Will Aurcana continue to go ballistic in May?
 | By Ellen Johnson | Macroaxis Story |
The company current daily volatility is 8.7 percent, with beta of 1.26 and alpha of 1.45 over S&P 500. What is Aurcana Target Price Odds to finish over Current Price? Pertaining to normal probability distribution, the odds of Aurcana to move above current price in 30 days from now is about 18.65%. The Aurcana Corporation probability density function shows the probability of Aurcana Stock to fall within a particular range of prices over 30 days . Assuming 30 trading days horizon, the stock has beta coefficient of 1.2575 . This suggests as the benchmark fluctuates upward, the company is expected to outperform it on average . However, if the benchmark returns are expected to be negative, Aurcana will likely underperform. Moreover, the company has an alpha of 1.4492 implying that it can potentially generate 1.4492% excess return over S&P 500 after adjusting for the inherited market risk (beta).
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Reviewed by Michael Smolkin
Aurcana has accumulated 50.84M in total debt with debt to equity ratio (D/E) of 1.42 which is about average as compared to similar companies. This firm dividends can provide a clue to current valuation of the stock. Aurcana is not expected to issue dividends this year as it trying to preserve or re-invest any of the funds available for distribution to stakeholders. Aurcana Corp financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of Aurcana Corp, including all of Aurcana Corp'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 Aurcana Corp assets, the company is considered highly leveraged. Understanding the composition and structure of overall Aurcana Corp 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 Aurcana Corp on a daily basis if you are holding a position in it. Aurcana Corp is trading at a penny-stock level, and the possibility of delisting is much higher compared to other otcs. 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 Aurcana Corp stock to be traded above the $1 level to remain listed. If Aurcana Corp otc 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 Aurcana Corp's Liquidity
Aurcana Corp financial leverage refers to using borrowed capital as a funding source to finance Aurcana Corp ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Aurcana Corp 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 Aurcana Corp'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 Aurcana Corp'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 Aurcana Corp's total debt and its cash.
What is driving Aurcana Corp Investor Appetite?
The latest price spikes of Aurcana could raise concerns from investors as the firm closed today at a share price of 0.51 on 200.000 in volume. The company management were quite successful positioning the firm components to exploit market volatility in May 2019. The stock standard deviation of daily returns for 30 days (very short) investing horizon is currently 8.6998. The very high volatility is mostly attributed to the latest market swings and not very good earning reports from some ot the Aurcana partners. Aurcana maintains current valuation of 50.77m. Aurcana is trading at 0.51 which is 6.25 percent increase. Day Low was 0.51. To sum up, we see that Aurcana Responds to market. The firm is fairly valued with quite high probability of financial unrest within the next 24 months. Our present 'Buy/Hold/Sell' recommendation on the firm is Cautious Hold.
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