China Everbright Int secures Sharpe Ratio (or Efficiency) of -0.0173, which signifies that the company had -0.0173% of return per unit of risk over the last month. Macroaxis standpoint towards foreseeing the risk of any stock is to look at both systematic and unsystematic factors of the business, including all available market data and
technical indicators. China Everbright Int exposes twenty-six different
technical indicators, which can help you to evaluate volatility that cannot be
diversified away. Please be advised to confirm China Everbright Int
mean deviation of 1.51, and Risk Adjusted Performance of
(0.013957) to double-check the risk estimate we provide.
Typically, a company's
financial statements are the reports that show the
financial position of the company. There are three main documents that fall into the category of financial statements. These documents include China Everbright income statement, its balance sheet, and the statement of cash flows. Potential China Everbright investors and stakeholders use financial statements to determine how well the company is positioned to perform in the future. Although China Everbright investors may use each financial statement separately, they are all related. The changes in China Everbright's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on China Everbright's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet, but not equivalent to net income shown on the income statement. Please read more on our
technical analysis and
fundamental analysis pages.
The goal of China Everbright
fundamental analysis is to do accurate financial forecasts. There are several possible objectives to fundamental analysis, such as projecting of China Everbright performance into the future periods or doing a reasonable stock valuation. The intrinsic value of China Everbright shares is the value that is considered the true value of the share. If
the intrinsic value of China is higher than its market price, buying is generally recommended. If it is equal to the market price, it is recommended to hold; and if it is less than the market price, then one should sell all shares China Everbright. Please read more on our
fundamental analysis page.
Watch out for price decline
Please consider monitoring China Everbright on a daily basis if you are holding a position in it. China Everbright 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 China Everbright stock to be traded above the $1 level to remain listed. If China Everbright 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 China Everbright's Liquidity
China Everbright
financial leverage refers to using borrowed capital as a funding source to finance China Everbright Environment ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. China Everbright 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 China Everbright'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 China Everbright'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 China Everbright's total debt and its cash.
What is driving China Everbright Investor Appetite?
Although in the United States, the Securities and Exchange Commission has enforced strong rules to prevent insiders from engaging in insider trading, finding insiders among active shareholders of China Everbright is not uncomon. Institutional investors typically avoid acquiring a high percentage of China Everbright stocks because performing such an act may violate securities laws. They are usually not investing their own money, but rather making investments on behalf of their clients. Let's take a look at how the ownership of China is distributed among investors.
Ownership Allocation
China Everbright Int retains a total of 6.14 Billion outstanding shares. China Everbright Int retains significant amount of outstanding shares owned by
insiders. An
insider is usually defined as a CEO, other corporate executive, director, or
institutional investor who own at least 10% of the company outstanding shares. Since such a large part of the company is owned by insiders, it is advisable to analyze if each of these insiders have been buying or selling the stock in recent months. Note that regardless of who owns the company, if the true value of the entity is less than the market is willing to pay for it, you may not be able to generate positive returns over time.
| Retail Investors30.32% | Insiders43.24% | Institutions26.44% |
| Retail Investors | 30.32 |
| Insiders | 43.24 |
| Institutions | 26.44 |
Will China continue to surge?
Latest treynor ratio is at -0.26. China Everbright Int exhibits very low volatility with skewness of 1.53 and kurtosis of 22.14. However, we advise investors to further study China Everbright Int technical indicators to make sure all market info is available and is reliable. China Everbright Int is a potential penny stock. Although China Everbright may be in fact a good instrument to invest, many penny otc 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 China Everbright Int. We encourage investors to look for the signals such us 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 this equity instrument if you perfectly time your entry and exit. However, remember that penny stocks that have been the subject of an artificial hype usually unable to maintain its 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.
Our Final Take On China Everbright
Although some firms in the waste management industry are either recovering or due for a correction, China may not be as strong as the others in terms of longer-term growth potentials. While some shareholders may not share our view, we believe that right now is not a good time to increase your holdings in China. 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 China Everbright.
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Rifka Kats is a Member of Macroaxis Editorial Board. Rifka writes about retail product and service companies from the perspective of a regular consumer and sophisticated investor at the same time. She is passionate about corporate ethics and equality in the workforce.
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 Rifka Kats do not own shares of China Everbright Environment. Please refer to our
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