Lundin Mining ongoing price is puzzling
 | By Rifka Kats | Macroaxis Story |
Today article will digest Lundin Mining. I will evaluate why we are still optimistic in anticipation of a recovery. Lundin Mining chance of financial distress is under 48.00 % . Assuming 30 trading days horizon, Lundin Mining is expected to generate 1.75 times less return on investment than the market. In addition to that, the company is 3.72 times more volatile than its market benchmark. It trades about 0.03 of its total potential returns per unit of risk. The market is currently generating roughly 0.2 per unit of volatility. We found thirty-four available fundamentals for Lundin Mining which can be compared to its peers in the industry. To make sure the equity is not overpriced, please verify all Lundin Mining Corporation fundamentals including its Current Ratio, Market Capitalization and the relationship between Cash and Equivalents and Earnings Per Share . Given that Lundin Mining has Price to Book of 0.94X, we recommend you check Lundin Mining last-minute market performance to make sure the company can sustain itself down the road. Use Lundin Mining to enhance returns of your portfolios. The stock experiences large bullish trend. Check odds of Lundin Mining to be traded at $5.23 in 30 days.
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Reviewed by Gabriel Shpitalnik
The company classifies itself under Basic Materials sector and is part of Copper industry. This firm dividends can provide a clue to current valuation of the stock. Lundin Mining one year expected dividend income is about $0.04 per share. The company has price-to-book ratio of 0.94. Typically companies with comparable Price to Book (P/B) are able to outperform the market in the long run. Lundin Mining has Price/Earnings To Growth (PEG) ratio of 0.4. The entity last dividend was issued on 2019-03-21. The firm had 3:1 split on 2007-02-09.
Investing in Lundin Mining, 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 Lundin Mining 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.
How important is Lundin Mining's Liquidity
Lundin Mining financial leverage refers to using borrowed capital as a funding source to finance Lundin Mining ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Lundin Mining 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 Lundin Mining'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 Lundin Mining'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 Lundin Mining's total debt and its cash.
Lundin Mining Correlation with Peers
Investors in Lundin can reduce exposure to individual asset risk by holding a diversified portfolio of assets in addition to a long position in Lundin Mining. Diversification will allow for the same portfolio return with reduced risk. The correlation table of Lundin Mining and its peers is a two-dimensional matrix that shows the correlation coefficient between pairs of securities Lundin 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 Lundin for more details
Breaking it down
The current investor indifference towards the small price fluctuations of Lundin Mining Corporation may encourage investors to take a closer look at the firm as it closed today at a share price of 4.65 on 5799.000 in trading volume. The company executives did not add any value to Lundin Mining investors in March. However, most investors can still diversify their portfolios with Lundin Mining Corporation to hedge your portfolio against high-volatility market scenarios. The stock standard deviation of daily returns for 30 days (very short) investing horizon is currently 2.6096. The current volatility is consistent with the ongoing market swings in March 2019 as well as with Lundin Mining unsystematic, company specific events. Lundin Mining preserves 3.73b of total asset. Lundin Mining is selling for under 4.75. That is 1.28 percent increase. Day high is 4.8102. To summarize, we belive that Lundin Mining is currently undervalued with close to average odds of distress in the next two years. Our present buy-sell advice on the firm is Strong Sell.
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