BELFA stock Story

BELFA -  USA Stock  

USD 14.90  0.30  2.05%

It appears Bel Fuse will continue to recover much faster as its share price surged up 19.29% today. The entity's current daily volatility is 4.0 percent, with a beta of -0.36 and an alpha of 0.05 over DOW. As many baby boomers are still indifferent towards electronic equipment, it makes sense to go over Bel Fuse. What exactly are Bel Fuse shareholders getting in November?
Published over six months ago
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Is Bel Fuse (NASDAQ:BELFA) stock way too aggressive for baby boomers?
Bel Fuse has accumulated roughly 75.29 M in cash with 33.54 M of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 6.08. Our trade advice tool can cross-verify current analyst consensus on Bel Fuse and to analyze the company potential to grow in the current economic cycle.
Investing in BEL Fuse, 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 BEL Fuse 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 BEL Fuse'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 BEL Fuse 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 BEL Fuse. Your research has to be compared to or analyzed against BEL Fuse's peers to derive any actionable benefits. When done correctly, BEL Fuse'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 BEL Fuse Cl.

How important is BEL Fuse's Liquidity

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

How BELFA utilizes its cash?

To perform a cash flow analysis of BEL Fuse, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash BEL Fuse is receiving and how much cash it distributes out in a given period. The BEL Fuse cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.
BEL Fuse Net Cash Flow from Operations is projected to increase significantly based on the last few years of reporting. The past year's Net Cash Flow from Operations was at 46.11 Million

BEL Fuse Correlation with Peers

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

Acquisition by Tuweiq Farouq Salem Ali of 10000 shares of BEL Fuse subject to Rule 16b-3

Legal trades by BEL Fuse insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
BELFA insider trading alert for grant of class b common stock by Tuweiq Farouq Salem Ali, Chief Financial Officer, on 1st of June 2021. This event was filed by Bel Fuse Inc with SEC on 2021-06-01. Statement of changes in beneficial ownership - SEC Form 4 [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

What is driving BEL Fuse Investor Appetite?

We consider Bel Fuse somewhat reliable. Bel Fuse secures Sharpe Ratio (or Efficiency) of 0.0225, which signifies that the company had 0.0225% 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 Bel Fuse, which you can use to evaluate future volatility of the firm. Please confirm Bel Fuse Risk Adjusted Performance of 0.024, mean deviation of 2.52, and Downside Deviation of 5.48 to double-check if the risk estimate we provide is consistent with the expected return of 0.09%.
Click cells to compare fundamentals   Check Volatility   Backtest Portfolio

Our take on today Bel Fuse rise

The mean deviation is down to 2.52 as of today. Bel Fuse shows above-average downside volatility for the selected time horizon. We advise investors to inspect Bel Fuse further and ensure that all market timing and asset allocation strategies are consistent with the estimation of Bel Fuse future alpha.

The Bottom Line

Whereas many other companies within the electronic components industry are still a little expensive, even after the recent corrections, Bel Fuse may offer a potential longer-term growth to investors. While some investors may not share our view we believe it may be a good time to exit BELFA as the risk-reward trade off is not appealing enough to hold a position. 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 Bel Fuse.

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 Achuva Shats do not own shares of BEL Fuse Cl. Please refer to our Terms of Use for any information regarding our disclosure principles.

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