Intrepid Story

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IPI -- USA Stock  

USD 25.38  0.26  1.01%

While many traders are getting carried away by overanalyzing competition within basic materials space, it is quite reasonable to concentrate on both, Intrepid Potash and American Vanguard as potential mid-run investments. We are going to examine some of the competitive aspects of both Intrepid and American.
Published over two weeks ago
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Are retail investors locking in Intrepid Potash (NYSE:IPI) or American Vanguard?
By analyzing existing technical and fundamental indicators between Intrepid Potash and American, 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 American with a short position in Intrepid Potash. Check out our pair correlation module for more information.

Let's begin by analyzing the assets. The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Intrepid Potash has an asset utilization ratio of 23.45 percent. This implies that the company is making $0.23 for each dollar of assets. An increasing asset utilization means that Intrepid Potash is more efficient with each dollar of assets it utilizes for everyday operations.
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 Intrepid or American is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step.

How important is Intrepid Potash's Liquidity

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

Correlation Between Intrepid and American Vanguard

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 Intrepid Potash together with similar or unrelated positions with a negative correlation. For example, you can also add American Vanguard to your portfolio. If American Vanguard is not perfectly correlated to Intrepid Potash 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 Intrepid Potash 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 IPI and AVD for more information.

Acquisition by Kyle Smith of 97 shares of Intrepid Potash subject to Rule 16b-3

Legal trades by Intrepid Potash 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:
Intrepid insider trading alert for grant of common stock by Kyle Smith, Gen Cnsl LandMineralsWater, on 17th of December 2020. This event was filed by Intrepid Potash Inc with SEC on 2020-12-17. Statement of changes in beneficial ownership - SEC Form 4. Kyle Smith currently serves as vice president general counsel, secretary of Intrepid Potash [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.

What is driving Intrepid Potash Investor Appetite?

Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include product or services discounts, promotions, as well as early payments on invoices or services rendered in advance.

Revenue Breakdown

Now, let's check Intrepid Potash revenue. Based on the latest financial disclosure, Intrepid Potash reported 150.1 M of revenue. This is 98.09% lower than that of the Basic Materials sector and 96.46% lower than that of the Agricultural Inputs industry. The revenue for all United States stocks is 98.41% higher than that of Intrepid Potash. As for American Vanguard we see revenue of 448.48 M, which is 89.41% lower than that of the Agricultural Inputs

Sector
4.2 B
IPI150.1 Million3.1
Sector4.24 Billion87.62
AVD448.48 Million9.28

Can Intrepid Potash build up on the current rise?

Intrepid Potash current downside variance boosts over 16.09. Intrepid Potash is displaying above-average volatility over the selected time horizon. Investors should scrutinize Intrepid Potash independently to ensure intended market timing strategies are aligned with expectations about Intrepid Potash volatility.

Our Final Take On Intrepid Potash

When is the right time to buy or sell Intrepid Potash? Buying stocks such as Intrepid Potash isn't very hard. However, what challenging for most investors is doing it at the right time. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities, deliver winning trades and diversify portfolios on a daily basis. In closing, as of the 2nd of January 2021, our ongoing 30 days buy-hold-sell recommendation on the company is Strong Sell. We believe Intrepid Potash is overvalued with below average chance of financial distress 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 Achuva Shats do not own shares of Intrepid Potash. Please refer to our Terms of Use for any information regarding our disclosure principles.

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