Blue Whale Acquisition has roughly 284.86
M in cash with 193.49
M of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 2.66.
Investing in Blue Whale, just like investing in any other equity instrument, is characterized by a strong risk-return correlation. High risks mean high returns and low risk means lower expected returns. Risk management is the act of identifying and assessing the potential risk and developing strategies to minimize these risks and earn maximum possible profits while holding Blue Whale along with other instruments in the same portfolio. Using conventional
technical analysis and
fundamental analysis to select individual securities into a portfolio complements risk management and adds value to overall investors' investing strategies.
Sophisticated investors, who have witnessed
many market ups and downs, anticipate that the market will even out over time. This tendency of Blue Whale's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy.
How important is Blue Whale's Liquidity
Blue Whale
financial leverage refers to using borrowed capital as a funding source to finance Blue Whale Acquisition ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Blue Whale 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 Blue Whale'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 Blue Whale'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 Blue Whale's total debt and its cash.
Blue Whale Correlation with Peers
Investors in Blue can reduce exposure to individual asset risk by holding a diversified portfolio of assets in addition to a long position in Blue Whale Acquisition. Diversification will allow for the same portfolio return with reduced risk. The correlation table of Blue Whale and its peers is a two-dimensional matrix that shows the correlation coefficient between pairs of securities Blue is related in some way. The cells in the table are color-coded to highlight significantly positive and negative relationships. Each cell shows the correlation between one pair of equities and can be used to run pair trading strategies or create efficient portfolios with
your current brokerage. Please check
volatility of Blue for more details
Another Outlook On Blue Whale
We consider Blue Whale very steady.
Blue Whale Acquisition secures Sharpe Ratio (or Efficiency) of 0.012, which signifies that the company had 0.012% of return per unit of risk over the last 3 months. Our standpoint towards foreseeing the volatility of a stock is to use all available market data together with stock-specific
technical indicators that cannot be
diversified away. We have found twenty-eight
technical indicators for Blue Whale Acquisition, which you can use to evaluate the future volatility of the firm. Please confirm Blue Whale Acquisition Downside Deviation of 0.2988,
risk adjusted performance of
(0.024572), and Mean Deviation of 0.1213 to double-check if the risk estimate we provide is consistent with the expected return of 0.0023%.
Blue Whale technical analysis suggests possible come-back
Blue Whale current maximum drawdown builds up over 0.92. Blue Whale Acquisition exhibits very low volatility with skewness of -0.08 and kurtosis of 1.49. However, we advise investors to further study Blue Whale Acquisition technical indicators to make sure all market info is available and is reliable. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Blue Whale's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Blue Whale's 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.
Blue Whale Implied Volatility
Blue Whale's implied volatility exposes the market's sentiment of Blue Whale Acquisition stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Blue Whale'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 Blue Whale stock will not fluctuate a lot when Blue Whale's options are near their expiration.
Our Conclusion on Blue Whale
When is the right time to buy or sell Blue Whale Acquisition? Buying stocks such as Blue Whale isn't very hard. However, what challenging for most investors is doing it at the right time. Proper
market timing is something most people cannot do without
sophisticated tools, which help to isolate the right opportunities, deliver winning trades and diversify portfolios on a daily basis.
To conclude, as of the 27th of December 2021, our analysis shows that Blue Whale barely shadows the market. The company is
undervalued and projects
below average chance of financial distress for the next 2 years. Our ongoing 90 days buy-or-sell advice on the company is
Hold.
Building efficient market-beating portfolios requires time, education, and a lot of computing power!
The Portfolio Architect is an AI-driven system that provides multiple benefits to our users by leveraging cutting-edge machine learning algorithms, statistical analysis, and predictive modeling to automate the process of asset selection and portfolio construction, saving time and reducing human error for individual and institutional investors.
Try AI Portfolio ArchitectEditorial Staff
Raphi Shpitalnik is a Junior Member of Macroaxis Editorial Board. Raphael is a young entrepreneur who joined Macroaxis on a part-time basis at the beginning of the pandemic and eventually acquired a real taste for investing and fintech. He likes to analyze different equity instruments across a wide range of industries, focusing primarily on consumer products, sports, fintech, cannabis, and AI.
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 Raphi Shpitalnik do not own shares of Blue Whale Acquisition. Please refer to our
Terms of Use for any information regarding our disclosure principles.
Would you like to provide feedback on the content of this article?
You can get in touch with us directly or send us a quick note via email to
[email protected]
