on Luk Fook Holdings. 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. Luk Fook dividends can provide a clue to the current value of the stock. The firm one year expected dividend income is about $0.72 per share.
Luk Fook
financial leverage refers to using borrowed capital as a funding source to finance Luk Fook Holdings ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Luk Fook 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 Luk Fook's 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 Luk Fook's 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 Luk Fook's total debt and its cash.
Although in the United States, the Securities and Exchange Commission has enforced strong rules to prevent insiders from engaging in insider trading, finding insiders among active shareholders of Luk Fook is not uncomon. Institutional investors typically avoid acquiring a high percentage of Luk Fook stocks because performing such an act may violate securities laws. They are usually not investing their own money, but rather making investments on behalf of their clients. Let's take a look at how the ownership of LKFLF is distributed among investors.
Ownership Allocation
Luk Fook Holdings maintains a total of five hundred eighty-seven million one hundred ten thousand
outstanding shares. Luk Fook Holdings holds significant amount of outstanding shares owned by
insiders. An
insider is usually defined as a CEO, other corporate executive, director, or
institutional investor who own at least 10% of the company outstanding shares. Since such a large part of the company is owned by insiders, it is advisable to analyze if each of these insiders have been buying or selling the stock in recent months. Please note that no matter how much assets the company has, if the real value of the firm is less than the current market value, you may not be able to make money on it.
Retail Investors22.84% | Insiders44.07% | Institutions33.09% |
| Retail Investors | 22.84 |
| Insiders | 44.07 |
| Institutions | 33.09 |
Volatility analysis of Luk Fook indicates possible reversal in December
Latest potential upside is at 9.24. As of the 26th of November, Luk Fook secures the Downside Deviation of 23.37,
risk adjusted performance of 0.1293, and Mean Deviation of 6.96. In connection with
fundamental indicators, the
technical analysis model lets you check existing technical drivers of Luk Fook Holdings, as well as the relationship between them. Strictly speaking, you can use this information to find out if the firm will indeed mirror its model of past prices, or the prices will eventually revert. We were able to analyze and collect data for nineteen
technical drivers for Luk Fook, which can be compared to its peers in the industry. Please verify
Luk Fook Holdings jensen alpha, as well as the
relationship between the potential upside and
skewness to decide if Luk Fook Holdings is priced some-what accurately, providing market reflects its recent price of 2.52 per share. Please also check out Luk Fook
total risk alpha, which is currently at 0.7219 to check the company can sustain itself at a future point.
The Current Takeaway on Luk Fook Investment
Although many other companies under the luxury goods industry are still a bit expensive, Luk Fook may offer a potential longer-term growth to shareholders. To conclude, as of the 26th of November 2020, we believe that Luk Fook is currently
overvalued with
low probability of financial unrest in the next two years. Our ongoing 30 days Buy-Hold-Sell recommendation on the firm is
Strong Sell.
Ellen Johnson is a Member of Macroaxis Editorial Board. Ellen covers public companies in North America, focusing primarily on valuation and volatility. Six years of experience in predictive investment analytics and risk management.
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 Ellen Johnson do not own shares of Luk Fook Holdings. Please refer to our
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