TuanChe ADR reports roughly 41.21
M in cash with (92.25
M) of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 2.17, which can makes it an attractive takeover target, given it will continue generating positive cash flow.
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. TuanChe ADR has an asset utilization ratio of 101.27 percent. This indicates that the company is making $1.01 for each dollar of assets. An increasing asset utilization means that TuanChe ADR is more efficient with each dollar of assets it utilizes for everyday operations.
Investing in TuanChe ADR, 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 TuanChe ADR 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.
Sophisticated investors, who have witnessed
many market ups and downs, anticipate that the market will even out over time. This tendency of TuanChe ADR's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy.
Watch out for price decline
Please consider monitoring TuanChe ADR on a daily basis if you are holding a position in it. TuanChe ADR is trading at a penny-stock level, and the possibility of delisting is much higher compared to other 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 TuanChe ADR stock to be traded above the $1 level to remain listed. If TuanChe ADR 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 TuanChe ADR's Liquidity
TuanChe ADR
financial leverage refers to using borrowed capital as a funding source to finance TuanChe ADR ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. TuanChe ADR 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 TuanChe ADR'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 TuanChe ADR'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 TuanChe ADR's total debt and its cash.
TuanChe ADR Gross Profit
TuanChe ADR Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing TuanChe ADR previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show TuanChe ADR Gross Profit growth over the last 10 years. Please check TuanChe ADR's
gross profit and other
fundamental indicators for more details.
TuanChe ADR Correlation with Peers
Investors in TuanChe can reduce exposure to individual asset risk by holding a diversified portfolio of assets in addition to a long position in TuanChe ADR. Diversification will allow for the same portfolio return with reduced risk. The correlation table of TuanChe ADR and its peers is a two-dimensional matrix that shows the correlation coefficient between pairs of securities TuanChe 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 TuanChe for more details
Is TuanChe ADR valued correctly by the market?
TuanChe ADR owns Efficiency Ratio (i.e., Sharpe Ratio) of -0.13, which indicates the firm had -0.13% of return per unit of risk over the last 3 months. Macroaxis standpoint towards measuring 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. TuanChe ADR exposes twenty-one different
technical indicators, which can help you to evaluate volatility that cannot be
diversified away. Please be advised to validate TuanChe ADR
risk adjusted performance of
(0.18), and Coefficient Of Variation of
(496.72) to confirm the risk estimate we provide.
Are TuanChe ADR technical ratios showing a correction?
The skewness is down to -5.34 as of today. TuanChe ADR is displaying above-average volatility over the selected time horizon. Investors should scrutinize TuanChe ADR independently to ensure intended market timing strategies are aligned with expectations about TuanChe ADR volatility. TuanChe ADR is a potential penny stock. Although TuanChe ADR may be in fact a good instrument to invest, many penny 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 TuanChe ADR. 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 TuanChe instrument if you perfectly time your entry and exit. However, remember that penny stocks 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.
Our Final Take On TuanChe ADR
Although some other firms within the internet content & information industry are still a little expensive, even after the recent corrections, TuanChe ADR may offer a potential longer-term growth to shareholders. While some shareholders may not share our view, we believe that right now is not a good time to increase your holdings in TuanChe. 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 TuanChe ADR.
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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 TuanChe ADR. Please refer to our
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