Investment Stock Valuation For Moxian Inc1

Running head: INVESTMENT: STOCK VALUATION FOR MOXIAN, INC 1

Investment: Stock Valuation for Moxian, Inc.

Student Name:

Date:

INVESTMENT: STOCK VALUATION FOR MOXIAN, INC. 2

Investment: Stock Valuation for Moxian, Inc.

The company was founded in 2003 and is located in china. It has branches in Malaysia,

Beijing and Hong Kong it have integrated online and offline path form operator. In addition, it

provides services to internet and social media marketing

Liquidity ratios (current and quick ratio)

Asset management ratios average of four Competitors Company

2.5+1.2+3.6+2.8=2.525

INVESTMENT: STOCK VALUATION FOR MOXIAN, INC. 3

The debt/equity is 0.00

Source: Morningstar

Profitability

ROA is -10.4, ROE is 0.00 Profit margin is 0.8

Dividend yield is 0.00

DuPont analysis

2017

Profit Margin = Net Income / Net Sales -20.3

Total Asset Turnover = Net Sales / Average Total Assets (or Total Assets) 0.3

Equity Multiplier = Total Assets / Total Equity 2.2

DuPont Return on Equity = Profit Margin * Total Asset Turnover * Equity Multiplier

-20.3*0.3*2.2= -13.4

2018

Profit Margin = Net Income / Net Sales -22.3

INVESTMENT: STOCK VALUATION FOR MOXIAN, INC. 4

Total Asset Turnover = Net Sales / Average Total Assets (or Total Assets) 0.4

Equity Multiplier = Total Assets / Total Equity 2.2

DuPont Return on Equity = Profit Margin * Total Asset Turnover * Equity Multiplier

-22.3*0.4*2.2= -19.624

2019

Profit Margin = Net Income / Net Sales -25.3

Total Asset Turnover = Net Sales / Average Total Assets (or Total Assets) 0.4

Equity Multiplier = Total Assets / Total Equity 2.8

DuPont Return on Equity = Profit Margin * Total Asset Turnover * Equity Multiplier

-25.3*0.4*2.8=-28.3

The change of net income and net sales of the company resulted to this decrease because

they affected the profit margin. The other factors that contributed to this decrease are the net

sales in comparison to average stock assets and this resulted to a decrease. The total assets and

total equity affected the decrease partially (FINVIZ.com).

Future Strategy

INVESTMENT: STOCK VALUATION FOR MOXIAN, INC. 5

The company want to increase focus more on selling its product on the online and offline.

The company intends to offline platform for small and medium sized enterprises. Using of the

both offline and online will assist the company to get new customers and interact with existing

customers. The company intends to design products and services for users to return as well as to

recruit new customers. The company is moving up in the market. The stock is much focused in

the service industry is currently priced at $0.6. In terms of stock, there are several aspects that

entail the ability to movement in the market. They are ratios to watch for the company to

determine its movement in the market (MOXIAN, INC, 2016).

Short ratio of the company is used to by investors to conceptualize the amount of short

interests, if the short ratios are higher it is expected that the price of the stock is going to

increase. Through out of the company financial analysis the service sector stocks could carry

short squeezes in the company. Nevertheless, the current short ratio for the company comes to

0.36, which is better off. The quick and current ratios are a tool to measure the idea of the

company liquidity. It shows the ability of the company to pay debts as the debt mature using

quick assets or current assets. Therefore the company requires coming with strong current and

quick rations. Unfortunately the current and quick ratio of the company is 0.00 and 0.0

respectively.

Management

James Mengdong was the elected director of the organization September 2016 and

seconded by Hao Qing Hu was elected as the director in September 2019. The Hao Qing Hu has

more than twenty years of experience in business strategy and managing business operations.

From September 2015 he has been the general manger of Moxian Beijing, which is the

subsidiary of Maxion, Inc. he was in charge of the overall organization operations. Since 2014

INVESTMENT: STOCK VALUATION FOR MOXIAN, INC. 6

until September the Hao Qing Hu was the general manager of Debang Construction Technology

and Science Company. The Hao Qing Hu is the Xinhua Huifeng Equity Center appointee.

The next person was Lin Kuan Liang. He had great experience since he have served as the

director of Asia pacific at Tang Asia partner. In 2012 he was part of adviser of business in the

London and United States of America. He was the manager of the associate of FM holding

company and he was involved in the dent financing and restructuring. He also graduated from

the University of Queen Mary University in London with LLB in law in the year 2010.

Wang Ying Jie has been the chief and president offer of Westland media in the United States of

America. She also acted as the director of Dingoyicheng Technology. She was business partner

of Shiatanga Technology, where she had the responsibility for business strategy and operation

since 2006 to 2001. She has a master in scientific, medical translation and technical from

imperial United Kingdom (MOXIAN, INC, 2016). She also qualified with bachelor’s degree in

foreign literatures, languages and international business from the university of Tianjin foreign

language. These executive managers have the background skills required to the organization

Recommendation:

I would advise the client to buy the stock for Moxian Company market order since the

Moxian want to reverse stock split of 1 for 5. The 1 for 5 reverse will take the effect from April

2019 and the company’s common stock will start to trade on the split adjust basis at the time the

market will open on 22 April 2019. When the reverse becomes effective every five shares of the

company will be automatically is converted to one. There will be no fractional shares will be

issued. Each fractional share will actually be rounded up to the next whole number.

As result of reverse the outstanding shares of the Moxian’s common stock will actually be

reduced by 5. There will also proportionate decrease of certificate in relation to reverse split. The

INVESTMENT: STOCK VALUATION FOR MOXIAN, INC. 7

par value of the Moxian common stock will still remain unchanged at 0.001 per share. The

reverse split will not affect shareholder’s ownership of the organization or voting power.

Themoxian offer minimum of 2,500,000 of shares to the common stock at price of 0.001 per

share. The maximum of the common share is usually 5,000,000. The public are offered at $4.00

per share in regard to common market. These offerings are made on the basis of the best effort

without the interference of the placement agents. The placement agents ought to sell minimum

number of shares provided.

This would affects would affect me with 20% margin and it would not be favorable for

the maintenance margin

Stock Selection

The common market stock is the best and majority of the stock are placed in this form.

The common shares provides claim of profits as well as conferring with voting rights. Through

the period of time, the common stock gains higher yield in returns as compared to corporate

bonds. The higher returns usually comes at cost, however the common stock have many risks

such as potential loss of the whole amount invested in case the company goes out of business. If

the organization liquidates and goes bankrupt, the people who invested in the common share will

not get money until the bondholders, creditors and preferred shareholders are paid.

Preferred stock usually function the same with the bonds and usually does not have

voting rights. The preferred shares, the investors are usually guaranteed a fixed amount of

divided in perpetuity. In case of liquidation the preferred shareholders are paid first before the

common shareholders are paid. The preferred share may also be termed as callable implying that

the company has the right to repurchase them for any reason and for any time.

INVESTMENT: STOCK VALUATION FOR MOXIAN, INC. 8

Ordinary shares represent the aspect of voting right in an organization. The share holders

have the right to vote on one vote per share. The shareholders have to predetermine dividends

amount. The ordinary shares usually represent aspect of equity ownership in accordance to their

percentage ownership in the organization. The ordinary shareholders are entitled to dividends if

the company makes profit or if they are available. The ordinary shareholders are entitled to

residual where the organization goes out of market. Nevertheless, they are the last to be

considered in the line of preferred shareholders and bondholders. The ordinary shareholders are

at greater risks, but the usually get higher reward in case the company makes large amount of

profit. The bondholders and preferred share holders are paid not more than what they are

entitled. The true value of the ordinary shares is based on the price obtained in the prevailing

market value.

References

FINVIZ.com.https://finviz.com/

INVESTMENT: STOCK VALUATION FOR MOXIAN, INC. 9

Ipos/filing.ashx? filingid=11624521

Morningstar: http://www.lindenwood.edu/academics/library/research-

resources/databases/search/?query=morningstar

MOXIAN, INC. (2016).Prospectus.https://www.nasdaq.com/markets/

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