First Community Return On Equity vs. Cash And Equivalents

FCCT Stock  USD 8.90  0.10  1.11%   
Based on the key profitability measurements obtained from First Community's financial statements, First Community may not be well positioned to generate adequate gross income at this time. It has a very high probability of underperforming in January. Profitability indicators assess First Community's ability to earn profits and add value for shareholders.
For First Community profitability analysis, we use financial ratios and fundamental drivers that measure the ability of First Community to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well First Community utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between First Community's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of First Community over time as well as its relative position and ranking within its peers.
  
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For more information on how to buy First Pink Sheet please use our How to Invest in First Community guide.
Please note, there is a significant difference between First Community's value and its price as these two are different measures arrived at by different means. Investors typically determine if First Community is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, First Community's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

First Community Cash And Equivalents vs. Return On Equity Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining First Community's current stock value. Our valuation model uses many indicators to compare First Community value to that of its competitors to determine the firm's financial worth.
First Community is rated # 4 in return on equity category among its peers. It also is rated # 4 in cash and equivalents category among its peers creating about  162,614,679  of Cash And Equivalents per Return On Equity. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the First Community's earnings, one of the primary drivers of an investment's value.

First Cash And Equivalents vs. Return On Equity

Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.

First Community

Return On Equity

 = 

Net Income

Total Equity

 = 
0.0436
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
Cash or Cash Equivalents are the most liquid of all assets found on the company's balance sheet. It is used in calculating many of the firm's liquidity ratios and is a good indicator of the overall financial health of a company. Companies with a lot of cash are usually attractive takeover targets. Cash Equivalents are balance sheet items that are typically reported using currency printed on notes.

First Community

Cash

 = 

Bank Deposits

+

Liquidities

 = 
7.09 M
Cash equivalents represent current assets that are easily convertible to cash such as short term bonds, savings account, money market funds, or certificate of deposits (CDs). One of the important consideration companies make when classifying assets as cash equivalent is that investments they report on their balance sheets under current assets should have almost no risk of change in value over the next few months (usually three months).

First Cash And Equivalents Comparison

First Community is currently under evaluation in cash and equivalents category among its peers.

First Community Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in First Community, profitability is also one of the essential criteria for including it into their portfolios because, without profit, First Community will eventually generate negative long term returns. The profitability progress is the general direction of First Community's change in net profit over the period of time. It can combine multiple indicators of First Community, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
First Community Corporation operates as the holding company for First Community Bank of East Tennessee that provides various banking services to individuals and businesses. First Community Corporation was founded in 1993 and is based in Rogersville, Tennessee. First Community operates under BanksRegional classification in the United States and is traded on OTC Exchange.

First Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on First Community. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of First Community position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the First Community's important profitability drivers and their relationship over time.

Use First Community in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if First Community position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in First Community will appreciate offsetting losses from the drop in the long position's value.

First Community Pair Trading

First Community Pair Trading Analysis

The ability to find closely correlated positions to First Community could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace First Community when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back First Community - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling First Community to buy it.
The correlation of First Community is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as First Community moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if First Community moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for First Community can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your First Community position

In addition to having First Community in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

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Buywrite ETFs
Buywrite ETFs Theme
ETF themes focus on helping investors to gain exposure to a broad range of assets, diversify, and lower overall costs. The Buywrite ETFs theme has 25 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Buywrite ETFs Theme or any other thematic opportunities.
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Additional Tools for First Pink Sheet Analysis

When running First Community's price analysis, check to measure First Community's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy First Community is operating at the current time. Most of First Community's value examination focuses on studying past and present price action to predict the probability of First Community's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move First Community's price. Additionally, you may evaluate how the addition of First Community to your portfolios can decrease your overall portfolio volatility.