Gome Telecom (China) Buy Hold or Sell Recommendation
| 600898 Stock | 0.74 0.00 0.00% |
Assuming the 90 days trading horizon and your above-average risk tolerance, our recommendation regarding Gome Telecom Equipment is 'Strong Sell'. Macroaxis provides Gome Telecom buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding 600898 positions.
Check out Gome Telecom Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. In addition, we conduct extensive research on individual companies such as Gome and provide practical buy, sell, or hold advice based on investors' investing horizon and their risk tolerance towards Gome Telecom Equipment. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in nation.
Gome |
Execute Gome Telecom Buy or Sell Advice
The Gome recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Gome Telecom Equipment. Macroaxis does not own or have any residual interests in Gome Telecom Equipment or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Gome Telecom's advice using the current market data and latest reported fundamentals.
Time Horizon
Risk Tolerance
 |  |
Strong Sell
Market Performance | Very Weak | Details | |
Volatility | Dangerous | Details | |
Hype Condition | Over hyped | Details | |
Current Valuation | Overvalued | Details | |
Odds Of Distress | Very High | Details | |
Economic Sensitivity | Almost neglects market trends | Details | |
Analyst Consensus | Not Available | Details | |
Reporting Quality (M-Score) | Inapplicable | Details |
Gome Telecom Trading Alerts and Improvement Suggestions
| Gome Telecom generated a negative expected return over the last 90 days | |
| Gome Telecom has some characteristics of a very speculative penny stock | |
| Gome Telecom has a very high chance of going through financial distress in the upcoming years | |
| The company reported the revenue of 39.07 M. Net Loss for the year was (112.39 M) with loss before overhead, payroll, taxes, and interest of (36.42 M). | |
| Gome Telecom generates negative cash flow from operations | |
| About 53.0% of the company shares are owned by insiders or employees |
Gome Telecom Returns Distribution Density
The distribution of Gome Telecom's historical returns is an attempt to chart the uncertainty of Gome Telecom's future price movements. The chart of the probability distribution of Gome Telecom daily returns describes the distribution of returns around its average expected value. We use Gome Telecom Equipment price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Gome Telecom returns is essential to provide solid investment advice for Gome Telecom.
| Mean Return | -1.36 | Value At Risk | -5.26 | Potential Upside | 0.00 | Standard Deviation | 2.29 |
Return Density |
| Distribution |
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Gome Telecom historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.
Gome Telecom Cash Flow Accounts
| 2020 | 2021 | 2022 | 2023 | 2024 | 2025 (projected) | ||
| Change To Inventory | 89.8M | (20.2M) | 6.7M | (909.9K) | (1.0M) | (994.0K) | |
| Dividends Paid | 40.6M | 5.5M | 5.2M | 6.0M | 6.9M | 6.6M | |
| Capital Expenditures | 1.3M | 38.1M | 20.0M | 2.1M | 2.5M | 2.3M | |
| Net Income | (258.5M) | (40.0M) | (77.8M) | (112.4M) | (101.1M) | (106.2M) | |
| Investments | 1.0B | 100.5M | (20.0M) | (2.1M) | (2.5M) | (2.3M) | |
| Change In Cash | 219.2M | (95.7M) | (66.2M) | (67.0M) | (60.3M) | (57.3M) | |
| Net Borrowings | 385.5M | (59.1M) | (707.5M) | 14.4M | 13.0M | 12.3M | |
| Depreciation | 13.2M | 16.9M | 19.8M | 17.4M | 15.6M | 18.2M | |
| Change To Netincome | 184.8M | 677.5M | 226.3M | (3.4M) | (3.9M) | (3.7M) | |
| End Period Cash Flow | 232.0M | 136.2M | 70.0M | 3.0M | 2.7M | 2.6M | |
| Free Cash Flow | 12.3M | (387.8M) | (25.1M) | (46.9M) | (53.9M) | (56.6M) | |
| Other Non Cash Items | 51.6M | 11.5M | 11.8M | 11.1M | 9.9M | 9.4M |
Gome Telecom Greeks
Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Gome Telecom or Specialty Retail sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Gome Telecom's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Gome stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α | Alpha over Dow Jones | -1.4 | |
β | Beta against Dow Jones | -0.24 | |
σ | Overall volatility | 2.17 | |
Ir | Information ratio | -0.55 |
Gome Telecom Volatility Alert
Gome Telecom Equipment exhibits very low volatility with skewness of -0.66 and kurtosis of -0.52. Gome Telecom Equipment is a potential penny stock. Although Gome Telecom may be in fact a good instrument to invest, many penny stocks are speculative in nature and are subject to artificial price hype. Please make sure you totally understand the upside potential and downside risk of investing in Gome Telecom Equipment. We encourage investors to look for signals such as email spams, message board hypes, claims of breakthroughs, volume upswings, sudden news releases, promotions that are not reported, or demotions released before SEC filings. Please also check biographies and work history of current and past company officers before investing in high volatility instruments, penny stocks, or equities with microcap classification. You can indeed make money on Gome instrument if you perfectly time your entry and exit. However, remember that penny stocks that have been the subject of artificial hype usually unable to maintain their increased share price for more than just a few days. The price of a promoted high volatility instrument will almost always revert back. The only way to increase shareholder value is through legitimate performance backed up by solid fundamentals.Gome Telecom Fundamentals Vs Peers
Comparing Gome Telecom's fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze Gome Telecom's direct or indirect competition across all of the common fundamentals between Gome Telecom and the related equities. This way, we can detect undervalued stocks with similar characteristics as Gome Telecom or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Gome Telecom's fundamental indicators could also be used in its relative valuation, which is a method of valuing Gome Telecom by comparing valuation metrics with those of similar companies.
| Better Than Average | Worse Than Average | Compare Gome Telecom to competition |
| Fundamentals | Gome Telecom | Peer Average |
| Return On Equity | -133.28 | -0.31 |
| Return On Asset | -0.18 | -0.14 |
| Operating Margin | (2.68) % | (5.51) % |
| Current Valuation | 327.98 M | 16.62 B |
| Shares Outstanding | 285.38 M | 571.82 M |
| Shares Owned By Insiders | 53.00 % | 10.09 % |
| Price To Book | 19.52 X | 9.51 X |
| Price To Sales | 13.31 X | 11.42 X |
| Revenue | 39.07 M | 9.43 B |
| Gross Profit | (36.42 M) | 27.38 B |
| EBITDA | (72.01 M) | 3.9 B |
| Net Income | (112.39 M) | 570.98 M |
| Total Debt | 68.01 M | 5.32 B |
| Book Value Per Share | (0.40) X | 1.93 K |
| Cash Flow From Operations | (44.76 M) | 971.22 M |
| Earnings Per Share | (0.33) X | 3.12 X |
| Number Of Employees | 369 | 18.84 K |
| Beta | 1.09 | -0.15 |
| Market Capitalization | 211.18 M | 19.03 B |
| Total Asset | 252.27 M | 29.47 B |
| Retained Earnings | (1.63 B) | 9.33 B |
| Working Capital | (151.06 M) | 1.48 B |
| Net Asset | 252.27 M |
Gome Telecom Market Momentum
Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as Gome . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.
About Gome Telecom Buy or Sell Advice
When is the right time to buy or sell Gome Telecom Equipment? Buying financial instruments such as Gome Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.
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Other Information on Investing in Gome Stock
Gome Telecom financial ratios help investors to determine whether Gome Stock is cheap or expensive when compared to a particular measure, such as profits or enterprise value. In other words, they help investors to determine the cost of investment in Gome with respect to the benefits of owning Gome Telecom security.