By analyzing existing technical and fundamental indicators between China Everbright and JP Morgan, you can compare the effects of market volatilities on both companies' prices and check if they can diversify away market risk if combined in one of your portfolios. You can also utilize pair trading strategies for matching a long position in JP Morgan with a short position in China Everbright. Check out our
pair correlation module for more information.
Let's begin by analyzing the assets.
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. China Everbright has an asset utilization ratio of 112.0 percent. This indicates that the company is making $1.12 for each dollar of assets. An increasing asset utilization means that China Everbright Int is more efficient with each dollar of assets it utilizes for everyday operations.
Investment perspective, in general, refers to a viewpoint or opinion regarding investment opportunity in China Everbright. It encompasses the assessment of an investment's potential risks and rewards, and expectations for its
performance over time. Several factors influence the investment perspective on China Everbright, including investment goals, risk tolerance, time horizon, market conditions, and research and analysis. Investors have varying goals, such as capital preservation, income generation, or long-term growth. Risk tolerance plays a significant role in shaping an investor's perspective, with some being more risk-averse and others willing to take on higher risks for potential returns.
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?
Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include product or services discounts, promotions, as well as early payments on invoices or services rendered in advance.
Revenue Breakdown
Let me now go over China Everbright revenue. Based on the latest financial disclosure, China Everbright Int reported 49.9
B of revenue. This is much higher than that of the Industrials sector and significantly higher than that of the
Waste Management industry. The revenue for all United States stocks is significantly lower than that of China Everbright Int. As for JP Morgan we see revenue of 120.58
B, which is much higher than that of the Waste Management
| China | 49.9 Billion |
| Sector | 3.42 Billion |
| JP Morgan | 120.58 Billion |
Will China Everbright continue to go ballistic?
Latest risk adjusted performance indicator falls down to -0.2. Possible price growth? China Everbright Int exhibits very low volatility with skewness of -4.98 and kurtosis of 27.75. However, we advise investors to further study China Everbright Int technical indicators to ensure that 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 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 China instrument if you perfectly time your entry and exit. However, remember that penny otcs 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.
The Bottom Line
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. To sum up, as of the 17th of September 2022, our overall 90 days recommendation on the firm is
Strong Sell. We believe China Everbright is currently
overvalued with
close to average probability of distress for the next two years.
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Aina Ster is a Member of Macroaxis Editorial Board. Aina delivers weekly perspective on ongoing market and economic trends, analysis and tips from predictive analysis to forecasting across various financial instruments.
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 Aina Ster do not own shares of China Everbright Environment. Please refer to our
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