As the trading week comes closer it may be time for investors to take a look at some of the stocks which moved in a big way in either direction and one of the stocks that may be looked into is that of Bemax Inc (OTCMKTS:BMXC). The stock was in the middle of heavy selling pressure yesterday and ended up with a decline of as much as 14% as a consequence.
Trading Data
On Thursday, BMXC stock fell 14.30% to $0.0120 with more than 84K shares traded, compared to a volume of 126K shares. The stock moved within a range of $0.0120 – 0.0150 after opening trading at $0.0150.
About Bemax
In light of such a fall, it might be a good idea for investors to take a closer look at the company and recent developments in order to figure out if the stock could make a quick recovery or not. The company is still at a development stage and is mainly involved in the distribution of disposable baby diapers in different geographies. The baby diapers are distributed to wholesales located in Europe and Western, Eastern, and Southern Africa. Bemax had been established back in 2012 and is based out of Dallas in Georgia.
Bemax Inc. Revenue Estimates and Business Outlook for Full Year 2022
The company was in fact in the news on Thursday after it made an announcement with regards to its operations and also provided an estimate with regards to its revenues for the full fiscal year of 2022. The company announced that it had continued to bring about expansion to its business by way of product development, market expansion, and innovation.
In addition to that, it has also done considerable global marketing and diversified the markets to affect the growth that has been seen in recent times. On the other hand, the company announced that for the full fiscal year, is expected to record growth of more than 50% when compared to the previous fiscal year.
It may now be a good idea to take a look at some of the projections that were provided by Bemax yesterday with regard to its financial outlook.
The company noted that it expected its full-year revenues to be in the range between $1.6 million and $2.5 million. In addition to that, Bemax projected that the net profit for the full year was going to be between $480000 and $1 million. In the fiscal year that is going to end on March 31, 2023, the company expected revenues to be between $2.1 million and $3.5 million.
That would imply that the growth on a year-on-year basis from the revenues at the end of the fiscal year ended March 31, 2022, is going to be in excess of 50%. The company noted that the worldwide diapers market commanded a size of $52.6 billion in 2019 and by 2027, it is expected to hit $68.3 billion. That reflects a CAGR of 5% during the period under question. If Bemax can corner a meaningful share of this market then it may be possible for the company to clock considerable growth over the coming years.
Despite the fall in the stock yesterday after the announcement of the projections, it is going to be interesting to see if the stock can manage to claw back some of those losses.
Key Quote
We are pleased with the new interest we’ve seen this past year and new opportunities for the company that would allow for continuous revenue expansion, stated Taiwo Aimasiko, CEO of Bemax Inc.
Technical Data
BMXC stock is trading below the 20-Day and 50-Day Moving averages of $0.0258 and $0.3017 respectively. Moreover, the stock is trading below the 200-Day moving average of $0.0627. The company has a total market capitalization of $50,602. The stock is down 85% over the past 6-month.
