Contango Story

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MCF -- USA Stock  

USD 1.15  0.05  4.17%

Contango Oil Average Assets are projected to decrease significantly based on the last few years of reporting. The past year's Average Assets were at 284.04 Million. The current year Average Equity is expected to grow to about 141.5 M, whereas Earnings Before Interest Taxes and Depreciation Amortization EBITDA are forecasted to decline to (114.1 M). Contango Oil Gas is scheduled to announce its earnings today. While some generation-Y investors are indifferent towards energy space, it makes sense to digest Contango Oil Gas using its fundamentals . Contango Oil Gas hyperactively responds to market trends. We can now discuss Contango as a potential investment option for your portfolios.
Published over a month ago
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How Contango Oil (NYSEMKT:MCF) unsteady basic indicators helped with the latest dip?
We provide trade advice to complement the prevailing expert consensus on Contango Oil Gas. Our dynamic recommendation engine uses a multidimensional algorithm to analyze the company's potential to grow using all technical and fundamental data available at the time. This firm dividends can provide a clue to the current value of the stock. Contango Oil is not expected to issue dividends this year as it is trying to preserve or re-invest any of the funds available for distribution to stakeholders.
Typically, a company's financial statements are the reports that show the financial position of the company. There are three main documents that fall into the category of financial statements. These documents include Contango Oil income statement, its balance sheet, and the statement of cash flows. Potential Contango Oil investors and stakeholders use financial statements to determine how well the company is positioned to perform in the future. Although Contango Oil investors may use each financial statement separately, they are all related. The changes in Contango Oil's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Contango Oil's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet, but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages. The goal of Contango Oil fundamental analysis is to do accurate financial forecasts. There are several possible objectives to fundamental analysis, such as projecting of Contango Oil performance into the future periods or doing a reasonable stock valuation. The intrinsic value of Contango Oil shares is the value that is considered the true value of the share. If the intrinsic value Contango is higher than its market price, buying is generally recommended. If it is equal to the market price, it is recommended to hold; and if it is less than the market price, then one should sell all shares Contango Oil. Please read more on our fundamental analysis page.

Watch out for price decline

Please consider monitoring Contango Oil on a daily bases if you are holding a position in it. Contango Oil is trading at a penny-stock level, and the possibility of delisting is much higher compared to other equities. However, just because the stock is trading under one dollar, does not mean it will be marked for deletion. Most exchanges require public instruments, such as Contango Oil stock to be traded above the $1 level to remain listed. If Contango Oil stock price falls below $1 for 30 consecutive trading days, the exchange can delist it. Once the company reaches this point, they will be sent an initial price violation notice directly from an exchange.

What is Contango Asset Breakdown?

Contango Oil Gas reports assets on its Balance Sheet. It represents the amount of Contango resources that either has an existing economic value or will provide some form of benefits in the future. To get a better handle on how balance sheet or income statements item affect Contango volatility, please check the breakdown of all its fundamentals

How Contango utilizes its cash?

To perform a cash flow analysis of Contango Oil, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Contango Oil is receiving and how much cash it distributes out in a given period. The Contango Oil cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities. Contango Oil Net Cash Flow from Operations is projected to decrease significantly based on the last few years of reporting. The past year's Net Cash Flow from Operations was at 21.71 Million

Contango Oil Gross Profit

Contango Oil Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Contango Oil previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Contango Oil Gross Profit growth over the last 10 years. Please check Gross Profit in more details.

Breaking down Contango Oil Indicators

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 Contango Oil is not uncomon. There are few distinct groups of Contango Oil stakehholders that the SEC considers insiders. Investors usually gain information through their work as corporate directors, officers, or employees. If these individuals share the information with a friend, family, or business partner and the person who receives the information exchanges stock in the company, he or shie is also an insider. Let's take a look at how the ownership of Contango is distributed among investors.

Ownership Allocation

Contango Oil holds a total of one hundred thirty-one million seven hundred fifty thousand outstanding shares. Contango Oil Gas retains 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 secures, 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 Investors
31.42%
Insiders
28.36%
Institutions
40.22%
Retail Investors31.42
Insiders28.36
Institutions40.22
 2017 2019 2020 (projected)
Receivables6.61 M24.24 M26.67 M
Inventories150 K172.5 K177.04 K

Asset Utilization

The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Contango Oil has an asset utilization ratio of 187.25 percent. This indicates that the company is making $1.87 for each dollar of assets. An increasing asset utilization means that Contango Oil Gas is more efficient with each dollar of assets it utilizes for everyday operations.

Assets Non Current
357.7 M
Current Assets52.89 Million12.87
Assets Non Current357.74 Million87.04
Tax Assets391,6420.0953

Contango Oil latest dip is deceptive

Latest mean deviation is at 5.15. Contango Oil Gas is displaying above-average volatility over the selected time horizon. Investors should scrutinize Contango Oil Gas independently to ensure intended market timing strategies are aligned with expectations about Contango Oil volatility.

The Current Takeaway on Contango Oil Investment

Although some companies in the oil & gas e&p industry are either recovering or due for a correction, Contango Oil may not be performing as strong as the other in terms of long-term growth potentials. Taking everything into account, as of the 19th of August 2020, we believe that Contango Oil is currently overvalued with very high odds of financial distress in the next two years. Our current 30 days 'Buy-vs-Sell' recommendation on the firm is Cautious Hold.

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 Achuva Shats do not own shares of Contango Oil Gas. Please refer to our Terms of Use for any information regarding our disclosure principles.

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