Loop Industries (LOOP) presents a unique opportunity for investors looking to diversify their portfolios this November. Despite its challenges, such as a net income loss of 21M and a high probability of bankruptcy at 45.57%, the company operates in the innovative specialty chemicals sector, which could offer long-term growth potential. With insiders owning 50.85% of the shares, there's a significant vested interest in the company's success, suggesting that those closest to the business are confident in its future prospects. However, potential investors should weigh these factors carefully, considering the company's current financial hurdles and market volatility.
Main Takeaways
To evaluate Loop Industries' stock, you can compare its market volatility with Northern's to see how each company's price reacts to market changes. This comparison can help determine if combining them in a portfolio might reduce overall risk. Additionally, you might consider a pair trading strategy, where you take a long position in Northern and a short position in Loop Industries. For more details, check out our [pair correlation](#) module.
Now, let's look at asset utilization. This metric shows how much revenue a company generates for each dollar of assets. Loop Industries has an asset utilization ratio of 0.74%, meaning it earns about $0.0074 for every dollar of assets. A higher ratio indicates greater efficiency in using assets for daily operations.Loop Industries, trading on NASDAQ, is a player in the chemicals sector with a focus on innovative recycling technologies. As of the latest update, the company carries a market capitalization of $88.1 million. Despite its promising technology, Loop Industries faces significant financial challenges, highlighted by a net income loss of $21.1 million. With a probability of bankruptcy at 45.57%, potential investors should weigh the risks carefully. The stock's beta of 1.482 suggests higher volatility compared to the broader market, which could mean more pronounced price swings. As November unfolds, investors will need to consider whether Loop's innovative edge can outweigh its financial hurdles in their portfolio strategy. Northern Technologies seems to be bouncing back quickly, with its stock price rising by 1.69% today, compared to Loop Industries' impressive 5.11% jump. Given the cautious sentiment among traders towards the chemical sector, it's worth taking a closer look at Loop Industries to see how it measures up against Northern Technologies and similar companies. Let's explore some of the competitive factors that differentiate Loop from Northern and others in the industry.
Please consider monitoring Loop Industries on a daily basis if you are holding a position in it. Loop Industries 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 Loop Industries stock to be traded above the $1 level to remain listed. If Loop Industries 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.
Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include products or services discounts, promotions, as well as early payments on invoices or services rendered in advance.
Revenue Breakdown
Let me now go over Loop Industries revenue. Based on the latest financial disclosure, Loop Industries reported 153
K of revenue.
This is 100.0% lower than that of the Chemicals sector and 100.0% lower than that of the
Materials industry. The revenue for all United States stocks is 100.0% higher than that of Loop Industries. As for Northern Technologies we see revenue of 86.36
M, which is 98.06% lower than that of the Materials
| LOOP | 153,000 | 0.003373 |
| Sector | 4.45 Billion | 98.09 |
| NTIC | 86.36 Million | 1.9 |
"High risk, high reward" is a phrase that often rings true in the stock market, and Loop Industries (LOOP) might just fit that bill this November. With a significant probability of bankruptcy at 45.57%, investing in LOOP is not for the faint-hearted. However, the stock's potential upside of 11.72% could be enticing for those willing to take on the risk. Despite a challenging financial landscape, including a net income loss of 21.1 million and a quarterly revenue growth decline of 78%, LOOP's innovative approach in the chemicals sector might offer a speculative opportunity for bold investors..
Our take on today Loop Industries spike
Loop Industries saw a significant jump today, but investors should proceed with caution. The Information Ratio is currently at -0.02, indicating that the stock's recent returns don't adequately compensate for the risks. This ratio, which assesses return efficiency relative to volatility, hints at potential instability. Given this, the stock price might decline again. Investors should monitor Loop Industries closely, as the current surge may not hold without stronger fundamentals. The stock is experiencing higher-than-average volatility, which can help investors time their trades. By using volatility indicators, traders can assess Loop Industries' risk compared to market fluctuations in both rising and falling markets. Bear markets, in particular, can exacerbate volatility, prompting investors to adjust their portfolios as prices drop.
Our Takeaway on Loop Industries Investment
While some other entities under the specialty chemicals industry are still a bit expensive, Loop Industries may offer a potential longer-term growth to retail investors. On the whole, as of the 13th of October 2024, our research shows that Loop Industries is a rather dangerous investment opportunity with a
below average probability of distress in the next two years. From a slightly different view, the entity currently appears to be
undervalued. However, our overall 90 days buy-hold-sell advice on the enterprise is
Strong Sell.
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 Loop Industries. Please refer to our
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