Penny stocks tend to include the weird and the wonderful. If you are a fan of alternative medicine and believe in the power of ‘chi’ more than a solid Ibuprofen tab, then you might take a punt with Shineco (NASDAQ:TYHT).
Penny Stocks to Watch: Shineco (NASDAQ:TYHT)
Shineco is a China-based holding company that specializes in Chinese herbal medicine. It sells through its subsidiaries directly to consumers.
Now, some people consider herbal medicine as nothing more than hocus-pocus. Others fully attest their wellbeing to it and avoid traditional medicines like the plague. Whichever side of the coin you’re on there’s something for everyone to grab onto with Shinco’s business as it differentiates itself from the competition through its specific ‘technology.’
The company has three ‘technologies’ that it wholly believes in and focuses on. They are Apocynum Venetum Fiber, Flavonoids, and Pectinose.
The first is a cotton-like Chinese fiber. What is special about this is that the company claims that Apocynum Venetum Fiber “has a better antibacterial function, but also works well in regulating blood pressure, lowering blood lipids, fighting against allergies, improving the body’s microcirculation, and enhancing immune response.”
Shineco’s Flavonoids and Pectinoses also boast equally impressive health benefits such a lowering blood pressure and enhancing the immune system.
Penny Stock Figures
But all this really will come down to whether you are a fan of alternative medicines or not. Companies will claim the benefits and others will agree but as a potential investor what you need to invest is either a passion in the product or… solid numbers.
So has Shineco got any of those? Well at the moment it has a P/E ratio of 1.73, which makes it relatively undervalued. And for a stock that hung around the $4 mark across 2016 and 2017, its current price of $0.57 would suggest that Shineco is simply one turn around from shooting back up to those heights.
In the last 12 months, TYHT returned $16.50 for every $100 invested in the stock. This is decent but can it maintain those figures is the question. We are coming into an era where CBD oils are creating a market valued at $22 billion by 2022. Don’t be surprised if there is a knock-on effect into all types of plant-based herbal medicines from this. Shineco could be set for that resurgence if so.
What do you think?
Featured Image: Depositphotos/© ra2studio