AeroCentury Story

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ACY -- USA Stock  

USD 1.64  0.11  7.19%

It looks like FlexShopper will be up for a correction way faster as its share price whent up 5.70% today to AeroCentury Corp's 3.6066%. As many investors are getting excited about industrials space, AeroCentury Corp and FlexShopper may be going in opposite directions. We are going to inspect some of the competitive aspects of both AeroCentury and FlexShopper.
Published over a month ago
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Is AeroCentury (NYSEMKT:ACY) catching up with FlexShopper (NASDAQ:FPAY)?
By analyzing existing fundamental indicators between AeroCentury Corp and FlexShopper, you can compare the effects of market volatilities on both companies' prices and check if they can diversify away market risk if combined in one of your portfolios. You can also utilize pair trading strategies for matching a long position in FlexShopper with a short position in AeroCentury Corp. Check out our pair correlation module for more information.

Let's begin by analyzing the assets. The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. AeroCentury Corp has an asset utilization ratio of 22.57 percent. This suggests that the company is making $0.23 for each dollar of assets. An increasing asset utilization means that AeroCentury Corp is more efficient with each dollar of assets it utilizes for everyday operations.
Out of tens of thousands of stocks, funds, and ETFs that trade on global exchanges each represent an individual company which you can analyze using comparative analysis. To determine which one of the two companies, such as AeroCentury or Air Lease is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step.

How important is AeroCentury Corp's Liquidity

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

Correlation Between AeroCentury and Air Lease

In general, stock analysis is a method for investors and traders to make individual buying and selling decisions. Stock correlation analysis is also essential because it can help investors realize that they may not be as diversified as they think. Risk management strategies are usually required to make sure all portfolios are properly aligned against their risk tolerance level. You can consider holding AeroCentury Corp together with similar or unrelated positions with a negative correlation. For example, you can also add Air Lease to your portfolio. If Air Lease is not perfectly correlated to AeroCentury Corp it will diversify some of the market risks out of the positively correlated stocks in your portfolio. However, the disadvantage of this sort of hedging is that it can potentially affect your investment returns throughout market cycles. When AeroCentury Corp for example, for example, performs excellent and delivers stable returns, the negatively correlated position you locked in as a hedge may drag your returns down. Please check pair correlation details between ACY and AL for more information.

Note

Are you currently holding both AeroCentury Corp and Air Lease in your portfolio? Please note if you are using this as a pair-trade strategy between AeroCentury Corp and Air Lease, watch out for correlation discrepancy over time. Relying on the historical price correlations and assuming that it will not change may lead to short-term losses.

Purchase by Michael Magnusson of 1000 shares of AeroCentury Corp

Legal trades by AeroCentury Corp insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
AeroCentury insider trading alert for perchase of common stock by Michael Magnusson, President, on 23rd of August 2020. This event was filed by Aerocentury Corp with SEC on 2019-11-22. Statement of changes in beneficial ownership - SEC Form 4. Michael Magnusson currently serves as president, director and managing director of jmc of AeroCentury Corp [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

Is AeroCentury Corp valued reasonably by the market?

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 product or services discounts, promotions, as well as early payments on invoices or services rendered in advance.

Revenue Breakdown

Let me take a closer look at AeroCentury Corp revenue. Based on the latest financial disclosure, AeroCentury Corp reported 40.86 M of revenue. This is 98.83% lower than that of the Industrials sector and 98.73% lower than that of the Rental & Leasing Services industry. The revenue for all United States stocks is 99.57% higher than that of AeroCentury Corp. As for FlexShopper we see revenue of 90.9 M, which is 97.17% lower than that of the Rental & Leasing Services

Sector
3.2 B
ACY40.86 Million1.22
Sector3.22 Billion96.06
FPAY90.9 Million2.72

Another 3 percent rise for AeroCentury Corp

The value at risk is down to -11.65 as of today. As of the 8th of August, AeroCentury Corp shows the Risk Adjusted Performance of 0.2759, mean deviation of 7.5, and Downside Deviation of 6.62. AeroCentury Corp technical analysis gives you the methodology to make use of historical prices and volume patterns to determine a pattern that approximates the direction of the firm's future prices. Put another way, you can use this information to find out if the firm will indeed mirror its model of historical prices and volume momentum, or the prices will eventually revert. We were able to break down nineteen technical drivers for AeroCentury Corp, which can be compared to its rivals. Please confirm AeroCentury Corp standard deviation, maximum drawdown, as well as the relationship between the Maximum Drawdown and expected short fall to decide if AeroCentury Corp is priced correctly, providing market reflects its regular price of 3.16 per share. Given that AeroCentury Corp has jensen alpha of 1.9, we suggest you to validate AeroCentury Corp's prevailing market performance to make sure the company can sustain itself at a future point.

Our Final Takeaway

While many other companies under the rental & leasing services industry are still a bit expensive, AeroCentury Corp may offer a potential longer-term growth to investors. The inconsistency in the assessment between current AeroCentury valuation and our trade advice on AeroCentury Corp 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 AeroCentury Corp.

About Contributor

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 AeroCentury Corp. Please refer to our Terms of Use for any information regarding our disclosure principles.

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