Verb Technology Stock Soars After CEO Highlights Strong Cash Position and Undervalued Valuation
Shares of Verb Technology Company, Inc. (VERB) are experiencing a significant surge on Monday following a letter to shareholders from CEO Rory J. Cutaia. In his letter, Cutaia highlighted the company’s robust financial position, particularly its substantial cash balance and implied undervaluation of the stock.
CEO Cutaia Points to Strong Financial Fundamentals
Cutaia began his letter by emphasizing key financial data, highlighting Verb’s market capitalization of $3.8 million as of October 10th and its cash balance of $17.2 million as of its latest Form 10-Q filing. Notably, the company’s only debt is a Small Business Administration (SBA) loan of $125 thousand with a 3.75% interest rate. This impressive cash position and minimal debt load paint a positive picture of the company’s financial health.
Undervaluation and Stock Price Potential
Cutaia went on to emphasize the disparity between Verb’s market capitalization and its cash balance. “So do the math – this means if we traded at nothing more than our net cash value, the stock should be trading at more than $22 per share,” stated Cutaia. “And that assumes we get ZERO value for the underlying businesses – ZERO.” This statement implies that the current stock price of $14.24 significantly undervalues the company and its operations.
Positive Outlook for Verb’s Businesses
Cutaia also addressed the performance and future outlook of Verb’s three core businesses, expressing optimism regarding their potential. He further clarified that the recent reverse stock split was a decision made by shareholders, not by management or the board.
How to Invest in Verb Technology Stock
Investors interested in participating in the Verb Technology market can purchase shares through a brokerage account. Numerous online platforms offer brokerage services, allowing investors to buy both whole and fractional shares of stock. Fractional shares enable investors to purchase portions of stock without buying an entire share, making investing more accessible, especially for stocks with high share prices. For example, with Verb Tech currently trading at $14.24, an investment of $100 would yield approximately 7.02 shares of stock.
Short-Selling and Options Trading
For investors seeking to bet against the company, shorting a share of stock requires access to an options trading platform or a broker who allows short-selling. Short-selling involves borrowing shares to sell, hoping to buy them back at a lower price later to profit from the price decline. Investors can also utilize options trading strategies like buying put options or selling call options to profit from a potential share price decline. Options trading should be approached with caution and a thorough understanding of its risks and complexities.
Stock Price Surge and Investor Interest
Following Cutaia’s letter, Verb shares have surged by 66.8%, reaching $13.19 at the time of writing. This significant increase in price reflects the market’s positive reaction to the CEO’s statements regarding the company’s financial position and its potential for future growth. The surge in stock price has undoubtedly piqued investor interest, with many seeking further information about Verb Technology and its future prospects.