares have been trading at around HK$4.00 per share over the past year. The company’s return on equity for the year ended 31 December 2019 was 7.4%.
– InvoCare Ltd ($ASX:IVC)
InvoCare Ltd is a provider of funeral and cemetery services with operations in Australia, New Zealand, and Singapore. The company has a market capitalization of $1.45 billion as of 2022 and a return on equity of 3.32%. InvoCare Ltd is a publicly traded company listed on the Australian Securities Exchange. The company was founded in 1979 and has its headquarters in Sydney, Australia.
Summary
Investing in Silvergate stock can be a risky decision. With near-death experiences, investors need to weigh the potential risks and rewards carefully. The current media coverage is mostly positive, but it is important to conduct thorough research and analysis before investing to understand the company’s fundamentals and how the stock may perform in the future.
An investor should also consider their own financial capabilities, risk tolerance, and goals before investing in Silvergate. Ultimately, investors need to make a thoughtful decision based on their individual experience and research.
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