![]() ![]() GuruFocus ranks the overall financial strength of Torchlight Energy Resources at 3 out of 10, which indicates that the financial strength of Torchlight Energy Resources is poor. ![]() Torchlight Energy Resources has a cash-to-debt ratio of 0.01, which is in the bottom 10% of the companies in Oil & Gas industry. Looking at the cash-to-debt ratio and interest coverage is a great starting point for understanding the financial strength of a company. Thus, it is important to carefully review the financial strength of a company before deciding whether to buy its stock. Shares of Torchlight Energy Resources ( TRCH) soared 58 on Monday after the oil and gas driller extended the closing date of its merger with advanced materials manufacturer Metamaterial. Investing in companies with poor financial strength has a higher risk of permanent loss of capital. Shares of energy company Torchlight Energy Resources ( TRCH) fell as much as 28 in the first 90 minutes of trading on June 23. Change the date range, see whether others are buying or selling. Link: These companies may deliever higher future returns at reduced risk. You can watch TRCH and buy and sell other stock and options commission-free on Robinhood. Torchlight Energy Resources Stock Appears To Be Significantly Overvaluedīecause Torchlight Energy Resources is significantly overvalued, the long-term return of its stock is likely to be much lower than its future business growth. Warning! GuruFocus has detected 8 Warning Signs with TRCH. GF Value for Torchlight Energy Resources is shown in the chart below. At its current price of $1.85 per share and the market cap of $268.8 million, Torchlight Energy Resources stock shows every sign of being significantly overvalued. ![]() On the other hand, if it is significantly below the GF Value Line, its future return will likely be higher. If the price of a stock is significantly above the GF Value Line, it is overvalued and its future return is likely to be poor. It is calculated based on the historical multiples that the stock has traded at, the past business growth and analyst estimates of future business performance. GuruFocus Value is GuruFocus' estimate of the fair value at which the stock should be traded. Let’s dive into the reason June 30 may be a big date TRCH investors will want to mark on their calendar.The stock of Torchlight Energy Resources ( NAS:TRCH, 30-year Financials) is believed to be significantly overvalued, according to GuruFocus Value calculation. At least, according to what the market believes it’s worth. Without this $1-$20 extraneous valuation bump, TRCH is likely trading where it should be. Thus, most of the recent volatility we’ve seen in TRCH is related to this company trading ex-dividend the past few days. That said, a massive range of between $1 per share and $20 per share has been discussed. Is it a good time to buy Torchlight Energy Resources stock The technical analysis gauge below displays real-time ratings for the timeframes you select. The range of what this dividend could be appears to be still up in the air. This dividend will be paid out to shareholders of record, as of June 22. Torchlight Energy Resources Inc (Torchlight Energy Resources Inc is lower by Friday morning, with the stock falling -7.74 in pre-market trading to 1.43.TRCH's short-term technical score of 37 indicates that the stock has traded less bullishly over the last month than 63 of stocks on the market. This combination of meme stock hysteria and merger excitement helped drive this stock in recent weeks.Īdditionally, as a result of the merger, Torchlight announced investors will receive a special dividend of its Series A Preferred Stock. Indeed, retail investors have jumped on this stock prior to the announcement, spurring additional interest in Torchlight. Shareholders approved the deal on June 11, and Torchlight is set to become a much larger entity in short order as a result. The company’s highly touted merger with Metamaterial (OTCMKTS: MMATF) has driven most of the excitement in this stock. And many of the reasons for this volatility appear to still exist, painting a rather interesting picture for how this stock will perform over the near term. However, this kind of volatility is stomach-churning. Now, investors who have held through this uncertainty are still up. ![]()
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