Will Itafos Corp (CA:IFOS) and BlackBerry (CA:BB) deliver in January?

BB Stock  CAD 6.00  0.08  1.32%   
Today we may see the proof that Itafos Corp would recover slower from the latest fall as its shares fell 3.45% to BlackBerry's 2.26%. As many rational traders are trying to avoid technology space, it makes sense to outline BlackBerry a little further and understand how it stands against Itafos Corp and other similar entities. We are going to inspect some of the competitive aspects of both BlackBerry and Itafos.
Published over a month ago
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By analyzing existing basic indicators between BlackBerry and Itafos, you can compare the effects of market volatilities on both companies' prices and check if they can diversify away market risk if combined in one of your portfolios. You can also utilize pair trading strategies for matching a long position in Itafos with a short position in BlackBerry. Check out our pair correlation module for more information.

Let's begin by analyzing the assets.
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. BlackBerry has an asset utilization ratio of 27.97 percent. This suggests that the company is making C$0.28 for each dollar of assets. An increasing asset utilization means that BlackBerry is more efficient with each dollar of assets it utilizes for everyday operations.

How important is BlackBerry's Liquidity

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

How does BlackBerry utilize its cash?

To perform a cash flow analysis of BlackBerry, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash BlackBerry is receiving and how much cash it distributes out in a given period. The BlackBerry cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.

Detailed Perspective On BlackBerry

Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include product or services discounts, promotions, as well as early payments on invoices or services rendered in advance.

Revenue Breakdown

Let me now analyze BlackBerry revenue. Based on the latest financial disclosure, BlackBerry reported 718 M of revenue. This is 82.38% lower than that of the Technology sector and significantly higher than that of the Software—Infrastructure industry. The revenue for all Canada stocks is 92.39% higher than that of BlackBerry. As for Itafos Corp we see revenue of 413.25 M, which is much higher than that of the Software—Infrastructure

BlackBerry718 Million
Itafos413.25 Million
718 M
413.2 M

Will BlackBerry institutional investors exit after the slide?

Latest market risk adjusted performance indicator falls down to -0.97. Possible price upswing? BlackBerry exhibits very low volatility with skewness of 0.1 and kurtosis of 1.07. However, we advise investors to further study BlackBerry technical indicators to ensure that all market info is available and is reliable. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure BlackBerry's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact BlackBerry's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Our Final Takeaway

Whereas other entities in the software—infrastructure industry are either recovering or due for a correction, BlackBerry may not be performing as strong as the other in terms of long-term growth potentials. The inconsistency in the assessment between current BlackBerry valuation and our trade advice on BlackBerry is due to the recent market swings and your selection of investing horizon. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to BlackBerry.

Editorial Staff

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 Ellen Johnson do not own shares of BlackBerry. Please refer to our Terms of Use for any information regarding our disclosure principles.

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