CounterPath Story

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CPAH -- USA Stock  

USD 3.38  0.02  0.59%

CounterPath Enterprise Value is most likely to decrease significantly in the upcoming years. The preceding year's Enterprise Value was reported at 21.22 Million. The current Invested Capital Average is estimated to increase to about 2.8 M, while Earnings Before Interest Taxes and Depreciation Amortization EBITDA are projected to decrease to (742.6 K). The underlying intention for this short outlook is to concentrate on CounterPath as an investment oportunity for January. We will examine why recent CounterPath price moves suggest a bounce in January.
Published over a month ago
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What are the CounterPath (NASDAQ:CPAH) projections for January
The firm shows a Beta (market volatility) of 0.51, which signifies possible diversification benefits within a given portfolio. Let's try to break down what CounterPath's beta means in this case. As returns on the market increase, CounterPath returns are expected to increase less than the market. However, during the bear market, the loss on holding CounterPath will be expected to be smaller as well. Although it is extremely important to respect CounterPath historical returns, it is better to be realistic regarding the information on equity current trending patterns. The philosophy towards foreseeing future performance of any stock is to evaluate the business as a whole together with its past performance, including all available fundamental and technical indicators. By analyzing CounterPath technical indicators, you can presently evaluate if the expected return of 0.037% will be sustainable into the future. CounterPath right now shows a risk of 4.45%. Please confirm CounterPath expected short fall, day median price, and the relationship between the potential upside and accumulation distribution to decide if CounterPath will be following its price patterns.
There are currently many different techniques concerning forecasting the market as a whole as well as predicting future values of individual securities such as CounterPath. Regardless of method or technology, to accurately forecast the stock market is more a matter of luck rather than a particular technique. Nevertheless, trying to predict the stock market accurately is still an essential part of the overall investment decision process. Using different forecasting techniques and comparing the results might improve your chances of accuracy even though unexpected events may often change the market sentiment and impact your forecasting results.

Predictive Modules for CounterPath

Sophisticated investors, who have witnessed many market ups and downs, frequently view the market will even out over time. This tendency of CounterPath'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 CounterPath 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 CounterPath. Your research has to be compared to or analyzed against CounterPath's peers to derive any actionable benefits. When done correctly, CounterPath'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 CounterPath.

How important is CounterPath's Liquidity

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

How CounterPath utilizes its cash?

To perform a cash flow analysis of CounterPath, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash CounterPath is receiving and how much cash it distributes out in a given period. The CounterPath cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities. CounterPath Net Cash Flow from Operations is most likely to increase significantly in the upcoming years. The last year's value of Net Cash Flow from Operations was reported at (356,633)

CounterPath exotic insider transaction detected

Legal trades by CounterPath 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:
CounterPath insider trading alert for general transaction of deferred share units by Todd Carothers, Chief Revenue Officer, on 9th of December 2020. This event was filed by Counterpath Corp with SEC on 2020-12-09. Statement of changes in beneficial ownership - SEC Form 4. Todd Carothers currently serves as executive vice president of sales and marketing of CounterPath [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.

Detailed Perspective On CounterPath

The current indifference towards the small price fluctuations of CounterPath could raise concerns from stockholders as the firm it trading at a share price of 3.42 on 63,798 in volume. The company executives did not add any value to CounterPath investors in November. However, most investors can still diversify their portfolios with CounterPath to hedge their inherited risk against high-volatility market scenarios. The stock standard deviation of daily returns for 30 days investing horizon is currently 4.45. This high volatility is attributed to the latest market swings and not so good earnings reports for some of the CounterPath partners.

Returns Breakdown

Return on Assets(0.0949)
Return on Equity(0.56)
Return Capital(0.29)
Return on Sales(0.0679)

CounterPath has a small chance to finish above $3.49 in 2 months

Current potential upside is at 5.93. CounterPath exhibits very low volatility with skewness of 1.09 and kurtosis of 9.94. However, we advise investors to further study CounterPath technical indicators to make sure all market info is available and is reliable.

Our Conclusion on CounterPath

While some other entities in the software?application industry are either recovering or due for a correction, CounterPath may not be as strong as the others in terms of longer-term growth potentials. To conclude, as of the 11th of December 2020, our analysis shows that CounterPath follows the market closely. The company is overvalued and projects high probability of financial unrest for the next 2 years. Our up-to-date 30 days buy-hold-sell recommendation on the company is Cautious 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 CounterPath. Please refer to our Terms of Use for any information regarding our disclosure principles.

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