New Risk • May 07
New major risk - Shareholder dilution The company's shareholders have been substantially diluted in the past year. Increase in shares outstanding: 225% This is considered a major risk. Shareholder dilution occurs when there is an increase in the number of shares on issue that is not proportionally distributed between all shareholders. Often due to the company raising equity capital or some options being converted into stock. All else being equal, if there are more shares outstanding then each existing share will be entitled to a lower proportion of the company's total earnings, thus reducing earnings per share (EPS). While dilution might not always result in lower EPS (like if the company is using the capital to fund an EPS accretive acquisition) in a lot cases it does, along with lower dividends per share and less voting power at shareholder meetings. Currently, the following risks have been identified for the company: Major Risks Earnings have declined by 52% per year over the past 5 years. Shareholders have been substantially diluted in the past year (225% increase in shares outstanding). Market cap is less than US$10m (€5.98m market cap, or US$7.01m). Minor Risks Share price has been volatile over the past 3 months (6.8% average weekly change). Revenue is less than US$5m (€899k revenue, or US$1.1m). New Risk • Apr 26
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Italian stocks, typically moving 6.6% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risks Earnings have declined by 52% per year over the past 5 years. Market cap is less than US$10m (€1.95m market cap, or US$2.28m). Minor Risks Share price has been volatile over the past 3 months (6.6% average weekly change). Revenue is less than US$5m (€900k revenue, or US$1.1m). New Risk • Dec 05
New major risk - Share price stability The company's share price has been highly volatile over the past 3 months. It is more volatile than 90% of Italian stocks, typically moving 7.3% a week. This is considered a major risk. Share price volatility increases the risk of potential losses in the short-term as the stock tends to have larger drops in price more frequently than other stocks. It may also indicate the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. Currently, the following risks have been identified for the company: Major Risks Share price has been highly volatile over the past 3 months (7.3% average weekly change). Earnings have declined by 41% per year over the past 5 years. Market cap is less than US$10m (€1.97m market cap, or US$2.30m). Minor Risk Revenue is less than US$5m (€1.1m revenue, or US$1.3m). New Risk • Oct 01
New major risk - Revenue and earnings growth Earnings have declined by 41% per year over the past 5 years. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are declining over an extended period, then in most cases the share price will decline over time unless the company can turn around its fortunes. A trend of falling earnings can be very difficult to turn around. If the company is well already established it may also be a sign the company has matured and is in decline. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risks Earnings have declined by 41% per year over the past 5 years. Market cap is less than US$10m (€2.65m market cap, or US$3.11m). Minor Risks Share price has been volatile over the past 3 months (6.8% average weekly change). Revenue is less than US$5m (€1.1m revenue, or US$1.3m). New Risk • Jul 14
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Italian stocks, typically moving 5.5% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risk Market cap is less than US$10m (€3.02m market cap, or US$3.53m). Minor Risks Share price has been volatile over the past 3 months (5.5% average weekly change). Large one-off items impacting financial results. Revenue is less than US$5m (€1.7m revenue, or US$2.0m). New Risk • Apr 18
New minor risk - Financial data availability The company's latest financial reports are more than 6 months old. Last reported fiscal period ended June 2024. This is considered a minor risk. If the company has not reported its earnings on time, it may have been delayed due to audit problems or it may be finding it difficult to reconcile its accounts. Currently, the following risks have been identified for the company: Major Risks Earnings have declined by 43% per year over the past 5 years. Market cap is less than US$10m (€2.80m market cap, or US$3.19m). Minor Risks Latest financial reports are more than 6 months old (reported June 2024 fiscal period end). Revenue is less than US$5m (€1.3m revenue, or US$1.5m). New Risk • Jan 10
New major risk - Share price stability The company's share price has been highly volatile over the past 3 months. It is more volatile than 90% of Italian stocks, typically moving 7.6% a week. This is considered a major risk. Share price volatility increases the risk of potential losses in the short-term as the stock tends to have larger drops in price more frequently than other stocks. It may also indicate the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. Currently, the following risks have been identified for the company: Major Risks Share price has been highly volatile over the past 3 months (7.6% average weekly change). Earnings have declined by 43% per year over the past 5 years. Market cap is less than US$10m (€3.81m market cap, or US$3.93m). Minor Risk Revenue is less than US$5m (€1.3m revenue, or US$1.3m). New Risk • Oct 03
New major risk - Negative shareholders equity The company has negative equity. Total equity: -€3.4m This is considered a major risk. Being in negative equity means that the company's liabilities exceed its assets, meaning it owes more to creditors than it has in owned assets. While this doesn't mean the company is about to collapse, in the long-term, this is unsustainable. The company may have issues meeting financial obligations, is at risk of becoming insolvent and may have difficulty raising capital, especially more debt, if needed. Currently, the following risks have been identified for the company: Major Risks Less than 1 year of cash runway based on free cash flow trend (-€178k free cash flow). Share price has been highly volatile over the past 3 months (7.8% average weekly change). Negative equity (-€3.4m). Earnings have declined by 43% per year over the past 5 years. Market cap is less than US$10m (€3.33m market cap, or US$3.68m). Minor Risk Revenue is less than US$5m (€1.4m revenue, or US$1.6m). New Risk • Sep 02
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Italian stocks, typically moving 5.3% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risks Less than 1 year of cash runway based on free cash flow trend (-€351k free cash flow). Earnings have declined by 37% per year over the past 5 years. Market cap is less than US$10m (€3.84m market cap, or US$4.25m). Minor Risks Share price has been volatile over the past 3 months (5.3% average weekly change). Revenue is less than US$5m (€1.3m revenue, or US$1.5m). New Risk • Apr 19
New minor risk - Financial data availability The company's latest financial reports are more than 6 months old. Last reported fiscal period ended June 2023. This is considered a minor risk. If the company has not reported its earnings on time, it may have been delayed due to audit problems or it may be finding it difficult to reconcile its accounts. Currently, the following risks have been identified for the company: Major Risks Earnings have declined by 21% per year over the past 5 years. Market cap is less than US$10m (€3.46m market cap, or US$3.68m). Minor Risks Latest financial reports are more than 6 months old (reported June 2023 fiscal period end). Revenue is less than US$5m (€1.3m revenue, or US$1.4m). New Risk • Oct 05
New major risk - Revenue and earnings growth Earnings have declined by 21% per year over the past 5 years. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are declining over an extended period, then in most cases the share price will decline over time unless the company can turn around its fortunes. A trend of falling earnings can be very difficult to turn around. If the company is well already established it may also be a sign the company has matured and is in decline. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risks Share price has been highly volatile over the past 3 months (13% average weekly change). Earnings have declined by 21% per year over the past 5 years. Market cap is less than US$10m (€4.46m market cap, or US$4.69m). Minor Risk Revenue is less than US$5m (€1.2m revenue, or US$1.2m). New Risk • Jun 15
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Italian stocks, typically moving 5.1% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risk Market cap is less than US$10m (€3.70m market cap, or US$4.05m). Minor Risks Share price has been volatile over the past 3 months (5.1% average weekly change). Revenue is less than US$5m (€1.4m revenue, or US$1.5m). Board Change • Nov 16
Less than half of directors are independent Following the recent departure of a director, there are only 2 independent directors on the board. The company's board is composed of: 2 independent directors. 5 non-independent directors. Independent Director Fadrique de Machuca was the last independent director to join the board, commencing their role in 2020. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Board Change • Apr 27
Less than half of directors are independent Following the recent departure of a director, there are only 2 independent directors on the board. The company's board is composed of: 2 independent directors. 5 non-independent directors. Independent Director Fadrique de Machuca was the last independent director to join the board, commencing their role in 2020. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Valuation Update With 7 Day Price Move • Mar 15
Investor sentiment improved over the past week After last week's 21% share price gain to €1.86, the stock trades at a trailing P/E ratio of 7.4x. Average trailing P/E is 13x in the Capital Markets industry in Italy. Total loss to shareholders of 54% over the past three years. Valuation Update With 7 Day Price Move • Feb 24
Investor sentiment deteriorated over the past week After last week's 22% share price decline to €1.78, the stock trades at a trailing P/E ratio of 7.1x. Average trailing P/E is 12x in the Capital Markets industry in Italy. Total loss to shareholders of 47% over the past three years. Valuation Update With 7 Day Price Move • Jan 21
Investor sentiment deteriorated over the past week After last week's 15% share price decline to €2.80, the stock trades at a trailing P/E ratio of 11.2x. Average trailing P/E is 15x in the Capital Markets industry in Italy. Total loss to shareholders of 27% over the past three years. Valuation Update With 7 Day Price Move • Jan 05
Investor sentiment improved over the past week After last week's 38% share price gain to €2.84, the stock trades at a trailing P/E ratio of 11.4x. Average trailing P/E is 15x in the Capital Markets industry in Italy. Total loss to shareholders of 26% over the past three years. Reported Earnings • Oct 03
First half 2021 earnings released: EPS €0.094 (vs €0.13 loss in 1H 2020) The company reported a strong first half result with improved earnings, revenues and profit margins. First half 2021 results: Revenue: €1.44m (up 326% from 1H 2020). Net income: €254.5k (up €604.6k from 1H 2020). Profit margin: 18% (up from net loss in 1H 2020). The move to profitability was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 71% per year but the company’s share price has fallen by 20% per year, which means it is significantly lagging earnings. Is New 90 Day High Low • Mar 09
New 90-day low: €2.16 The company is down 10.0% from its price of €2.40 on 09 December 2020. The Italian market is up 7.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Capital Markets industry, which is up 12% over the same period. Is New 90 Day High Low • Nov 10
New 90-day low: €2.44 The company is down 25% from its price of €3.24 on 11 August 2020. The Italian market is down 2.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Capital Markets industry, which is down 7.0% over the same period. Is New 90 Day High Low • Oct 22
New 90-day low: €2.74 The company is down 20% from its price of €3.42 on 24 July 2020. The Italian market is down 7.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Capital Markets industry, which is down 6.0% over the same period. Is New 90 Day High Low • Sep 26
New 90-day low: €2.88 The company is down 19% from its price of €3.54 on 26 June 2020. The Italian market is down 1.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Capital Markets industry, which is down 1.0% over the same period. 