Aquestive Therapeutics (AQST) Stock | Long Term Analysis | Overvalued or Undervalued |

Transcript (auto-generated)

All right hello and welcome everybody to other stock announcements today we’ll be talking about a question therapeutics took a simple aqst let’s call it is trade on the nasdaq currently and this is a stock that was viewer requested and i’ve also noticed the analysts have been breaking the stock quite highly recently as a strong buy and so i want to talk about this stock because i think it’s been getting more attention recently i won’t give a full long-term analysis on this company so i’m going to talk about the value of this company i’m going to talk about the growth of the company basically all kinds of stuff that you would want to know in order to determine where our stock is going to trade towards in the future anyway if you liked this video please do like it subscribe it’s about our channel let’s get this content out to more people so that more people can understand how acquisitive therapeutics works and also all the other stocks that we talk about work as well on our channel anyway thank you so much for watching and without further ado let’s get started so in this video i’m not going to go too in depth as to exactly how each drug that they sell works or how how they’re trying to get some of these drugs approved but essentially what’s going on is this company has been struggling to get a lot of their drugs approved by the fda so what they’re doing right now is specifically i don’t know if i’m pronouncing that correctly but the real point is that this company right now is trying to get that drug approved that is very important for the company that they get this approved because this is supposed to be a pretty big profit driver for the stock the reason news is that the fdi did accept a review of their drug at least in 2020 or february of 2020 and this is very important for the company so if we talk about essentially what this drug does just to give you a little bit of background on this basically what they do is it essentially is a therapy for breakthrough seizures that is something that is very important also helps for cluster seizures as well if you’re wondering what a breakthrough seizure is essentially what it does is is an a seizure that would happen after a long period of time of not having a seizure so let’s say you had epilepsy and you went through a long sustained period of time of not having a seizure then all of a sudden if you had a seizure that would be known as a breakthrough seizure and this is a drug that questive feels very strongly about this is supposed to essentially help stop breakthrough seizures and cluster seizures if they occur and so this treatment could be life-saving so therefore this is something that a lot of people feel very confidently about that’s why there’s been a lot of investors in the stock recently now by going to i’ve noticed that there’s quite a bit of other treatments that you could get in order to treat maybe all of a sudden have a seizure or something like that so i think that this drug is already trying to go into a space that might already have a treatment however it’s hard to say whether or not this drug is going to be better than some of these or other things like that but i am not too knowledgeable in this space so i don’t know if this drug is going to be better at preventing seizures or stopping seizures as they occur um as compared to these but i do know that it seems to be already a space that people have been working in for quite some time now what i can tell you is essentially the value of this company and what we can see is that the company has a negative book value of about negative 1.39 a share so the company currently trades for 33.85 cents a share approximately and that means that the company it does have a low very low book value so with the company having a negative book value that is really not ideal that means that the company has an asset value that is essentially less than the amount of debt that the company has so the debt outweighs the assets mean the company was worth less than zero so that is the book value of course the intrinsic value is what determines where a stock is going is where the actual trading value should be after the company because some companies like hp actually hewlett packard hpq has a book value per share that is negative however they make so much money that their intrinsic value is actually positive so that means the company is worth a higher trading value so this company here unfortunately doesn’t have any earnings however this company doesn’t have any earnings we consider that the company has an income of about negative 55 million dollars and so this is unfortunate and this is something that occurs approximately every year so this company every year has been consistently reporting a basically a loss of about 60 million dollars which is quite a bit of money and this company isn’t worth all that much it has a market app of approximately 140 million dollars and so by itself it really has to obtain more debt in order to actually do more research and basically survive so this company has to basically take on more debt or issue more shares and that is not ideal for any company we can look and see the company has been willing to consistently issue more shares as time has gone on and so with company issuing more shares consistently that means that the company is essentially willing to harm the shareholders in order to just live which is understandable i mean in order to live as a company you need to make sure that you have plenty of money or cash on hand and so this company is working on doing that this company currently has about 34 million dollars in cash on hand but in a few quarters that may not be very much at the end of the day so they have to consistently issue more shares like i talked about right there and then also um basically take on more debt so that is a noticeable problem for the company and that is where i think the shareholders are going to get hit quite a bit there’s a lot of risk with owning a company that is consistently issuing more shares and taking on more debt it’s very much a problem like if this company all of a sudden is unable to get this drug approved by the fda then this could be a major blow the company and you could really have an issue where this company may end up going bankrupt so we have to be realistic in the fact that this company could go bankrupt for sure and that we are essentially if you’re risking this much money on the stock this company could be pro very profitable and you could make you know 10 times your money if the company all of a sudden becomes worth one half billion dollars from 150 million dollars but unfortunately it’s hard to say whether that’s going to happen so at this point i think this company is still too risky to be worthy of an investment in my opinion so i don’t plan on investing in this company but i’ll be watching this company closely as i’m very intrigued to understand that this company seems to be projected to do very well based off of analyst projections right now and one more thing that we like to talk about in our videos is the demands of this company of course this company doesn’t offer a dividend so unfortunately there is no demand to talk about here and this is simply because the company can’t afford to pay you would do that they have no earnings to pay you a dividend with so you’re not going to get any start dividend income at this point with this company now of course in the future you may be expecting to make money on this company through dividend income and maybe the growth of the stock but this seems to be more of a growth stock more than anything and there’s quite a bit of risk associated with it so at this point in my opinion i think the stock is too risky i certainly do think that it is overvalued because it has no earnings and the company’s book value is is negative so in my opinion it would be considered an overvalued stock however we also can understand that there is a potential for the company to grow quite a bit and i’m not too knowledgeable on the industry as a whole so if we talk about specifically this this drug and how it’s going to do as compared to some other seizure-related drugs i don’t know how it’s going to compare so if you know more about the industry please do comment down below as i’m always interested in learning but the real point is that at this point from a value investor’s perspective i don’t see this company as being a long-term buy right now now as always i am not a financial advisor or anything like that and this is not financial advice so please do your own research for investing anyway thank you so much for watching if you like this video please do like and subscribe it’s about our channel and please come down below and tell us we think about this company we’ll try to get back to you anyway thanks again for watching have a great day everybody.