Medley Story

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MDLY -- USA Stock  

USD 4.95  0.84  14.51%

It appears Medley Management will continue to recover much faster as its share price surged up 1.43% today. The company current daily volatility is 7.22 percent, with a beta of -0.12 and an alpha of 0.21 over DOW. As many of us are excited about trading, it is fair to break down Medley Management. Why are we still confident in our projection for a recovery.
Published over two weeks ago
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Should you exit Medley Management after the current volatility slide?
Medley Management currently holds roughly 6.05 M in cash with (946 K) of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 9.03, which can makes it an attractive takeover target, given it will continue generating positive cash flow.
Investing in Medley Management, 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 Medley Management 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 Medley Management's 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 Medley Management in the context of predictive analytics.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as Medley Management. Your research has to be compared to or analyzed against Medley Management's peers to derive any actionable benefits. When done correctly, Medley Management's 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 Medley Management.

How important is Medley Management's Liquidity

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

How Medley utilizes its cash?

To perform a cash flow analysis of Medley Management, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Medley Management is receiving and how much cash it distributes out in a given period. The Medley Management cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.
Medley Management Net Cash Flow from Operations is fairly stable at the moment as compared to the past year. Medley Management reported Net Cash Flow from Operations of (3.18 Million) in 2020

Medley Management Correlation with Peers

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

Conversion by Freedom 2021 Llc of 450000 shares of Medley Management

Legal trades by Medley Management 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:
Medley insider trading alert for conversion of medley llc units by Freedom 2021 Llc, Co-CEO and CIO, on 20th of January 2021. This event was filed by Medley Management Inc with SEC on 2021-01-20. Statement of changes in beneficial ownership - SEC Form 4 [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.

An Additional Perspective On Medley Management

We consider Medley Management relatively risky. Medley Management has Sharpe Ratio of 0.0097, which conveys that the firm had 0.0097% of return per unit of risk over the last month. Our standpoint towards 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 Medley Management, which you can use to evaluate future volatility of the firm. Please verify Medley Management Downside Deviation of 5.78, mean deviation of 5.19, and Risk Adjusted Performance of 0.0327 to check out if the risk estimate we provide is consistent with the expected return of 0.0702%.
Click cells to compare fundamentals   Check Volatility   Backtest Portfolio

Medley showing appearance of lower volatility

Downside deviation is down to 5.78. It may suggest a possible volatility slide. Medley Management is displaying above-average volatility over the selected time horizon. Investors should scrutinize Medley Management independently to ensure intended market timing strategies are aligned with expectations about Medley Management volatility. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Medley Management's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Medley Management's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Our Final Take On Medley Management

While few other entities within the asset management industry are still a little expensive, even after the recent corrections, Medley Management may offer a potential longer-term growth to investors. To summarize, as of the 1st of April 2021, our up-to-date 30 days buy-sell recommendation on the company is Strong Sell. However, we believe Medley Management is undervalued with close to average probability of bankruptcy for the next two years.

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 Gabriel Shpitalnik do not own shares of Medley Management. Please refer to our Terms of Use for any information regarding our disclosure principles.

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