Urban Tea is a Chinese chemical company, floated on the NASDAQ.

Urban Tea, Inc. operates as a speciality chemical company. The Company specializes in producing and distributing organic compounds. Urban Tea products are used in the automotive, pharmaceutical, agrochemical, dye and pigments, aerospace, ceramics, coating-printing, clean energy, and food additive industries. - Bloomberg.

The financials of UT are mixed. Current market cap is $13.6m with 19/20 revenue at $865.7k this is a big jump from 18/19 where revenue was £401.8k. The company has taken a loss in the last two years however and 19/20 saw a $2.813m loss, which is around $600k larger than 18/19. The balance sheet, however, is good, total assets amount to $22.63m of which $5.3m is cash and $8m in 'goodwill'. Total liabilities are minute though at $2.035m. This leaves net postive assets of $22.30m, however, they company has a negative retained earnings balance of $10.28m, meaning in theory only $14.9m is of 'shareholders' equity.

From a technical aspect, the company looks mixed. September saw a spike higher and since that the share has consolidated. Though on a daily timeframe the stock has been trending in the lower Bollinger band for the best part of two weeks. RSI is fair value at 51.8. What is interesting though is that MACD looks like it may cross over positive and if the stock can move just $0.02c to the upward direction, it puts it in the upper band, followed by an additional confirmation of bullish pressure on the MACD. Initial support sits $1.58/$1.55 and a break below here would signal perhaps a further drop to $1.43 and $1. To the upside, a break of $1.74/$1.75 could take this stock up to $1.93 followed by $2 and then $2.33.

Overall, UT is mixed, with good potential. The company went public in 2015 at around $24 so in theory, there is major room to grow. That being said the losses are not improving, though one could argue this is just simply R&D costs or exception items. Technical indicates a mixed picture with a SLIGHT bullish bais, though that could change quickly. Confirmation would be seeing the stock just nudge up a few cents.