This firm conducts business under
Technology sector and is part of
Scientific & Technical Instruments industry.
Investing in Mind Technology, 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 Mind Technology 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, anticipate that the market will even out over time. This tendency of Mind Technology's 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 note, it is not enough to conduct a financial or market analysis of a single entity such as Mind Technology. Your research has to be compared to or analyzed against Mind Technology's peers to derive any actionable benefits. When done correctly, Mind Technology's competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy toward taking a position in Mind Technology.
How important is Mind Technology's Liquidity
Mind Technology
financial leverage refers to using borrowed capital as a funding source to finance Mind Technology ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Mind Technology 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 Mind Technology'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 Mind Technology'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 Mind Technology's total debt and its cash.
Mind Technology Gross Profit
Mind Technology Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Mind Technology 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 Mind Technology Gross Profit growth over the last 10 years. Please check Mind Technology's
gross profit and other
fundamental indicators for more details.
Mind Technology Correlation with Peers
Investors in Mind can reduce exposure to individual asset risk by holding a diversified portfolio of assets in addition to a long position in Mind Technology. Diversification will allow for the same portfolio return with reduced risk. The correlation table of Mind Technology and its peers is a two-dimensional matrix that shows the correlation coefficient between pairs of securities Mind 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 Mind for more details
Breaking it down a bit more
We consider Mitcham Industries very risky.
Mitcham Industries has Sharpe Ratio of 0.0547, which conveys that the firm had 0.0547% 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 Mitcham Industries, which you can use to evaluate future volatility of the firm. Please verify Mitcham Industries Downside Deviation of 2.86,
risk adjusted performance of 0.0421, and Mean Deviation of 2.54 to check out if the risk estimate we provide is consistent with the expected return of 0.19%.
Mitcham Industries is projected to stay under $2.39 in May
Jensen alpha is down to 0.27. It may indicate a possible volatility dip. Mitcham Industries currently demonstrates below-average downside deviation. It has Information Ratio of 0.0 and Jensen Alpha of 0.27. However, we advise investors to further question Mitcham Industries expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Mitcham Industries' stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Mitcham Industries' 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.
The Bottom Line
Although few other entities in the scientific & technical instruments industry are either recovering or due for a correction, Mitcham may not be as strong as the others in terms of longer-term growth potentials. While some shareholders may not share our view we believe it may be a good time to sell Mitcham as the risk-reward trade off is not appealing enough to hold a position. 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 Mitcham Industries.
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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 Mind Technology. Please refer to our
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