The stock of Farmmi, Inc. (FAMI) gained value today. The stock gained around 8.06% in the current-market trading session to reach $0.25. At the end of the previous trading session, the stock closed at $0.23. The average volume of the stock traded in the trading session was around 80 million.
Reason for the FAMI stock gain:
The stock of Farmmi, Inc. (FAMI) slightly gained in the current market. The change was not much significant but the investors took great interest in the stock after the company announced that NASDAQ confirms the company’s additional 180 day period for the submission under its least bid price requirement till 30th of May, 2022. The requirement for the compliance of bid price with NASDAQ is that the company’s common stock closing bid price should be at least $1.00 or greater than it for 10 consecutive working days or more than that by the time of 30th May 2022.
Although the valuation of the stock is far less than it should be, the company is expected to boost North American sales which will have a significant effect on its profitability. The company announced in the mid of November that their subsidiary company Zhejiang Farmmi Biotechnology have won another new product order. The customer will export the dried black fungus to Canada.
Farmmi, Inc. (FAMI) diversifying its business:
The company is diversifying its product line and portfolio in the future and one can’t just limit it to the fungus products. Their major development in the recent past is that they expanded into the health sector and acquired the 1% equity in Shanghai JiaodaOnlly. This is the largest elderly-care and rehabilitation institute in China. The JiaodaOnlly revenue in the fiscal year of 2020 was around $52 million or 333 million yuan.
Conclusion:
The low valuation of the company doesn’t mean that it’s not worthy of investing. The company is expanding into different markets in the future and introducing its product line there. They are also investing in different industries to diversify their business and increase its profitably. Farmmi, Inc. (FAMI) is expected to perform well if its profitability increases in the future and investors can invest at the right time.
