Should you buy more of ARC GROUP (OTC:ARCW) based on latest volatility?
By Vlad Skutelnik | Macroaxis Story |
ARC GROUP is currently generating 1.612% in daily expected returns and assumes 10.7025% risk (volatility on return distribution) over the 60 days horizon. While some risk-seeking sophisticated investors are getting worried about industrials space, it is reasonable to focus on ARC GROUP WORLDWIDE as a possible investment alternative. We will recap why it could be a different year for ARC GROUP shareholders. The latest ARC GROUP risk factors may impact the value of the otc stock as we estimate ARC GROUP as currently undervalued. The real value is approaching 1.36 per share.
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Reviewed by Raphi Shpitalnik
ARC GROUP WORLDWIDE conducts business under Industrials sector and is part of Metal Fabrication industry. ARC GROUP holds a performance score of 10 on a scale of zero to a hundred. The firm owns a Beta (Systematic Risk) of -1.247, which signifies a somewhat significant risk relative to the market. Let's try to break down what ARC GROUP's beta means in this case. As returns on the market increase, returns on owning ARC GROUP are expected to decrease by larger amounts. On the other hand, during market turmoil, ARC GROUP is expected to outperform it. Although it is essential to pay attention to ARC GROUP WORLDWIDE existing price patterns, it is also good to be reasonable about what you can do with equity price patterns. Our philosophy in foreseeing future performance of any stock is to look not only at its past charts but also at the business as a whole, including all fundamental and technical indicators. To evaluate if ARC GROUP expected return of 1.61 will be sustainable into the future, we have found twenty-one different technical indicators, which can help you to check if the expected returns are sustainable. Use ARC GROUP WORLDWIDE coefficient of variation, as well as the relationship between the treynor ratio and semi variance to analyze future returns on ARC GROUP WORLDWIDE. Volatility is a rate at which the price of ARC Group or any other equity instrument increases or decreases for a given set of returns. It is measured by calculating the standard deviation of the annualized returns over a given period of time and shows the range to which the price of ARC Group may increase or decrease. In other words, similar to ARC's beta indicator, it measures the risk of ARC Group and helps estimate the fluctuations that may happen in a short period of time. So if prices of ARC Group fluctuate rapidly in a short time span, it is termed to have high volatility, and if it swings slowly in a more extended period, it is understood to have low volatility. Please read more on our technical analysis page.
Watch out for price decline
Please consider monitoring ARC Group on a daily basis if you are holding a position in it. ARC Group is trading at a penny-stock level, and the possibility of delisting is much higher compared to other pink sheets. However, just because the pink sheet is trading under one dollar, does not mean it will be marked for deletion. Most exchanges require public instruments, such as ARC Group stock to be traded above the $1 level to remain listed. If ARC Group pink sheet 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 ARC Group's Liquidity
ARC Group financial leverage refers to using borrowed capital as a funding source to finance ARC Group Worldwide ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. ARC 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. Financial leverage can amplify the potential profits to ARC Group'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 ARC Group'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 ARC Group's total debt and its cash.
Is ARC Group valued fairly by the market?
The entity reported the previous year's revenue of 86.21 M. Net Loss for the year was (10.09 M) with profit before overhead, payroll, taxes, and interest of 5.55 M.
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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 ARC Group Worldwide. Please refer to our Terms of Use for any information regarding our disclosure principles.