Aspen Story

<div class='circular--portrait' style='background:#800000;color: #F8F8FF;font-size:3em;'>ASP</div>
ASPU -- USA Stock  

USD 9.91  0.23  2.27%

It appears Aspen will continue to recover much faster as its share price surged up 2.32% today. The entity's current daily volatility is 3.55 percent, with a beta of -0.12 and an alpha of 0.08 over DOW. As many millenniums are trying to avoid personal services, it makes sense to review Aspen Group a little further and try to understand its current market patterns. We will look into some reasons why it is still possible for Aspen to maintain above-average margins while minimizing volatility.
Published over a month ago
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Will Aspen (NASDAQ:ASPU) newest volatility gain scare private investors?
Aspen Group currently holds roughly 15.9 M in cash with (4.7 M) of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 0.71. The company currently holds 16.81 M in liabilities with Debt to Equity (D/E) ratio of 0.38, which is about average as compared to similar companies. Aspen Group has a current ratio of 2.99, suggesting that it is liquid enough and is able to pay its financial obligations when due.
Investing in Aspen, 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 Aspen 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, frequently view the market will even out over time. This tendency of Aspen'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 Aspen 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 Aspen. Your research has to be compared to or analyzed against Aspen's peers to derive any actionable benefits. When done correctly, Aspen'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 Aspen Group.

How important is Aspen's Liquidity

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

How Aspen utilizes its cash?

To perform a cash flow analysis of Aspen, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Aspen is receiving and how much cash it distributes out in a given period. The Aspen cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities. Aspen Net Cash Flow from Operations is comparatively stable at the moment as compared to the past year. Aspen reported Net Cash Flow from Operations of (4.52 Million) in 2020

Aspen Correlation with Peers

Investors in Aspen can reduce exposure to individual asset risk by holding a diversified portfolio of assets in addition to a long position in Aspen Group. Diversification will allow for the same portfolio return with reduced risk. The correlation table of Aspen and its peers is a two-dimensional matrix that shows the correlation coefficient between pairs of securities Aspen 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 Aspen for more details

Breaking it down a bit more

We consider Aspen somewhat reliable. Aspen Group secures Sharpe Ratio (or Efficiency) of 0.0151, which signifies that the company had 0.0151% of return per unit of risk over the last month. Our standpoint towards foreseeing the volatility of a stock is to use all available market data together with stock specific technical indicators that cannot be diversified away. We have found twenty-eight technical indicators for Aspen Group, which you can use to evaluate future volatility of the firm. Please confirm Aspen Group Risk Adjusted Performance of 0.0346, downside deviation of 4.08, and Mean Deviation of 2.73 to double-check if the risk estimate we provide is consistent with the expected return of 0.0536%.
Click cells to compare fundamentals   Check Volatility   Backtest Portfolio

Will Aspen newest gain continue?

The mean deviation is down to 2.73 as of today. Aspen Group shows above-average downside volatility for the selected time horizon. We advise investors to inspect Aspen Group further and ensure that all market timing and asset allocation strategies are consistent with the estimation of Aspen future alpha.

Our Final Perspective on Aspen

Whereas some firms under the education & training services industry are still a bit expensive, Aspen may offer a potential longer-term growth to private investors. In closing, as of the 15th of December 2020, we believe that at this point, Aspen is somewhat reliable with very small chance of distress within the next 2 years. From a slightly different point of view, the entity appears to be fairly valued. However, our primary 30 days buy-sell recommendation on the firm 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 Gabriel Shpitalnik do not own shares of Aspen Group. Please refer to our Terms of Use for any information regarding our disclosure principles.

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