pcjockey
3 months ago
New major risk for CLSK - Revenue and earnings growth
Earnings are forecast to decline by an average of 40% per year for the foreseeable future.
This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are expected to decline, then in most cases the share price will decline over time as well. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns.
Currently, the following risks have been identified for the company:
Major Risks
β’ Share price has been highly volatile over the past 3 months (16% average weekly change).
β’ Earnings are forecast to decline by an average of 40% per year for the foreseeable future.
β’ High level of non-cash earnings (33% accrual ratio).
β’ Shareholders have been substantially diluted in the past year (102% increase in shares outstanding).
Minor Risk
β’ Significant insider selling over the past 3 months (US$17m sold).