Mitcham Story

MIND -  USA Stock  

USD 2.28  0.02  0.89%

It looks as if Mitcham Industries may not recover as fast as we have hopped for as its price went down 0.85% today. The company current daily volatility is 3.49 percent, with a beta of -1.07 and an alpha of 0.27 over DOW. As some shareholders are moving away from the latest market volatility surge, we are going to digest Mitcham Industries based on how it reacts to economic swings. We will evaluate why we are still optimistic in anticipation of a recovery.
Published over three weeks ago
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What does a latest Mitcham Industries volatility dip mean for shareholders?
This firm conducts business under Technology sector and is part of Scientific & Technical Instruments industry.
Investing in Mitcham 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 Mitcham 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 Mitcham 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 Mitcham Industries 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 Mitcham Industries. Your research has to be compared to or analyzed against Mitcham Industries' peers to derive any actionable benefits. When done correctly, Mitcham 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 Mitcham Industries.

How important is Mitcham Industries's Liquidity

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

How Mitcham utilizes its cash?

To perform a cash flow analysis of Mitcham Industries, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Mitcham Industries is receiving and how much cash it distributes out in a given period. The Mitcham Industries cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.
Mitcham Industries 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 (6.36 Million)

Mitcham Industries Correlation with Peers

Investors in Mitcham can reduce exposure to individual asset risk by holding a diversified portfolio of assets in addition to a long position in Mitcham Industries. Diversification will allow for the same portfolio return with reduced risk. The correlation table of Mitcham Industries and its peers is a two-dimensional matrix that shows the correlation coefficient between pairs of securities Mitcham 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 Mitcham 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%.
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Click cells to compare fundamentals   Check Volatility   Backtest Portfolio

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.

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 Vlad Skutelnik do not own shares of Mitcham Industries. Please refer to our Terms of Use for any information regarding our disclosure principles.

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