AeroCentury Story

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ACY -- USA Stock  

USD 8.22  0.28  3.53%

It looks like China Bat will continue to recover much faster as its share price surged up 1.83% today to AeroCentury Corp's 13.5021%. As many rational traders are trying to avoid industrials space, it makes sense to break down AeroCentury Corp a little further and understand how it stands against China Bat and other similar entities. We are going to inspect some of the competitive aspects of both AeroCentury and China.
Published over three weeks ago
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What is our outlook on AeroCentury (NYSEMKT:ACY) and China (NASDAQ:GLG)?
By analyzing existing fundamental indicators between AeroCentury Corp and China, 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 China 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 9.68 percent. This suggests that the company is making $0.0968 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 China 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 China Bat Group

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 China Bat to your portfolio. If China Bat 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 GLG for more information.

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

Now, let's check AeroCentury Corp revenue. Based on the latest financial disclosure, AeroCentury Corp reported 17.53 M of revenue. This is 99.5% lower than that of the Industrials sector and 99.45% lower than that of the Rental & Leasing Services industry. The revenue for all United States stocks is 99.81% higher than that of AeroCentury Corp. As for China Bat we see revenue of 8.35 M, which is 99.74% lower than that of the Rental & Leasing Services

Sector
3.2 B
ACY17.53 Million0.54
Sector3.22 Billion99.2
GLG8.35 Million0.26

Our perspective of the current AeroCentury Corp rise

Current potential upside is at 12.15. As of the 25th of December, AeroCentury Corp shows the Risk Adjusted Performance of 0.1342, mean deviation of 4.54, and Downside Deviation of 6.52. 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 2.69 per share. Please also double-check AeroCentury Corp total risk alpha, which is currently at (0.24) to validate the company can sustain itself at a future point.

While other entities 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 Ellen Johnson 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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