Imedia Story

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IMBI -- USA Stock  

USD 5.86  0.32  5.18%

It seems as Imedia Brands will continue to recover much faster as its share price surged up 11.93% today. The entity's current daily volatility is 7.32 percent, with a beta of -0.21 and an alpha of 1.86 over DOW. As many baby boomers are still indifferent towards stable market, it makes sense to concentrate on Imedia Brands. We will evaluate why recent Imedia Brands price moves suggest a bounce in September.
Published over a month ago
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Will the current Imedia Brands volatility rise frighten stockholders?
Imedia Brands currently holds roughly 16.2 M in cash with 5.51 M of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 1.71. The company currently holds 59.32 M in liabilities with Debt to Equity (D/E) ratio of 4.27, indicating the firm may have difficulties to generate enough cash to satisfy its financial obligations. Imedia Brands has a current ratio of 1.15, suggesting that it may not be capable to disburse its financial obligations when due.
Investing in Imedia Brands, 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 Imedia Brands 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 Imedia Brands's Liquidity

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

How Imedia utilizes its cash?

To perform a cash flow analysis of Imedia Brands, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Imedia Brands is receiving and how much cash it distributes out in a given period. The Imedia Brands cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities. Imedia Brands Net Cash Flow from Operations is most likely to decrease significantly in the upcoming years. The last year's value of Net Cash Flow from Operations was reported at (6.16 Million)

Imedia Brands Correlation with Peers

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

Exercise of in-the-money or at-the-money derivative position by Eyal Lalo of 41024 shares of Imedia Brands

Legal trades by Imedia Brands insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
Imedia insider trading alert for exercise of warrants (right to buy) by Eyal Lalo, the corporate stakeholder, on 16th of September 2020. This event was filed by Imedia Brands Inc with SEC on 2020-09-16. Statement of changes in beneficial ownership - SEC Form 4 [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

Breaking down the case for Imedia Brands

Imedia Brands is risky given 1 month investment horizon. Imedia Brands holds Efficiency (Sharpe) Ratio of 0.24, which attests that the entity had 0.24% of return per unit of risk over the last month. Our standpoint towards determining the risk of a stock is to use both market data as well as company specific technical data. We were able to collect and analyze data for twenty-eight different technical indicators, which can help you to evaluate if expected returns of 1.75% are justified by taking the suggested risk. Use Imedia Brands Market Risk Adjusted Performance of (8.85), downside deviation of 5.83, and Risk Adjusted Performance of 0.389 to evaluate company specific risk that cannot be diversified away.
Click cells to compare fundamentals   Check Volatility   Backtest Portfolio

Imedia Brands implied volatility may change after the rise

Current treynor ratio is at -8.86. Imedia Brands is displaying above-average volatility over the selected time horizon. Investors should scrutinize Imedia Brands independently to ensure intended market timing strategies are aligned with expectations about Imedia Brands volatility.

Our Final Take On Imedia Brands

While some firms within the internet retail industry are still a little expensive, even after the recent corrections, Imedia Brands may offer a potential longer-term growth to stockholders. To conclude, as of the 17th of August 2020, our ongoing 30 days buy vs. sell advice on the company is Cautious Hold. We believe Imedia Brands is undervalued with below average odds of financial turmoil for the next two years.

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 Imedia Brands. Please refer to our Terms of Use for any information regarding our disclosure principles.

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