What is up, everybody welcome to trades trades, where we get technical analysis on different stocks in the stock market, as well as buy hold or sell opinions on these. Given stocks. I'd like to preface by saying that i am not a financial advisor nor expert, i am just some random dude on youtube, so take what i say with a grain of salt. Today's video is going to be a different one than i usually put out.

I'm going to be covering ticker symbol, j-a-g-x jaguar health incorporated yesterday i put out a video on this company and gave some technical analysis on the stock. However, i did catch a little bit of flack for not diving into as much as this company has done in the previous week. So i wanted to go ahead and give more of a fundamental analysis on this stock and put out some information for those who may be wondering what jaguar health incorporated is. Why they've seen so much traction why they saw so much growth and the potential for this stock in the future? So here i have pulled up an article from jaguar health and, let's take a look at it.

Why is jaguar health shares up 150 today? Let's do a little bit of reading the stock is joining biopharmaceutical peers today in a massive rally, although the company typically flies under the radar, jagex stock is up nearly 150 percent. This news comes after announcing a new royalty agreement and some exciting code 19 potential. What do we need to know? They're, a bio biopharmaceutical firm, focused on treating gastrointestinal conditions in animals and humans, so they are currently developing different drugs that could help with gastrointestinal conditions as well as if you can see down here clinical stages for a chemotherapy-induced diarrhea in dogs. Now this is a very niche category to invest in.

However, the thing with biopharmaceutical companies is, you are looking for positive news, catalyst and positive results from their research, so typically you're, looking at a longer time frame with a company like this than you are with something like neo or apxt, or apple microsoft. Companies that you know are out on the market and doing good things generating revenue, so just keep that in the back of your mind, however, this is a very positive thing to see the stocks surged up 150 percent, which means they did release some very positive results. They have two drugs. My tessie and canavelia canelavia excuse me looks like my testy is the source of the major rally they announced.

It had signed a royalty agreement for my tessie worth 6 million dollars, which means that it is going very well. It is something you will likely see on the market very near future. Jaguar health will be able to use the proceeds to pursue more regulatory activity, so investors should note that jaguar health is currently hoping to receive further fda approval for my tessie, and i think this is a very huge thing to note right here, because that means that You are expecting more news and positive catalyst in the future, which definitely could drive the stock up and that's something i didn't touch on in my previous video, and i apologize for that. That is something that i should have done more due diligence on, however, for investors and traders that are looking to get into this company.

You should be expecting a news article in the near future, which should push the stock price up further than it already has gone. The company is also betting on my tessie as a treatment for cancer therapy induced diarrhea things to know. Along with the major move it looks like, the company is working to create a new story for itself. They announced they uh that, although it did receive shareholder approval for a reverse stock split, it will not affect one now, and this is very huge.

So those who don't know a reverse stock split is basically share dilution, and that means that you are expecting the stock to increase the number of shares that are floating in the market, which decreases demand and will ultimately shoot the stock price down a lot. You do not want to be a shareholder when a stock, dilutes as the value of your stock will dramatically decrease and the fact that they are not doing this means that their financial situation must be pretty decent. Although it does not look that way on yahoo finance. But we will touch on that in a second um they're looking to expand the addressable market.

For my tessie another thing to note, my testing is actually a product of naple pharmaceuticals, a subsidiary of jaguar health that the company holy owns. According to reports, jaguar health also wants to establish napo eu as a subsidiary in europe. Already napo eu is in talks with a blank czech company about coming public via reverse merger. Why does this matter? Maple eu is taking my testing and wants to focus on developing it as a treatment for patients dealing with long-term covenanting recovery, and that is huge.

That is something i did not realize about the company um, especially with the condition of the world and the way it is right now. I think a lot of people are going to be willing to give this company a shot. The sentiment towards um jag x is going to be a lot higher, given the circumstances, so i could see this shooting up more than it has in the past and that's something to keep in mind now. I am going to focus on fundamental analysis today.

However, i do want to draw up a current support and resistance level for the stock. Just so you have some numbers to keep in the back of your mind. We do have support here at 65, 28, 65 cents with 28 as the extra decimals, and we have resistance sitting at in the long term. 1.28 is an all-time high and, in the short term, we're looking at 87 cents about so keep those numbers.

In the back of your mind, if you want to write those down just to have them for the future, i would recommend doing that just so. You have an idea of what to expect on market open monday. If we do drop below the support level, you can expect another red day, another downward trend. If we do not, if we come closer to this, you can expect a green day and potential breakouts towards that one dollar range.

This is a very highly volatile stock. We are seeing a lot more volume that we have in the past. So just keep that in mind when you get into this as an investment now. The last thing that i want to look at with jagex is the financial situation.

So if we look at the income statement, keep in mind that everything on here is measured in thousands. So five thousand times a thousand you're looking at a million, their total revenue is about five million dollars and uh five million dollars, seven hundred seventy five thousand. As of 2019 the end of the year uh, their cost of revenue was three million. Eight hundred and sixteen thousand and the gross profit was nearly 2 million dollars.

Now it is a little bit concerning that they have missed their earnings on the previous quarters. However, this is very, very normal for pharmaceutical companies because they are completely depending on their drug and their research going exactly the way they estimate, but something to keep in mind is they are getting closer quarter by quarter to missing their earnings goals, their financials. Don't look great either to be completely honest, their revenue is relatively average and their earnings are in the negative. Their earnings have gone down year by year.

We do not have 2020 available yet, but that is something to keep in mind for the long term. Let's take a look at their balance sheets total assets, 36 million liabilities, 25 million, which means their total equity gross - is about 10 million six hundred seventy four thousand. So they have. You know a small amount of uh of uh assets that they could liquidize if they were in dire need of cash flow.

However, that is definitely not something i think a pharmaceutical company should have to do. They definitely need the equipment they have to continue their research. So just keep that in the back of your mind and cash flow, this isn't the negative. They have negative cash flow and that's something that i don't particularly like about the company.

I don't personally invest in biopharmaceuticals. This isn't me trying to sway to do one thing or another. However, i do like the the cash flow on the balance sheets to look a little bit better than they do here. But with that being said, this stock is solely going to be riding on positive news catalyst and it does seem like we are expecting some positive news to be coming out soon, especially with this coven 19 recovery potential.

The chemotherapy alternate to diarrhea-induced cancer is very positive and they did state in this article that we are expecting another news release on potential approval by the fda on anti-darial tree inside diarrheal, treatment for adults with hiv or aids. So i hope that gives you a little bit of a better idea about what this company is um. I do not want to put out false information. I do not want to miss the lead people, so my intent here is that this gives you a better understanding of jag x as a company.

I stand in my position. I will not be getting into this stock. I don't like messing around with stocks that are under a dollar. They are very risky.

There is high volatility, but volatility can go both ways right, so you can turn around a pretty insane profit. If you got into jag x, you know even right now it's 71 cents and it hits five dollars well you're, looking at really insane returns, um, which is awesome, but we are sitting you know just three days ago at 34 cents, and that is a potential over 100 percent downside, if positive news catalyst does not come out so just keep that in the back of your mind, i'm not trying to sway you one way or another. That is just something that i think you need to take into consideration with your risk assessment on investing in this company. That is all that i have for the video.

Please. Let me know if you have any more questions. If you need any clarification, i will drop a link to the article in the description down below um. Please consider liking the video if you enjoyed dislike if you did not and consider subscribing to the channel if you'd like to see more content like this, i just recently hit 100 subs and i'm very grateful for all of you and i would love to hit 200 Subs by next sunday, so that is all i have for you guys.

Thank you for coming to the video, and i will see you all next time. Peace.