CalAmp Story

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CAMP -- USA Stock  

USD 11.27  0.38  3.26%

As many rational traders are trying to avoid technology space, it makes sense to recap CalAmp Corp a little further and understand how it stands against Knowles and other similar entities. We are going to focus on some of the competitive aspects of both CalAmp and Knowles.
Published over a month ago
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Our viewpoint on CalAmp Corp (NASDAQ:CAMP) and Knowles (NYSE:KN)?
By analyzing existing primary indicators between CalAmp Corp and Knowles, 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 Knowles with a short position in CalAmp Corp. 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. CalAmp Corp has an asset utilization ratio of 90.42 percent. This suggests that the company is making $0.9 for each dollar of assets. An increasing asset utilization means that CalAmp Corp is more efficient with each dollar of assets it utilizes for everyday operations.
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 CalAmp or DASAN is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step.

How important is CalAmp Corp's Liquidity

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

Correlation Between CalAmp and DASAN Zhone Solutions

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 CalAmp Corp together with similar or unrelated positions with a negative correlation. For example, you can also add DASAN Zhone to your portfolio. If DASAN Zhone is not perfectly correlated to CalAmp Corp 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 CalAmp Corp 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 CAMP and DZSI for more information.

Note

Are you currently holding both CalAmp Corp and DASAN Zhone in your portfolio? Please note if you are using this as a pair-trade strategy between CalAmp Corp and DASAN Zhone, 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.

Breaking it down

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 CalAmp Corp revenue. Based on the latest financial disclosure, CalAmp Corp reported 347.55 M of revenue. This is 91.47% lower than that of the Technology sector and 92.9% lower than that of the Communication Equipment industry. The revenue for all United States stocks is 96.32% higher than that of the firm. As for Knowles we see revenue of 755 M, which is 84.58% lower than that of the Communication Equipment

Sector
4.1 B
CAMP347.55 Million6.71
Sector4.08 Billion78.71
KN755 Million14.58

Another setback for CalAmp Corp insiders

Recent total risk alpha is at 0.17. CalAmp Corp shows above-average downside volatility for the selected time horizon. We advise investors to inspect CalAmp Corp further and ensure that all market timing and asset allocation strategies are consistent with the estimation of CalAmp Corp future alpha.

Our Conclusion on CalAmp Corp

Although some other firms under the communication equipment industry are still a bit expensive, CalAmp Corp may offer a potential longer-term growth to insiders. With a relatively neutral outlook on the recent economy, it is better to hold off any trading of CalAmp as the current risk-reward utility is not appealing enough. 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 CalAmp Corp.

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

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