AeroCentury Story

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ACY -- USA Stock  

USD 8.22  0.28  3.53%

It appears AeroCentury Corp will continue to recover much faster as its share price surged up 56.93% today. This firm's current daily volatility is 0.0 percent, with a beta of -35.03 and an alpha of 22.88 over DOW. As many of us are excited about business services, it is fair to break down AeroCentury Corp. We will evaluate why we are still optimistic in anticipation of a recovery.
Published over two weeks ago
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Is AeroCentury Corp (NYSEMKT:ACY) a good short term trade as volatility rises?
AeroCentury Corp has roughly 4.86 M in cash with 6.01 M of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 3.15. Our trade advice tool can cross-verify current analyst consensus on AeroCentury Corp and to analyze the company potential to grow in the current economic cycle.
Investing in AeroCentury Corp, 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 AeroCentury Corp 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, frequently view the market will even out over time. This tendency of AeroCentury Corp's stock 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 use the tools below to analyze the current value of AeroCentury Corp in the context of predictive analytics.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as AeroCentury Corp. Your research has to be compared to or analyzed against AeroCentury Corp's peers to derive any actionable benefits. When done correctly, AeroCentury Corp's competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy towards taking a position in AeroCentury Corp.

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.

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 9.4 Million in 2020

AeroCentury Corp Correlation with Peers

Investors in AeroCentury can reduce exposure to individual asset risk by holding a diversified portfolio of assets in addition to a long position in AeroCentury Corp. Diversification will allow for the same portfolio return with reduced risk. The correlation table of AeroCentury Corp and its peers is a two-dimensional matrix that shows the correlation coefficient between pairs of securities AeroCentury 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 AeroCentury for more details

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?

Our standpoint towards foreseeing 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 AeroCentury Corp, which you can use to evaluate future volatility of the firm. Please confirm AeroCentury Corp Risk Adjusted Performance of 0.1132, mean deviation of 39.37, and Downside Deviation of 14.78 to double-check if the risk estimate we provide is consistent with the expected return of 0.0%.
Click cells to compare fundamentals   Check Volatility   Backtest Portfolio

Another 3 percent rise for AeroCentury Corp

The value at risk is down to -26.11 as of today. As of the 2nd of January, AeroCentury Corp shows the Risk Adjusted Performance of 0.1132, downside deviation of 14.78, and Mean Deviation of 39.37. 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 10.75 per share. Given that AeroCentury Corp has jensen alpha of 22.88, we suggest you to validate AeroCentury Corp's prevailing market performance to make sure the company can sustain itself at a future point.

The Bottom Line

When is the right time to buy or sell AeroCentury Corp? Buying stocks such as AeroCentury Corp isn't very hard. However, what challenging for most investors is doing it at the right time. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities, deliver winning trades and diversify portfolios on a daily basis. The bottom line, as of the 2nd of January 2021, our current 30 days advice on the company is Strong Sell. We believe AeroCentury Corp is currently overvalued with below average odds of distress for the next two years.

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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