Is China Water getting uncontrollable?
 | By Rifka Kats | Macroaxis Story |
This post is to show some fundamental factors affecting the firm products. I will exhibit how it may impact investing outlook for China Water Affair in July. What is China Water odds of distress for July 2020? The firm dividends can provide a clue to the current value of the stock. The entity one year expected dividend income is about $0.1 per share.
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Reviewed by Gabriel Shpitalnik
I believe the entity is overvalued at 0.59 per share with modest projections ahead. China Water has performance score of 1 on a scale of 0 to 100. The firm shows a Beta (market volatility) of 0.1174, which signifies that not very significant volatility relative to the market. Let's try to break down what China's beta means in this case. As returns on the market increase, China Water returns are expected to increase less than the market. However, during the bear market, the loss on holding China Water will be expected to be smaller as well. Although it is extremely important to respect China Water Affair historical returns, it is better to be realistic regarding the information on equity current trending patterns. The philosophy towards foreseeing future performance of any stock is to evaluate the business as a whole together with its past performance including all available fundamental and technical indicators. By analyzing China Water Affair technical indicators you can presently evaluate if the expected return of 0.0506% will be sustainable into the future. China Water Affair right now shows a risk of 2.42%. Please confirm China Water Affair standard deviation, value at risk, kurtosis, as well as the relationship between the jensen alpha and semi variance to decide if China Water Affair will be following its price patterns. China Water is OVERVALUED at 0.59 per share with modest projections ahead.
How important is China Water's Liquidity
China Water financial leverage refers to using borrowed capital as a funding source to finance China Water Affairs ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. China Water 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 Water'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 Water'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 Water's total debt and its cash.
What is driving China Water Investor Appetite?
China Water holds a total of one billion six hundred million outstanding shares. China Water Affair 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. Please note that no matter how much assets the company secures, if the real value of the the firm is less than the current market value, you may not be able to make money on it. China Water reported revenue of 1.05 B. Net Income was 159.16 M with profit before overhead, payroll, taxes, and interest of 3.46 B. As of the 29th of June, China Water shows the downside deviation of 5.59, risk adjusted performance of 0.0459, and mean deviation of 0.9739. China Water Affair technical analysis gives you the methodology to make use of historical prices and volume patterns to determine a pattern that approximates the direction of the firm's future prices. Put another way, you can use this information to find out if the firm will indeed mirror its model of historical prices and volume momentum, or the prices will eventually revert. We were able to analyze nineteen technical drivers for China Water Affair, which can be compared to its rivals. Please confirm China Water Affair standard deviation, value at risk, kurtosis, as well as the relationship between the jensen alpha and semi variance to decide if China Water Affair is priced correctly, providing market reflects its regular price of 0.71 per share. As China Water Affair is a penny stock we also strongly suggest to validate its total risk alpha numbers.
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