Nordic Story

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NAT -- USA Stock  

USD 3.10  0.10  3.12%

It appears Nordic American will continue to recover much faster as its share price surged up 14.79% today. The company current daily volatility is 4.14 percent, with a beta of 1.49 and an alpha of 0.18 over DOW. While many traders are getting carried away by overanalyzing transportation, it is reasonable to review Nordic American Tanker. I will address the reasons why this entity does not get much respect from private investors under the current market uncertainty.
Published over three weeks ago
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Should you take in Nordic after the newest volatility drop?
Nordic American Tanker has roughly 57.85 M in cash with 110.94 M of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 0.38.
On a scale of 0 to 100, Nordic American holds a performance score of 7. The company secures a Beta (Market Risk) of 1.4868, which conveys a somewhat significant risk relative to the market. Let's try to break down what Nordic's beta means in this case. As the market goes up, the company is expected to outperform it. However, if the market returns are negative, Nordic American will likely underperform. Although it is vital to follow Nordic American Tanker price patterns, it is good to be conservative about what you can do with the information regarding equity historical price patterns. The philosophy towards estimating future performance of any stock is to evaluate the business as a whole together with its past performance, including all available fundamental and technical indicators. By analyzing Nordic American Tanker technical indicators, you can presently evaluate if the expected return of 0.45% will be sustainable into the future. Please exercises Nordic American Tanker potential upside, as well as the relationship between the kurtosis and day typical price to make a quick decision on whether Nordic American Tanker current price movements will revert.
Investing in Nordic American, 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 Nordic American 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 Nordic American'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 Nordic American 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 Nordic American. Your research has to be compared to or analyzed against Nordic American's peers to derive any actionable benefits. When done correctly, Nordic American'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 Nordic American Tanker.

How important is Nordic American's Liquidity

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

How Nordic utilizes its cash?

To perform a cash flow analysis of Nordic American, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Nordic American is receiving and how much cash it distributes out in a given period. The Nordic American cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.
Nordic American Net Cash Flow from Operations is comparatively stable at the moment as compared to the past year. Nordic American reported Net Cash Flow from Operations of 60.79 Million in 2020

Nordic American Correlation with Peers

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

Breaking down Nordic American Indicators

Nordic American appears to be unstable, given 1 month investment horizon. Nordic American Tanker has Sharpe Ratio of 0.11, which conveys that the firm had 0.11% 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-seven technical indicators for Nordic American, which you can use to evaluate future volatility of the firm. Please exercise Nordic American Tanker Mean Deviation of 2.83, downside deviation of 3.05, and Risk Adjusted Performance of 0.0873 to check out if our risk estimates are consistent with your expectations.
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Click cells to compare fundamentals   Check Volatility   Backtest Portfolio

Nordic American implied volatility may change after the gain

Newest Information Ratio is up to 0.06. Price may drop again. Nordic American Tanker shows above-average downside volatility for the selected time horizon. We advise investors to inspect Nordic American Tanker further and ensure that all market timing and asset allocation strategies are consistent with the estimation of Nordic American future alpha. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Nordic American'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 Nordic American'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 Takeaway on Nordic American Investment

Whereas many other companies under the marine shipping industry are still a bit expensive, Nordic American may offer a potential longer-term growth to private investors. While some private 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 Nordic American.

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 Achuva Shats do not own shares of Nordic American Tanker. Please refer to our Terms of Use for any information regarding our disclosure principles.

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