Are Decisionpoint (OTC:DPSI) stockholders starting to hold back?
By Gabriel Shpitalnik | Macroaxis Story |
The basic intention for this outlook is to give stockholders our perspective on Decisionpoint for February. We will forecast Decisionpoint Systems value for stockholders.
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Reviewed by Ellen Johnson
This firm has a beta of -2.7118. Let's try to break down what Decisionpoint'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, Decisionpoint Systems will likely underperform. The beta indicator helps investors understand whether Decisionpoint Systems 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 Decisionpoint deviates very little from the market, it does not add much risk to the portfolio, but it also doesn't increase the expected returns.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as DecisionPoint Systems. Your research has to be compared to or analyzed against DecisionPoint Systems' peers to derive any actionable benefits. When done correctly, DecisionPoint Systems' competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy toward taking a position in DecisionPoint Systems.
There are currently many different techniques concerning forecasting the market as a whole as well as predicting future values of individual securities such as DecisionPoint Systems. 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 DecisionPoint Systems
Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of DecisionPoint Systems' 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.
How important is DecisionPoint Systems's Liquidity
DecisionPoint Systems financial leverage refers to using borrowed capital as a funding source to finance DecisionPoint Systems ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. DecisionPoint Systems 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. Financial leverage can amplify the potential profits to DecisionPoint Systems' owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of DecisionPoint Systems' financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the breakdown between DecisionPoint Systems's total debt and its cash.
DecisionPoint Systems Gross Profit
DecisionPoint Systems Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing DecisionPoint Systems 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 DecisionPoint Systems Gross Profit growth over the last 10 years. Please check DecisionPoint Systems' gross profit and other fundamental indicators for more details.
Another Deeper Perspective
Decisionpoint Systems is displaying above-average volatility over the selected time horizon. Investors should scrutinize Decisionpoint Systems independently to ensure intended market timing strategies are aligned with expectations about Decisionpoint Systems volatility.
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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 Gabriel Shpitalnik do not own shares of DecisionPoint Systems. Please refer to our Terms of Use for any information regarding our disclosure principles.