Is Drive Shack (NYSE:DS) moving to revert?

Drive Shack has a beta of 2.1511. Let's try to break down what Drive'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, Drive Shack will likely underperform. The beta indicator helps investors understand whether Drive Shack 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 Drive deviates very little from the market, it does not add much risk to the portfolio, but it also doesn't increase the expected returns. The entity generated the yearly revenue of 302.56 M. Annual Net Loss to common stockholders was (52.48 M) with gross profit of 46.79 M.

Another setback for Drive Shack retail investors

The market risk adjusted performance is down to -0.8 as of today. Drive Shack exhibits very low volatility with skewness of 0.45 and kurtosis of 1.15. However, we advise investors to further study Drive Shack technical indicators to ensure that all market info is available and is reliable. Drive Shack is a potential penny stock. Although Drive Shack may be in fact a good instrument to invest, many penny stocks are speculative in nature and are subject to artificial price hype. Please make sure you totally understand the upside potential and downside risk of investing in Drive Shack. We encourage investors to look for signals such as email spams, message board hypes, claims of breakthroughs, volume upswings, sudden news releases, promotions that are not reported, or demotions released before SEC filings. Please also check biographies and work history of current and past company officers before investing in high volatility instruments, penny stocks, or equities with microcap classification. You can indeed make money on Drive instrument if you perfectly time your entry and exit. However, remember that penny stocks that have been the subject of artificial hype usually unable to maintain their increased share price for more than just a few days. The price of a promoted high volatility instrument will almost always revert back. The only way to increase shareholder value is through legitimate performance backed up by solid fundamentals.

Our Takeaway on Drive Shack Investment

While some companies in the leisure industry are either recovering or due for a correction, Drive Shack may not be performing as strong as the other in terms of long-term growth potentials. In closing, as of the 20th of November 2022, our research shows that Drive Shack is a rather dangerous investment opportunity with a very high odds of financial distress in the next two years. From a slightly different view, the entity currently appears to be undervalued. However, our actual 90 days buy-or-sell advice on the enterprise is Strong Sell.