Linx SA Story

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LINX -- USA Stock  

USD 7.08  0.13  1.87%

It appears Linx SA will continue to recover much faster as its share price surged up 13.18% today. Linx SA ADR's current daily volatility is 5.9 percent, with a beta of 0.5 and an alpha of 1.26 over DOW. While many traders are getting carried away by overanalyzing business services, it is reasonable to break down Linx SA ADR. We will look into some reasons why it is still possible for Linx SA to maintain above-average margins while minimizing volatility.
Published over three months ago
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Will Linx SA (NYSE:LINX) current volatility rise scare investors?
Linx SA ADR currently holds about 65.4 M in cash with 129.95 M of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 0.61. This firm currently holds 294.84 M in liabilities with Debt to Equity (D/E) ratio of 0.19, which may suggest Linx SA is not taking enough advantage from borrowing. The company has a current ratio of 2.25, suggesting that it is liquid enough and is able to pay its financial obligations when due.
Investing in Linx SA, 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 Linx SA 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.

How important is Linx SA's Liquidity

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

How Linx SA utilizes its cash?

To perform a cash flow analysis of Linx SA, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Linx SA is receiving and how much cash it distributes out in a given period. The Linx SA cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities. Linx SA Net Cash Flow from Operations is fairly stable at the moment as compared to the past year. Linx SA reported Net Cash Flow from Operations of 131.78 Million in 2019

Linx SA Correlation with Peers

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

Breaking down Linx SA Indicators

Linx SA is unstable given 1 month investment horizon. Linx SA ADR has Sharpe Ratio of 0.2, which conveys that the firm had 0.2% of return per unit of risk over the last month. Our standpoint towards estimating the risk of a stock is to use both market data as well as company specific technical data. We were able to analyze twenty-one different technical indicators, which can help you to evaluate if expected returns of 1.16% are justified by taking the suggested risk. Use Linx SA ADR Risk Adjusted Performance of 0.3659, mean deviation of 4.06, and Downside Deviation of 3.26 to evaluate company specific risk that cannot be diversified away.
Click cells to compare fundamentals   Check Volatility   Backtest Portfolio

Linx SA implied volatility may change after the rise

Current expected short fall is at -5.37. Linx SA ADR is displaying above-average volatility over the selected time horizon. Investors should scrutinize Linx SA ADR independently to ensure intended market timing strategies are aligned with expectations about Linx SA volatility.

The Current Takeaway on Linx SA Investment

While some firms under the software?application industry are still a bit expensive, Linx SA may offer a potential longer-term growth to investors. The inconsistency in the assessment between current Linx SA valuation and our trade advice on Linx SA 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 Linx SA.

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 Vlad Skutelnik do not own shares of Linx SA ADR. Please refer to our Terms of Use for any information regarding our disclosure principles.

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