Immersion Story

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IMMR -- USA Stock  

USD 13.51  0.05  0.37%

Let's try to sum up what's happening with Immersion amid unprecedented political, and economic uncertainty. Immersion is currently traded for 12.94. The entity has historical hype elasticity of -0.46. The average price elasticity to hype of competition is about 0.39. The firm is forecasted to decline in value after the next press release, with the price expected to drop to 12.53. The average volatility of headline impact on the company stock price is huge, making predictions on the news or social media along less reliable. The price decrease on the next news is expected to be -3.17%, whereas the daily expected return is currently at 1.1 percent. Given the investment horizon of 30 days the next forecasted announcement will be in about 7 days.
Published over three weeks ago
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Chances of Immersion (NASDAQ:IMMR) to fall in January.
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Immersion has an asset utilization ratio of 29.39 percent. This connotes that the company is making $0.29 for each dollar of assets. An increasing asset utilization means that Immersion is more efficient with each dollar of assets it utilizes for everyday operations.
The successful prediction of Immersion stock price could yield a significant profit to investors. But is it possible? The efficient-market hypothesis suggests that all published stock prices of traded companies, such as Immersion, already reflect all publicly available information. This academic statement is a fundamental principle of many financial and investing theories used today. However, the typical investor usually disagrees with a 'textbook' version of this hypothesis and continually tries to find mispriced stocks to increase returns. We use internally-developed statistical techniques to arrive at the intrinsic value of Immersion based on Immersion hews, social hype, general headline patterns, and widely used predictive technical indicators. We also calculate exposure to Immersion's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Immersion's related companies.

Use Technical Analysis to project Immersion expected Price

Immersion technical stock analysis exercises models and trading practices based on price and volume transformations, such as the moving averages, relative strength index, regressions, price and return correlations, business cycles, stock market cycles, or different charting patterns.
A focus of Immersion technical analysis is to determine if market prices reflect all relevant information impacting that market. A technical analyst looks at the history of Immersion trading pattern rather than external drivers such as economic, fundamental, or social events. It is believed that price action tends to repeat itself due to investors' collective, patterned behavior. Hence technical analysis focuses on identifiable price trends and conditions. More Info...

How Immersion utilizes its cash?

To perform a cash flow analysis of Immersion, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Immersion is receiving and how much cash it distributes out in a given period. The Immersion cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities. Immersion Net Cash Flow from Operations is relatively stable at the moment as compared to the past year. Immersion reported last year Net Cash Flow from Operations of (39.21 Million)

A Deeper Perspective

The latest price spike of Immersion may raise some interest from retail investors. The stock closed today at a share price of 12.94 on 34,327,073 in trading volume. The company executives may have good odds in positioning the firm resources to exploit market volatility in January. The stock standard deviation of daily returns for 30 days investing horizon is currently 5.6. The very high volatility is mostly attributed to the latest market swings and not very good earnings reports from some of the Immersion partners.

Deferred Revenue Breakdown

Immersion Deferred Revenue yearly trend continues to be relatively stable with very little volatility. Deferred Revenue is likely to drop to about 29.3 M. Deferred Revenue usually refers to a component of Total Liabilities representing the carrying amount of consideration received or receivable on potential earnings that were not recognized as revenue; including sales; license fees; and royalties; but excluding interest income. Immersion Deferred Revenue is relatively stable at the moment as compared to the past year. Immersion reported last year Deferred Revenue of 30.64 Million
201322.36 Million
201415.61 Million
20159.21 Million
201632.3 Million
201726.73 Million
201834.79 Million
201930.64 Million
202029.26 Million

Over 3 percent spike for Immersion. What does it mean for retail investors?

Latest potential upside is at 7.31. Immersion currently demonstrates below-verage downside deviation. It has Information Ratio of 0.13 and Jensen Alpha of 0.52. However, we do advice investors to further question Immersion expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk.

The Bottom Line

While many of the other players within the software?application industry are still a little expensive, even after the recent corrections, Immersion may offer a potential longer-term growth to retail investors. To conclude, as of the 29th of December 2020, our current 30 days buy-sell recommendation on the enterprise is Buy. However, we believe Immersion is currently overvalued with very small chance of bankruptcy 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 Raphi Shpitalnik do not own shares of Immersion. Please refer to our Terms of Use for any information regarding our disclosure principles.

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