Should you exit your GT Biopharma (NASDAQ:GTBP) position after the recent roll up?
 | By Vlad Skutelnik | Macroaxis Story |
Given the investment horizon of 90 days GT Biopharma is expected to generate 141.45 times more return on investment than the market. However, the company is 141.45 times more volatile than its market benchmark. It trades about 0.13 of its potential returns per unit of risk. The DOW is currently generating roughly 0.18 per unit of risk. Although many risk-takers are getting more into healthcare space, some of us are not very happy with GT Biopharma's current volatility. We will focus on why some insiders are closely monitoring GT Biopharma's volatility.
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Reviewed by Raphi Shpitalnik
The company currently holds 23.11 M in liabilities with Debt to Equity (D/E) ratio of 137.5, indicating GT Biopharma may have difficulties to generate enough cash to satisfy its financial obligations. GT Biopharma has a current ratio of 0.03, indicating that it has a negative working capital and may not be able to pay financial obligations when due.
GT Biopharma holds a performance score of 9 on a scale of zero to a hundred. The company owns a Beta (Systematic Risk) of -0.6839, which attests to possible diversification benefits within a given portfolio. Let's try to break down what GT Biopharma's beta means in this case. As returns on the market increase, returns on owning GT Biopharma are expected to decrease at a much lower rate. During the bear market, GT Biopharma is likely to outperform the market. Although it is essential to pay attention to GT Biopharma existing price patterns, it is also good to be reasonable about what you can do with equity price patterns. Our way in which we are determining 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 GT Biopharma expected return of 15.86 will be sustainable into the future, we have found twenty-one different technical indicators, which can help you to check if the expected returns are sustainable. Use GT Biopharma coefficient of variation, as well as the relationship between the treynor ratio and semi variance to analyze future returns on GT Biopharma.
Volatility is a rate at which the price of GT Biopharma or any other equity instrument increases or decreases for a given set of returns. It is measured by calculating the standard deviation of the annualized returns over a given period of time and shows the range to which the price of GT Biopharma may increase or decrease. In other words, similar to GTBP's beta indicator, it measures the risk of GT Biopharma and helps estimate the fluctuations that may happen in a short period of time. So if prices of GT Biopharma fluctuate rapidly in a short time span, it is termed to have high volatility, and if it swings slowly in a more extended period, it is understood to have low volatility. Please read more on our technical analysis page. 
How important is GT Biopharma's Liquidity
GT Biopharma financial leverage refers to using borrowed capital as a funding source to finance GT Biopharma ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. GT Biopharma 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. Financial leverage can amplify the potential profits to GT Biopharma's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of GT Biopharma's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the breakdown between GT Biopharma's total debt and its cash.
Breaking down GT Biopharma Further
Net Loss for the year was (14.83 M).
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