Destination Story

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DXLG -- USA Stock  

USD 0.37  0.01  2.78%

In general, we focus on analyzing Destination (NASDAQ:DXLG) price patterns and their correlations with different microeconomic environment and drivers. We also apply predictive analytics to build Destination XL Group daily price indicators and compare them against related drivers. While some planning is required to successfully invest in stocks, sometimes taking bold action is just as important. Let's try to digest why this may be the case with Destination. We will analyze why Destination investors may still consider a stake in the business.
Published over a week ago
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Will Destination XL Group continue to grow in December?
The company's average rating is Strong Buy from 2 analysts. We provide trade advice to complement the prevailing expert consensus on Destination XL Group. Our dynamic recommendation engine uses a multidimensional algorithm to analyze the company's potential to grow using all technical and fundamental data available at the time.
The successful prediction of Destination stock price could yield a significant profit to investors. But is it possible? The efficient-market hypothesis suggests that all published stock prices of traded companies, such as Destination XL Group, already reflect all publicly available information. This academic statement is a fundamental principle of many financial and investing theories used today. However, the typical investor usually disagrees with a 'textbook' version of this hypothesis and continually tries to find mispriced stocks to increase returns. We use internally-developed statistical techniques to arrive at the intrinsic value of Destination based on Destination hews, social hype, general headline patterns, and widely used predictive technical indicators. We also calculate exposure to Destination's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Destination's related companies.

Watch out for price decline

Please consider monitoring Destination on a daily basis 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.

Use Technical Analysis to project Destination expected Price

Destination technical stock analysis exercises models and trading practices based on price and volume transformations, such as the moving averages, relative strength index, regressions, price and return correlations, business cycles, stock market cycles, or different charting patterns.
A focus of Destination technical analysis is to determine if market prices reflect all relevant information impacting that market. A technical analyst looks at the history of Destination trading pattern rather than external drivers such as economic, fundamental, or social events. It is believed that price action tends to repeat itself due to investors' collective, patterned behavior. Hence technical analysis focuses on identifiable price trends and conditions. More Info...

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

The latest price surge of Destination XL Group could raise concerns from shareholders as the firm it trading at a share price of 0.31 on 5,943,573 in volume. The company executives may have good odds in positioning the firm resources to exploit market volatility in December. The stock standard deviation of daily returns for 30 days investing horizon is currently 11.14. The very high volatility is mostly attributed to the latest market swings and not very good earnings reports from some of the Destination partners.

Cost of Revenue Breakdown

Destination Cost of Revenue is increasing over the years with slightly volatile fluctuation. Cost of Revenue is expected to dwindle to about 259.9 M. Cost of Revenue usually refers to the aggregate cost of goods produced and sold and services rendered during the reporting period. Destination Cost of Revenue is projected to increase significantly based on the last few years of reporting. The past year's Cost of Revenue was at 269.84 Million
2010
2014
2020
2010210.14 Million
2014269.84 Million
2020259.92 Million

Destination price dip is misleading

Destination latest downside deviation ascents over 7.52. 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 firms under the apparel retail industry are still a bit expensive, Destination may offer a potential longer-term growth to shareholders. To conclude, as of the 20th of November 2020, our analysis shows that Destination responds to the market. The firm is undervalued and projects below average odds of distress for the next 2 years. Our latest 30 days 'Buy-vs-Sell' recommendation on the firm is Strong 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 Gabriel Shpitalnik 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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