Kosmos Story

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KOS -- USA Stock  

USD 1.28  0.04  3.03%

It seems Kosmos Energy will continue to recover much faster as its share price surged up 2.55% today. The company's current daily volatility is 7.97 percent, with a beta of 0.13 and an alpha of 0.47 over DOW. As many of us are excited about petroleum and natural, it is fair to sum up Kosmos Energy. We will evaluate why we are still optimistic in anticipation of a recovery.
Published over a month ago
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Is Kosmos Energy (NYSE:KOS) a good short term trade as volatility advances?
Kosmos Energy has roughly 126.51 M in cash with 628.53 M of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 0.31. We provide investment recommendation to complement the last-minute expert consensus on Kosmos Energy. Our dynamic recommendation engine harnesses a multidimensional algorithm to analyze the entity's potential to grow using all technical and fundamental data available at the time.
Investing in Kosmos Energy, 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 Kosmos Energy 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.

Watch out for price decline

Please consider monitoring Kosmos Energy on a daily bases if you are holding a position in it. Kosmos Energy is trading at a penny-stock level, and the possibility of delisting is much higher compared to other equities. However, just because the stock is trading under one dollar, does not mean it will be marked for deletion. Most exchanges require public instruments, such as Kosmos Energy stock to be traded above the $1 level to remain listed. If Kosmos Energy stock price falls below $1 for 30 consecutive trading days, the exchange can delist it. Once the company reaches this point, they will be sent an initial price violation notice directly from an exchange.

How important is Kosmos Energy's Liquidity

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

How Kosmos utilizes its cash?

To perform a cash flow analysis of Kosmos Energy, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Kosmos Energy is receiving and how much cash it distributes out in a given period. The Kosmos Energy cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities. Kosmos Energy Net Cash Flow from Operations is relatively stable at the moment as compared to the past year. Kosmos Energy reported last year Net Cash Flow from Operations of 628.15 Million

Kosmos Energy Correlation with Peers

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

A Deeper look at Kosmos

Kosmos Energy appears to be extremely dangerous, given 1 month investment horizon. Kosmos Energy has Sharpe Ratio of 0.0338, which conveys that the firm had 0.0338% of return per unit of risk over the last month. Our standpoint towards estimating the volatility of a stock is to use all available market data together with stock specific technical indicators that cannot be diversified away. We have found twenty-one technical indicators for Kosmos Energy, which you can use to evaluate future volatility of the firm. Please exercise Kosmos Energy Downside Deviation of 7.34, mean deviation of 6.75, and Risk Adjusted Performance of 0.1065 to check out if our risk estimates are consistent with your expectations.
Click cells to compare fundamentals   Check Volatility   Backtest Portfolio

Our take on today Kosmos Energy spike

The jensen alpha is down to 0.47 as of today. Kosmos Energy is displaying above-average volatility over the selected time horizon. Investors should scrutinize Kosmos Energy independently to ensure intended market timing strategies are aligned with expectations about Kosmos Energy volatility.

The Bottom Line

While some firms within the oil & gas e&p industry are still a little expensive, even after the recent corrections, Kosmos Energy may offer a potential longer-term growth to retail investors. The inconsistency in the assessment between current Kosmos valuation and our trade advice on Kosmos Energy is due to the recent market swings and your selection of investing horizon. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Kosmos Energy.

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 Gabriel Shpitalnik do not own shares of Kosmos Energy. Please refer to our Terms of Use for any information regarding our disclosure principles.

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