Energy Story

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EFOI -- USA Stock  

USD 4.81  0.03  0.62%

It seems as Energy Focus will continue to recover much faster as its share price surged up 10.23% today. The company's current daily volatility is 52.08 percent, with a beta of 6.1 and an alpha of 6.69 over DOW. Whilst many millenniums are getting more into electrical equipment, it makes sense to concentrate on Energy Focus. What exactly are Energy Focus shareholders getting in September?
Published over three months ago
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How risky is Energy Focus after the current volatility rise?
Energy Focus currently holds roughly 2.91 M in cash with (2.56 M) of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 0.92. We provide trade advice to complement the prevailing expert consensus on Energy Focus. 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.
Investing in Energy Focus, 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 Energy Focus 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.

How important is Energy Focus's Liquidity

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

How Energy utilizes its cash?

To perform a cash flow analysis of Energy Focus, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Energy Focus is receiving and how much cash it distributes out in a given period. The Energy Focus cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities. Energy Focus Net Cash Flow from Operations is most likely to decrease significantly in the upcoming years. The last year's value of Net Cash Flow from Operations was reported at (6.62 Million)

Energy Focus Correlation with Peers

Investors in Energy can reduce exposure to individual asset risk by holding a diversified portfolio of assets in addition to a long position in Energy Focus. Diversification will allow for the same portfolio return with reduced risk. The correlation table of Energy Focus and its peers is a two-dimensional matrix that shows the correlation coefficient between pairs of securities Energy 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 Energy for more details

Energy Focus exotic insider transaction detected

Legal trades by Energy Focus insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
Energy insider trading alert for general transaction of stock option (right to buy) by Warren James Raymond Iii, SVP GC & Corp. Secretary, on 13th of November 2020. This event was filed by Energy Focus Inc with SEC on 2020-11-13. Initial filing of beneficial ownership - SEC Form 3 [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

What is driving Energy Focus Investor Appetite?

Energy Focus is out of control given 1 month investment horizon. Energy Focus secures Sharpe Ratio (or Efficiency) of 0.16, which denotes the company had 0.16% of return per unit of risk over the last month. Our standpoint towards predicting the volatility of a stock is to use Energy Focus market data together with company specific technical indicators. We were able to analyze and collect data for twenty-eight different technical indicators, which can help you to evaluate if expected returns of 8.22% are justified by taking the suggested risk. Use Energy Focus Mean Deviation of 14.77, coefficient of variation of 610.96, and Downside Deviation of 5.14 to evaluate company specific risk that cannot be diversified away.
Click cells to compare fundamentals   Check Volatility   Backtest Portfolio

Over 3 percent rise for Energy Focus. What does it mean for stockholders?

Energy Focus current market risk adjusted performance boosts over 1.38. Energy Focus is displaying above-average volatility over the selected time horizon. Investors should scrutinize Energy Focus independently to ensure intended market timing strategies are aligned with expectations about Energy Focus volatility.

Our Takeaway on Energy Focus Investment

While few other entities under the home furnishings & fixtures industry are still a bit expensive, Energy Focus may offer a potential longer-term growth to stockholders. To summarize, as of the 13th of August 2020, our research shows that Energy Focus is a rather out of control investment opportunity with a high probability of distress in the next two years. From a slightly different view, the entity currently appears to be undervalued. Our latest 30 days buy-or-sell advice on the company 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 Ellen Johnson do not own shares of Energy Focus. Please refer to our Terms of Use for any information regarding our disclosure principles.

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