BCOR Blucora stock Story

BCOR -  USA Stock  

USD 17.49  0.57  3.16%

Lets try to sum up the odds of Blucora to fully recover from the latest fall as its shares went up 0.92%. Blucora's current daily volatility is 2.56 percent, with a beta of -0.08 and an alpha of 0.11 over DOW. While some millenniums are indifferent towards millennials best, it makes sense to sum up Blucora. I will address the reasons why this entity does not get much respect from retail investors under the current market uncertainty.
Published over six months ago
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Is Blucora (NASDAQ:BCOR) way too risky for millennials?
Blucora currently holds roughly 90.08 M in cash with 30.37 M of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 1.88. The entity currently holds 420.45 M in liabilities with Debt to Equity (D/E) ratio of 1.1, which is about average as compared to similar companies. The firm has a current ratio of 1.94, which is within standard range for the sector.
Investing in Blucora, 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 Blucora 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 Blucora's 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 Blucora 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 Blucora. Your research has to be compared to or analyzed against Blucora's peers to derive any actionable benefits. When done correctly, Blucora'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 Blucora.

How important is Blucora's Liquidity

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

How BCOR Blucora utilizes its cash?

To perform a cash flow analysis of Blucora, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Blucora is receiving and how much cash it distributes out in a given period. The Blucora cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.
Blucora Net Cash Flow from Operations is relatively stable at the moment as compared to the past year. Blucora reported last year Net Cash Flow from Operations of 44.08 Million

Blucora Correlation with Peers

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

A Deeper look at BCOR Blucora

Blucora secures Sharpe Ratio (or Efficiency) of -0.001, which signifies that the company had -0.001% of return per unit of risk over the last month. Macroaxis standpoint towards foreseeing the risk of any stock is to look at both systematic and unsystematic factors of the business, including all available market data and technical indicators. Blucora exposes twenty-one different technical indicators, which can help you to evaluate volatility that cannot be diversified away. Please be advised to confirm Blucora Risk Adjusted Performance of 0.057, mean deviation of 2.03, and Downside Deviation of 2.69 to double-check the risk estimate we provide.
Click cells to compare fundamentals   Check Volatility   Backtest Portfolio

Blucora may start a turnaround in December

Expected Short fall just dropped to -2.28, may connote upcoming price decrease. Blucora currently demonstrates below-verage downside deviation. It has Information Ratio of 0.03 and Jensen Alpha of 0.11. However, we do advice investors to further question Blucora expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk.

Our Takeaway on Blucora Investment

While some companies under the asset management industry are still a bit expensive, Blucora may offer a potential longer-term growth to retail investors. While some retail investors may not share our view we believe that the current risk-reward utility is not appealing enough to do any trading. 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 Blucora.

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 Vlad Skutelnik do not own shares of Blucora. Please refer to our Terms of Use for any information regarding our disclosure principles.

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