Cadiz Story

<div class='circular--portrait' style='background:#FF0F00;color: #FFFAFA;font-size:3em;'>CDZ</div>
CDZI -- USA Stock  

USD 10.04  0.29  2.97%

As many of us are excited about utilities space, it is fair to concentrate on Cadiz Inc within current market trends. As we have suggested previously, Cadiz is beginning its drop as stockholders shift to be more bearish due to the increased sector volatility. Cadiz Inc barely shadows the market. The returns on investing in Cadiz and the market returns of the last few months appear not related. Stable basic indicators of the company may hint to signs of mid-run price drift for stockholders. Cadiz Inc is scheduled to announce its earnings tomorrow. The stock goes through an active downward rally.
Published over two weeks ago
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Our current technical analysis of Cadiz Inc (NASDAQ:CDZI)
This firm's average rating is Strong Buy from 1 analysts. Do analysts base this consensus on technical analyses? We know that typical technical analysis utilizes price momentum, patterns, and trends looking at historical prices. It aims to identify signals based on Cadiz market sentiment investors' perception of the future value of Cadiz. Let us look at a few aspects of Cadiz technical analysis.
Using predictive technical analysis, we will analyze different prices and returns patterns and diagnose historical swings to determine the real value of Cadiz Inc. In general, we focus on analyzing Cadiz stock price patterns and their correlations with different microeconomic environment and drivers. We also apply predictive analytics to build Cadiz's daily price indicators and compare them against related drivers such as momentum indicators and various other types of predictive indicators. Using this methodology combined with a more conventional technical analysis and fundamental analysis, we attempt to find the most accurate representation of Cadiz's intrinsic value. In addition to deriving basic predictive indicators for Cadiz, we also check how macroeconomic factors affect Cadiz price patterns. Please read more on our technical analysis page or use our predictive modules below to complement your research.
Sophisticated investors, who have witnessed many market ups and downs, frequently view the market will even out over time. This tendency of Cadiz's 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 Cadiz 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 Cadiz. Your research has to be compared to or analyzed against Cadiz's peers to derive any actionable benefits. When done correctly, Cadiz's 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 Cadiz Inc.

How does Cadiz Stands against Peers?

Analyzing Cadiz competition or peers my help you to expand the diversification possibilities of your existing portfolios and to get a better perspective on locking in new positions. Try to analyze the advantages of investing in traded instruments related to Cadiz across multiple sectors and thematic ideas. A good competitive analysis can cover a lot of different areas. But what areas to choose depends on who you are. The more exhaustive you are in your analysis, the more effective your competitive analysis will be.
Check out Cadiz Competition Details

How Cadiz utilizes its cash?

To perform a cash flow analysis of Cadiz, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Cadiz is receiving and how much cash it distributes out in a given period. The Cadiz cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.
Cadiz Net Cash Flow from Operations is most likely to decrease significantly in the upcoming years. The last year's value of Net Cash Flow from Operations was reported at (13.43 Million)

Acquisition by Richard Nevins of 1297 shares of Cadiz subject to Rule 16b-3

Legal trades by Cadiz 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:
Cadiz insider trading alert for grant of common stock by Richard Nevins, the corporate stakeholder, on 5th of April 2021. This event was filed by Cadiz Inc with SEC on 2021-04-05. 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 Cadiz Indicators

The company has a beta of 0.0696. Let's try to break down what Cadiz's beta means in this case. As returns on the market increase, returns on owning Cadiz are expected to decrease at a much lower rate. During the bear market, Cadiz is likely to outperform the market. The beta indicator helps investors understand whether Cadiz moves in the same direction as the rest of the market, and how volatile (i.e., risky) it is compared to the market (i.e., selected benchmark). In other words, if Cadiz deviates very little from the market, it does not add much risk to the portfolio, but it also doesn't increase the expected returns. Cadiz Inc reported the previous year's revenue of 512 K. Net Loss for the year was (37.15 M) with profit before overhead, payroll, taxes, and interest of 441 K.

Cadiz bad story items are not so bad

Coefficient Of Variation just dropped to -1321.58, may hint to upcoming price decrease.
As of the 21st of March, Cadiz shows the risk adjusted performance of (0.06), and Mean Deviation of 1.06. Cadiz Inc technical analysis gives you the methodology to make use of historical prices and volume patterns to determine a pattern that approximates the direction of the firm's future prices. Put another way, you can use this information to find out if the firm will indeed mirror its model of historical prices and volume momentum, or the prices will eventually revert. We were able to analyze nineteen technical drivers for Cadiz Inc, which can be compared to its rivals. Please confirm Cadiz Inc standard deviation, as well as the relationship between the maximum drawdown and expected short fall to decide if Cadiz Inc is priced correctly, providing market reflects its regular price of 9.39 per share. Given that Cadiz has jensen alpha of (0.16), we suggest you to validate Cadiz Inc's prevailing market performance to make sure the company can sustain itself at a future point.

Our Final Takeaway

When is the right time to buy or sell Cadiz Inc? Buying stocks such as Cadiz 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 basis.
To conclude, as of the 21st of March 2021, we believe Cadiz is currently overvalued. It barely shadows the market and projects significantly high odds 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 Raphi Shpitalnik do not own shares of Cadiz Inc. Please refer to our Terms of Use for any information regarding our disclosure principles.

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