Liberty Story

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LILA -- USA Stock  

USD 13.52  0.05  0.37%

Liberty Latin America is scheduled to announce its earnings today. Because some of us are getting excited about communication services space, it makes sense to go over Liberty Latin America in greater detail. We will analyze the reasons why it is still possible for the company to generate above-average margins given the current economic outlook.
Published over a month ago
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Will Liberty Latin (NASDAQ:LILA) private investors continue to trust the experts consensus?
Liberty Latin is UNDERVALUED at 11.71 per share with modest projections ahead.
Our investment recommendation tool can cross-verify current analyst consensus on Liberty Latin America and to analyze the entity potential to grow in the current economic cycle.
What is the right price you would pay to acquire a share of Liberty Latin? For most investors, it would be the price that gives them a wide margin of safety to have minimal downside risk. In other words, most investors are always looking for undervalued stocks. Even if the future performance is not entirely as expected, the loss of holding it is minimized, and the downside risk is negated.
Please read more on our stock advisor page.

How important is Liberty Latin's Liquidity

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

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.

Is Liberty a risky opportunity?

Let's check the volatility. Liberty is looking slightly risky at this time. Whether you invest your money or manage your clients' funds, remember that it is easy to forget that behind Liberty (NASDAQ:LILA) stock is an actual business venture. So, do not let stock picking become an abstract concept by ignoring the elementary risk calculations. taking in a share of a Liberty Latin stock makes you a part-owner of that company.

Liberty Latin America Current Consensus

Here is the current trade recommendation based on an ongoing consensus estimate among financial analysis covering Liberty Latin America. The Liberty consensus assessment is calculated by taking the average estimates from all of the analysts covering Liberty Latin

Strong Buy
Strong Sell
Strong Buy133.33
Strong Sell133.33

Will Liberty continue to rise?

Maximum drawdown is down to 12.03. It may suggest a possible volatility slip. Liberty Latin America exhibits very low volatility with skewness of 0.51 and kurtosis of 0.75. 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 Conclusion on Liberty Latin

Whereas some other entities within the telecom services industry are still a little expensive, even after the recent corrections, Liberty Latin may offer a potential longer-term growth to investors. With a somewhat neutral outlook on your 30 days horizon, it may be better to hold off any trading activity and neither acquire new shares of Liberty nor short your existing holdings in the Stock. It seems the expected volatility has not yet been fully factored into the current price. 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 Liberty Latin.

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

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