By examining the existing technical and fundamental indicators between Check Cap and Aspira, we can assess the impact of market volatility on both companies' prices and determine if they can mitigate market risk when combined in one of your portfolios. Pair trading strategies can also be utilized, such as matching a long position in Aspira with a short position in Check Cap. For more information, please refer to our
pair correlation module.
Let's begin with an analysis of the assets. One method to evaluate asset utilization of Check Cap is to determine how much profit is generated for every dollar of assets it reports. Check Cap exhibits a negative asset utilization of -0.29 percent, resulting in a loss of $0.002871 for each dollar of assets held by the company. This unsuccessful asset utilization indicates that the company is not effectively using each dollar of assets it has. In other words, the asset utilization of Check Cap demonstrates its lack of productivity for each dollar spent on its assets.
Main Points
Investing in Check Cap (USA Stocks: CHEK) could be a risky venture considering its high downside variance of
10.9 and a maximum drawdown of
31.14. The company's last price was
$3.32, with an open price of $3.42, indicating a slight price change of -$0.1. The company's
financial health also raises concerns, with a negative earnings per share (EPS) of $3.37, indicating a loss, and an expected shortfall of $3.78. However, the company has managed to raise a significant
$8.8M from financing activities, which could potentially be used to drive future growth. Investors should weigh these factors carefully when deciding between Check Cap and Aspira.
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 entities, such as Check or CareMax is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step.
How important is Check Cap's Liquidity
Check Cap
financial leverage refers to using borrowed capital as a funding source to finance Check Cap ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Check Cap 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 Check Cap's 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 Check Cap's 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 Check Cap's total debt and its cash.
Correlation Between Check and CareMax
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 Check Cap together with similar or unrelated positions with a negative correlation. For example, you can also add CareMax to your portfolio. If CareMax is not perfectly correlated to Check Cap 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 Check Cap, for example, performs excellent and delivers stable returns, the negatively correlated position you locked in as a hedge may drag your returns down.
Are you currently holding both Check Cap and CareMax in your portfolio? Please note if you are using this as a pair-trade strategy between Check Cap and CareMax, 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. Please check
pair correlation details between CHEK and CMAX for more information.
What is driving Check Cap Investor Appetite?
Total Debt Breakdown
Let me take a closer look at Check Cap total debt. Based on the latest financial disclosure, Check Cap has a Total Debt of 964
K. This is 99.96% lower than that of the Health Care Equipment & Supplies sector and 99.9% lower than that of the
Health Care industry. The total debt for all United States stocks is 99.98% higher than that of the company. As for Aspira Womens we see total debt of 3.83
M, which is 99.59% lower than that of the Health Care
| CHEK | 964,000 | 0.1 |
| Sector | 928.83 Million | 99.49 |
| AWH | 3.83 Million | 0.41 |
"In the world of investing, it's often said that cash is king.
With an end period cash flow of 4.4M and cash and short-term investments amounting to 41.7M, Check Cap (USA Stocks: CHEK) seems to be in a strong liquidity position, reflected in its current ratio of 13.04X. However, the company's
financial health is not without concerns. It reported an EBITDA of -19.8M, indicating significant operational losses. Furthermore, the company's EPS estimate for the current year stands at -2.53, suggesting that profitability remains a challenge. Despite these concerns, the market seems to have faith in Check Cap's potential, with a Wall Street target price of 7, significantly higher than its 50-day MA of 3.5894. In conclusion, while Check Cap presents certain financial risks, its strong liquidity position and potential upside make it a stock worth considering for investors with a high risk tolerance." .
How will Check institutional investors react to the next slide?
Check Cap Ltd. (CHEK) recently reported an anticipated shortfall of -3.78, a signal that could suggest a potential price decrease in the near future. This development may have significant implications for institutional investors, prompting them to reassess their positions and strategies. While some may interpret this as an opportunity to augment their holdings at a lower price, others might perceive it as a warning sign and opt to diminish their exposure. The response of these large-scale investors could significantly influence the stock's trajectory in the forthcoming period. Check Cap exhibits above-average downside volatility for the selected time horizon. We recommend investors to scrutinize Check Cap further and ensure that all
market timing and asset allocation strategies align with the estimation of Check Cap's future alpha. Understanding various
market volatility trends often assists investors in timing the market. Proper utilization of volatility indicators allows traders to gauge Check Cap's stock risk against market volatility during both bullish and bearish trends.
The heightened level of volatility that accompanies bear markets can directly affect
Check Cap's stock price, adding stress to investors as they witness their shares' value decline. This typically compels investors to rebalance their portfolios by purchasing different stocks as prices drop. In light of recent market trends, Check Cap Stock (CHEK) is currently experiencing a slight downturn, with a 2 percent decrease despite a generally rising market. With an overall
analyst consensus of 'Hold' and only two analysts recommending to hold, it seems the
market sentiment is cautious. The stock's naive expected forecast value stands at
2.85, while the potential upside price could reach as high as
7.44. However, investors should also be aware of the possible downside price of 0.0332. The valuation hype value and market value are both at 3.32, slightly below the real value of 3.38. Given these factors, it is advisable for investors to closely monitor the stock's performance as we approach the fiscal year end in December. .
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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 Check Cap. Please refer to our
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