DXLG Destination otc stock Story

DXLG -  USA Stock  

USD 3.40  0.15  4.23%

It looks as if Destination will continue to recover much faster as its share price surged up 5.56% today. The company's current daily volatility is 10.87 percent, with a beta of 1.41 and an alpha of 0.66 over DOW. Whilst many millenniums are getting more into retail, it makes sense to digest Destination XL Group. We will evaluate why recent Destination price moves suggest a bounce in December.
Published over six months ago
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Breaking down Destination (NASDAQ:DXLG) volatility dip
Destination XL Group currently holds roughly 20.41 M in cash with 5.89 M of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 0.4, which can makes it an attractive takeover target, given it will continue generating positive cash flow.
Investing in Destination, just like investing in any other equity instrument, is characterized by a strong risk-return correlation. High risks mean high returns and low risk means lower expected returns. Risk management is the act of identifying and assessing the potential risk and developing strategies to minimize these risks and earn maximum possible profits while holding Destination along with other instruments in the same portfolio. Using conventional technical analysis and fundamental analysis to select individual securities into a portfolio complements risk management and adds value to overall investors' investing strategies.
Sophisticated investors, who have witnessed many market ups and downs, frequently view the market will even out over time. This tendency of Destination'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 use the tools below to analyze the current value of Destination in the context of predictive analytics.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as Destination. Your research has to be compared to or analyzed against Destination's peers to derive any actionable benefits. When done correctly, Destination's competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy towards taking a position in Destination XL Group.

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 DXLG 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 (1.23 Million)

Destination Correlation with Peers

Investors in DXLG Destination can reduce exposure to individual asset risk by holding a diversified portfolio of assets in addition to a long position in Destination XL Group. Diversification will allow for the same portfolio return with reduced risk. The correlation table of Destination and its peers is a two-dimensional matrix that shows the correlation coefficient between pairs of securities DXLG Destination is related in some way. The cells in the table are color-coded to highlight significantly positive and negative relationships. Each cell shows the correlation between one pair of equities and can be used to run pair trading strategies or create efficient portfolios with your current brokerage.
Please check volatility of DXLG Destination for more details

An Additional Perspective On Destination XL Group

Destination appears to be extremely dangerous, given 1 month investment horizon. Destination XL Group secures Sharpe Ratio (or Efficiency) of 0.0912, which denotes the company had 0.0912% of return per unit of risk over the last month. Our standpoint towards predicting the volatility of a stock is to use all available market data together with stock specific technical indicators that cannot be diversified away. By reviewing Destination XL Group technical indicators you can presently evaluate if the expected return of 0.99% is justified by implied risk. Please utilize Destination XL Group Mean Deviation of 6.64, coefficient of variation of 1365.16, and Downside Deviation of 7.52 to check if our risk estimates are consistent with your expectations.
Click cells to compare fundamentals   Check Volatility   Backtest Portfolio

Our perspective of the latest Destination surge

Latest maximum drawdown is at 77.39. As of the 20th of November, Destination shows the Coefficient Of Variation of 1365.16, downside deviation of 7.52, and Mean Deviation of 6.64. Destination XL Group technical analysis allows you to utilize historical prices and volume patterns in order to determine a pattern that computes the direction of the firm's future prices. Put another way, you can use this information to find out if the firm will indeed mirror its model of historical prices and volume momentum, or the prices will eventually revert. We were able to collect and analyze data for nineteen technical drivers for Destination XL Group, which can be compared to its rivals. Please confirm Destination XL Group variance, maximum drawdown, as well as the relationship between the Maximum Drawdown and semi variance to decide if Destination XL Group is priced favorably, providing market reflects its regular price of 0.38 per share. As Destination XL Group appears to be a penny stock we also advise to verify its total risk alpha numbers.

The Bottom Line

Although some companies within the apparel retail industry are still a little expensive, even after the recent corrections, Destination may offer a potential longer-term growth to shareholders. With an impartial outlook on the current market volatility, it may be better to hold off any inventment activity and neither trade nor drop any shares of Destination at this time. The Destination XL Group risk-reward trade off is not appealing enough to do any trading. 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 Destination.

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 Destination XL Group. Please refer to our Terms of Use for any information regarding our disclosure principles.

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