Are HEOFF (OTC:HEOFF) shareholders starting to hold back?
 | By Rifka Kats | Macroaxis Story |
Today's short post will digest H2O Innovation as your potential position. We will discuss the question of why shareholders should continue to be confident in H2O Innovation outlook.
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Reviewed by Ellen Johnson
H2O Innovation has a beta of -0.2305. Let's try to break down what HEOFF's beta means in this case. As the market goes up, the company is expected to outperform it. However, if the market returns are negative, H2O Innovation will likely underperform. The beta indicator helps investors understand whether H2O Innovation moves in the same direction as the rest of the market, and how volatile (i.e., risky) it is compared to the market (i.e., selected benchmark). In other words, if HEOFF deviates very little from the market, it does not add much risk to the portfolio, but it also doesn't increase the expected returns.
How important is H2O Innovation's Liquidity
H2O Innovation financial leverage refers to using borrowed capital as a funding source to finance H2O Innovation ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. H2O Innovation 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 H2O Innovation'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 H2O Innovation'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 H2O Innovation's total debt and its cash.
What is driving H2O Innovation Investor Appetite?
H2O Innovation shows above-average downside volatility for the selected time horizon. We advise investors to inspect H2O Innovation further and ensure that all market timing and asset allocation strategies are consistent with the estimation of H2O Innovation future alpha.
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