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The essential objective of this story is to break down our current position on COUNTRYWIDE for shareholders considering to short it. We will discuss why COUNTRYWIDE PLC shareholders may still consider a stake in the business.
Published over a month ago
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COUNTRYWIDE PLC (OTC:CYWDF) is to drop even more in September
COUNTRYWIDE PLC has a beta of 0.4502. Let's try to break down what COUNTRYWIDE'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, COUNTRYWIDE PLC will likely underperform. The beta indicator helps investors understand whether COUNTRYWIDE PLC 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 COUNTRYWIDE deviates very little from the market, it does not add much risk to the portfolio, but it also doesn't increase the expected returns.

How important is COUNTRYWIDE PLC's Liquidity

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

How COUNTRYWIDE utilizes its cash?

To perform a cash flow analysis of COUNTRYWIDE PLC, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash COUNTRYWIDE PLC is receiving and how much cash it distributes out in a given period. The COUNTRYWIDE PLC cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.

Detailed Perspective On COUNTRYWIDE PLC

The big decline in price over the last few months for COUNTRYWIDE PLC could raise concerns from shareholders as the firm closed today at a share price of 1.72 on slow start in volume. The company directors and management failed to add value to investors and positioning the firm supply of money to exploit market volatility in July. However, diversifying your holdings with COUNTRYWIDE PLC or any similar stocks can still protect your portfolios during high-volatility market scenarios. The stock standard deviation of daily returns for 30 days investing horizon is currently 6.41. The very high volatility is mostly attributed to the latest market swings and not very good earnings reports from some of the COUNTRYWIDE PLC partners.

COUNTRYWIDE PLC possible relapse in September

Latest market risk adjusted performance is at -1.72. COUNTRYWIDE PLC is displaying above-average volatility over the selected time horizon. Investors should scrutinize COUNTRYWIDE PLC independently to ensure intended market timing strategies are aligned with expectations about COUNTRYWIDE PLC volatility.

Our Conclusion on COUNTRYWIDE PLC

Although some firms in the real estate services industry are either recovering or due for a correction, COUNTRYWIDE PLC may not be performing as strong as the other in terms of long-term growth potentials. With a relatively neutral outlook on the latest economy, it is better to hold off any trading of COUNTRYWIDE as the current risk-reward utility is not appealing enough. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to COUNTRYWIDE PLC.

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 COUNTRYWIDE PLC. Please refer to our Terms of Use for any information regarding our disclosure principles.

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