BIO Key Story

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BKYI -- USA Stock  

USD 0.45  0.02  4.65%

While some planning is required to successfully invest in stocks, sometimes taking bold action is just as important. Let's try to concentrate on why this may be the case with BIO Key. We will cover the possibilities of making BIO Key into a steady grower in September. BIO Key International is currently traded for 0.74. The entity has historical hype elasticity of -0.09. The average price elasticity to hype of competition is about -0.3. The firm is forecasted to decline in value after the next press release, with the price expected to drop to 0.65. The average volatility of headline impact on the company stock price is huge, making predictions on the news or social media along less reliable. The price decrease on the next news is expected to be -12.16%, whereas the daily expected return is currently at 0.48 percent. Given the investment horizon of 30 days, the next forecasted announcement will be in about 7 days.
Published over a month ago
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Is BIO Key (NASDAQ:BKYI) gaining more confidence from stockholders?
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. BIO Key has an asset utilization ratio of 13.08 percent. This implies that the company is making $0.13 for each dollar of assets. An increasing asset utilization means that BIO Key International is more efficient with each dollar of assets it utilizes for everyday operations.
The successful prediction of BIO Key stock price could yield a significant profit to investors. But is it possible? The efficient-market hypothesis suggests that all published stock prices of traded companies, such as BIO Key International, already reflect all publicly available information. This academic statement is a fundamental principle of many financial and investing theories used today. However, the typical investor usually disagrees with a 'textbook' version of this hypothesis and continually tries to find mispriced stocks to increase returns. We use internally-developed statistical techniques to arrive at the intrinsic value of BIO Key based on BIO Key hews, social hype, general headline patterns, and widely used predictive technical indicators. We also calculate exposure to BIO Key's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to BIO Key's related companies.

Watch out for price decline

Please consider monitoring BIO Key on a daily bases if you are holding a position in it. BIO Key is trading at a penny-stock level, and the possibility of delisting is much higher compared to other equities. However, just because the stock is trading under one dollar, does not mean it will be marked for deletion. Most exchanges require public instruments, such as BIO Key stock to be traded above the $1 level to remain listed. If BIO Key stock price falls below $1 for 30 consecutive trading days, the exchange can delist it. Once the company reaches this point, they will be sent an initial price violation notice directly from an exchange.

Use Technical Analysis to project BIO Key expected Price

BIO Key technical stock analysis exercises models and trading practices based on price and volume transformations, such as the moving averages, relative strength index, regressions, price and return correlations, business cycles, stock market cycles, or different charting patterns.
A focus of BIO Key technical analysis is to determine if market prices reflect all relevant information impacting that market. A technical analyst looks at the history of BIO Key trading pattern rather than external drivers such as economic, fundamental, or social events. It is believed that price action tends to repeat itself due to investors' collective, patterned behavior. Hence technical analysis focuses on identifiable price trends and conditions. More Info...

How BIO Key utilizes its cash?

To perform a cash flow analysis of BIO Key, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash BIO Key is receiving and how much cash it distributes out in a given period. The BIO Key cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities. BIO Key Net Cash Flow from Operations is most likely to decrease significantly in the upcoming years. The last year's value of Net Cash Flow from Operations was reported at (1.85 Million)

Acquisition by Alia Emmanuel of 2500 shares of BIO Key subject to Rule 16b-3

Legal trades by BIO Key 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:
BIO Key insider trading alert for grant of stock option (right to buy) by Alia Emmanuel, the corporate stakeholder, on 27th of August 2020. This event was filed by Bio Key International Inc with SEC on 2020-08-27. 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.

A Deeper Perspective On BIO Key

The company reported the previous year's revenue of 2.24 M. Net Loss for the year was (16.27 M) with loss before overhead, payroll, taxes, and interest of (193.72 K).
 2017 2018 2019 2020 (projected)
Revenues USD6.3 M4.04 M2.27 M3.3 M
Revenues6.3 M4.04 M2.27 M3.3 M

Deferred Revenue Breakdown

BIO Key Deferred Revenue is decreasing over the last several years with very volatile swings. Deferred Revenue is estimated to finish at about 429.2 K this year. Deferred Revenue usually refers to a component of Total Liabilities representing the carrying amount of consideration received or receivable on potential earnings that were not recognized as revenue; including sales; license fees; and royalties; but excluding interest income. BIO Key Deferred Revenue is most likely to decrease significantly in the upcoming years. The last year's value of Deferred Revenue was reported at 359,212
2013
2014
2015
2016
2017
2018
2019
2020
2013528,160
2014429,233
2015376,405
2016633,062
2017507,866
2018196,609
2019359,212
2020429,228

Will BIO Key continue to go bananas?

Current expected short fall is at -7.93. BIO Key International is showing large volatility of returns over the selected time horizon. We encourage all investors to investigate this asset further to make sure related market timing strategies are aligned with all the expectations about BIO Key implied risk. BIO Key International is a potential penny stock. Although BIO Key may be in fact a good instrument to invest, many penny stocks are speculative in nature and are subject to artificial price hype. Please make sure you totally understand the upside potential and downside risk of investing in BIO Key International. We encourage investors to look for the signals such us email spams, message board hypes, claims of breakthroughs, volume upswings, sudden news releases, promotions that are not reported, or demotions released before SEC filings. Please also check biographies and work history of current and past company officers before investing in high volatility instruments, penny stocks, or equities with microcap classification. You can indeed make money on this equity instrument if you perfectly time your entry and exit. However, remember that penny stocks that have been the subject of an artificial hype usually unable to maintain its increased share price for more than just a few days. The price of a promoted high volatility instrument will almost always revert back. The only way to increase shareholder value is through legitimate performance backed up by solid fundamentals.

Our Final Takeaway

While some other entities under the security & protection services industry are still a bit expensive, BIO Key may offer a potential longer-term growth to stockholders. While some stockholders may not share our view we believe it may be a good time to exit BIO Key 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 BIO Key.

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 BIO Key International. Please refer to our Terms of Use for any information regarding our disclosure principles.

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