Avid Bioservices Story

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CDMO -- USA Stock  

USD 19.02  0.14  0.73%

It seems Avid Bioservices may not recover as fast as we have hopped for as its price went down 4% today. The entity current daily volatility is 4.51 percent, with a beta of 1.34 and an alpha of 1.01 over DOW. As many millenniums are trying to avoid the latest volatility, we are going to outline Avid Bioservices a little further to understand its historical price patterns. We will analyze why it could be a much better year for Avid Bioservices shareholders.
Published over a month ago
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Is Avid Bioservices (NASDAQ:CDMO) way too risky for millennials?
Avid Bioservices currently holds roughly 35.66 M in cash with 10.54 M of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 0.63. The company currently holds 21.88 M in liabilities with Debt to Equity (D/E) ratio of 0.44, which is about average as compared to similar companies. Avid Bioservices has a current ratio of 1.42, which is within standard range for the sector.
Investing in Avid Bioservices, just like investing in any other equity instrument, is characterized by a strong risk-return correlation. High risks mean high returns and low risk means lower expected returns. Risk management is the act of identifying and assessing the potential risk and developing strategies to minimize these risks and earn maximum possible profits while holding Avid Bioservices along with other instruments in the same portfolio. Using conventional technical analysis and fundamental analysis to select individual securities into a portfolio complements risk management and adds value to overall investors' investing strategies.
Sophisticated investors, who have witnessed many market ups and downs, frequently view the market will even out over time. This tendency of Avid Bioservices' stock price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy. Please use the tools below to analyze the current value of Avid Bioservices in the context of predictive analytics.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as Avid Bioservices. Your research has to be compared to or analyzed against Avid Bioservices' peers to derive any actionable benefits. When done correctly, Avid Bioservices' competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy towards taking a position in 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 7.23 Million

Avid Bioservices Correlation with Peers

Investors in Avid Bioservices can reduce exposure to individual asset risk by holding a diversified portfolio of assets in addition to a long position in Avid Bioservices. Diversification will allow for the same portfolio return with reduced risk. The correlation table of Avid Bioservices and its peers is a two-dimensional matrix that shows the correlation coefficient between pairs of securities Avid Bioservices is related in some way. The cells in the table are color-coded to highlight significantly positive and negative relationships. Each cell shows the correlation between one pair of equities and can be used to run pair trading strategies or create efficient portfolios with your current brokerage.
Please check volatility of Avid Bioservices for more details

Purchase by Mark Bamforth of 126000 shares of Avid Bioservices

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 perchase of common stock $0.001 par value by Mark Bamforth, the corporate stakeholder, on 19th of March 2021. This event was filed by Avid Bioservices Inc with SEC on 2021-03-19. 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 it down

Avid Bioservices appears to be somewhat reliable, given 1 month investment horizon. Avid Bioservices secures Sharpe Ratio (or Efficiency) of 0.2, which signifies that the company had 0.2% of return per unit of risk over the last month. Our standpoint towards foreseeing the volatility of a stock is to use all available market data together with stock specific technical indicators that cannot be diversified away. By analyzing Avid Bioservices technical indicators you can presently evaluate if the expected return of 0.91% is justified by implied risk. Please makes use of Avid Bioservices Mean Deviation of 3.29, risk adjusted performance of 0.1928, and Downside Deviation of 5.22 to double-check if our risk estimates are consistent with your expectations.
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Click cells to compare fundamentals   Check Volatility   Backtest Portfolio

Will Avid Bioservices latest slide continue?

The maximum drawdown is down to 38.07 as of today. Avid Bioservices exhibits above-average semi-deviation for your current time horizon. We encourage investors to investigate Avid Bioservices individually to make sure intended market timing strategies and available technical indicagtors are consistent with their estimates about Avid Bioservices future systematic risk. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Avid Bioservices' stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Avid Bioservices' 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.

Our Conclusion on Avid Bioservices

Whereas some companies in the biotechnology industry are either recovering or due for a correction, Avid Bioservices may not be performing as strong as the other in terms of long-term growth potentials. With a less-than optimistic outlook for your 30 days horizon, it may be a good time to drop some or all of your Avid Bioservices holdings as it seems the potential growth was already fully factored into the current price. 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 Avid Bioservices.

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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