Great Story

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GLDD -- USA Stock  

USD 11.50  0.41  3.70%

It looks as if Great Lakes may not recover as fast as we have hopped for as its price went down 0.38% today. Great Lakes's current daily volatility is 2.09 percent, with a beta of 0.27 and an alpha of 0.35 over DOW. As some shareholders are moving away from the latest market volatility surge, we are going to digest Great Lakes Dredge based on how it reacts to economic swings. We will cover the possibilities of making Great Lakes into a steady grower in December.
Published over a month ago
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Should you take up Great after the latest volatility dip?
Great Lakes Dredge currently holds roughly 233.53 M in cash with 154.04 M of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 3.6. Great Lakes has performance score of 5 on a scale of 0 to 100. The company retains a Market Volatility (i.e. Beta) of 0.2661, which attests to not very significant fluctuations relative to the market. Let's try to break down what Great's beta means in this case. As returns on the market increase, Great Lakes returns are expected to increase less than the market. However, during the bear market, the loss on holding Great Lakes will be expected to be smaller as well. Although it is extremely important to respect Great Lakes Dredge current price history, it is better to be realistic regarding the information on equity current price movements. The philosophy towards determining future performance of any stock is to evaluate the business as a whole together with its past performance, including all available fundamental and technical indicators. By evaluating Great Lakes Dredge technical indicators, you can presently evaluate if the expected return of 0.16% will be sustainable into the future. Great Lakes Dredge right now retains a risk of 2.09%. Please check out Great Lakes coefficient of variation, maximum drawdown, skewness, as well as the relationship between the total risk alpha and downside variance to decide if Great Lakes will be following its current trending patterns.
Investing in Great Lakes, 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 Great Lakes 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 Great Lakes's Liquidity

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

How Great utilizes its cash?

To perform a cash flow analysis of Great Lakes, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Great Lakes is receiving and how much cash it distributes out in a given period. The Great Lakes cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities. Great Lakes Net Cash Flow from Operations is projected to increase significantly based on the last few years of reporting. The past year's Net Cash Flow from Operations was at 192.55 Million

Great Lakes Correlation with Peers

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

Detailed Perspective On Great Lakes

We consider Great Lakes not too volatile. Great Lakes Dredge holds Efficiency (Sharpe) Ratio of 0.0782, which attests that the entity had 0.0782% of return per unit of risk over the last month. Our standpoint towards determining the volatility of a stock is to use all available market data together with stock specific technical indicators that cannot be diversified away. We have found twenty-eight technical indicators for Great Lakes Dredge, which you can use to evaluate future volatility of the firm. Please check out Great Lakes Market Risk Adjusted Performance of 1.35, downside deviation of 2.0, and Risk Adjusted Performance of 0.1767 to validate if the risk estimate we provide is consistent with the expected return of 0.16%.
Click cells to compare fundamentals   Check Volatility   Backtest Portfolio

Great Lakes has 67 percent chance to dip below $10.19 in 30 days

The value at risk is down to -3.04 as of today. As of the 4th of November, Great Lakes retains the Market Risk Adjusted Performance of 1.35, risk adjusted performance of 0.1767, and Downside Deviation of 2.0. Great Lakes technical analysis makes it possible for you to employ historical prices and volume momentum with the intention to determine a pattern that calculates the direction of the firm's future prices. Simply put, you can use this information to find out if the firm will indeed mirror its model of historical price patterns, or the prices will eventually revert. We were able to interpolate and analyze data for nineteen technical drivers for Great Lakes Dredge, which can be compared to its competitors. Please check out Great Lakes Dredge coefficient of variation, maximum drawdown, skewness, as well as the relationship between the information ratio and downside variance to decide if Great Lakes is priced fairly, providing market reflects its last-minute price of 10.4 per share. Given that Great Lakes Dredge has jensen alpha of 0.3531, we strongly advise you to confirm Great Lakes Dredge's regular market performance to make sure the company can sustain itself at a future point.

Our Takeaway on Great Lakes Investment

Although many of the other players in the engineering & construction industry are either recovering or due for a correction, Great Lakes may not be performing as strong as the other in terms of long-term growth potentials. With an optimistic outlook on your 30 days horizon, it may be a good time to trade new shares of Great or increase your existing holdings in the Stock as it seems the potential growth 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 Great Lakes.

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 Great Lakes Dredge. Please refer to our Terms of Use for any information regarding our disclosure principles.

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