AeroCentury Story

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ACY -- USA Stock  

USD 1.64  0.09  5.20%

While some planning is required to successfully invest in stocks, sometimes taking bold action is just as important. Let's try to break down why this may be the case with AeroCentury Corp. We will evaluate why recent AeroCentury Corp price moves suggest a bounce in September. On the 9th of August the company is traded for 3.16. AeroCentury Corp has historical hype elasticity of -0.41. The average price elasticity to hype of competition is about 0.15. The entity is forecasted to increase in value after the next press release, with the price going to jump to 4.5274. The current volatility of headline impact on AeroCentury Corp stock price is is way over 100 percent making price predictions on social media along less reliable. The price jump on the next news is expected to be 43.27%, whereas the daily expected return is presently at 2.06%. Considering the 30-days investment horizon, the next forecasted announcement will be in about 3 days.
Published over a month ago
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Continue to hold AeroCentury Corp (NYSEMKT:ACY)?
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. The company has Net Profit Margin of (62.49) %, which means that it does not effectively control expenditures or properly executes on its pricing strategies. This is way below average. In the same way, it shows Net Operating Margin of 44.82 %, which entails that for every 100 dollars of revenue, it generated 0.45 of operating income.
The successful prediction of AeroCentury Corp 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 AeroCentury Corp, 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 AeroCentury Corp based on AeroCentury Corp hews, social hype, general headline patterns, and widely used predictive technical indicators. We also calculate exposure to AeroCentury Corp's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to AeroCentury Corp's related companies.

Use Technical Analysis to project AeroCentury expected Price

AeroCentury Corp 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.
A focus of AeroCentury Corp technical analysis is to determine if market prices reflect all relevant information impacting that market. A technical analyst looks at the history of AeroCentury Corp 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 AeroCentury utilizes its cash?

To perform a cash flow analysis of AeroCentury Corp, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash AeroCentury Corp is receiving and how much cash it distributes out in a given period. The AeroCentury Corp cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities. AeroCentury Corp Net Cash Flow from Operations is fairly stable at the moment as compared to the past year. AeroCentury Corp reported Net Cash Flow from Operations of 8.17 Million in 2019

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?

The company reported the last year's revenue of 40.86 M. Reported Net Loss for the year was (25.53 M) with profit before taxes, overhead, and interest of 42.59 M.

Deferred Revenue Breakdown

AeroCentury Corp Deferred Revenue yearly trend continues to be fairly stable with very little volatility. Deferred Revenue will likely drop to about 2.5 M in 2020. 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. AeroCentury Corp Deferred Revenue is fairly stable at the moment as compared to the past year. AeroCentury Corp reported Deferred Revenue of 3.04 Million in 2019
2013
2014
2015
2016
2017
2018
2019
2020
2013646,700
20141.64 Million
20151.96 Million
20161.9 Million
20172.45 Million
20183.27 Million
20193.04 Million
20202.54 Million

Will AeroCentury Corp current rise continue?

Total risk alpha is down to 0.25. It may suggest a possible volatility slide. AeroCentury Corp is displaying above-average volatility over the selected time horizon. Investors should scrutinize AeroCentury Corp independently to ensure intended market timing strategies are aligned with expectations about AeroCentury Corp volatility.

Our Final Take On AeroCentury Corp

While many of the other players within the rental & leasing services industry are still a little expensive, even after the recent corrections, 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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