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Is Co Diagnostics (NASDAQ:CODX) losing trust from investors?

November 27, 2021  By Vlad Skutelnik
Macroaxis Story
Today's article will break down Co Diagnostics. We will analyze why Co Diagnostics investors may still consider a stake in the business. Co-Diagnostics is currently traded for 9.56. The entity has historical hype elasticity of -0.03. The average price elasticity to hype of competition is about -0.08. The firm is forecasted to decline in value after the next headline, with the price expected to drop to 9.53. The average volatility of media hype impact on the company stock price is huge, making predictions on the news or social media along less reliable. The price decrease on the next news is expected to be -0.31%, whereas the daily expected return is currently at -0.15 percent. The volatility of related hype on Co Diagnostics is about 564.37% with expected price after next announcement by competition of 9.48 Given the investment horizon of 90 days the next forecasted press release will be in about 7 days.
Published over a year ago
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Reviewed by Rifka Kats

We provide trade recommendation to complement the latest expert consensus on Co-Diagnostics. Our dynamic recommendation engine uses a multidimensional algorithm to analyze the company's potential to grow using all technical and fundamental data available today.
The successful prediction of Co Diagnostics stock price could yield a significant profit to investors. But is it possible? The efficient-market hypothesis suggests that all published stock prices of traded companies, such as Co Diagnostics, already reflect all publicly available information. This academic statement is a fundamental principle of many financial and investing theories used today. However, the typical investor usually disagrees with a 'textbook' version of this hypothesis and continually tries to find mispriced stocks to increase returns. We use internally-developed statistical techniques to arrive at the intrinsic value of Co Diagnostics based on Co Diagnostics hews, social hype, general headline patterns, and widely used predictive technical indicators. We also calculate exposure to Co Diagnostics's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Co Diagnostics's related companies.

Watch out for price decline

Please consider monitoring Co Diagnostics on a daily basis if you are holding a position in it. Co Diagnostics 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 Co Diagnostics stock to be traded above the $1 level to remain listed. If Co Diagnostics 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.

Use Technical Analysis to project CODX expected Price

Co Diagnostics technical stock analysis exercises models and trading practices based on price and volume transformations, such as the moving averages, relative strength index, regressions, price and return correlations, business cycles, stock market cycles, or different charting patterns.
Overlap Analysis
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Forecast Models
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Price Shifting
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Volatility Indicators
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Value Movement
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A focus of Co Diagnostics technical analysis is to determine if market prices reflect all relevant information impacting that market. A technical analyst looks at the history of Co Diagnostics trading pattern rather than external drivers such as economic, fundamental, or social events. It is believed that price action tends to repeat itself due to investors' collective, patterned behavior. Hence technical analysis focuses on identifiable price trends and conditions. More Info...

How important is Co Diagnostics's Liquidity

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

Co Diagnostics Gross Profit

Co Diagnostics Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Co Diagnostics 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 Co Diagnostics Gross Profit growth over the last 10 years. Please check Co Diagnostics' gross profit and other fundamental indicators for more details.

Is Co Diagnostics valued reasonably by the market?

Co Diagnostics reported the previous year's revenue of 96.35 M. Net Income was 46.22 M with profit before overhead, payroll, taxes, and interest of 57.96 M.
 2018 2019 2020 2021 (projected)
Interest Expense134.95 K106.44 K95.79 K123.47 K
Gross Profit30.52 K102.54 K57.96 M62.54 M
Interest ExpenseGross Profit

Deferred Revenue Breakdown

Co Diagnostics Deferred Revenue yearly trend continues to be fairly stable with very little volatility. Deferred Revenue will likely drop to about 257.4 K in 2021. Deferred Revenue usually refers to a component of Total Liabilities representing the carrying amount of consideration received or receivable on potential earnings that were not recognized as revenue; including sales; license fees; and royalties; but excluding interest income. Co Diagnostics Deferred Revenue is fairly stable at the moment as compared to the past year. Co Diagnostics reported Deferred Revenue of 305,307 in 2020
2010
2018
2020
2021
2010194,338
20181,323
2020305,307
2021257,366

Are Co Diagnostics technical ratios showing a turnaround?

Treynor ratio is down to 0.45. It may suggest a possible volatility slide. Co-Diagnostics exhibits very low volatility with skewness of 1.11 and kurtosis of 5.29. However, we advise investors to further study Co-Diagnostics technical indicators to make sure all market info is available and is reliable. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Co Diagnostics' stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Co Diagnostics' 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.

Co Diagnostics Implied Volatility

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

Our Conclusion on Co Diagnostics

While other companies under the diagnostics & research industry are still a bit expensive, Co Diagnostics may offer a potential longer-term growth to investors. The inconsistency in the assessment between current Co Diagnostics valuation and our trade advice on Co Diagnostics is due to the recent market swings and your selection of investing horizon. 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 Co Diagnostics.

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Editorial Staff

Vlad Skutelnik is a Macroaxis Contributor. Vlad covers stocks, funds, cryptocurrencies, and ETFs that are traded in North America, focusing primarily on fundamentals, valuation and market volatility. He has many years of experience in fintech, predictive investment analytics, and risk management. 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 Vlad Skutelnik do not own shares of Co Diagnostics. Please refer to our Terms of Use for any information regarding our disclosure principles.

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