Fuel Tech Story

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FTEK -- USA Stock  

USD 5.70  0.06  1.04%

It feels like Fuel Tech will continue to recover much faster as its share price surged up 19.50% today. This firm current daily volatility is 23.64 percent, with a beta of 4.56 and an alpha of 3.85 over DOW. As many millenniums are excited about machinery, it is only fair to examine Fuel Tech. We will analyze why Fuel Tech investors may still consider a stake in the business.
Published over a week ago
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How risky is Fuel Tech after the recent volatility surge?
Fuel Tech currently holds roughly 9.42 M in cash with (4.34 M) of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 0.38. We provide trade advice to complement the prevailing expert consensus on Fuel Tech. 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 Fuel Tech, 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 Fuel Tech 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 Fuel Tech's stock 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 Fuel Tech 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 Fuel Tech. Your research has to be compared to or analyzed against Fuel Tech's peers to derive any actionable benefits. When done correctly, Fuel Tech'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 Fuel Tech.

How important is Fuel Tech's Liquidity

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

How Fuel Tech utilizes its cash?

To perform a cash flow analysis of Fuel Tech, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Fuel Tech is receiving and how much cash it distributes out in a given period. The Fuel Tech cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities. Fuel Tech Net Cash Flow from Operations is decreasing as compared to previous years. The last year's value of Net Cash Flow from Operations was reported at (3.05 Million)

Fuel Tech Correlation with Peers

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

Breaking down Fuel Tech Indicators

Fuel Tech is extremely dangerous given 1 month investment horizon. Fuel Tech secures Sharpe Ratio (or Efficiency) of 0.21, which denotes the company had 0.21% of return per unit of risk over the last month. Our standpoint towards predicting the volatility of a stock is to use Fuel Tech market data together with company specific technical indicators. We were able to analyze twenty-seven different technical indicators, which can help you to evaluate if expected returns of 4.91% are justified by taking the suggested risk. Use Fuel Tech Mean Deviation of 11.26, coefficient of variation of 518.29, and Downside Deviation of 7.85 to evaluate company specific risk that cannot be diversified away.
Click cells to compare fundamentals   Check Volatility   Backtest Portfolio

Over 3 percent surge for Fuel Tech. What does it mean for traders?

Information ratio is down to 0.19. It may signify a possible volatility plunge. Fuel Tech is displaying above-average volatility over the selected time horizon. Investors should scrutinize Fuel Tech independently to ensure intended market timing strategies are aligned with expectations about Fuel Tech volatility.

Our Bottom Line On Fuel Tech

Although many of the other players within the pollution & treatment controls industry are still a little expensive, even after the recent corrections, Fuel Tech may offer a potential longer-term growth to traders. With a somewhat neutral outlook on your 30 days horizon, it may be better to hold off any trading activity and neither buy new shares of Fuel Tech nor drop your existing holdings in the Stock. It seems the expected volatility has not yet been fully factored into the current price. 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 Fuel Tech.

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 Fuel Tech. Please refer to our Terms of Use for any information regarding our disclosure principles.

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