Kemal Yildirim
Intro
Viomi Technology Co., Ltd. (NASDAQ:VIOT) is an interesting Chinese play with plenty of potential. Although the stock price of Viomi has disappointed since its IPO back in 2018, the company announced a significant business
Viomi Holds Potential Due To Going 'All In' On Drinking Water Solutions
Summary
- Viomi Technology Co., Ltd. has pivoted to focus exclusively on AI-driven drinking water solutions, divesting many IoT@Home assets to enhance profitability.
- Viomi's stock shows potential with a 57% rally year to date, forming an ascending triangle pattern, suggesting an upside breakout above $1.85 to $1.90.
- The company's unique AI water purification model promises recurring income through filter replacements, enhancing user experience and extending filter lifespan.
- Despite risks like competition and market conditions, Viomi's strong balance sheet, strategic partnership with Xiaomi, and positive earnings trends justify a hold rating.
Individual investor with a keen interest in deriving income from investment setups. We do this by buying undervalued profitable stocks with strong balance sheets & minimal debt. Furthermore, when the opportunity arises, we like to write calls against our positions to bring in additional income. Risk management is controlled through position sizing & the use of trailing stop losses over time.Individualtrader.net
Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.