Liberty Story

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LILA -- USA Stock  

USD 13.83  0.05  0.36%

While some millenniums are indifferent towards communication services space, it makes sense to go over Liberty Latin America in terms of its current potentials. As expected, Liberty Latin is starting to reaffirm its true potential as investors are becoming more and more confident in the future outlook. The returns on the market and returns on Liberty Latin appear slightly correlated for the last few months. The appearance of strong basic indicators of the company suggests a short-term price swing for investors of Liberty. Liberty Latin America is scheduled to announce its earnings tomorrow.
Published over a month ago
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Should I shadow Liberty Latin America (NASDAQ:LILA) investors?
Liberty Latin America's average rating is Hold from 3 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 Liberty Latin market sentiment investors' perception of the future value of Liberty. Let us look at a few aspects of Liberty technical analysis.
Using predictive technical analysis, we will analyze different prices and returns patterns and diagnose historical swings to determine the real value of Liberty Latin America. In general, we focus on analyzing Liberty Latin stock price patterns and their correlations with different microeconomic environment and drivers. We also apply predictive analytics to build Liberty Latin'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 Liberty Latin's intrinsic value. In addition to deriving basic predictive indicators for Liberty Latin, we also check how macroeconomic factors affect Liberty Latin 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, frequently view the market will even out over time. This tendency of Liberty Latin's stock 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 use the tools below to analyze the current value of Liberty Latin in the context of predictive analytics.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as Liberty Latin. Your research has to be compared to or analyzed against Liberty Latin's peers to derive any actionable benefits. When done correctly, Liberty Latin's competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy towards taking a position in Liberty Latin America.

How does Liberty Stands against Peers?

Analyzing Liberty Latin competition or peers my help you to expand the diversification possibilities of your existing portfolios and to get a better perspective on locking in new positions. Try to analyze the advantages of investing in traded instruments related to Liberty Latin across multiple sectors and thematic ideas. A good competitive analysis can cover a lot of different areas. But what areas to choose depends on who you are. The more exhaustive you are in your analysis, the more effective your competitive analysis will be.
Check out Liberty Latin Competition Details

How Liberty utilizes its cash?

To perform a cash flow analysis of Liberty Latin, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Liberty Latin is receiving and how much cash it distributes out in a given period. The Liberty Latin cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.
Liberty Latin Net Cash Flow from Operations is projected to increase significantly based on the last few years of reporting. The past year's Net Cash Flow from Operations was at 640.1 Million

Exercise or conversion by Zook Brian D of 5490 shares of Liberty Latin subject to Rule 16b-3

Legal trades by Liberty Latin 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:
Liberty insider trading alert for exercise of restricted share units c by Zook Brian D, MD CHIEF ACCOUNTING OFFICER, on 5th of April 2021. This event was filed by Liberty Latin America Ltd with SEC on 2021-04-05. 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.

An Additional Perspective On Liberty Latin America

The entity has a beta of 0.3507. Let's try to break down what Liberty's beta means in this case. As the market goes up, the company is expected to outperform it. However, if the market returns are negative, Liberty Latin will likely underperform. The beta indicator helps investors understand whether Liberty Latin 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 Liberty 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 firm reported the previous year's revenue of 3.64 B. Net Loss for the year was (616 M) with profit before overhead, payroll, taxes, and interest of 2.98 B.

Our perspective of the current Liberty Latin rise

Current variance is at 6.8. Liberty Latin America exhibits very low volatility with skewness of 0.56 and kurtosis of 0.83. However, we advise investors to further study Liberty Latin America technical indicators to make sure all market info is available and is reliable. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Liberty Latin's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Liberty Latin's 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.

Our Takeaway on Liberty Latin Investment

Whereas many of the other players under the telecom services industry are still a bit expensive, Liberty Latin may offer a potential longer-term growth to investors. To conclude, as of the 27th of February 2021, our research shows that Liberty Latin is a rather not too volatile investment opportunity with a close to average probability of distress in the next two years. From a slightly different view, the entity currently appears to be undervalued. Our up-to-date 30 days buy-or-sell advice on the company is Cautious Hold.

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 Liberty Latin America. Please refer to our Terms of Use for any information regarding our disclosure principles.

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