Investing in Check Cap, a company in the Diagnostics & Research industry, could be a potential high-risk, high-reward scenario. The company's high Coefficient of Variation at
931.83 and Standard Deviation of
4.71 indicate a high level of risk. However, the company's Potential Upside of
10.4 suggests a significant growth potential. Despite a net income loss of
19.1M from continuing operations, the firm has a positive net interest income of
926K. Investors should be prepared for possible volatility, but those willing to take on the risk may see substantial returns.
Main Points
The average rating for the company from two analysts is 'Hold'. We offer trading advice that aligns with the prevailing
expert consensus on Check Cap. Our advanced recommendation engine employs a multidimensional algorithm to assess the company's growth potential, utilizing all available technical and fundamental data at the time.
What is the right price you would pay to acquire a share of Check Cap? For most investors, it would be the price that gives them a wide margin of safety to have minimal downside risk. In other words, most investors are always looking for undervalued stocks. Even if the
future performance is not entirely as expected, the loss of holding it is minimized, and the downside risk is negated. Please read more on our
stock advisor page.
Watch out for price decline
Please consider monitoring Check Cap on a daily basis if you are holding a position in it. Check Cap is trading at a penny-stock level, and the possibility of delisting is much higher compared to other stocks. However, just because the stock is trading under one dollar, does not mean it will be marked for deletion.
Most exchanges require public instruments, such as Check Cap stock to be traded above the $1 level to remain listed. If Check Cap stock price falls below $1 for 30 consecutive trading days, the exchange can delist it. Once the company reaches this point, they will be sent an initial price violation notice directly from an exchange.
What is happening with Check Cap this year
Annual and quarterly reports issued by Check Cap are formal
financial statements that are published yearly and quarterly and sent to Check stockholders. The reports show and break down the current year's ongoing operations and discuss plans for the upcoming year. Annual reports have been a requirement from the
Securities and Exchange Commission (SEC) for businesses owned by the public since 1934.
Companies such as Check Cap often view their annual report as an effective marketing tool to disseminate their perspective on company
future earnings or innovations. With this in mind, many companies devote large sums of money to making their reports attractive and informative. In such instances, the annual report becomes a forum through which a company can communicate to the general public any number of topics that may or may not be directly related to the actual data published in the reports.
Check Cap Gross Profit
Check Cap Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Check Cap previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Check Cap Gross Profit growth over the last 10 years. Please check Check Cap's
gross profit and other
fundamental indicators for more details.
Is Check a risky opportunity?
Let's check the volatility. Check is looking slightly risky at this time. Whether you invest your money or manage your clients' funds, remember that it is easy to forget that behind Check (USA Stocks:CHEK) stock is an actual business venture. So, do not let stock picking become an abstract concept by ignoring the elementary risk calculations. picking up a share of a Check Cap stock makes you a part-owner of that company.
Check Cap Current Consensus
Here is the latest trade recommendation based on an ongoing consensus estimate among financial analysis covering Check Cap. The Check consensus assessment is calculated by taking the average estimates from all of the analysts covering Check Cap.
| Strong Buy | 0 | 0.0 |
| Buy | 0 | 0.0 |
| Hold | 2 | 100.0 |
| Sell | 0 | 0.0 |
| Strong Sell | 0 | 0.0 |
Every cloud has a silver lining, and Check Cap, a player in the Diagnostics & Research industry, might just be that silver lining in the investment world. Despite a net income loss of $19.1M and an operating income loss of $20M, the company has a strong current ratio of 13.04X and working capital of $39.22M, indicating a robust liquidity position. The firm's low debt to equity ratio of 0.02% further underscores its
financial health. However, investors should note the company's high coefficient of variation at 931.83 and a probability of bankruptcy at 5.03%. Despite these risks, the company's target price stands at $7, significantly higher than its 52-week low of $1.22. With a market capitalization of
$20.01M and a total asset value of
$45.44M, Check Cap may be poised for unprecedented growth if it can successfully navigate its financial challenges.
Will Check Cap latest rise continue?
Check Cap's stock has recently been on an upward trend, but the downside variance has decreased to 10.9 as of today. This suggests a decrease in the stock's volatility, which could be a positive indicator for investors seeking stability. However, the continuation of the stock's recent rise depends on various factors, including the company's forthcoming financial results, market conditions, and investor sentiment. Therefore, investors should closely monitor these factors to
make informed decisions. Check Cap exhibits above-average downside volatility for the selected time horizon. We recommend investors to further examine Check Cap and ensure that all
market timing and asset allocation strategies align with the estimation of Check Cap's future alpha. Understanding different
market volatility trends often assists investors in timing the market.
Proper use of volatility indicators allows traders to measure 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 impact
Check Cap's stock price, adding stress to investors as they watch the value of their shares plummet. This typically compels investors to rebalance their portfolios by purchasing different stocks as prices decline. In conclusion, Check Cap's current situation does present some concerns. With a
Valuation Hype Value of 3.51 and a
Valuation Market Value of 3.48, the stock appears to be slightly overvalued compared to its Valuation Real Value of 3.02. The fiscal year end in December could bring about some changes, but as of now, the Analyst Overall Consensus is a 'Hold' with two analysts maintaining this position. Investors should exercise caution and monitor the stock closely for any potential shifts in the market. .
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Rifka Kats is a Member of Macroaxis Editorial Board. Rifka writes about retail product and service companies from the perspective of a regular consumer and sophisticated investor at the same time. She is passionate about corporate ethics and equality in the workforce.
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 Rifka Kats do not own shares of Check Cap. Please refer to our
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