AeroCentury Story

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ACY -- USA Stock  

USD 11.20  0.01  0.09%

It appears AeroCentury Corp will continue to recover much faster as its share price surged up 173.24% today. This firm current daily volatility is 23.87 percent, with a beta of -3.06 and an alpha of 1.86 over DOW. While some of us are getting more passionate about business services, it makes sense to break down AeroCentury Corp in greater detail to make a better estimate of its volatility. I will address the reasons why this entity does not get much respect from investors under the current market uncertainty.
Published over a week ago
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What does a current AeroCentury Corp volatility slide mean for investors?
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.
We provide trade advice to complement the prevailing expert consensus on AeroCentury Corp. Our dynamic recommendation engine uses a multidimensional algorithm to analyze the company's potential to grow using all technical and fundamental data available at the time.
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

AeroCentury Corp exotic insider transaction detected

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 general transaction of common stock by Toni Perazzo, SVP Finance Secty. Treas., on 11th of February 2021. This event was filed by Aerocentury Corp with SEC on 2015-03-13. Statement of changes in beneficial ownership - SEC Form 4. Toni Perazzo currently serves as chief financial officer, senior vice president - finance, treasurer, secretary, director 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?

AeroCentury Corp is extremely dangerous given 1 month investment horizon. AeroCentury Corp secures Sharpe Ratio (or Efficiency) of 0.0681, which signifies that the company had 0.0681% of return per unit of risk over the last month. Our standpoint towards foreseeing the risk of a stock is to use both market data as well as company specific technical data. We were able to break down twenty-seven different technical indicators, which can help you to evaluate if expected returns of 1.63% are justified by taking the suggested risk. Use AeroCentury Corp Risk Adjusted Performance of 0.0576, downside deviation of 12.89, and Mean Deviation of 10.76 to evaluate company specific risk that cannot be diversified away.
Click cells to compare fundamentals   Check Volatility   Backtest Portfolio

Our take on today AeroCentury Corp rise

The value at risk is down to -19.7 as of today. AeroCentury Corp is showing large volatility of returns over the selected time horizon. We encourage all investors to investigate this asset further to make sure related market timing strategies are aligned with all the expectations about AeroCentury Corp implied risk. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure AeroCentury Corp's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact AeroCentury Corp's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Our Conclusion on AeroCentury Corp

While many of the other players 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 Raphi Shpitalnik 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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