Penny Stock At Weekly Low

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Penny Stock At Weekly Low

This Penny Stock Is At A 52-Week Low

One penny stock is currently trading at its 52-week low of 13p. The stock is in a long-term downtrend and has already lost 89% of its value.

Does this mean it's the right time to buy the penny stock? We are talking about Creo Medical (LSE: CREO). In general, penny stocks are appealing to investors because of their low share price. At the same time, the potential for return is very high in penny stocks as compared to blue-chip stocks.

Creo Medical Remains Unprofitable

Creo Medical is in the healthcare device business and has a specialization in surgical endoscopy with minimal invasiveness.

Over the years, the market cap of Creo Medical has evaporated into thin air, and today, its valuation is under 52 million.

There are many signs in the Creo Medical stock which would worry investors. For starters, the financial year 2024 revenue was not in line with the expectations.

The revenue was only 30.4 million, which is a decline of 1.3% from the earlier reading a year ago. It seems that the firm is now going in the back gear as the revenue is taking a hit.

The biggest issue is that Creo Medical is not profitable at all, which is also taking a toll on the stock price. According to the board, it will stay like that during the FY25 as well.

Now, it seems that Creo Medical will need to raise more money before it can turn a profit. However, it would not be that easy, as Creo Medical had trouble with fundraising in the past.

Creo Medical is subject to considerable risks, just like any penny stock. This is demonstrated by the fact that the shares were once trading for almost 2.30, as opposed to 12.5p today.

However, at this low value, I find the company's risk/reward profile to be appealing. A number of fundamental financial metrics will require improvement, but the company's distinctive patented technologies hold great promise.

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