Anavex Story

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AVXL -- USA Stock  

USD 5.88  0.06  1.03%

Given the investment horizon of 60 days Anavex Life is expected to generate 6.09 times more return on investment than the market. However, the company is 6.09 times more volatile than its market benchmark. It trades about 0.08 of its potential returns per unit of risk. The DOW is currently generating roughly 0.1 per unit of risk. As many investors are getting excited about healthcare space, it is fair to summarize Anavex Life Sciences. We will go over a few points Anavex Life stakeholders should remember regarding its volatility. The new Anavex risk factors may impact the value of the stock as we estimate Anavex Life as currently undervalued. The real value is approaching 6.73 per share.
Published over a month ago
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What to know before acquiring Anavex (NASDAQ:AVXL) based on its volatility?
This firm conducts business under Healthcare sector and is part of Biotechnology industry. On a scale of 0 to 100, Anavex Life holds a performance score of 5. The firm shows a Beta (market volatility) of -1.9799, which signifies a somewhat significant risk relative to the market. Let's try to break down what Anavex's beta means in this case. As returns on the market increase, returns on owning Anavex Life are expected to decrease by larger amounts. On the other hand, during market turmoil, Anavex Life is expected to outperform it. Although it is vital to follow Anavex Life Sciences historical returns, it is good to be conservative about what you can do with the information regarding equity current trending patterns. The philosophy in foreseeing future performance of any stock is to evaluate the business as a whole together with its past performance, including all available fundamental and technical indicators. We have found twenty-six technical indicators for Anavex Life Sciences, which you can use to evaluate the performance of the firm. Please makes use of Anavex Life Sciences treynor ratio, and the relationship between the coefficient of variation and semi variance to make a quick decision on whether Anavex Life price patterns will revert.
Volatility is a rate at which the price of Anavex Life 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 Anavex Life may increase or decrease. In other words, similar to Anavex's beta indicator, it measures the risk of Anavex Life and helps estimate the fluctuations that may happen in a short period of time. So if prices of Anavex Life 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.

How important is Anavex Life's Liquidity

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

How Anavex utilizes its cash?

To perform a cash flow analysis of Anavex Life, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Anavex Life is receiving and how much cash it distributes out in a given period. The Anavex Life cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities. Anavex Life Net Cash Flow from Operations is relatively stable at the moment as compared to the past year. The company's current value of Net Cash Flow from Operations is estimated at (19.66 Million)

Anavex Life Volatility Drivers

Anavex Life unsystematic risk is unique to Anavex Life Sciences and usually not directly affected by the market or economic environment. An example of unsystematic risk is the possibility of poor earnings or a layoff due to coronavirus. One may mitigate nonsystematic risk by buying different securities in the same industry or by buying in different sectors. For example, if you have a position in Anavex Life you can also buy DiaMedica Therapeutics. You can also mitigate this risk by investing in the biotechnology sector as well as in companies having nothing to do with it. This type of risk is also called diversifiable risk and can be understood from analyzing Anavex Life important indicators over time. Here we run a correlation analysis between relevant fundamental ratios over at least ten year period to find a relationship in the way they react to changes in Anavex Life income statement and balance sheet. Here are more details about Anavex volatility.
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What is driving Anavex Life Investor Appetite?

Net Loss for the year was (25.92 M) with profit before overhead, payroll, taxes, and interest of 0.

Anavex Life is epected to finish above $4.9 in January

The treynor ratio is down to -0.28 as of today. Anavex Life Sciences is displaying above-average volatility over the selected time horizon. Investors should scrutinize Anavex Life Sciences independently to ensure intended market timing strategies are aligned with expectations about Anavex Life volatility.

Our Final Take On Anavex Life

While other companies in the biotechnology industry are either recovering or due for a correction, Anavex may not be as strong as the others in terms of longer-term growth potentials. To summarize, as of the 11th of December 2020, our current 30 days Buy-Hold-Sell recommendation on the company is Strong Sell. However, we believe Anavex Life is undervalued with very high odds of distress for the next two years.

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 Anavex Life Sciences. Please refer to our Terms of Use for any information regarding our disclosure principles.

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