The company's average rating is Strong Buy from 3 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 Drive Shack market sentiment investors' perception of the future value of Drive. Let us look at a few aspects of Drive technical analysis. The company has Net Profit Margin (PM) of
(35.24) %, which may indicate that it does not properly execute on its own pricing strategies. This is way below average. Likewise, it shows Net Operating Margin (NOM) of
(10.68) %, which signifies that for every 100 dollars of sales, it has a net operating loss of -0.11.
Using predictive
technical analysis, we can analyze different prices and returns patterns and
diagnose historical swings to determine the real value of Drive Shack. In general, sophisticated investors focus on analyzing Drive Shack stock price patterns and their correlations with different microeconomic environment and drivers. They apply predictive analytics to build Drive Shack's daily price indicators and compare them against related drivers such as
momentum indicators and various other types of predictive indicators. Using this methodology combined with a more conventional
technical analysis and
fundamental analysis, we attempt to find the most accurate representation of
Drive Shack's intrinsic value. In addition to deriving basic predictive indicators for Drive Shack, many experienced traders also check how macroeconomic factors affect Drive Shack price patterns. Please read more on our
technical analysis page or use our predictive modules below to complement your research.
Sophisticated investors, who have witnessed
many market ups and downs, anticipate that the market will even out over time. This tendency of Drive Shack's 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 note, it is not enough to conduct a financial or market analysis of a single entity such as Drive Shack. Your research has to be compared to or analyzed against Drive Shack's peers to derive any actionable benefits. When done correctly, Drive Shack's 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 Drive Shack.
Watch out for price decline
Please consider monitoring Drive Shack on a daily basis if you are holding a position in it. Drive Shack is trading at a penny-stock level, and the possibility of delisting is much higher compared to other delisted stocks. However, just because the stock is trading under one dollar, does not mean it will be marked for deletion.
Most exchanges require public instruments, such as Drive Shack stock to be traded above the $1 level to remain listed. If Drive Shack stock price falls below $1 for 30 consecutive trading days, the exchange can delist it. Once the company reaches this point, they will be sent an initial price violation notice directly from an exchange.
How important is Drive Shack's Liquidity
Drive Shack
financial leverage refers to using borrowed capital as a funding source to finance Drive Shack ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Drive Shack 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 Drive Shack's 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 Drive Shack's 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 Drive Shack's total debt and its cash.
Closer look at Drive Shack Standard Deviation
Drive Shack has current Standard Deviation of 6.23. The Standard Deviation is a measure of how spread out the prices or returns of an asset are on average. It is the most widely used risk indicator in the field of investing and finance. Standard Deviation is commonly used to measure confidence in statistical conclusions regarding certain equity instruments or portfolios of equities.
Standard deviation is applied to the annual rate of return of an investment to measure the investment's volatility. Standard deviation is also known as historical volatility and is used by investors as a gauge for the amount of expected market volatility. A large standard deviation usually indicates that the data points are far from the mean and a small standard deviation indicates that they are clustered closely around the mean.
Standard Deviation | = | SQRT(V) |
| = | 6.23 |
Let's now compare Drive Shack Standard Deviation to its closest peers:
| DS | 6.23 |
| BC | 2.35 |
| EQUR | 35.89 |
| ESCA | 3.02 |
Our take on today Drive Shack spike
Downside deviation is down to 6.12. It may connote a possible volatility fall. Drive Shack is displaying above-average volatility over the selected time horizon. Investors should scrutinize Drive Shack independently to ensure intended market timing strategies are aligned with expectations about Drive Shack volatility. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Drive Shack's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Drive Shack's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.
Our Conclusion on Drive Shack
While some firms under the leisure industry are still a bit expensive, Drive Shack may offer a potential longer-term growth to retail investors. To sum up, as of the 12th of March 2021, our analysis shows that Drive Shack almost mirrors the market. The enterprise is
undervalued and projects
quite high probability of distress for the next 2 years. Our final 30 days buy-or-sell advice on the enterprise is
Cautious Hold.
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Ellen Johnson is a Member of Macroaxis Editorial Board. Ellen covers public companies in North America, focusing primarily on valuation and volatility. Six years of experience in predictive investment analytics and risk management.
View Profile 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 Ellen Johnson do not own shares of Drive Shack. Please refer to our
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