Will CbdMD (USA Stocks:YCBD-PA) and Mainstreet Bank (USA Stocks:MNSB) deliver in February?

MNSB Stock  USD 29.08  0.03  0.10%   
As many rational traders are trying to avoid banks space, it makes sense to go over Mainstreet Bank a little further and understand how it stands against CbdMD and other similar entities. We are going to analyze some of the competitive aspects of both Mainstreet and CbdMD.
Published over two weeks ago
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By analyzing existing basic indicators between Mainstreet Bank and CbdMD, you can compare the effects of market volatilities on both companies' prices and check if they can diversify away market risk if combined in one of your portfolios. You can also utilize pair trading strategies for matching a long position in CbdMD with a short position in Mainstreet Bank. Check out our pair correlation module for more information.

Let's begin by analyzing the assets.
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Mainstreet Bank has an asset utilization ratio of 3.62 percent. This suggests that the company is making $0.0362 for each dollar of assets. An increasing asset utilization means that Mainstreet Bank is more efficient with each dollar of assets it utilizes for everyday operations.
Out of tens of thousands of stocks, funds, and ETFs that trade on global exchanges each represent an individual company which you can analyze using comparative analysis. To determine which one of the two entities, such as Mainstreet or SilverSun is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step.

Understending Mainstreet Bank dividends

A dividend is the distribution of a portion of Mainstreet Bank earnings, decided and managed by the company's board of directors and paid to a class of its shareholders. Note, announcements of dividend payouts are generally accompanied by a proportional increase or decrease in a company's stock price. Mainstreet Bank dividend payments follow a chronological order of events, and the associated dates are important to determine the shareholders who qualify for receiving the dividend payment. Mainstreet one year expected dividend income is about USD0.08 per share.
As of February 6, 2023, Preferred Dividends Income Statement Impact is expected to decline to about 2.1 M.
Last ReportedProjected for 2023
Preferred Dividends Income Statement Impact2.5 M2.1 M
Investing in stocks that pay dividends, such as stock of Mainstreet Bank, is one of many strategies that are good for long-term investments. Ex-dividend dates are significant because investors in Mainstreet Bank must own a stock before its ex-dividend date to receive its next dividend.
This type of analysis is very useful when you want to generate a past dividend schedule and payout information for Mainstreet Bank. Then that information in the form of graph and calendar can be used to fully explain how Du Pont dividends can provide a real clue to its valuation.

How important is Mainstreet Bank's Liquidity

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

Correlation Between Mainstreet and SilverSun Technologies

In general, Stock analysis is a method for investors and traders to make individual buying and selling decisions. Stock correlation analysis is also essential because it can help investors realize that they may not be as diversified as they think. Risk management strategies are usually required to make sure all portfolios are properly aligned against their risk tolerance level. You can consider holding Mainstreet Bank together with similar or unrelated positions with a negative correlation. For example, you can also add SilverSun Technologies to your portfolio. If SilverSun Technologies is not perfectly correlated to Mainstreet Bank it will diversify some of the market risks out of the positively correlated stocks in your portfolio. However, the disadvantage of this sort of hedging is that it can potentially affect your investment returns throughout market cycles. When Mainstreet Bank, for example, performs excellent and delivers stable returns, the negatively correlated position you locked in as a hedge may drag your returns down.
Please check pair correlation details between MNSB and SSNT for more information.

Acquisition by Abdulhamid Hersiburane of 4141 shares of Mainstreet Bank subject to Rule 16b-3

Legal trades by Mainstreet Bank 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:
Mainstreet insider trading alert for grant of common stock by Abdulhamid Hersiburane, President MainSteet Bank, on 1st of February 2023. This event was filed by Mainstreet Bancshares Inc with SEC on 2023-02-01. 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.

Another Deeper Perspective

Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include product or services discounts, promotions, as well as early payments on invoices or services rendered in advance.

Revenue Breakdown

Let me now analyze Mainstreet Bank revenue. Based on the latest financial disclosure, Mainstreet Bank reported 59.65 M of revenue. This is 99.47% lower than that of the Banks sector and significantly higher than that of the Financials industry. The revenue for all United States stocks is 99.37% higher than that of Mainstreet Bank. As for CbdMD we see revenue of 35.4 M, which is much higher than that of the Financials

Mainstreet59.65 Million
Sector0.0
CbdMD35.4 Million
59.6 M
Mainstreet
Sector
35.4 M
CbdMD

Will Mainstreet continue to rise?

The value at risk is down to -1.41 as of today. Mainstreet Bank has low volatility with Treynor Ratio of 0.98, Maximum Drawdown of 10.61 and kurtosis of 13.18. However, we advice all investors to further analyze Mainstreet Bank to make certain all market information is desiminated and is consistent with the current expectations about Mainstreet Bank upside potential. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Mainstreet Bank's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Mainstreet Bank'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.

The Current Takeaway on Mainstreet Bank Investment

Whereas other entities under the banks—regional industry are still a bit expensive, Mainstreet Bank may offer a potential longer-term growth to investors. With an optimistic outlook on your 90 days horizon, it may be a good time to pick up new shares of Mainstreet or increase your existing holdings in the Stock as it seems the potential growth has not yet been fully factored into the current price. 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 Mainstreet Bank.

Editorial Staff

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 Mainstreet Bank. Please refer to our Terms of Use for any information regarding our disclosure principles.

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