Kaspien Holdings's average rating is Strong Buy from 1 analysts. Do analysts base this consensus on technical analyses? We know that typical technical analysis utilizes price momentum, patterns, and trends looking at historical prices. It aims to identify signals based on Kaspien Holdings market sentiment investors' perception of the future value of Kaspien. Let us look at a few aspects of Kaspien technical analysis.
Using predictive
technical analysis, we can analyze different prices and returns patterns and
diagnose historical swings to determine the real value of Kaspien Holdings. In general, sophisticated investors focus on analyzing Kaspien Holdings stock price patterns and their correlations with different microeconomic environment and drivers. They apply predictive analytics to build Kaspien Holdings's daily price indicators and compare them against related drivers such as
momentum indicators and various other types of predictive indicators. Using this methodology combined with a more conventional
technical analysis and
fundamental analysis, we attempt to find the most accurate representation of Kaspien Holdings's intrinsic value. In addition to deriving basic predictive indicators for Kaspien Holdings, many experienced traders also check how macroeconomic factors affect Kaspien Holdings price patterns. Please read more on our
technical analysis page or use our predictive modules below to complement your research.
Sophisticated investors, who have witnessed
many market ups and downs, anticipate that the market will even out over time. This tendency of Kaspien Holdings' price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as Kaspien Holdings. Your research has to be compared to or analyzed against Kaspien Holdings' peers to derive any actionable benefits. When done correctly, Kaspien Holdings' competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy toward taking a position in Kaspien Holdings.
Watch out for price decline
Please consider monitoring Kaspien Holdings on a daily basis if you are holding a position in it. Kaspien Holdings is trading at a penny-stock level, and the possibility of delisting is much higher compared to other pink sheets. However, just because the pink sheet is trading under one dollar, does not mean it will be marked for deletion.
Most exchanges require public instruments, such as Kaspien Holdings stock to be traded above the $1 level to remain listed. If Kaspien Holdings pink sheet 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 Kaspien Holdings's Liquidity
Kaspien Holdings
financial leverage refers to using borrowed capital as a funding source to finance Kaspien Holdings ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Kaspien Holdings 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 Kaspien Holdings' 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 Kaspien Holdings' 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 Kaspien Holdings's total debt and its cash.
Going after Kaspien Financials
The entity has a beta of 1.595. Let's try to break down what Kaspien's beta means in this case. As returns on the market increase, Kaspien Holdings returns are expected to increase less than the market. However, during the bear market, the loss on holding Kaspien Holdings will be expected to be smaller as well. The beta indicator helps investors understand whether Kaspien Holdings 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 Kaspien deviates very little from the market, it does not add much risk to the portfolio, but it also doesn't increase the expected returns.
The big decline in price over the last few months for Kaspien Holdingsmay raise some interest from institutional investors. The stock closed today at a share price of
3.00 on
7,238 in trading volume. The company directors and management failed to add value to investors and position the firm supply of money to exploit
market volatility in
May. However, diversifying your holdings with Kaspien Holdings or similar stocks can still protect your portfolios during high-volatility market scenarios. The stock standard deviation of daily returns for 90 days investing horizon is currently 8.55. The very high volatility is mostly attributed to the latest market swings and not very good earnings reports from some of the Kaspien Holdings partners.
Will Kaspien Holdings slide back in July?
Jensen Alpha just dropped to -0.86, may entail upcoming price decrease. Kaspien Holdings is displaying above-average volatility over the selected time horizon. Investors should scrutinize Kaspien Holdings independently to ensure intended market timing strategies are aligned with expectations about Kaspien Holdings volatility. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Kaspien Holdings' stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Kaspien Holdings' stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.
Kaspien Holdings Implied Volatility
Kaspien Holdings' implied volatility exposes the market's sentiment of Kaspien Holdings stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Kaspien Holdings' implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Kaspien Holdings stock will not fluctuate a lot when Kaspien Holdings' options are near their expiration.
Our Conclusion on Kaspien Holdings
Whereas some other companies in the software—application industry are either recovering or due for a correction, Kaspien Holdings may not be performing as strong as the other in terms of long-term growth potentials. To summarize, as of the 13th of June 2022, our analysis shows that Kaspien Holdings responds to the market. The company is
undervalued and projects
above average probability of financial unrest for the next 2 years. Our latest 90 days buy-sell recommendation on the company is
Cautious Hold.
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Raphi Shpitalnik is a Junior Member of Macroaxis Editorial Board. Raphael is a young entrepreneur who joined Macroaxis on a part-time basis at the beginning of the pandemic and eventually acquired a real taste for investing and fintech. He likes to analyze different equity instruments across a wide range of industries, focusing primarily on consumer products, sports, fintech, cannabis, and AI.
View Profile 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 Kaspien Holdings. Please refer to our
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