ASHMORE Story

AJMPF -- USA Stock

USD 4.26 0.55 11.43%

Macroaxis Story

ASHMORE GROUP is scheduled to announce its earnings today. As many millenniums are trying to avoid financial services space, it makes sense to digest ASHMORE GROUP a little further and try to understand its current market patterns. I will address a few possible reasons shareholders do not currently respect this otc stock.

Published over two weeks ago

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Should I exit my ASHMORE (OTC:AJMPF) position?

The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. ASHMORE GROUP has an asset utilization ratio of 41.77 percent. This indicates that the company is making $0.42 for each dollar of assets. An increasing asset utilization means that ASHMORE GROUP is more efficient with each dollar of assets it utilizes for everyday operations. The company has Profit Margin (PM) of 66.05 %, which can signify that it executes well on its competitive strategies and has good control over its expenditures. This is very large.

ASHMORE GROUP financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of ASHMORE GROUP, including all of ASHMORE GROUP's outstanding debt obligations, and compares it with the equity. In simple terms, the high financial leverage means the cost of production, together with running the business day-to-day, is high, whereas, lower financial leverage implies lower fixed cost investment in the business and generally considered by investors to be a good sign. So if creditors own a majority of ASHMORE GROUP assets, the company is considered highly leveraged. Understanding the composition and structure of overall ASHMORE GROUP debt and outstanding corporate bonds gives a good idea of how risky the capital structure of a business is and if it is worth investing in it. Please read more on our technical analysis page.

How important is ASHMORE GROUP's Liquidity

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

How ASHMORE utilizes its cash?

To perform a cash flow analysis of ASHMORE GROUP, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash ASHMORE GROUP is receiving and how much cash it distributes out in a given period. The ASHMORE GROUP cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.

A Deeper look at ASHMORE

The small dip in market price for the last few months could raise concerns from shareholders as the firm it trading at a share price of 5.05 on slow start in volume. The company directors and management did not add much value to ASHMORE GROUP investors in August. However, diversifying your holdings with ASHMORE GROUP or similar stocks can still protect your portfolio during high-volatility market scenarios. The stock standard deviation of daily returns for 30 days investing horizon is currently 2.19. The current volatility is consistent with the ongoing market swings in August 2020 as well as with ASHMORE GROUP unsystematic, company-specific events.

Another setback for ASHMORE GROUP shareholders

Latest treynor ratio indicator falls down to -1.23. Possible price growth? ASHMORE GROUP exhibits very low volatility with skewness of 0.27 and kurtosis of 2.33. However, we advise investors to further study ASHMORE GROUP technical indicators to make sure all market info is available and is reliable.

Our Final Perspective on ASHMORE GROUP

When is the right time to buy or sell ASHMORE GROUP? Buying stocks such as ASHMORE GROUP 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 bases. With a less-than optimistic outlook for your 30 days horizon, it may be a good time to trade some or all of your ASHMORE GROUP holdings as it seems the potential growth was already fully factored into the current price. 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 ASHMORE GROUP.

About Contributor

Raphi Shpitalnik is a Junior Member of Macroaxs Editorial Board. Raphael is a young entrepreneur who joined Macroaxis on a part-time base at the beginning of the pandemic and eventually acquired a real test for investing and fintech. He likes to analyze different equity instruments across a wide range of industries, focusing primarily on consumer products, sports, fintech, cannabis, and AI. View Profile

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 ASHMORE GROUP. Please refer to our Terms of Use for any information regarding our disclosure principles.

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