Ceragon Story

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CRNT -- USA Stock  

USD 4.22  0.39  10.18%

It appears Ceragon Networks will continue to recover much faster as its share price surged up 5.68% today. This firm current daily volatility is 9.38 percent, with a beta of 0.91 and an alpha of 1.7 over DOW. While some of us are getting more passionate about disruptive technologies, it makes sense to review Ceragon Networks in greater detail to make a better estimate of its volatility. We will analyze why Ceragon Networks investors may still consider a stake in the business.
Published over three weeks ago
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Is Ceragon Networks (NASDAQ:CRNT) a good short term trade as volatility boosts?
Ceragon Networks currently holds roughly 29.16 M in cash with 15.18 M of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 0.36. We provide trade advice to complement the prevailing expert consensus on Ceragon Networks. Our dynamic recommendation engine uses a multidimensional algorithm to analyze the company's potential to grow using all technical and fundamental data available at the time.
Investing in Ceragon Networks, just like investing in any other equity instrument, is characterized by a strong risk-return correlation. High risks mean high returns and low risk means lower expected returns. Risk management is the act of identifying and assessing the potential risk and developing strategies to minimize these risks and earn maximum possible profits while holding Ceragon Networks along with other instruments in the same portfolio. Using conventional technical analysis and fundamental analysis to select individual securities into a portfolio complements risk management and adds value to overall investors' investing strategies.
Sophisticated investors, who have witnessed many market ups and downs, frequently view the market will even out over time. This tendency of Ceragon Networks' 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 Ceragon Networks 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 Ceragon Networks. Your research has to be compared to or analyzed against Ceragon Networks' peers to derive any actionable benefits. When done correctly, Ceragon Networks' 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 Ceragon Networks.

How important is Ceragon Networks's Liquidity

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

How Ceragon utilizes its cash?

To perform a cash flow analysis of Ceragon Networks, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Ceragon Networks is receiving and how much cash it distributes out in a given period. The Ceragon Networks cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.
Ceragon Networks Net Cash Flow from Operations is comparatively stable at the moment as compared to the past year. Ceragon Networks reported Net Cash Flow from Operations of (14.87 Million) in 2020

Ceragon Networks Correlation with Peers

Investors in Ceragon can reduce exposure to individual asset risk by holding a diversified portfolio of assets in addition to a long position in Ceragon Networks. Diversification will allow for the same portfolio return with reduced risk. The correlation table of Ceragon Networks and its peers is a two-dimensional matrix that shows the correlation coefficient between pairs of securities Ceragon is related in some way. The cells in the table are color-coded to highlight significantly positive and negative relationships. Each cell shows the correlation between one pair of equities and can be used to run pair trading strategies or create efficient portfolios with your current brokerage.
Please check volatility of Ceragon for more details

Breaking it down a bit more

Ceragon Networks is very risky given 1 month investment horizon. Ceragon Networks secures Sharpe Ratio (or Efficiency) of 0.2, which signifies that the company had 0.2% of return per unit of risk over the last month. Our standpoint towards foreseeing the risk of a stock is to use both market data as well as company specific technical data. We were able to analyze and collect data for twenty-one different technical indicators, which can help you to evaluate if expected returns of 1.85% are justified by taking the suggested risk. Use Ceragon Networks Mean Deviation of 4.7, risk adjusted performance of 0.165, and Downside Deviation of 5.05 to evaluate company specific risk that cannot be diversified away.
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Click cells to compare fundamentals   Check Volatility   Backtest Portfolio

Another 3 percent gain for Ceragon Networks

Ceragon Networks newest maximum drawdown boosts over 69.6. As of the 8th of February, Ceragon Networks shows the Risk Adjusted Performance of 0.165, downside deviation of 5.05, and Mean Deviation of 4.7. Ceragon Networks 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 and collect data for nineteen technical drivers for Ceragon Networks, which can be compared to its rivals. Please confirm Ceragon Networks standard deviation, value at risk, as well as the relationship between the Value At Risk and kurtosis to decide if Ceragon Networks is priced correctly, providing market reflects its regular price of 5.58 per share. Given that Ceragon Networks has jensen alpha of 1.7, we suggest you to validate Ceragon Networks's prevailing market performance to make sure the company can sustain itself at a future point.

Our Final Perspective on Ceragon Networks

Whereas some companies under the communication equipment industry are still a bit expensive, Ceragon Networks may offer a potential longer-term growth to private investors. To conclude, as of the 8th of February 2021, we believe that at this point, Ceragon Networks is very risky with very small odds of financial distress within the next 2 years. From a slightly different point of view, the entity appears to be overvalued. Our present 30 days buy vs. sell advice on the firm 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 Achuva Shats do not own shares of Ceragon Networks. Please refer to our Terms of Use for any information regarding our disclosure principles.

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