Synairgen Shares Gain 12% In A Day: Is It A Stable Investment?

Over the past few days, Synairgen shares have achieved good results. On September 9, the company’s shares were worth 150.80. The next day, the price increased by 178.24. During the last trading session, the shares rose by 12.42% and were trading at the price of 175.60. As of March 2021, Synairgen had cash in the amount of 75 million pounds, and over the past twelve months, its cash flow was 24 million pounds. Thus, since March 2021, he has had a 3.1-year cash reserve.

Currently, the company does not generate income, this indicates that the business is at an early stage. Its cash flow grew positively last year, increasing by 722%. With such an increase in expenses, his money band will quickly shrink, as he simultaneously uses his cash, thereby increasing the burning rate. Synairgen’s market capitalization is 310 million pounds, Synairgen’s cash flow is 24 million pounds. Therefore, we believe that the company will be able to raise more money to finance growth by issuing a few shares or borrowing some money.