Lixte Biotechnology Stock Intrinsic Value – LIXTE Biotechnology Holdings Announces Reverse Stock Split to Comply with Minimum Price Requirements
June 3, 2023
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LIXTE ($NASDAQ:LIXT) Biotechnology Holdings (LIXTE) has announced a reverse stock split to comply with the minimum price requirements set by Nasdaq. LIXTE is a biotechnology development company that operates in the development and commercialization of diagnostics and therapeutics for human illnesses related to exposure to environmental toxins. The reverse stock split, which is set to increase the share price of the stock, is expected to make the stock compliant with the Nasdaq’s Minimum Bid Price Rule. The Minimum Bid Price Rule requires that any listed security must maintain a minimum bid price of at least one dollar per share, as determined by Nasdaq. This rule was implemented to ensure that the stock remains liquid and capital markets remain orderly. The reverse stock split of LIXTE’s common stock will help the company meet the Minimum Bid Price Rule while preserving its shareholders’ equity and therefore benefiting all current and potential investors. The reverse stock split will decrease the number of LIXTE’s outstanding shares and will increase the per-share price accordingly. This could prove beneficial for shareholders as it would allow them to own a higher percentage of the company’s shares while maintaining their original investment amount. LIXTE’s Board of Directors has also authorized the company to repurchase up to five million dollars of its common stock in the public market, or through other means, over the next twelve months. This would enable LIXTE to take advantage of any opportunities in the market to improve its liquidity and long-term value. By increasing the share price, it will help the company maintain compliance with the Nasdaq’s Minimum Bid Price Rule while also providing investors with an opportunity to gain more ownership in LIXTE’s stock.
Additionally, the repurchase program will help increase liquidity and long-term value for shareholders.
Market Price
The reverse stock split will be effective immediately, and will involve the consolidation of the company’s outstanding shares. The news sent LIXTE’s stock price up, as on Friday it opened at $0.6 and closed at $0.7, which was a 1.1% increase from the previous closing price of $0.7. This increase in share price suggests that investors are confident in the company’s stock split, and view it as a positive move.
The reverse stock split is expected to help the company meet its Nasdaq listing requirements and improve its liquidity. It is also hoped that the move will result in increased investor confidence in the company, and contribute to the growth of its share value. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Lixte Biotechnology. More…
| Total Revenues | Net Income | Net Margin |
| 0 | -6.02 | -1323.2% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Lixte Biotechnology. More…
| Operations | Investing | Financing |
| -4.85 | 0.1 | 5.16 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Lixte Biotechnology. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 4.33 | 0.25 | 0.24 |
Key Ratios Snapshot
Some of the financial key ratios for Lixte Biotechnology are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 0.0% | – | -1323.2% |
| FCF Margin | ROE | ROA |
| -1090.6% | -81.3% | -86.8% |
Analysis – Lixte Biotechnology Stock Intrinsic Value
At GoodWhale, we recently conducted a thorough analysis of LIXTE BIOTECHNOLOGY‘s financials. After thorough analysis, we found that the fair value of their share is around $0.4. This was calculated by our proprietary Valuation Line. However, the stock is currently trading at $0.7, meaning that it is overvalued by 61.4%. Undoubtedly, this presents a good opportunity for investors looking to trade LIXTE BIOTECHNOLOGY’s stock. More…
Peers
The competition between Lixte Biotech Holdings Inc and its competitors, CanBas Co Ltd, Cyclacel Pharmaceuticals Inc, and Organicell Regenerative Medicine Inc, has been fierce in recent years, with each company striving for superiority in the biotechnology field. All four companies have been pushing the boundaries of what is possible in terms of technology, research, and development, striving to become the world leader in the industry. It remains to be seen who will emerge victorious in this tough fight for supremacy.
– CanBas Co Ltd ($TSE:4575)
Canbas Co Ltd is a leading global information technology company based in China that provides innovative hardware and software solutions for enterprise customers. With a market cap of 21.48B as of 2023, Canbas Co Ltd is among the most highly valued companies in the world. In terms of return on equity, the company has a negative value of -42%. This indicates that the company is not generating a positive return on its invested capital. Canbas Co Ltd has a long history of providing quality products and services to its customers, and its strong market cap indicates its continued success.
– Cyclacel Pharmaceuticals Inc ($NASDAQ:CYCC)
Cyclacel Pharmaceuticals Inc is a biopharmaceutical company focused on the development of innovative treatments for cancer, as well as cardiovascular, neurological, and other diseases. As of 2023, the company has a market capitalization of 8.15M, which indicates a relatively small size compared to larger competitors within the industry. Despite its small size, Cyclacel has posted a negative return on equity of -102.53%, suggesting that shareholders have lost more money than they have gained in recent years.
– Organicell Regenerative Medicine Inc ($OTCPK:OCEL)
Organicell Regenerative Medicine Inc is a biotechnology company focused on researching and developing regenerative medicine solutions. Founded in 2015, its mission is to develop treatments for a variety of medical conditions, including inflammation, pain, and tissue damage. Its current market cap is 16.1M as of 2023, indicating the company has a relatively low market position relative to its peers. In addition, its Return on Equity (ROE) of -441.93%, which indicates that the company has failed to generate profits in the past with its current investments. As the company continues to develop its research and product portfolio, investors will be watching to see if this negative trend can be reversed.
Summary
LIXTE Biotechnology Holdings recently announced a reverse stock split in order to comply with the minimum pricing requirements of the exchange they are listed on. The reverse stock split will reduce the number of shares outstanding while increasing the value of each share. This could benefit investors who are looking for high price-to-earnings ratios or a higher dividend yield, as the value of their holdings will increase proportionally.
However, it could also lead to lower liquidity and higher volatility, which could be a deterrent for potential investors. As such, investors should consider the risks and rewards before investing in LIXTE Biotechnology Holdings.
