Houston American Energy Stock Buy Hold or Sell Recommendation

HUSA Stock  USD 1.07  0.06  5.94%   
Given the investment horizon of 90 days and your above-average risk tolerance, our recommendation regarding Houston American Energy is 'Hold'. Macroaxis provides Houston American buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding HUSA positions.
  
Check out Houston American 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 Houston and provide practical buy, sell, or hold advice based on investors' investing horizon and their risk tolerance towards Houston American Energy. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in state.

Execute Houston American Buy or Sell Advice

The Houston recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Houston American Energy. Macroaxis does not own or have any residual interests in Houston American Energy or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Houston American's advice using the current market data and latest reported fundamentals.

Time Horizon

Risk Tolerance

Execute Advice
Sell Houston AmericanBuy Houston American
Hold

Market Performance

Very WeakDetails

Volatility

Extremely DangerousDetails

Hype Condition

StaleDetails

Current Valuation

UndervaluedDetails

Odds Of Distress

Below AverageDetails

Economic Sensitivity

Actively responds to the marketDetails

Investor Sentiment

ImpartialDetails

Analyst Consensus

Not AvailableDetails

Financial Strenth (F Score)

FrailDetails

Financial Leverage

Not RatedDetails

Reporting Quality (M-Score)

Unlikely ManipulatorDetails
For the selected time horizon Houston American Energy has a Risk Adjusted Performance of 0.0099, Jensen Alpha of 0.1874, Total Risk Alpha of 0.9397, Sortino Ratio of 0.0177 and Treynor Ratio of (0.0005)
We provide advice to complement the regular expert consensus on Houston American. Our dynamic recommendation engine utilizes a multidimensional algorithm to analyze the company's potential to grow using all technical and fundamental data available at the time. To make sure Houston American Energy is not overpriced, please check out all Houston American fundamentals, including its book value per share, retained earnings, and the relationship between the cash per share and number of employees . Given that Houston American Energy is a hitting penny stock territory we urge to closely look at its price to earning.

Houston American Trading Alerts and Improvement Suggestions

Houston American generated a negative expected return over the last 90 days
Houston American has high historical volatility and very poor performance
Houston American has some characteristics of a very speculative penny stock
The company reported the previous year's revenue of 560.18 K. Net Loss for the year was (8.22 M) with profit before overhead, payroll, taxes, and interest of 703.99 K.
Houston American Energy currently holds about 3.9 M in cash with (1.54 M) of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 0.39.
Houston American has a frail financial position based on the latest SEC disclosures
Latest headline from aol.com: Trump brings in cabinet chiefs to strategize on energy price cuts amid major EPA deregulatory push

Houston American Returns Distribution Density

The distribution of Houston American's historical returns is an attempt to chart the uncertainty of Houston American's future price movements. The chart of the probability distribution of Houston American daily returns describes the distribution of returns around its average expected value. We use Houston American Energy price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Houston American returns is essential to provide solid investment advice for Houston American.
Mean Return
0.01
Value At Risk
-9.65
Potential Upside
9.09
Standard Deviation
7.51
   Return Density   
       Distribution  
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Houston American 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.

Houston American Cash Flow Accounts

202020212022202320242025 (projected)
Change In Cash1.1M3.7M(347.4K)(488.0K)(1.1M)(1.0M)
Free Cash Flow(2.4M)(723.5K)(244.0K)263.2K(1.5M)(1.6M)
Depreciation452.2K319.6K265.8K237.4K75.1K71.4K
Other Non Cash Items26.8K4.3K4.6K2.9M6.5M6.8M
Capital Expenditures505.4K692.3K1.5M42.8K15.0K2.0
Net Income(4.0M)(1.0M)(744.3K)(3.2M)(8.2M)(7.8M)
End Period Cash Flow1.2M4.9M4.5M4.1M3.0M3.4M
Investments(63.4K)(238.2K)(1.7M)(2.8M)(1.9M)(1.8M)
Change To Netincome156.1K3.0M323.6K206.2K185.6K176.3K

Houston American 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 Houston American or Oil, Gas & Consumable Fuels 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 Houston American'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 Houston 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
0.19
β
Beta against Dow Jones1.73
σ
Overall volatility
7.76
Ir
Information ratio 0.01

Houston American Volatility Alert

Houston American Energy is displaying above-average volatility over the selected time horizon. Houston American Energy is a potential penny stock. Although Houston American 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 Houston American Energy. 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 Houston 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.

Houston American Fundamentals Vs Peers

Comparing Houston American'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 Houston American's direct or indirect competition across all of the common fundamentals between Houston American and the related equities. This way, we can detect undervalued stocks with similar characteristics as Houston American or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Houston American's fundamental indicators could also be used in its relative valuation, which is a method of valuing Houston American by comparing valuation metrics with those of similar companies.
    
 Better Than Average     
    
 Worse Than Average Compare Houston American to competition
FundamentalsHouston AmericanPeer Average
Return On Equity-0.27-0.31
Return On Asset-0.0844-0.14
Operating Margin(3.54) %(5.51) %
Current Valuation12.95 M16.62 B
Shares Outstanding13.09 M571.82 M
Shares Owned By Insiders6.50 %10.09 %
Shares Owned By Institutions9.52 %39.21 %
Number Of Shares Shorted884.13 K4.71 M
Price To Earning(7.26) X28.72 X
Price To Book3.77 X9.51 X
Price To Sales29.96 X11.42 X
Revenue560.18 K9.43 B
Gross Profit703.99 K27.38 B
EBITDA(1.46 M)3.9 B
Net Income(8.22 M)570.98 M
Cash And Equivalents3.9 M2.7 B
Cash Per Share0.39 X5.01 X
Total Debt71.08 K5.32 B
Debt To Equity0.02 %48.70 %
Current Ratio28.17 X2.16 X
Book Value Per Share0.92 X1.93 K
Cash Flow From Operations(1.54 M)971.22 M
Short Ratio0.46 X4.00 X
Earnings Per Share(0.32) X3.12 X
Number Of Employees218.84 K
Beta0.45-0.15
Market Capitalization19.11 M19.03 B
Total Asset4.4 M29.47 B
Retained Earnings(85.22 M)9.33 B
Working Capital3.07 M1.48 B
Current Asset2.42 M9.34 B
Current Liabilities39.51 K7.9 B
Net Asset4.4 M
Note: Acquisition by Schoonover James A of 150000 shares of Houston American at 1.45 subject to Rule 16b-3 [view details]

Houston American Market Momentum

Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as Houston . 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 Houston American Buy or Sell Advice

When is the right time to buy or sell Houston American Energy? Buying financial instruments such as Houston 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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When determining whether Houston American Energy offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Houston American's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Houston American Energy Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Houston American Energy Stock:
Check out Houston American 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.
You can also try the Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
Is Oil & Gas Exploration & Production space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Houston American. If investors know Houston will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Houston American listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share
(0.32)
Revenue Per Share
0.057
Quarterly Revenue Growth
(0.43)
Return On Assets
(0.08)
Return On Equity
(0.27)
The market value of Houston American Energy is measured differently than its book value, which is the value of Houston that is recorded on the company's balance sheet. Investors also form their own opinion of Houston American's value that differs from its market value or its book value, called intrinsic value, which is Houston American's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Houston American's market value can be influenced by many factors that don't directly affect Houston American's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Houston American's value and its price as these two are different measures arrived at by different means. Investors typically determine if Houston American is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Houston American's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.