Benitec Story

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BNTC -- USA Stock  

USD 6.00  0.31  5.45%

As many rational traders are trying to avoid healthcare space, it makes sense to go over Benitec Biopharma Limited a little further and understand how it stands against Dicerna Pharmaceuticals and other similar entities. We are going to analyze some of the competitive aspects of both Benitec and Dicerna.
Published over a month ago
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Should we be taking in Dicerna or Benitec Biopharma?
By analyzing existing basic indicators between Benitec Biopharma and Dicerna, 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 Dicerna with a short position in Benitec Biopharma. Check out our pair correlation module for more information.

Let's begin by analyzing the assets. One of the ways to look at asset utilization of Benitec is to check how much profit was generated for every dollar of assets it reports. Benitec Biopharma Limited shows a negative utilization of assets of -21.76 percent, losing $0.22 for each dollar of assets held by the firm. Inadequate asset utilization signifies that the company is being less effective with each dollar of assets it shows. Put another way, asset utilization of Benitec Biopharma Limited shows how discouraging it operates for each dollar spent on its assets.
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 Benitec or Auris is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step.

How important is Benitec Biopharma's Liquidity

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

Correlation Between Benitec and Auris Medical Holding

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 Benitec Biopharma together with similar or unrelated positions with a negative correlation. For example, you can also add Auris Medical to your portfolio. If Auris Medical is not perfectly correlated to Benitec Biopharma 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 Benitec Biopharma 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 BNTC and EARS for more information.

Note

Are you currently holding both Benitec Biopharma and Auris Medical in your portfolio? Please note if you are using this as a pair-trade strategy between Benitec Biopharma and Auris Medical, 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.

Detailed Perspective On Benitec Biopharma

Cash and Equivalents Breakdown

Let me now analyze Benitec Biopharma cash and equivalents. In accordance with the recently published financial statements, Benitec Biopharma Limited has 11.4 M in Cash and Equivalents. This is 98.61% lower than that of the Healthcare sector and 97.45% lower than that of the Biotechnology industry. The cash and equivalents for all United States stocks is 99.58% higher than that of the company. As for Dicerna Pharmaceuticals we see cash and equivalents of 669.21 M, which is 49.67% higher than that of the Biotechnology

Sector
447.1 M
DRNA
669.2 M
BNTC11.4 Million1.01
Sector447.12 Million39.65
DRNA669.21 Million59.34

Benitec is expecting lower volatility in September

Benitec Biopharma current coefficient of variation builds up over 4466.02. Benitec Biopharma Limited shows above-average downside volatility for the selected time horizon. We advise investors to inspect Benitec Biopharma Limited further and ensure that all market timing and asset allocation strategies are consistent with the estimation of Benitec Biopharma future alpha.

When is the right time to buy or sell Benitec Biopharma Limited? Buying stocks such as Benitec Biopharma isn't very hard. However, what challenging for most investors is doing it at the right time. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities, deliver winning trades and diversify portfolios on a daily bases. To summarize, as of the 28th of August 2020, we see that Benitec Biopharma moves indifferently to market moves. The company is undervalued with below average probability of distress within the next 24 months. However, our overall 30 days 'Buy-vs-Sell' recommendation on the company is Strong Sell.

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 Raphi Shpitalnik do not own shares of Benitec Biopharma Limited. Please refer to our Terms of Use for any information regarding our disclosure principles.

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