CorEnergy Story

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While some traders are getting carried away by overanalyzing real estate space, it is reasonable to sum up CorEnergy Infrastructure Trust against current market trends. As we have suggested previously, CorEnergy Infrastructure is beginning its slump as retail investors shift to be more bearish due to the increased sector volatility. The returns on investing in CorEnergy Infrastructure and the market returns of the last few months appear uncorrelated to each other. Weak basic indicators of the enterprise may also connote signs of long-running losses for CorEnergy retail investors. CorEnergy Infrastructure is scheduled to announce its earnings tomorrow. The next earnings report is expected on the 4th of November 2020.
Published over a month ago
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Our latest technical analysis of CorEnergy Infrastructure Trust (NYSE:CORR)
The entity's average rating is Sell from 2 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 CorEnergy Infrastructure market sentiment investors' perception of the future value of CorEnergy. Let us look at a few aspects of CorEnergy technical analysis.

How important is CorEnergy Infrastructure's Liquidity

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

How CorEnergy utilizes its cash?

To perform a cash flow analysis of CorEnergy Infrastructure, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash CorEnergy Infrastructure is receiving and how much cash it distributes out in a given period. The CorEnergy Infrastructure cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities. CorEnergy Infrastructure Net Cash Flow from Operations is relatively stable at the moment as compared to the past year. CorEnergy Infrastructure reported last year Net Cash Flow from Operations of 61.78 Million

Breaking it down a bit more

The firm has a beta of -0.0585. Let's try to break down what CorEnergy's beta means in this case. As the market goes up, the company is expected to outperform it. However, if the market returns are negative, CorEnergy Infrastructure will likely underperform. The beta indicator helps investors understand whether CorEnergy Infrastructure 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 CorEnergy deviates very little from the market, it does not add much risk to the portfolio, but it also doesn't increase the expected returns. The latest CorEnergy Infrastructure price slump could raise concerns from retail investors as the firm closed today at a share price of 8.75 on very low momentum in volume. The company management teams were unable to exploit market volatilities in July. However, diversifying your overall positions with CorEnergy Infrastructure Trust can protect your principal portfolio during market swings. The stock standard deviation of daily returns for 30 days investing horizon is currently 7.71. The very high volatility is mostly attributed to the latest market swings and not very good earnings reports from some of the CorEnergy Infrastructure partners.

Anything left for CorEnergy Infrastructure after the slump?

Latest mean deviation is at 4.88. CorEnergy Infrastructure Trust is displaying above-average volatility over the selected time horizon. Investors should scrutinize CorEnergy Infrastructure Trust independently to ensure intended market timing strategies are aligned with expectations about CorEnergy Infrastructure volatility.

Our Final Take On CorEnergy Infrastructure

While few other entities in the reit?diversified industry are either recovering or due for a correction, CorEnergy may not be as strong as the others in terms of longer-term growth potentials. To conclude, as of the 2nd of August 2020, our actual 30 days recommendation on the enterprise is Strong Sell. However, we believe CorEnergy Infrastructure is fairly valued with average probability of distress for the next two years.

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 Achuva Shats do not own shares of CorEnergy Infrastructure Trust. Please refer to our Terms of Use for any information regarding our disclosure principles.

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