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Is Neptune Wellness (NASDAQ:NEPT) stock way too aggressive for baby boomers?
 | By Vlad Skutelnik | Macroaxis Story |
It appears Neptune Wellness may not recover as fast as we have hopped for as its price went down 1.41% today. This firm current daily volatility is 5.26 percent, with a beta of 1.21 and an alpha of 0.53 over DOW. As many private investors getting excited about newest market fluctuations it is important to review Neptune Wellness based on its critical indicators. We will analyze why it could be a much better year for Neptune Wellness shareholders.
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Reviewed by Rifka Kats
Neptune Wellness Solutions currently holds roughly 13.58 M in cash with (7.66 M) of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 0.17. We provide investment recommendation to complement the last-minute expert consensus on Neptune Wellness Solutions. Our dynamic recommendation engine harnesses a multidimensional algorithm to analyze the entity's potential to grow using all technical and fundamental data available at the time.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as Neptune Wellness. Your research has to be compared to or analyzed against Neptune Wellness' peers to derive any actionable benefits. When done correctly, Neptune Wellness' 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 Neptune Wellness Sol.
Investing in Neptune Wellness, 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 Neptune Wellness 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 Neptune Wellness' 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.
Watch out for price decline
Please consider monitoring Neptune Wellness on a daily basis if you are holding a position in it. Neptune Wellness is trading at a penny-stock level, and the possibility of delisting is much higher compared to other delisted stocks. However, just because the stock is trading under one dollar, does not mean it will be marked for deletion. Most exchanges require public instruments, such as Neptune Wellness stock to be traded above the $1 level to remain listed. If Neptune Wellness stock price falls below $1 for 30 consecutive trading days, the exchange can delist it. Once the company reaches this point, they will be sent an initial price violation notice directly from an exchange.
How important is Neptune Wellness's Liquidity
Neptune Wellness financial leverage refers to using borrowed capital as a funding source to finance Neptune Wellness Solutions ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Neptune Wellness 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 Neptune Wellness' 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 Neptune Wellness' 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 Neptune Wellness's total debt and its cash.
Neptune Wellness Correlation with Peers
Investors in Neptune can reduce exposure to individual asset risk by holding a diversified portfolio of assets in addition to a long position in Neptune Wellness Solutions. Diversification will allow for the same portfolio return with reduced risk. The correlation table of Neptune Wellness and its peers is a two-dimensional matrix that shows the correlation coefficient between pairs of securities Neptune 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 Neptune for more details
Going after Neptune Financials
Neptune Wellness appears to be very risky, given 1 month investment horizon. Neptune Wellness Sol has Sharpe Ratio of 0.14, which conveys that the firm had 0.14% 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. By analyzing Neptune Wellness Sol technical indicators you can presently evaluate if the expected return of 0.75% is justified by implied risk. Please exercise Neptune Wellness Solutions Mean Deviation of 3.86, risk adjusted performance of 0.1056, and Downside Deviation of 4.3 to check out if our risk estimates are consistent with your expectations.
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