LSB Industries Story

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LXU -- USA Stock  

USD 3.68  0.03  0.81%

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By Ellen Johnson  
Macroaxis Story
It appears LSB Industries will continue to recover much faster as its share price surged up 32.94% today. LSB Industries's current daily volatility is 0.0 percent, with a beta of -3.86 and an alpha of 1.72 over DOW. As many millenniums are trying to avoid chemicals, it makes sense to review LSB Industries a little further and try to understand its current market patterns. We will cover the possibilities of making LSB Industries into a steady grower in February.
Published over two weeks ago
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Should we continue shadow LSB Industries (NYSE:LXU) executives?
LSB Industries has roughly 42.09 M in cash with (14.16 M) of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 1.44. The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. LSB Industries has an asset utilization ratio of 24.7 percent. This implies that the company is making $0.25 for each dollar of assets. An increasing asset utilization means that LSB Industries is more efficient with each dollar of assets it utilizes for everyday operations.
Investing in LSB Industries, 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 LSB Industries 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.
Sophisticated investors, who have witnessed many market ups and downs, frequently view the market will even out over time. This tendency of LSB Industries' 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 LSB Industries in the context of predictive analytics.
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Please note, it is not enough to conduct a financial or market analysis of a single entity such as LSB Industries. Your research has to be compared to or analyzed against LSB Industries' peers to derive any actionable benefits. When done correctly, LSB Industries' 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 LSB Industries.

How important is LSB Industries's Liquidity

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

How LSB Industries utilizes its cash?

To perform a cash flow analysis of LSB Industries, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash LSB Industries is receiving and how much cash it distributes out in a given period. The LSB Industries cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities. LSB Industries Net Cash Flow from Operations is comparatively stable at the moment as compared to the past year. LSB Industries reported Net Cash Flow from Operations of 1.89 Million in 2020

LSB Industries Correlation with Peers

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

Breaking down the case for LSB Industries

Our viewpoint regarding estimating the volatility of a stock is to use all available market data together with stock specific technical indicators that cannot be diversified away. We have found twenty-eight technical indicators for LSB Industries, which you can use to evaluate future volatility of the firm. Please verify LSB Industries Downside Deviation of 4.91, market risk adjusted performance of (0.34), and Mean Deviation of 5.98 to check out if the risk estimate we provide is consistent with the expected return of 0.0%.
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Our perspective of the newest LSB Industries gain

The maximum drawdown is down to 20.47 as of today. As of the 2nd of January, LSB Industries owns the Mean Deviation of 5.98, market risk adjusted performance of (0.34), and Downside Deviation of 4.91. In relation to fundamental indicators, the technical analysis model lets you check practical technical drivers of LSB Industries, 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 historical prices and volume patterns, or the prices will eventually revert. We were able to collect and analyze data for nineteen technical drivers for LSB Industries, which can be compared to its peers in the sector. Please verify LSB Industries market risk adjusted performance, variance, as well as the relationship between the Variance and potential upside to decide if LSB Industries is priced correctly, providing market reflects its prevailing price of 3.39 per share. Given that LSB Industries has jensen alpha of 1.72, we recommend you to check LSB Industries's latest market performance to make sure the company can sustain itself at some point in the future.

Our Final Perspective on LSB Industries

When is the right time to buy or sell LSB Industries? Buying stocks such as LSB Industries isn't very hard. However, what challenging for most investors is doing it at the right time. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities, deliver winning trades and diversify portfolios on a daily basis. The inconsistency in the assessment between current LSB Industries valuation and our trade advice on LSB Industries 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 LSB Industries.

About Contributor

Ellen Johnson is a Member of Macroaxs 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 LSB Industries. Please refer to our Terms of Use for any information regarding our disclosure principles.

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