Lmp Automotive Story

LMPX -- USA Stock

USD 26.28 1.89 6.71%

Macroaxis Story

It looks like Kingsway Financial will continue to recover much faster as its share price surged up 1.41% today to Lmp Automotive's 31.6928%. As many rational traders are trying to avoid consumer cyclical space, it makes sense to break down Lmp Automotive Holdings a little further and understand how it stands against Kingsway Financial and other similar entities. We are going to inspect some of the competitive aspects of both Lmp Automotive and Kingsway.

Published over three months ago

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What should I short first Lmp Automotive (NASDAQ:LMPX) or Kingsway Financial?

By analyzing existing basic indicators between Lmp Automotive and Kingsway, you can compare the effects of market volatilities on both companies' prices and check if they can diversify away market risk if combined in one of your portfolios. You can also utilize pair trading strategies for matching a long position in Kingsway with a short position in Lmp Automotive. Check out our pair correlation module for more information.

Let's begin by analyzing the assets. The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Lmp Automotive has an asset utilization ratio of 95.67 percent. This suggests that the company is making $0.96 for each dollar of assets. An increasing asset utilization means that Lmp Automotive Holdings is more efficient with each dollar of assets it utilizes for everyday operations.

Out of tens of thousands of stocks, funds, and ETFs that trade on global exchanges each represent an individual company which you can analyze using comparative analysis. To determine which one of the two companies, such as Lmp Automotive or Kingsway is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step.

How important is Lmp Automotive's Liquidity

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

Correlation Between Lmp Automotive and Kingsway Financial

In general, stock analysis is a method for investors and traders to make individual buying and selling decisions. Stock correlation analysis is also essential because it can help investors realize that they may not be as diversified as they think. Risk management strategies are usually required to make sure all portfolios are properly aligned against their risk tolerance level. You can consider holding Lmp Automotive together with similar or unrelated positions with a negative correlation. For example, you can also add Kingsway Financial to your portfolio. If Kingsway Financial is not perfectly correlated to Lmp Automotive it will diversify some of the market risks out of the positively correlated stocks in your portfolio. However, the disadvantage of this sort of hedging is that it can potentially affect your investment returns throughout market cycles. When Lmp Automotive for example, for example, performs excellent and delivers stable returns, the negatively correlated position you locked in as a hedge may drag your returns down. Please check pair correlation details between LMPX and KFS for more information.

Note

Are you currently holding both Lmp Automotive and Kingsway Financial in your portfolio? Please note if you are using this as a pair-trade strategy between Lmp Automotive and Kingsway Financial, watch out for correlation discrepancy over time. Relying on the historical price correlations and assuming that it will not change may lead to short-term losses.

Lmp Automotive exotic insider transaction detected

Legal trades by Lmp Automotive 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:

Lmp Automotive insider trading alert for general transaction of call option by Aldahan Richard, Chief Operating Officer, on 3rd of December 2020. This event was filed by Lmp Automotive Holdings I with SEC on 2020-12-03. Initial filing of beneficial ownership - SEC Form 3 [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.

Breaking down Lmp Automotive Indicators

Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include product or services discounts, promotions, as well as early payments on invoices or services rendered in advance.

Revenue Breakdown

Now, let's check Lmp Automotive revenue. Based on the latest financial disclosure, Lmp Automotive Holdings reported 17.11 M of revenue. This is 99.76% lower than that of the Consumer Cyclical sector and 99.81% lower than that of the Auto & Truck Dealerships industry. The revenue for all United States stocks is 99.82% higher than that of Lmp Automotive. As for Kingsway Financial we see revenue of 62.99 M, which is 99.32% lower than that of the Auto & Truck Dealerships

Sector

7.1 B

LMPX	17.11 Million	0.24
Sector	7.13 Billion	98.89
KFS	62.99 Million	0.87

Lmp Automotive implied volatility may change after the rise

Sortino ratio is down to 0.2. It may suggest a possible volatility slide. Lmp Automotive Holdings is displaying above-average volatility over the selected time horizon. Investors should scrutinize Lmp Automotive Holdings independently to ensure intended market timing strategies are aligned with expectations about Lmp Automotive volatility.

Our Final Take On Lmp Automotive

While some other firms within the auto & truck dealerships industry are still a little expensive, even after the recent corrections, Lmp Automotive may offer a potential longer-term growth to investors. To conclude, as of the 6th of September 2020, our concluding 30 days advice on the company is Strong Sell. However, we believe Lmp Automotive is undervalued with very low odds of financial turmoil for the next two years.

About Contributor

Vlad Skutelnik is a Macroaxis Contributor. Vlad covers stocks, funds, cryptocurrencies, and ETFs that are traded in North America, focusing primarily on fundamentals, valuation and market volatility. He has many years of experience in fintech, 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 Vlad Skutelnik do not own shares of Lmp Automotive Holdings. Please refer to our Terms of Use for any information regarding our disclosure principles.

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