Applied Molecular Transport currently holds roughly 129.87
M in cash with (58.89
M) of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 3.68.
One of the ways to look at asset utilization of Applied is to check how much profit was generated for every dollar of assets it reports. Applied Molecular Transport shows a negative utilization of assets of -46.64 percent, losing $0.47 for each dollar of assets held by the firm. Inadequate asset utilization signifies that the company is being less effective with each dollar of assets it shows. Put another way, asset utilization of Applied Molecular Transport shows how discouraging it operates for each dollar spent on its assets.
Investing in Applied Molecular, 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 Applied Molecular 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, anticipate that the market will even out over time. This tendency of Applied Molecular's 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 note, it is not enough to conduct a financial or market analysis of a single entity such as Applied Molecular. Your research has to be compared to or analyzed against Applied Molecular's peers to derive any actionable benefits. When done correctly, Applied Molecular's competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy toward taking a position in Applied Molecular.
Watch out for price decline
Please consider monitoring Applied Molecular on a daily basis if you are holding a position in it. Applied Molecular is trading at a penny-stock level, and the possibility of delisting is much higher compared to other delisted stocks. However, just because the stock is trading under one dollar, does not mean it will be marked for deletion.
Most exchanges require public instruments, such as Applied Molecular stock to be traded above the $1 level to remain listed. If Applied Molecular stock price falls below $1 for 30 consecutive trading days, the exchange can delist it. Once the company reaches this point, they will be sent an initial price violation notice directly from an exchange.
How important is Applied Molecular's Liquidity
Applied Molecular
financial leverage refers to using borrowed capital as a funding source to finance Applied Molecular TransportInc ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Applied Molecular 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. Financial leverage can amplify the potential profits to Applied Molecular's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Applied Molecular's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the
breakdown between Applied Molecular's total debt and its cash.
Applied Molecular Correlation with Peers
Investors in Applied can reduce exposure to individual asset risk by holding a diversified portfolio of assets in addition to a long position in Applied Molecular TransportInc. Diversification will allow for the same portfolio return with reduced risk. The correlation table of Applied Molecular and its peers is a two-dimensional matrix that shows the correlation coefficient between pairs of securities Applied 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 Applied for more details
Detailed Perspective On Applied Molecular
Applied Molecular secures Sharpe Ratio (or Efficiency) of -0.23, which signifies that the company had -0.23% of return per unit of risk over the last 3 months. Macroaxis standpoint towards foreseeing the risk of any stock is to look at both systematic and unsystematic factors of the business, including all available market data and
technical indicators. Applied Molecular Transport exposes twenty-eight different
technical indicators, which can help you to evaluate volatility that cannot be
diversified away. Please be advised to confirm Applied Molecular
risk adjusted performance of
(0.19), and Mean Deviation of 2.49 to double-check the risk estimate we provide.
Does Applied Molecular have anything more to lay out in October?
Current Skewness is up to 0.01. Price may drop again.
As of the 16th of October 2021, Applied Molecular shows the
mean deviation of 2.49, and Risk Adjusted Performance of
(0.19). Applied Molecular
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 interpolate and analyze data for nineteen
technical drivers for Applied Molecular Transport, which can be compared to its rivals. Please confirm
Applied Molecular coefficient of variation,
treynor ratio, as well as the
relationship between the Treynor Ratio and
semi variance to decide if Applied Molecular is priced correctly, providing market reflects its regular price of 21.6 per share. Given that Applied Molecular has
jensen alpha of
(0.82), we suggest you to validate Applied Molecular Transport's prevailing market performance to make sure the company can sustain itself at a future point.
Our Conclusion on Applied Molecular
While some other companies in the biotechnology industry are either recovering or due for a correction, Applied may not be as strong as the others in terms of longer-term growth potentials. On the whole, as of the 16th of October 2021, our analysis shows that Applied Molecular almost mirrors the market. The company is
undervalued and projects
quite high odds of distress for the next 2 years. Our actual 90 days advice on the company is
Cautious Hold.
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Vlad Skutelnik is a Macroaxis Contributor. Vlad covers stocks, funds, cryptocurrencies, and ETFs that are traded in North America, focusing primarily on fundamentals, valuation and market volatility. He has many years of experience in fintech, predictive investment analytics, and risk management.
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 Vlad Skutelnik do not own shares of Applied Molecular TransportInc. Please refer to our
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