This firm classifies itself under
Energy sector and is part of
Oil & Gas E&P industry.
Volatility is a rate at which the price of Africa Oil or any other equity instrument increases or decreases for a given set of returns. It is measured by calculating the standard deviation of the annualized returns over a given period of time and shows the range to which the price of Africa Oil may increase or decrease. In other words, similar to Africa's
beta indicator, it measures the risk of Africa Oil and helps estimate the fluctuations that may happen in a short period of time. So if prices of Africa Oil fluctuate rapidly in a short time span, it is termed to have high volatility, and if it swings slowly in a more extended period, it is understood to have low volatility. Please read more on our
technical analysis page.
Watch out for price decline
Please consider monitoring Africa Oil on a daily basis if you are holding a position in it. Africa Oil is trading at a penny-stock level, and the possibility of delisting is much higher compared to other pink sheets. However, just because the pink sheet is trading under one dollar, does not mean it will be marked for deletion.
Most exchanges require public instruments, such as Africa Oil stock to be traded above the $1 level to remain listed. If Africa Oil pink sheet price falls below $1 for 30 consecutive trading days, the exchange can delist it. Once the company reaches this point, they will be sent an initial price violation notice directly from an exchange.
How important is Africa Oil's Liquidity
Africa Oil
financial leverage refers to using borrowed capital as a funding source to finance Africa Oil Corp ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Africa Oil financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to Africa Oil's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Africa Oil's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the
breakdown between Africa Oil's total debt and its cash.
What is driving Africa Oil Investor Appetite?
Net Income was 159.19
M with profit before overhead, payroll, taxes, and interest of 240.36
M.
AFRICA showing appearance of lower volatility
Latest total risk alpha is at 0.49. AFRICA OIL CORP currently demonstrates below-average downside deviation. It has Information Ratio of 0.18 and Jensen Alpha of 0.54. However, we advise investors to further question AFRICA OIL CORP expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure AFRICA OIL's otc stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact AFRICA OIL's otc stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.
AFRICA OIL Implied Volatility
AFRICA OIL's implied volatility exposes the market's sentiment of AFRICA OIL CORP stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if AFRICA OIL's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that AFRICA OIL stock will not fluctuate a lot when AFRICA OIL's options are near their expiration.
Our Takeaway on AFRICA OIL Investment
Although some other companies under the oil & gas e&p industry are still a bit expensive, AFRICA OIL may offer a potential longer-term growth to shareholders. With an optimistic outlook on your 90 days horizon, it may be a good time to acquire new shares of AFRICA or increase your existing holdings in the OTC Stock as it seems the potential growth has not yet been fully factored into the current price. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to AFRICA OIL.
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Vlad Skutelnik is a Macroaxis Contributor. Vlad covers stocks, funds, cryptocurrencies, and ETFs that are traded in North America, focusing primarily on fundamentals, valuation and market volatility. He has many years of experience in fintech, predictive investment analytics, and risk management.
View Profile This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Vlad Skutelnik do not own shares of Africa Oil Corp. Please refer to our
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