Still holding on to Superior (AMEX:SDPI) given current volatility drop?

Superior Drilling is currently generating 1.2343% in daily expected returns and assumes 6.1427% risk (volatility on return distribution) over the 60 days horizon. While some of us are excited about energy space, it makes sense to concentrate on Superior Drilling in greater detail to make a better estimate of its risk and reward. What exactly are Superior Drilling shareholders getting in April? The current Superior risk factors may impact the value of the stock as we estimate Superior Drilling as currently overvalued. The real value is approaching 1.42 per share.
Published over a year ago
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Reviewed by Raphi Shpitalnik

This firm conducts business under Energy sector and is part of Oil & Gas Equipment & Services industry.
Superior Drilling holds a performance score of 14 on a scale of zero to a hundred. The entity has a beta of -0.2895, which indicates not very significant fluctuations relative to the market. Let's try to break down what Superior's beta means in this case. As returns on the market increase, returns on owning Superior Drilling are expected to decrease at a much lower rate. During the bear market, Superior Drilling is likely to outperform the market. Although it is vital to follow Superior Drilling current price movements, it is good to be conservative about what you can do with the information regarding equity historical returns. Our philosophy towards measuring future performance of any stock is to look not only at its past charts but also at the business as a whole, including all fundamental and technical indicators. To evaluate if Superior Drilling Products expected return of 1.23 will be sustainable into the future, we have found twenty-seven different technical indicators, which can help you to check if the expected returns are sustainable. Use Superior Drilling value at risk, as well as the relationship between the skewness and day median price to analyze future returns on Superior Drilling.
Volatility is a rate at which the price of Superior Drilling or any other equity instrument increases or decreases for a given set of returns. It is measured by calculating the standard deviation of the annualized returns over a given period of time and shows the range to which the price of Superior Drilling may increase or decrease. In other words, similar to Superior's beta indicator, it measures the risk of Superior Drilling and helps estimate the fluctuations that may happen in a short period of time. So if prices of Superior Drilling fluctuate rapidly in a short time span, it is termed to have high volatility, and if it swings slowly in a more extended period, it is understood to have low volatility. Please read more on our technical analysis page.

Watch out for price decline

Please consider monitoring Superior Drilling on a daily basis if you are holding a position in it. Superior Drilling is trading at a penny-stock level, and the possibility of delisting is much higher compared to other delisted stocks. However, just because the stock is trading under one dollar, does not mean it will be marked for deletion. Most exchanges require public instruments, such as Superior Drilling stock to be traded above the $1 level to remain listed. If Superior Drilling stock 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 Superior Drilling's Liquidity

Superior Drilling financial leverage refers to using borrowed capital as a funding source to finance Superior Drilling Products ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Superior Drilling 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 Superior Drilling'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 Superior Drilling'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 Superior Drilling's total debt and its cash.

Going after Superior Financials

The company reported the previous year's revenue of 10.93 M. Net Loss for the year was (1.83 M) with profit before overhead, payroll, taxes, and interest of 5.37 M.

Over 3 percent rise for Superior Drilling. What does it mean for stockholders?

Superior Drilling current maximum drawdown boosts over 34.69. Superior Drilling Products is displaying above-average volatility over the selected time horizon. Investors should scrutinize Superior Drilling Products independently to ensure intended market timing strategies are aligned with expectations about Superior Drilling volatility. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Superior Drilling'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 Superior Drilling'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.

Superior Drilling Implied Volatility

Superior Drilling's implied volatility exposes the market's sentiment of Superior Drilling Products stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Superior Drilling'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 Superior Drilling stock will not fluctuate a lot when Superior Drilling's options are near their expiration.

Our Conclusion on Superior Drilling

While other companies under the oil & gas equipment & services industry are still a bit expensive, Superior Drilling may offer a potential longer-term growth to stockholders. All things considered, as of the 11th of March 2022, our analysis shows that Superior Drilling almost neglects market trends. The company is overvalued and projects low probability of distress for the next 2 years. Our primary 90 days advice on the company is Strong Sell.

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Editorial Staff

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 Vlad Skutelnik do not own shares of Superior Drilling Products. Please refer to our Terms of Use for any information regarding our disclosure principles.

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