Avid Bioservices Story

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CDMO -- USA Stock  

USD 11.06  1.56  16.42%

Avid Bioservices Current Ratio is quite stable at the moment as compared to the past year. The company's current value of Current Ratio is estimated at 1.52. Free Cash Flow per Share is expected to rise to 0.0388 this year, although the value of Average Assets will most likely fall to about 95.9 M. The essential goal of this thesis is to break down our current position on Avid Bioservices for institutional investors considering to short it. We will inspect why Avid Bioservices institutional investors may still consider a stake in the business.
Published over three months ago
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Should you continue to rely on Avid Bioservices (NASDAQ:CDMO) management?
About 58.0% of Avid Bioservices shares are held by institutions such as insurance companies. Insiders ownership of Avid Bioservices refers to the amount of Avid Bioservices equity owned by Avid Bioservices officers, directors, relatives of the leadership team, or anyone who has access to private information before it's made available to the public. Check out our latest analysis of Avid Bioservices, including its current ownership diagnostics.
There are currently many different techniques concerning forecasting the market as a whole as well as predicting future values of individual securities such as Avid Bioservices. Regardless of method or technology, to accurately forecast the stock market is more a matter of luck rather than a particular technique. Nevertheless, trying to predict the stock market accurately is still an essential part of the overall investment decision process. Using different forecasting techniques and comparing the results might improve your chances of accuracy even though unexpected events may often change the market sentiment and impact your forecasting results.

Predictive Modules for Avid Bioservices


How important is Avid Bioservices's Liquidity

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

How Avid Bioservices utilizes its cash?

To perform a cash flow analysis of Avid Bioservices, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Avid Bioservices is receiving and how much cash it distributes out in a given period. The Avid Bioservices cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities. Avid Bioservices Net Cash Flow from Operations is quite stable at the moment as compared to the past year. The company's current value of Net Cash Flow from Operations is estimated at 6.29 Million

Acquisition by Green Nicholas Stewart of 150000 shares of Avid Bioservices subject to Rule 16b-3

Legal trades by Avid Bioservices 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:
Avid Bioservices insider trading alert for grant of restricted stock units by Green Nicholas Stewart, President & CEO, on 31st of July 2020. This event was filed by Avid Bioservices Inc with SEC on 2020-07-31. 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.

Breaking down Avid Bioservices Indicators

Avid Bioservices shows above-average downside volatility for the selected time horizon. We advise investors to inspect Avid Bioservices further and ensure that all market timing and asset allocation strategies are consistent with the estimation of Avid Bioservices future alpha.

Returns Breakdown

Return on Assets(0.15)
Return on Equity(0.35)
Return Capital(0.18)
Return on Sales(0.19)

Avid Bioservices technical analysis suggests possible come-back

Avid Bioservices latest treynor ratio surges over 7.25. Avid Bioservices shows above-average downside volatility for the selected time horizon. We advise investors to inspect Avid Bioservices further and ensure that all market timing and asset allocation strategies are consistent with the estimation of Avid Bioservices future alpha.

Our Final Takeaway

Whereas many of the other players under the biotechnology industry are still a bit expensive, Avid Bioservices may offer a potential longer-term growth to institutional investors. To conclude, as of the 1st of September 2020, we believe Avid Bioservices is currently undervalued. It barely shadows the market and projects very high probability of distress in the next two years. Our overall 30 days buy-or-sell advice on the company is Hold.

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

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