By analyzing existing basic indicators between Borqs Technologies and Absolute, 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 Absolute with a short position in Borqs Technologies. 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. Borqs Technologies has an asset utilization ratio of 46.92 percent. This connotes that the company is making $0.47 for each dollar of assets. An increasing asset utilization means that Borqs Technologies is more efficient with each dollar of assets it utilizes for everyday operations.
Investment perspective, in general, refers to a viewpoint or opinion regarding investment opportunity in Borqs Technologies. It encompasses the assessment of an investment's potential risks and rewards, and expectations for its
performance over time. Several factors influence the investment perspective on Borqs Technologies, including investment goals, risk tolerance, time horizon, market conditions, and research and analysis. Investors have varying goals, such as capital preservation, income generation, or long-term growth. Risk tolerance plays a significant role in shaping an investor's perspective, with some being more risk-averse and others willing to take on higher risks for potential returns.
Watch out for price decline
Please consider monitoring Borqs Technologies on a daily basis if you are holding a position in it. Borqs Technologies is trading at a penny-stock level, and the possibility of delisting is much higher compared to other delisted stocks. 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 Borqs Technologies stock to be traded above the $1 level to remain listed. If Borqs Technologies 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.
How important is Borqs Technologies's Liquidity
Borqs Technologies
financial leverage refers to using borrowed capital as a funding source to finance Borqs Technologies ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Borqs Technologies 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. Financial leverage can amplify the potential profits to Borqs Technologies' owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Borqs Technologies' financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the
breakdown between Borqs Technologies's total debt and its cash.
A Deeper Analysis
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 now analyze Borqs Technologies revenue. Based on the latest financial disclosure, Borqs Technologies reported 28.23
M of revenue. This is 99.31% lower than that of the Technology sector and significantly higher than that of the
Software—Application industry. The revenue for all United States stocks is 99.7% higher than that of Borqs Technologies. As for Absolute Software we see revenue of 155.23
M, which is much higher than that of the Software—Application
| Borqs | 28.23 Million |
| Sector | 0.0 |
| Absolute | 155.23 Million |
Will Borqs Technologies growth be trustworthy after the spike?
The potential upside is down to 14.29 as of today. Borqs Technologies is displaying above-average volatility over the selected time horizon. Investors should scrutinize Borqs Technologies independently to ensure intended market timing strategies are aligned with expectations about Borqs Technologies volatility. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Borqs Technologies' stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Borqs Technologies' 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.
Borqs Technologies Implied Volatility
Borqs Technologies' implied volatility exposes the market's sentiment of Borqs Technologies stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Borqs Technologies' implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Borqs Technologies stock will not fluctuate a lot when Borqs Technologies' options are near their expiration.
Our Final Take On Borqs Technologies
While many other companies in the software—application industry are either recovering or due for a correction, Borqs may not be as strong as the others in terms of longer-term growth potentials. The inconsistency in the assessment between current Borqs valuation and our trade advice on Borqs Technologies is due to the recent market swings and your selection of investing horizon. 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 Borqs Technologies.
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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 Borqs Technologies. Please refer to our
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