Biocept Story

BIOC -- USA Stock

USD 4.39 0.12 2.66%

Macroaxis Story

It looks like Emmaus Life will continue to recover much faster as its share price surged up 0.60% today to Biocept's 4.4118%. As many rational traders are trying to avoid healthcare space, it makes sense to go over Biocept a little further and understand how it stands against Emmaus Life and other similar entities. We are going to analyze some of the competitive aspects of both Biocept and Emmaus.

Published over two weeks ago

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Is Emmaus more volatile than Biocept (NASDAQ:BIOC)?

By analyzing existing basic indicators between Biocept and Emmaus, 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 Emmaus with a short position in Biocept. 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. Biocept has an asset utilization ratio of 101.35 percent. This suggests that the company is making $1.01 for each dollar of assets. An increasing asset utilization means that Biocept is more efficient with each dollar of assets it utilizes for everyday operations.

Is Emmaus more volatile than Biocept (NASDAQ:BIOC)?

Out of tens of thousands of stocks, funds, and ETFs that trade on global exchanges each represent an individual company which you can analyze using comparative analysis. To determine which one of the two companies, such as Biocept or Emmaus is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step.

How important is Biocept's Liquidity

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

Correlation Between Biocept and Emmaus Life Sciences

In general, stock analysis is a method for investors and traders to make individual buying and selling decisions. Stock correlation analysis is also essential because it can help investors realize that they may not be as diversified as they think. Risk management strategies are usually required to make sure all portfolios are properly aligned against their risk tolerance level. You can consider holding Biocept together with similar or unrelated positions with a negative correlation. For example, you can also add Emmaus Life to your portfolio. If Emmaus Life is not perfectly correlated to Biocept it will diversify some of the market risks out of the positively correlated stocks in your portfolio. However, the disadvantage of this sort of hedging is that it can potentially affect your investment returns throughout market cycles. When Biocept for example, for example, performs excellent and delivers stable returns, the negatively correlated position you locked in as a hedge may drag your returns down.

Please check pair correlation details between BIOC and EMMA for more information.

Note

Are you currently holding both Biocept and Emmaus Life in your portfolio?

Please note if you are using this as a pair-trade strategy between Biocept and Emmaus Life, watch out for correlation discrepancy over time. Relying on the historical price correlations and assuming that it will not change may lead to short-term losses.

Acquisition by David Hale of 500 shares of Biocept subject to Rule 16b-3

Legal trades by Biocept 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:

Biocept insider trading alert for grant of employee stock option (right to buy) by David Hale, the corporate stakeholder, on 23rd of December 2020. This event was filed by Biocept Inc with SEC on 2019-06-19. Statement of changes in beneficial ownership - SEC Form 4. David Hale currently serves as non-executive chairman of the board of Biocept [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.

A Deeper look at Biocept

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 take a closer look at Biocept revenue. Based on the latest financial disclosure, Biocept reported 10.73 M of revenue. This is 99.86% lower than that of the Healthcare sector and 99.46% lower than that of the Diagnostics & Research industry. The revenue for all United States stocks is 99.89% higher than that of the firm. As for Emmaus Life we see revenue of 22.75 M, which is 98.85% lower than that of the Diagnostics & Research

Sector

2 B

BIOC	10.73 Million	0.53
Sector	1.98 Billion	98.34
EMMA	22.75 Million	1.13

Are Biocept technical ratios showing a bounce back?

Current treynor ratio is at 0.18. Biocept shows above-average downside volatility for the selected time horizon. We advise investors to inspect Biocept further and ensure that all market timing and asset allocation strategies are consistent with the estimation of Biocept future alpha. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Biocept's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Biocept'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 Perspective on Biocept

Whereas other entities under the diagnostics & research industry are still a bit expensive, Biocept may offer a potential longer-term growth to investors. In closing, as of the 28th of March 2021, we believe that at this point, Biocept is slightly risky with very high probability of distress within the next 2 years. From a slightly different point of view, the entity appears to be undervalued. However, our ongoing 30 days buy-hold-sell recommendation on the company is Sell.

About Contributor

Vlad Skutelnik is a Macroaxis Contributor. Vlad covers stocks, funds, cryptocurrencies, and ETFs that are traded in North America, focusing primarily on fundamentals, valuation and market volatility. He has many years of experience in fintech, predictive investment analytics, and risk management. View Profile

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 Biocept. Please refer to our Terms of Use for any information regarding our disclosure principles.

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