TKAT stock price and other NFT shares such as the Jiayin Group, Hall of Fame, Oriental Culture, etc. have skyrocketed in the US stock market nowadays.
Perhaps the main reason for this is the enthusiasm of investors being optimistic about the future of NFT stocks. Investors are expecting TKAT stock to jump into NFT trading.
But is it good enough for a stock to be related to NFT for better performance? Or should the company’s own fundamentals also be good? Let us try to do detail analysis about TKAT stock in this context today.
What is Takung Art Co., Ltd. (TKAT Stock)?
Takung Art Co., Ltd. is a company based in the United States. It is regulated by the U.S. Security and Exchange Commission (SEC) having ticker name TKAT. But the company operates its business primarily in Hong Kong and China.
The company was incorporated in 2012. Ms. Fang Mu is the CEO and Mr. Jehn Ming Lim is the company’s Chief Financial Officer. Takung is headquartered in Hong Kong.
Takung Art was started in 2009 under the name Cardigant Medical Inc., which was in the business of treating vascular diseases. But later the company completely changed its business to its present form.
Takung Art Company Ltd. provides a secure and easy way for art collectors and investors to acquire shared ownership in Asian and other fine art – including paintings, calligraphies, jewelry and precious gems – and participate in the booming international art market without fear of price manipulation and forgery.
Source: Takung Art Co., Ltd.
Is Takung Art an NFT company?
No, Takung Art is not an NFT company. The speculation is still going on and investors are hopeful that the company may also enter the NFT business.
In fact, Takung Art is a company of art lovers that offers the opportunity to invest or trade along with performing arts.
What is NFT?
NFTs are digital files stored on the blockchain that can be in the form of art, video, and audio. Blockchain is a modern digital laser technology that powers cryptocurrencies like bitcoin. There are some examples where you will find that NFT files are sold in millions of dollars.
Business Model Of Takung Art Co., Ltd.
In fact Takung Art Co., Ltd is in a unique business. The company provides an electronic online trading platform to its clients (art collectors and investors) through the client app located at http://en.takungae.com/.
Even ordinary people who have any type of artwork (calligraphy, paintings, sculptures, crafts, jade, jewelry, metal ware, ceramics, and antique furniture) can access the services of the company to buy or sell without financial resources. All you have to do is be an art collector, artist, art dealer or art investor.
Takung Art consists of three steps to do your business – 1. Artwork submitted to Takung by an authorized agent, 2. Required documents and 3. Listing of artwork on site.
The company charges a variety of fees for its unique services such as listing fees, trading commissions, management fees and authorized agent fees.
Most of the company’s traders are from China. The company expanded its business in July 2016 for residents in Russia, Mongolia, Australia and New Zealand.
TKAT Stock Price – Stock Analysis and Forecast
We will use various resources such as results and other study material on the SEC and the company’s website to analyze the fundamentals of TKAT stock.
Note: I strongly suggest that you must read both these posts related to fundamental analysis- 1. Fundamental analysis of stocks and 2. How to analyze the balance sheet of a company.
The global economy, including the economy of Asian countries, is on track to recover.
TKAT stock belongs to the consumer services sector of the Internet retail industry. China has a global leading position in the art and antiques market.
However after the rapid growth in fine arts sales in the past, there seems to be little point of saturation. But if the company jumps into the NFT space, then rising expectations can further increase.
As of March 31, 2020, the company had 38 full-time employees.
There are several listed peers for comparison with the company. These are- Audioeye Inc, Autoweb Inc, Super League Gaming, Inc., USA Technologies Inc., etc.
Financial Performance of TKAT Stock Price
| (in Million USD) | For the year/period ended | |||
| PARTICULARS | Sep 30 2020 | Dec 30 2017 | Dec 30 2018 | Dec 30 2019 |
| Total Assets | 25.1 | 52.83 | 24.57 | 32.44 |
| Total Revenue | 685.47K | 12.92 | 8.5 | 3.17 |
| Revenue Growth | -59.18% (QoQ) | -32.50% | -34.26% | -62.65% |
| Net Income | 261.23K | -1.06 | -7.63 | -4.09 |
| Net Income Growth | -70.79% (QoQ) | -116.66% | -618.93% | 46.37% |
| Total Debt | 8.5 | 7.20 | 2.50 | 2.08 |
- Total assets decreased from $52.83M to $32.44M in three years.
- Big drop in revenue for three consecutive years.
- Gross profit was $1.31M for the year ended December 31, 2019, compared to $5.91, for the year ended December 31, 2018. The decrease was primarily due to decreased revenue resulting from less artworks being listed on trading platform.
Financial Elements of TKAT Stock Price
| Financial Ratio or Element | Value |
| Scrip symbols | NYSE American: TKAT |
| TKAT Stock Price (CMP Mar 26, 2021) | $39.51 |
| 52-WEEK HIGH | $74.11 |
| 52-WEEK LOW | $0.77 |
| Shares Outstanding | 11.27M |
| Market Cap (USD) | 445.333M |
| EPS – (TTM) (Rs) | -0.18* |
| P/E Ratio (x) | – |
TKAT Stock Price Performance
The TKAT stock price was trading below $10 for four consecutive years. But on March 17, 2021, it broke resistance and set a high of $ 74.11 on March 23, 2021. The stock has given a return of 3,276.92% in a year from the low level till now.
Intrinsic Value of TKAT Stock Price
Benjamin Graham’s Formula is helpful to calculate the intrinsic value by the formula, i.v. = [EPS x ( 8.5 + 2g) x 4.4]/Y.
Since profit growth and EPS are negative. This is the reason why we may not be able to calculate the intrinsic value of TKAT stock.
TKAT Stock Price Chart
Image source: Investing.com
The following important points are derived by technical analysis of TKAT stock chart-
- The Bollinger bond is narrowing after a big move. This means a limited stock price movement.
- The 200-day EMA of 5.10 and 50-day EMA of 14.10 are the major support level.
- 31.59, 25.50 and 17.30 are very important support-level for near term trading.
- Technical indicators are not able to tell if the share price is overbought or oversold.
TKAT Stock Price Target and Forecast
(Will update target price after getting some more data)
You can use stock calculator to forecast the target price yourself.
| Target1 | Target2 | Target3 | Target4 | |
| above – UPTREND Targets | ||||
| below – DOWNTREND Targets |
Frequently Asked Questions About TKAT Stock Price
Can we buy TKAT Stock Price in trading?
Yes, you can buy TKAT stock for intraday trading and for swing trading. But let the price correct to $18 level.
What will be share price of TKAT in one year?
update soon..
Is it worth buying TKAT share at current market rate?
No, value investors may not find this stock suitable for investment. It may be an excellent stock for trading, if you trade level wise and with strict stop-loss.
Is it good to buy shares of Takung Art at 39 points?
No, let the price correct.
CONCLUSION
Analyzing a stock before investing or trading is necessary for your capital protection and for smart return.
After reading the post, you will find that the fundamental of the stock is not as unique as its business. Keep your eyes on the company announcement (any changes in the business or jumping into the NFT space) and its results.
Loved the post, do share and comment.
