Golar Story

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GLNG -- USA Stock  

USD 11.94  0.55  4.83%

It looks as if Golar LNG may not recover as fast as we have hopped for as its price went down 8.63% today. Golar LNG Limited's current daily volatility is 7.22 percent, with a beta of 1.86 and an alpha of 0.19 over DOW. While some millenniums are indifferent towards current market swings, it makes sense to digest Golar LNG Limited based on its technical indicators. What exactly are Golar LNG shareholders getting in December?
Published over a month ago
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Are Golar LNG (NASDAQ:GLNG) shareholders starting to panic?
Golar LNG Limited currently holds roughly 128.66 M in cash with 142.15 M of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 1.32. We provide advice to complement the regular expert consensus on Golar LNG. Our dynamic recommendation engine utilizes a multidimensional algorithm to analyze the company's potential to grow using all technical and fundamental data available at the time.
Investing in Golar LNG, 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 Golar LNG 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 Golar LNG'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 Golar LNG 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 Golar LNG. Your research has to be compared to or analyzed against Golar LNG's peers to derive any actionable benefits. When done correctly, Golar LNG'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 Golar LNG Limited.

How important is Golar LNG's Liquidity

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

How Golar utilizes its cash?

To perform a cash flow analysis of Golar LNG, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Golar LNG is receiving and how much cash it distributes out in a given period. The Golar LNG cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities. Golar LNG 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 95.89 Million

Golar LNG Correlation with Peers

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

A Deeper Perspective

We consider Golar LNG slightly risky. Golar LNG Limited holds Efficiency (Sharpe) Ratio of 0.0097, which attests that the entity had 0.0097% 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 Golar LNG Limited, which you can use to evaluate future volatility of the firm. Please check out Golar LNG Risk Adjusted Performance of 0.0686, downside deviation of 8.45, and Market Risk Adjusted Performance of 0.1896 to validate if the risk estimate we provide is consistent with the expected return of 0.07%.
Click cells to compare fundamentals   Check Volatility   Backtest Portfolio

Will Golar LNG rebound in December?

Latest downside deviation is at 8.45. Golar LNG Limited is displaying above-average volatility over the selected time horizon. Investors should scrutinize Golar LNG Limited independently to ensure intended market timing strategies are aligned with expectations about Golar LNG volatility.

Although some firms under the oil & gas midstream industry are still a bit expensive, Golar LNG may offer a potential longer-term growth to shareholders. The inconsistency in the assessment between current Golar valuation and our trade advice on Golar LNG is due to the recent market swings and your selection of investing horizon. 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 Golar LNG.

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 Golar LNG Limited. Please refer to our Terms of Use for any information regarding our disclosure principles.

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