Recon Technology Ltd (RCON) Stock Analysis
Verdict: AVOID
A terminal-stage micro-cap with failing margins and extreme dilution risk; the 99% price collapse suggests impending delisting or insolvency.
Investment score: 12/100
Analysis as of
Is Recon Technology Ltd stock worth reviewing? AI model thesis
The AI model identifies RCON as a high-risk micro-cap in a 'death spiral' technical pattern. Despite growth in revenue, the company's inability to control costs and massive cash burn (-43.7M CNY FCF) makes it an uninvestable prospect for anyone but short-term gamblers.
7-factor investment score
- Valuation: 30/100 (weight 20%)
- Financial Health: 10/100 (weight 15%)
- Technical Momentum: 2/100 (weight 15%)
- Earnings Quality: 20/100 (weight 15%)
- Insider Sentiment: 10/100 (weight 10%)
- Analyst Consensus: 5/100 (weight 10%)
- Risk-Adjusted Return: 5/100 (weight 15%)
Recon Technology Ltd opportunities and risks
What speaks for RCON
- Revenue Growth Rebound
What speaks against RCON
- Nasdaq Delisting Imminent
Peers and competitors
| Ticker | P/E | P/S | EV/EBITDA | Gross margin | Net margin | FCF yield |
|---|---|---|---|---|---|---|
| RCON | n/a | 0.0x | 0.8x | 27.8% | -25.5% | -1157.8% |
| LSE | 68.2x | 1.7x | 18.8x | 17.7% | 2.6% | -4.4% |
| STAK | n/a | 0.6x | n/a | 30.9% | -22.9% | -31.6% |
| Peer median | 32.7x | 1.2x | 7.5x | 24.3% | -10.2% | -18.0% |
Frequently asked questions about Recon Technology Ltd (RCON)
Is RCON stock a good investment?
The cached TradeMates AI model rates Recon Technology Ltd as AVOID with an investment score of 12/100. The AI model identifies RCON as a high-risk micro-cap in a 'death spiral' technical pattern. Despite growth in revenue, the company's inability to control costs and massive cash burn (-43.7M CNY FCF) makes it an uninvestable prospect for anyone but short-term gamblers. This is algorithmic model output, not personal investment advice.
Is RCON stock a buy?
The TradeMates model verdict for RCON is AVOID with an investment score of 12/100. Treat this as a model signal to review, not a personal buy recommendation.