Vstm

Verastem (VSTM) is a pharmaceutical company that has recently faced significant challenges. Here's a comprehensive analysis of the situation:

1. **Technical Analysis**:
- The closing price of VSTM on July 10, 2024, was $2.83. The resistance level was at $2.87, and the support level was at $2.80. This indicates a narrow trading range, suggesting limited selling pressure and potential for a bounce-back.
- The 5-day moving average was $2.78, and the 10-day moving average was $2.90, both below the 50-day moving average of $6.46. This suggests a bearish short-term trend but with a slight uptick in momentum.

|Ticker|Name|Support Level|Resistance Level|Closing Price|Date|code|market_code|
|---|---|---|---|---|---|---|---|
|VSTM.O|Verastem|2.8000|2.8700|2.83|20240710|VSTM|186|

|Ticker|Name|50-Day Moving Average|5-Day Moving Average|10-Day Moving Average|Date|code|market_code|
|---|---|---|---|---|---|---|---|
|VSTM.O|Verastem|6.4635|2.7784|2.9027|20240710|VSTM|186|

2. **Technical Indicators**:
- The Relative Strength Index (RSI) was 38.42, which is neither overbought nor oversold and suggests a balanced selling pressure.
- The Moving Average Convergence Divergence (MACD) was 0.42, indicating a slight positive momentum.
- The Bollinger Bands were at 3.14, with a KDJ value of 16.35. These indicators suggest a stock that is neither overextended nor underextended from its moving averages, with a moderate level of volatility.

|Ticker|Name|RSI|MACD|KDJ|Boll|Date|code|market_code|
|---|---|---|---|---|---|---|---|---|
|VSTM.O|Verastem|38.4150||16.3506|3.1443|20240709|VSTM|186|
|VSTM.O|Verastem||0.4218|||20240710|VSTM|186|

3. **Fundamental Analysis**:
- The company's financials are under pressure, with a net loss of $33.86 million and a negative Return on Equity (ROE) of -82.16%. This indicates significant financial challenges and a lack of profitability.
- The Gross Profit Margin was not provided, but the negative net income suggests it is likely to be low.
- The company has a negative Diluted Earnings Per Share (EPS) of $1.26, which is a clear indicator of poor profitability.
- The Price-to-Earnings (P/E) ratio is -0.67, which is not applicable and suggests that the company is not profitable based on its earnings.

|Ticker|Name|Total Revenue|ROE(Average)|Net Income|Gross Profit Margin|Dividend Yield (TTM)|Diluted EPS|Date|code|market_code|
|---|---|---|---|---|---|---|---|---|---|---|
|VSTM.O|Verastem||-82.1559|-3.3863E7|||-1.26|20240331|VSTM|186|
|VSTM.O|Verastem|||||||20240710|VSTM|186|

4. **Valuation Metrics**:
- The Price-to-Sales (P/S) ratio was not provided, but the Price-to-Book (P/B) ratio was $2.87, which is relatively high and may indicate that the stock is overvalued based on its book value.
- The Debt-to-Equity Ratio was 167.28%, which is very high and suggests that the company has a high level of debt relative to its equity.

5. **Market Sentiment**:
- The consensus rating for VSTM is a "Strong Buy" with an average price target of $17.8, which is significantly higher than the current price. This suggests that analysts are optimistic about the company's future prospects.
- The net fund flow was negative at $-162,184.94, which could indicate that investors are pulling out more than they are investing, which is not a positive sign.

6. **Operational Metrics**:
- The Research and Development (R&D) expenses have been increasing, which could be a positive sign as it indicates investment in innovation.
- The number of employees was 73, which is relatively small for a pharmaceutical company and could suggest a focused and efficient workforce.

|Ticker|Name|R&D Expenses|Date|code|market_code|
|---|---|---|---|---|---|
|VSTM.O|Verastem|1.4888E7|2022 Q2|VSTM|186|
|VSTM.O|Verastem|1.1288E7|2022 Q3|VSTM|186|
|VSTM.O|Verastem|1.074E7|2022 Q4|VSTM|186|
|VSTM.O|Verastem|1.2015E7|2023 Q1|VSTM|186|
|VSTM.O|Verastem|1.2893E7|2023 Q2|VSTM|186|
|VSTM.O|Verastem|1.3946E7|2023 Q3|VSTM|186|
|VSTM.O|Verastem|2.2502E7|2023 Q4|VSTM|186|
|VSTM.O|Verastem|1.7707E7|2024 Q1|VSTM|186|

7. **Industry Context**:
- VSTM operates in the Pharmaceuticals industry, which can be highly competitive and regulated. The company's challenges may be exacerbated by these factors.

In conclusion, Verastem is a company facing significant financial challenges, as evidenced by its negative net income, high debt levels, and negative EPS. However, the consensus from analysts is a "Strong Buy" with a significantly higher average price target, suggesting optimism about the company's future prospects. The stock is trading near its support level, which could indicate a potential for a rebound. Investors should carefully consider these factors and the inherent risks before making investment decisions.