(Stocks Discussion) SGX: Spackman Entertainment Group Limited (SGX: 40E)?

My analysis:

1. Share price of $0.008 (yes, this is less than 1 cent) tells me to avoid this company at all costs.

2. It doesn’t make any profit and hence it can’t possibly pay dividends.

3. Ratios

• no P/E because earnings are negative (net loss)
• ROE and ROA are both negative

4. Fundamentals

• free cash flow of USD$1.35m as at 31 Dec 2019
• short term debt of USD$12.85b as at 31 Dec 2019

Debt levels alone tell me they are in a very distressed state and close to bankruptcy. As such, I won’t even look at anything else.

5. Technical Analysis

• 1-yr price chart tells me the price is on a downtrend. I wouldn’t buy any stock that is on a downtrend because surely there is a reason it is going down and not up.
• Average Volume is about 8.72 million, equating to about $52K-$156K value moving in the market daily, which tells me not many people are buying/selling the stock compared to other stocks.

If I am holding this stock, I would immediately SELL before it gets delisted (total capital loss). Otherwise I would not keep this stock on my watchlist at all.

All views and opinions here are my own.