ARCH THERAPEUTICS Story

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ARTH -- USA Stock  

USD 0.16  0.01  5.88%

ARCH THERAPEUTICS INC is scheduled to announce its earnings today. The next earnings report is expected on the 4th of February 2021. ARCH THERAPEUTICS Invested Capital Average is most likely to increase significantly in the upcoming years. The last year's value of Invested Capital Average was reported at 149,109. The current Market Capitalization is estimated to increase to about 57 M, while Average Assets are projected to decrease to roughly 3.6 M. While some millenniums are indifferent towards healthcare space, it makes sense to concentrate on ARCH THERAPEUTICS INC as a unique investment alternative. I will address a few possible reasons stockholders do not currently respect this otc stock.
Published over two weeks ago
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Will ARCH THERAPEUTICS (OTC:ARTH) shareholders stop to trade in December?
This firm currently holds 726.3 K in liabilities with Debt to Equity (D/E) ratio of 0.31, which is about average as compared to similar companies. The company has a current ratio of 5.58, suggesting that it is liquid enough and is able to pay its financial obligations when due.
ARCH THERAPEUTICS financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of ARCH THERAPEUTICS, including all of ARCH THERAPEUTICS'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 ARCH THERAPEUTICS assets, the company is considered highly leveraged. Understanding the composition and structure of overall ARCH THERAPEUTICS 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.

Watch out for price decline

Please consider monitoring ARCH THERAPEUTICS on a daily basis if you are holding a position in it. ARCH THERAPEUTICS is trading at a penny-stock level, and the possibility of delisting is much higher compared to other equities. However, just because the otc stock is trading under one dollar, does not mean it will be marked for deletion. Most exchanges require public instruments, such as ARCH THERAPEUTICS stock to be traded above the $1 level to remain listed. If ARCH THERAPEUTICS 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.

Understanding ARCH THERAPEUTICS Total Debt

ARCH THERAPEUTICS INC liabilities are broken down into two parts on the balance sheet. These are short-term (or current) obligations and long-term debt. ARCH THERAPEUTICS INC has to fulfill its short-term liabilities in this reporting year and should be no more than 12 months old. Long-term debt, on the other hand, is anything beyond the 12-month payment timeframe. Common short-term liabilities found on ARCH THERAPEUTICS balance sheet include debt obligations and money owed to different ARCH THERAPEUTICS vendors, workers, and loan providers. Below is the chart of ARCH THERAPEUTICS main long-term debt accounts currently reported on its balance sheet.
You can use ARCH THERAPEUTICS INC financial leverage analysis tool to get a better grip on understanding its financial position

How important is ARCH THERAPEUTICS's Liquidity

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

Purchase by James Sulat of 340910 shares of ARCH THERAPEUTICS

Legal trades by ARCH THERAPEUTICS 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:
ARCH THERAPEUTICS insider trading alert for perchase of series j warrant (right to buy) by James Sulat, the corporate stakeholder, on 23rd of June 2020. This event was filed by Arch Therapeutics Inc with SEC on 2020-06-23. 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 ARCH THERAPEUTICS Indicators

The current indifference towards the small price fluctuations of ARCH THERAPEUTICS INC could raise concerns from stockholders as the firm it trading at a share price of 0.18 on 385,900 in volume. The company management teams did not add any value to ARCH THERAPEUTICS INC investors in October. However, most investors can still diversify their portfolios with ARCH THERAPEUTICS INC to hedge their inherited risk against high-volatility market scenarios. The stock standard deviation of daily returns for 30 days investing horizon is currently 3.39. The above-average risk is mostly attributed to market volatility and speculations regarding some of the upcoming earning calls from ARCH THERAPEUTICS INC partners.

Liabilities Breakdown

821.6 K
Current Liabilities
3.1 M
Long-Term Liabilities
Total Liabilities4.01 Million
Current Liabilities821,646
Long-Term Liabilities3.05 Million

Can ARCH THERAPEUTICS build up on the current rise?

ARCH THERAPEUTICS current skewness boosts over 0.47. ARCH THERAPEUTICS INC exhibits very low volatility with skewness of 0.47 and kurtosis of 3.7. However, we advise investors to further study ARCH THERAPEUTICS INC technical indicators to make sure all market info is available and is reliable. ARCH THERAPEUTICS INC is a potential penny stock. Although ARCH THERAPEUTICS may be in fact a good instrument to invest, many penny otc stocks are speculative in nature and are subject to artificial price hype. Please make sure you totally understand the upside potential and downside risk of investing in ARCH THERAPEUTICS INC. We encourage investors to look for the signals such us email spams, message board hypes, claims of breakthroughs, volume upswings, sudden news releases, promotions that are not reported, or demotions released before SEC filings. Please also check biographies and work history of current and past company officers before investing in high volatility instruments, penny stocks, or equities with microcap classification. You can indeed make money on this equity instrument if you perfectly time your entry and exit. However, remember that penny stocks that have been the subject of an artificial hype usually unable to maintain its increased share price for more than just a few days. The price of a promoted high volatility instrument will almost always revert back. The only way to increase shareholder value is through legitimate performance backed up by solid fundamentals.

Our Final Perspective on ARCH THERAPEUTICS

While many other companies under the biotechnology industry are still a bit expensive, ARCH THERAPEUTICS may offer a potential longer-term growth to stockholders. To summarize, as of the 15th of November 2020, we believe that at this point, ARCH THERAPEUTICS is abnormally volatile with close to average chance of bankruptcy within the next 2 years. From a slightly different point of view, the entity appears to be undervalued. However, our latest 30 days Buy-Hold-Sell recommendation on the company is 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 Gabriel Shpitalnik do not own shares of ARCH THERAPEUTICS INC. Please refer to our Terms of Use for any information regarding our disclosure principles.

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