Greenpro Capital (NASDAQ:GRNQ) has been making considerable efforts to broaden the services that it provides and hence, it makes for an interesting proposition for investors looking into small cap stocks at this point.
The stock is trading at less than a dollar and over the course of 2021 so far, it has experienced a decline of as much as 56.4%. Considering the magnitude of the decline, could this be an opportunity for new investors? It cannot be denied that despite the different strategies that is being deployed by Greenpro to diversify its business, the fundamentals of the company remain week and hence, the answer is not straightforward.
In addition to that, the valuation of the stock is still fairly expensive and couple with its weak fundamentals, any investment in Greenpro could be beset with considerable risks. In the quarter that ended on June 30, 2021, the company suffered an operating loss of as much as $489.09 million and on the other hand, the operating expenses soared by 38.3% year on year to hit $1.18 billion. The magnitude of the losses, rising expenses, high valuation and weak financials make it a stock that could be avoided at this point in time.
