It appears Intelgenx Technologs will continue to recover much faster as its share price surged up 6.67% today. Intelgenx Technologs current daily volatility is 8.03 percent, with a beta of 1.72 and an alpha of -0.15 over DOW. While some baby boomers are getting worried about elevated trading volume, it is reasonable to review Intelgenx Technologs. We will evaluate why recent Intelgenx Technologs price moves suggest a bounce in December.
Intelgenx Technologs conducts business under Healthcare sector and is part of Biotechnology industry. This firm currently holds 10.57 M in liabilities with Debt to Equity (D/E) ratio of 6.42, indicating Intelgenx Technologs may have difficulties to generate enough cash to satisfy its financial obligations. The company has a current ratio of 3.55, suggesting that it is liquid enough and is able to pay its financial obligations when due. Debt can assist Intelgenx Technologs until it has trouble settling it off, either with new capital or with free cash flow. So, Intelgenx Technologs' shareholders could walk away with nothing if the company can't fulfill its legal obligations to repay debt. However, a more frequent occurrence is when companies like Intelgenx Technologs sell additional shares at bargain prices, diluting existing shareholders. Debt, in this case, can be an excellent and much better tool for Intelgenx to invest in growth at high rates of return. When we think about Intelgenx Technologs' use of debt, we should always consider it together with cash and equity.
Investing in Intelgenx Technologs, 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 Intelgenx Technologs 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 Intelgenx Technologs' 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.
Please consider monitoring Intelgenx Technologs on a daily basis if you are holding a position in it. Intelgenx Technologs is trading at a penny-stock level, and the possibility of delisting is much higher compared to other pink sheets. However, just because the pink sheet is trading under one dollar, does not mean it will be marked for deletion. Most exchanges require public instruments, such as Intelgenx Technologs stock to be traded above the $1 level to remain listed. If Intelgenx Technologs pink sheet 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 Intelgenx Technologs's Liquidity
Intelgenx Technologs financial leverage refers to using borrowed capital as a funding source to finance Intelgenx Technologs ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Intelgenx Technologs 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 Intelgenx Technologs' 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 Intelgenx Technologs' 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 Intelgenx Technologs's total debt and its cash.
How is Intelgenx allocating its cash?
To perform a cash flow analysis of Intelgenx Technologs, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Intelgenx Technologs is receiving and how much cash it distributes out in a given period. The Intelgenx Technologs cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.
Intelgenx Technologs Correlation with Peers
Investors in Intelgenx can reduce exposure to individual asset risk by holding a diversified portfolio of assets in addition to a long position in Intelgenx Technologs. Diversification will allow for the same portfolio return with reduced risk. The correlation table of Intelgenx Technologs and its peers is a two-dimensional matrix that shows the correlation coefficient between pairs of securities Intelgenx 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 Intelgenx for more details
Details
We consider Intelgenx Technologs out of control. Intelgenx Technologs holds Efficiency (Sharpe) Ratio of 0.0044, which attests that the entity had 0.0044% of return per unit of risk over the last 3 months. Our standpoint towards determining the volatility of a stock is to use all available market data together with stock-specific technical indicators that cannot be diversified away. We have found twenty-seven technical indicators for Intelgenx Technologs, which you can use to evaluate the future volatility of the firm. Please check out Intelgenx Technologs risk adjusted performance of (0.011669), and Market Risk Adjusted Performance of (0.06) to validate if the risk estimate we provide is consistent with the expected return of 0.0351%.
Newest Risk Adjusted Performance is up to -0.01. Price may drop again. Intelgenx Technologs is displaying above-average volatility over the selected time horizon. Investors should scrutinize Intelgenx Technologs independently to ensure intended market timing strategies are aligned with expectations about Intelgenx Technologs volatility. Intelgenx Technologs is a potential penny stock. Although Intelgenx Technologs may be in fact a good instrument to invest, many penny otc 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 Intelgenx Technologs. 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 Intelgenx instrument if you perfectly time your entry and exit. However, remember that penny otcs 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 Bottom Line On Intelgenx Technologs
Whereas some other companies within the biotechnology industry are still a little expensive, even after the recent corrections, Intelgenx Technologs may offer a potential longer-term growth to private investors. The inconsistency in the assessment between current Intelgenx valuation and our trade advice on Intelgenx Technologs 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 Intelgenx Technologs.
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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
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