Destination Story

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DXLG -- USA Stock  

USD 0.24  0.01  4.00%

The objective of this story is to give shareholders our take on Destination future value. We will discuss the reasons why it could be a game-changer for Destination shareholders.
Published over three weeks ago
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What are the projections for Destination (NASDAQ:DXLG) to recover in September 2020?
The firm shows a Beta (market volatility) of 2.4805, which means a somewhat significant risk relative to the market. Let's try to break down what Destination'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, Destination will likely underperform. Even though it is essential to pay attention to Destination XL Group historical returns, it is always good to be careful when utilizing equity current trending patterns. Our philosophy towards predicting any stock's future performance is to check both, its past performance charts as well as the business as a whole, including all available technical indicators. Destination XL Group exposes twenty-seven different technical indicators, which can help you to evaluate its performance. Destination XL Group has an expected return of -0.2%. Please be advised to confirm Destination XL Group maximum drawdown and the relationship between the semi variance and day typical price to decide if Destination XL Group stock performance from the past will be repeated at some point in the near future.
There are currently many different techniques concerning forecasting the market as a whole as well as predicting future values of individual securities such as Destination XL Group. 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 Destination


Watch out for price decline

Please consider monitoring Destination on a daily bases if you are holding a position in it. Destination is trading at a penny-stock level, and the possibility of delisting is much higher compared to other equities. 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 Destination stock to be traded above the $1 level to remain listed. If Destination 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 Destination's Liquidity

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

How Destination utilizes its cash?

To perform a cash flow analysis of Destination, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Destination is receiving and how much cash it distributes out in a given period. The Destination cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities. Destination Net Cash Flow from Operations is projected to decrease significantly based on the last few years of reporting. The past year's Net Cash Flow from Operations was at 15.8 Million

Breaking down the case for Destination

Destination XL Group is displaying above-average volatility over the selected time horizon. Investors should scrutinize Destination XL Group independently to ensure intended market timing strategies are aligned with expectations about Destination volatility. Destination XL Group is a potential penny stock. Although Destination 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 Destination XL Group. We encourage investors to look for the signals such us 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 this equity instrument if you perfectly time your entry and exit. However, remember that penny stocks that have been the subject of an artificial hype usually unable to maintain its 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.

Returns Breakdown

Return on Investment(5.38)
Return on Assets(0.0342)
Return on Equity(0.15)
Return Capital(0.0284)
Return on Sales(0.0174)

Are Destination technical ratios showing a bounce-back?

Latest standard deviation is at 9.79. Destination XL Group is displaying above-average volatility over the selected time horizon. Investors should scrutinize Destination XL Group independently to ensure intended market timing strategies are aligned with expectations about Destination volatility. Destination XL Group is a potential penny stock. Although Destination 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 Destination XL Group. We encourage investors to look for the signals such us 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 this equity instrument if you perfectly time your entry and exit. However, remember that penny stocks that have been the subject of an artificial hype usually unable to maintain its 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 Conclusion on Destination

Although some companies in the apparel retail industry are either recovering or due for a correction, Destination may not be performing as strong as the other in terms of long-term growth potentials. The bottom line, as of the 27th of August 2020, our analysis shows that Destination hyperactively responds to market trends. The firm is undervalued and projects below average chance of financial distress for the next 2 years. Our up-to-date 30 days buy-hold-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 Vlad Skutelnik do not own shares of Destination XL Group. Please refer to our Terms of Use for any information regarding our disclosure principles.

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