SuffelStocks 37

We’re looking at Fluent, Inc. $FLNT today because the stock is bullish on the InvestorObserver’s sentiment indicator. 

$FLNT 1Y chart – Yahoo Finance

Fluent is an acquisition company that mainly focuses on new brands. They also provide marketing and advertising services to growing companies.

Fluent’s stock has had its ups and downs. However, since Christmas Eve, it’s made it to the trending section of new market movers. When trading resumes on Monday, after Christmas, there’s uncertainty concerning whether the market will fare bullish or bearish since Congress has yet to pass a spending bill including $2,000 stimulus checks, extensions to unemployment benefits, and protections for those who struggle to pay their rent. Should Fluent’s stock fare bullish in trading hours, how long will this last? And will new investors invest their money in $FLNT instead of the EV sector and $TSLA options or new gaming consoles?

$FLNT Max Chart – Yahoo Finance

Fluent’s latest closing price is $5.41. Trading closed early at 1:00 PM on Christmas Eve. The last time Fluent’s shares rallied was when they reached their all-time high on October 22, 2009, when company shares were worth $44.75. The 52 weeks high of $5.83 is only a fraction of the once all-time high and merely 7.8% above the current share price. The 52 week low is $1.02 (81.1% below the current share price.)

$FLNT Revenue 9/30/2008 to 10/1/2020 – MacroTrends

On December 18, 2009, company shares were worth $42.85, sometime after the 2007-2008 global financial crisis. Two months later, on February 12, 2010, the company shares were worth $24.95–this is roughly half of what the share price was two months prior–what happened? There was no revenue from December 31, 2009, until September 30, 2013. Fluent started reporting income the year before the share price dropped to a low of $2.70–indicating a weak recovery from the financial crisis. The market was gradually rising in bullish territory. However, on July 20, 2015, the share price made a little comeback, reaching $11.42 a share.

$FLNT Max Macro chart – Google Finance

Because of the COVID-19 pandemic of 2020, Fluent share prices fell to new lows from market uncertainty. The stock closed at $1.20 on March 16, 2020. Since then, there’s been nothing more than bullish sentiment. Fluent’s stock was volatile–riding an average price of $2.41–up until December of 2020.

$FLNT rests at $5.41 until Monday before 9:30 AM – pre-market. I think we will see similar volumes to the last close, when the capacity was high, early in the morning, when day-traders were buying and scalping and swing trading. $FLNT is a risky buy if you consider their previous troubles, although Fluent’s stock is still on a rally with many others, and the market has been nothing but bullish.

$FLNT Beta Chart – Zacks

Fluent, who’s beta is over one, tends to move in a similar direction to the market in the long-term, at risk with significant price changes (Fluent’s current beta: 2.97.) Fluent’s beta change didn’t occur until 2019 and took off in 2020; the pandemic had no bearish effect on the beta rating–with there being 1.16% short interest and 414.67K outstanding shorted shares.

$FLNT Revenue December 2015 – December 2021 (Estimated) – Seeking Alpha

$FLNT posed an estimated YoY revenue of 13.31%, their highest revenue estimate, despite the COVID-19 pandemic initially slowing down businesses. Although many enterprises are closed, Fluent’s gross profit margin of 30.59% provides an excellent indication that the marketing and advertising company is generating profits.

$FLNT Peer Spread – Seeking Alpha

Fluent’s market cap continues to grow because its revenues and gross margin profits are exceptional. Their market cap of 412.97m indicates they’re still not as big as your typical publicly traded blue-chip stock–(the marketing and advertising industry continues to grow.) Their competitors are not far behind Perion Network ($PERI) & Emerald Holdings ($EEX) are less than 50m away from reaching a similar market cap. However, if Fluent’s beta fares positive, and its share price volatility follows the bull market, they will continue to outperform their competitors in the market.

Fluent is a company that is still growing as the market grows. The current overvalued share price worries analysts since the average price ranges 2.41/share. Fluent’s had a rough past since the financial crisis and the global pandemic. However, after the recent 2021 first-quarter earnings report, Fluent is strong financially and continues to pay off minimal debts as their gross earnings pour in & their market cap grows. Three out of six analysts suggest there is a positive outlook for Fluent’s stock. Fluent may not pay a dividend to its investors, just yet, not until their market cap grows in the next five years.


Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s