On Monday, Shares of U.S. Global Investors Inc. (NASDAQ: GROW) remained flat and ended its trading session at $1.37. The company traded total volume of 50,376 shares as contrast to its average volume of 67.65K shares. The company has a market value of $22.70M and about 16.57M shares outstanding.
U.S. Global Shareholders, Inc. (NASDAQ: GROW), a boutique registered investment advisory firm with longstanding experience in global markets and specialized sectors, recently stated net income of $647.0K, or $0.04 per share, for the fiscal year ended June 30, 2018. In comparison, for the previous fiscal year, the Company recorded a net loss of $513.0K ($0.03 per share), representing a boost in net income of about $1.20M. The increase is mainly because of income from equity method investments of $1.60M. Assets under management (AUM) for fiscal year 2018 fell in comparison to the same period in 2017, leading to a decrease in operating revenue.
Cash and cash equivalents at fiscal year-end increased $2.40M from the prior fiscal year-end. A large component of the increase in cash during fiscal 2018 was because of net proceeds from investing activities, somewhat offset by dividends paid and repurchases of common stock.
Average AUM was $729.0M as compared to $843.0M in fiscal year 2017, a decrease of 13.5 percent. The decrease was mainly because of market depreciation and shareholder redemptions.
Higher Fuel Costs Influenced JETS:
The U.S. Global Jets ETF (JETS), launched in April 2015, held $92.50M in total AUM as of June 30, down from $114.90M a year ago, as Brent crude oil, the global benchmark, rose nearly 19 percent in the first six months of 2018. Fuel, airlines’ leading expense, is expected to account for 22.5 percent of global airlines’ operating costs in 2018, up from 19.8 percent last year, according to a June report by the International Air Transport Association (IATA).
Continued Strong Balance Sheet:
As of June 30, 2018, the Company had net working capital of about $15.30M. With about $6.40M in cash and cash equivalents and $15.30M in securities recorded at fair value, which together comprise about 75 percent of total assets, the Company has adequate liquidity to meet its current obligations. In addition, the Company has had no long-term debt since 2004 and owns its headquarters building.
The Company offered net profit margin of 10.30%. ROE was recorded as 2.00% while beta factor was 0.90. The stock, as of recent close, has shown the weekly downbeat performance of -15.95% which was maintained at -64.87% in this year.