Should I exit my Second Sight (NASDAQ:EYES) position?

Today's article will sum up Second Sight. We will analyze why it could be a much better year for Second Sight shareholders. Second Sight is currently traded for 15.20. The entity has historical hype elasticity of 1.46. The average price elasticity to hype of competition is about 1.74. The firm is forecasted to increase in value after the next press release, with the price going to jump to 16.69. The latest volatility of headline impact on the company stock price is is way over 100 percent making price predictions on social media along less reliable. The price gain on the next news is forecasted to be 9.8%, whereas the daily expected return is currently at 7.69%. Given the investment horizon of 30 days the next forecasted announcement will be in about 5 days.
Published over a year ago
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Reviewed by Raphi Shpitalnik

Second Sight holds a performance score of 12 on a scale of zero to a hundred. The entity has a beta of 12.6034, which indicates a somewhat significant risk relative to the market. Let's try to break down what Second'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, Second Sight will likely underperform. Although it is essential to pay attention to Second Sight current price movements, it is also good to be reasonable about what you can do with equity historical returns. Our philosophy towards measuring future potential of any stock is to look not only at its past charts but also at the business as a whole, including all available fundamental and technical indicators. To evaluate if Second Sight expected return of 7.69 will be sustainable into the future, we have found twenty-seven different technical indicators, which can help you to check if the expected returns are sustainable. Use Second Sight maximum drawdown, and the relationship between the information ratio and expected short fall to analyze future returns on Second Sight.
The successful prediction of Second Sight 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 Second Sight Medical, 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 Second Sight based on Second Sight hews, social hype, general headline patterns, and widely used predictive technical indicators. We also calculate exposure to Second Sight's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Second Sight's related companies.

Use Technical Analysis to project Second expected Price

Second Sight 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, delisted stock market cycles, or different charting patterns.
A focus of Second Sight technical analysis is to determine if market prices reflect all relevant information impacting that market. A technical analyst looks at the history of Second Sight 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...

What is driving Second Sight Investor Appetite?

This firm reported the previous year's revenue of 497 K. Net Loss for the year was (21.46 M) with profit before overhead, payroll, taxes, and interest of 1.23 M.
 2018 2019 2020 2021 (projected)
Receivables Turnover5.917.056.345.9
PPandE Turnover5.933.152.833.35

Deferred Revenue Breakdown

Second Sight Deferred Revenue yearly trend continues to be relatively stable with very little volatility. Deferred Revenue is likely to grow to about 309.4 K this year. Deferred Revenue usually refers to a component of Total Liabilities representing the carrying amount of consideration received or receivable on potential earnings that were not recognized as revenue; including sales; license fees; and royalties; but excluding interest income. Second Sight Deferred Revenue is relatively stable at the moment as compared to the past year. Second Sight reported last year Deferred Revenue of 301,500
2014
2015
2016
2017
2018
2019
2020
2021
20144.67 Million
20152.52 Million
2016189,000
201748,000
2018167,000
2019335,000
2020301,500
2021309,434

Our perspective of the latest Second Sight spike

Latest mean deviation is at 16.17. Second Sight is showing large volatility of returns over the selected time horizon. We encourage all investors to investigate this asset further to make sure related market timing strategies are aligned with all the expectations about Second Sight implied risk. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Second Sight's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Second Sight's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Our Takeaway on Second Sight Investment

While many other companies under the medical devices industry are still a bit expensive, Second Sight may offer a potential longer-term growth to retail investors. While some retail investors may not share our view we believe that the current risk-reward utility 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 Second Sight.

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Editorial Staff

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