AquaBounty Story

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AQB -- USA Stock  

USD 10.95  0.58  5.03%

AquaBounty Invested Capital is projected to increase significantly based on the last few years of reporting. The past year's Invested Capital was at 30.5 Million. The current year Tangible Asset Value is expected to grow to about 32.3 M, whereas Average Assets are forecasted to decline to about 28.5 M. In this article, we will go over AquaBounty as a potential position in addition to your existing holdings. We will analyze why it could be a game-changer for AquaBounty investors.
Published over a month ago
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Estimating AquaBounty (NASDAQ:AQB) price for January 2021.
AquaBounty has a beta of -0.1298. Let's try to break down what AquaBounty's beta means in this case. As returns on the market increase, AquaBounty returns are expected to increase less than the market. However, during the bear market, the loss on holding AquaBounty will be expected to be smaller as well. The beta indicator helps investors understand whether AquaBounty moves in the same direction as the rest of the market, and how volatile (i.e., risky) it is compared to the market (i.e., selected benchmark). In other words, if AquaBounty deviates very little from the market, it does not add much risk to the portfolio, but it also doesn't increase the expected returns.
There are currently many different techniques concerning forecasting the market as a whole as well as predicting future values of individual securities such as AquaBounty. Regardless of method or technology, to accurately forecast the stock market is more a matter of luck rather than a particular technique. Nevertheless, trying to predict the stock market accurately is still an essential part of the overall investment decision process. Using different forecasting techniques and comparing the results might improve your chances of accuracy even though unexpected events may often change the market sentiment and impact your forecasting results.

Predictive Modules for AquaBounty

Sophisticated investors, who have witnessed many market ups and downs, frequently view the market will even out over time. This tendency of AquaBounty'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 AquaBounty 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 AquaBounty. Your research has to be compared to or analyzed against AquaBounty's peers to derive any actionable benefits. When done correctly, AquaBounty'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 AquaBounty.

How important is AquaBounty's Liquidity

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

How AquaBounty utilizes its cash?

To perform a cash flow analysis of AquaBounty, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash AquaBounty is receiving and how much cash it distributes out in a given period. The AquaBounty cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities. AquaBounty Net Cash Flow from Operations is projected to decrease significantly based on the last few years of reporting. The past year's Net Cash Flow from Operations was at (10.12 Million)

AquaBounty exotic insider transaction detected

Legal trades by AquaBounty 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:
AquaBounty insider trading alert for general transaction of common stock by Kirk Alana, the corporate stakeholder, on 21st of December 2020. This event was filed by Aquabounty Technologies I with SEC on 2020-12-21. Statement of changes in beneficial ownership - SEC Form 4 [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.

Breaking down AquaBounty Further

AquaBounty is displaying above-average volatility over the selected time horizon. Investors should scrutinize AquaBounty independently to ensure intended market timing strategies are aligned with expectations about AquaBounty volatility.

Returns Breakdown

Return on Assets(0.43)
Return on Equity(0.51)
Return Capital(0.48)
Return on Sales(76.06)

Will AquaBounty current rise continue?

Market Risk Adjusted Performance just dropped to -11.34, may suggest upcoming price depreciation. AquaBounty is displaying above-average volatility over the selected time horizon. Investors should scrutinize AquaBounty independently to ensure intended market timing strategies are aligned with expectations about AquaBounty volatility.

Our Bottom Line On AquaBounty

Whereas few other entities within the farm products industry are still a little expensive, even after the recent corrections, AquaBounty may offer a potential longer-term growth to investors. To conclude, as of the 5th of December 2020, we believe that at this point, AquaBounty is overvalued with high chance of financial distress within the next 2 years. Our primary buy-or-sell advice on the company is Strong Sell.

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 Achuva Shats do not own shares of AquaBounty. Please refer to our Terms of Use for any information regarding our disclosure principles.

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