GT Biopharma Story

GTBP -- USA Stock

USD 9.13 0.50 5.19%

Macroaxis Story

It looks like Equillium will continue to recover much faster as its share price surged up 1.26% today to GT Biopharma's 5.117%. As many rational traders are trying to avoid healthcare space, it makes sense to recap GT Biopharma a little further and understand how it stands against Equillium and other similar entities. We are going to focus on some of the competitive aspects of both GT Biopharma and Equillium.

Published over a week ago

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Will Equillium and GT Biopharma (NASDAQ:GTBP) make up?

By analyzing existing fundamental drivers between GT Biopharma and Equillium, you can compare the effects of market volatilities on both companies' prices and check if they can diversify away market risk if combined in one of your portfolios. You can also utilize pair trading strategies for matching a long position in Equillium with a short position in GT Biopharma. Check out our pair correlation module for more information.

Let's begin by analyzing the assets.

One of the ways to look at asset utilization of GT Biopharma is to check how much profit was generated for every dollar of assets it reports. GT Biopharma owns a negative utilization of current and long term assets of -485.97 %, losing $4.86 for each dollar of current and long term assets held by the firm. Discouraging asset utilization attests that the company is being less competent with each dollar of current and long term assets it owns. Strictly speaking, asset utilization of GT Biopharma shows how wasteful it operates for each dollar spent on its current and long term assets.

Will Equillium and GT Biopharma (NASDAQ:GTBP) make up?

Out of tens of thousands of stocks, funds, and ETFs that trade on global exchanges each represent an individual company which you can analyze using comparative analysis. To determine which one of the two companies, such as GT Biopharma or Dyadic is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step.

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. Please check the breakdown between GT Biopharma's total debt and its cash.

Correlation Between GT Biopharma and Dyadic International

In general, stock analysis is a method for investors and traders to make individual buying and selling decisions. Stock correlation analysis is also essential because it can help investors realize that they may not be as diversified as they think. Risk management strategies are usually required to make sure all portfolios are properly aligned against their risk tolerance level. You can consider holding GT Biopharma together with similar or unrelated positions with a negative correlation. For example, you can also add Dyadic International to your portfolio. If Dyadic International is not perfectly correlated to GT Biopharma it will diversify some of the market risks out of the positively correlated stocks in your portfolio. However, the disadvantage of this sort of hedging is that it can potentially affect your investment returns throughout market cycles. When GT Biopharma for example, for example, performs excellent and delivers stable returns, the negatively correlated position you locked in as a hedge may drag your returns down.

Please check pair correlation details between GTBP and DYAI for more information.

Note

Are you currently holding both GT Biopharma and Dyadic International in your portfolio?

Please note if you are using this as a pair-trade strategy between GT Biopharma and Dyadic International, watch out for correlation discrepancy over time. Relying on the historical price correlations and assuming that it will not change may lead to short-term losses.

Breaking down GT Biopharma Further

Cash and Equivalents Breakdown

Lets now take a look at GT Biopharma cash and equivalents. In accordance with the recently published financial statements, GT Biopharma has 350 K in Cash and Equivalents. This is 99.96% lower than that of the Healthcare sector and 99.92% lower than that of the Biotechnology industry. The cash and equivalents for all United States stocks is 99.99% higher than that of GT Biopharma. As for Equillium we see cash and equivalents of 82.16 M, which is 81.62% lower than that of the Biotechnology

Sector

447.1 M

GTBP	350,000	0.0661
Sector	447.12 Million	84.42
EQ	82.16 Million	15.51

Can GT Biopharma build up on the recent roll up?

GT Biopharma recent mean deviation upswings over 28.39. GT Biopharma is displaying above-average volatility over the selected time horizon. Investors should scrutinize GT Biopharma independently to ensure intended market timing strategies are aligned with expectations about GT Biopharma volatility. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure GT Biopharma'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 GT Biopharma'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.

Although some other firms under the biotechnology industry are still a bit expensive, GT Biopharma may offer a potential longer-term growth to insiders. On the whole, as of the 4th of April 2021, we see that GT Biopharma moves slightly opposite to the market. The firm is undervalued with below average odds of financial turmoil within the next 24 months. However, our primary 30 days Buy-Hold-Sell recommendation on the firm is Strong Sell.

About Contributor

Vlad Skutelnik is a Macroaxis Contributor. Vlad covers stocks, funds, cryptocurrencies, and ETFs that are traded in North America, focusing primarily on fundamentals, valuation and market volatility. He has many years of experience in fintech, predictive investment analytics, and risk management. View Profile

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 Vlad Skutelnik do not own shares of GT Biopharma. Please refer to our Terms of Use for any information regarding our disclosure principles.

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