JMJ Fintech Downgraded to 'Hold' by MarketsMOJO Despite Strong Quarterly Results

JMJ Fintech, a microcap company in the finance/NBFC industry, has recently been downgraded to a 'Hold' by MarketsMOJO on September 10, 2024. This decision was based on various factors, including the company's recent financial performance and technical trends.
Despite declaring outstanding results in June 2024 with a growth in net profit of 857.89%, JMJ Fintech's stock has been downgraded due to its weak long-term fundamental strength. The company has also underperformed the market in the last year, with a return of only 21.10% compared to the market's 34.61%.

However, there are some positive aspects to consider. JMJ Fintech has declared positive results for the last three consecutive quarters, with higher net sales and PBDIT (profit before depreciation, interest, and taxes) in the last quarter. The stock is also technically in a bullish range, with multiple factors such as MACD, Bollinger Band, and KST indicating a bullish trend.

Moreover, with a return on equity (ROE) of 24.2 and a price to book value of 2.4, the stock is currently trading at an attractive valuation. It is also trading at a discount compared to its average historical valuations.

It is worth noting that the majority of JMJ Fintech's shareholders are non-institutional investors. This may indicate a lack of confidence from institutional investors in the company's long-term growth potential.

In conclusion, while JMJ Fintech's recent financial performance and technical trends may seem promising, the company's weak long-term fundamental strength and underperformance in the market may be cause for concern. Investors are advised to hold onto their stocks for now and closely monitor the company's future performance.