Mereo Story

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MREO -- USA Stock  

USD 2.69  0.30  10.03%

Macroaxis News
By Ellen Johnson  
Macroaxis Story
Let's first try to outline why Mereo Biopharma investors are seeking stability amid unprecedented economic uncertainty. Mereo Biopharma Group is now traded for 3.60. The entity has historical hype elasticity of 0.01. The average price elasticity to hype of competition is about 0.17. The firm is expected to increase in value after the next press release, with the price going to jump to 3.61. The latest volatility of headline impact on the company stock price is is way over 100 percent making price predictions on social media along less reliable. The price upswing on the next news is estimated to be 0.28%, whereas the daily expected return is now at 0.62%. Given the investment horizon of 30 days the next expected announcement will be in about 6 days.
Published over a month ago
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Is Mereo Biopharma (NASDAQ:MREO) gaining more confidence from institutional investors?
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Mereo Biopharma has an asset utilization ratio of 101.61 percent. This suggests that the company is making $1.02 for each dollar of assets. An increasing asset utilization means that Mereo Biopharma Group is more efficient with each dollar of assets it utilizes for everyday operations. About 22.0% of the company shares are owned by institutional investors. The company has price-to-book ratio of 0.98. Typically companies with comparable Price to Book (P/B) are able to outperform the market in the long run. Mereo Biopharma Group recorded a loss per share of 0.19. The entity had not issued any dividends in recent years.
The successful prediction of Mereo Biopharma stock price could yield a significant profit to investors. But is it possible? The efficient-market hypothesis suggests that all published stock prices of traded companies, such as Mereo Biopharma Group, already reflect all publicly available information. This academic statement is a fundamental principle of many financial and investing theories used today. However, the typical investor usually disagrees with a 'textbook' version of this hypothesis and continually tries to find mispriced stocks to increase returns. We use internally-developed statistical techniques to arrive at the intrinsic value of Mereo Biopharma based on Mereo Biopharma hews, social hype, general headline patterns, and widely used predictive technical indicators. We also calculate exposure to Mereo Biopharma's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Mereo Biopharma's related companies.

Use Technical Analysis to project Mereo expected Price

Mereo Biopharma technical stock analysis exercises models and trading practices based on price and volume transformations, such as the moving averages, relative strength index, regressions, price and return correlations, business cycles, stock market cycles, or different charting patterns.
Overlap Analysis
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Forecast Models
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Price Shifting
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Volatility Indicators
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Value Movement
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A focus of Mereo Biopharma technical analysis is to determine if market prices reflect all relevant information impacting that market. A technical analyst looks at the history of Mereo Biopharma trading pattern rather than external drivers such as economic, fundamental, or social events. It is believed that price action tends to repeat itself due to investors' collective, patterned behavior. Hence technical analysis focuses on identifiable price trends and conditions. More Info...

How Mereo utilizes its cash?

To perform a cash flow analysis of Mereo Biopharma, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Mereo Biopharma is receiving and how much cash it distributes out in a given period. The Mereo Biopharma cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities. Mereo Biopharma Net Cash Flow from Operations is quite stable at the moment as compared to the past year. The company's current value of Net Cash Flow from Operations is estimated at (44.6 Million)

A Deeper look at Mereo

This firm reported the previous year's revenue of 507.03 K. Net Loss for the year was (489.97 K) with profit before overhead, payroll, taxes, and interest of 112 K.

Tax Assets Breakdown

Mereo Biopharma Tax Assets yearly trend continues to be quite stable with very little volatility. The value of Tax Assets are projected to decrease to about 10.4 M. Tax Assets usually refers to a component of Total Assets representing tax assets and receivables. Mereo Biopharma Tax Assets are quite stable at the moment as compared to the past year. The company's current value of Tax Assets is estimated at 10.37 Million
2010
2017
2018
2019
2020
20105.33 Million
20178.15 Million
20185.28 Million
201911.4 Million
202010.37 Million

Another 3 percent rise for Mereo Biopharma

The kurtosis is down to 49.9 as of today. As of the 19th of December, Mereo Biopharma secures the Mean Deviation of 3.29, risk adjusted performance of 0.081, and Downside Deviation of 3.35. In connection with fundamental indicators, the technical analysis model lets you check existing technical drivers of Mereo Biopharma Group, as well as the relationship between them. Strictly speaking, you can use this information to find out if the firm will indeed mirror its model of past prices, or the prices will eventually revert. We were able to break down and interpolate data for nineteen technical drivers for Mereo Biopharma, which can be compared to its peers in the industry. Please verify Mereo Biopharma Group variance, value at risk, as well as the relationship between the Value At Risk and skewness to decide if Mereo Biopharma Group is priced some-what accurately, providing market reflects its recent price of 3.6 per share. Given that Mereo Biopharma Group has jensen alpha of 0.5095, we recommend you to check Mereo Biopharma's last-minute market performance to make sure the company can sustain itself at a future point.

Our Final Takeaway

Whereas few other entities under the biotechnology industry are still a bit expensive, Mereo Biopharma may offer a potential longer-term growth to institutional investors. While some institutional investors may not share our view we believe that the current risk-reward utility is not appealing enough to do any trading. 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 Mereo Biopharma.

About Contributor

Ellen Johnson is a Member of Macroaxs Editorial Board. Ellen covers public companies in North America, focusing primarily on valuation and volatility. Six years of experience in 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 Ellen Johnson do not own shares of Mereo Biopharma Group. Please refer to our Terms of Use for any information regarding our disclosure principles.

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