Novagold Story

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NG -- USA Stock  

USD 10.88  0.10  0.91%

It looks as if Novagold Resources will continue to recover much faster as its share price surged up 4.14% today. Novagold Resources's current daily volatility is 3.87 percent, with a beta of 0.23 and an alpha of 0.44 over DOW. While many traders are getting carried away by overanalyzing precious metals, it is reasonable to digest Novagold Resources. We will evaluate why we are still optimistic in anticipation of a recovery.
Published over two weeks ago
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Should you buy Novagold after the latest volatility dip?
Novagold Resources reports roughly 134.33 M in cash with (6.55 M) of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 0.41. On a scale of 0 to 100, Novagold Resources holds a performance score of 8. The company secures a Beta (Market Risk) of 0.2319, which conveys not very significant fluctuations relative to the market. Let's try to break down what Novagold's beta means in this case. As returns on the market increase, Novagold Resources returns are expected to increase less than the market. However, during the bear market, the loss on holding Novagold Resources will be expected to be smaller as well. Although it is vital to follow Novagold Resources 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 Novagold Resources technical indicators, you can presently evaluate if the expected return of 0.48% will be sustainable into the future. Please exercises Novagold Resources skewness, and the relationship between the potential upside and rate of daily change to make a quick decision on whether Novagold Resources current price movements will revert.
Investing in Novagold Resources, 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 Novagold Resources 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.

How important is Novagold Resources's Liquidity

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

How Novagold utilizes its cash?

To perform a cash flow analysis of Novagold Resources, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Novagold Resources is receiving and how much cash it distributes out in a given period. The Novagold Resources cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities. Novagold Resources Net Cash Flow from Operations is projected to increase significantly based on the last few years of reporting. The past year's Net Cash Flow from Operations was at (7.05 Million)

Novagold Resources Correlation with Peers

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

What is driving Novagold Resources Investor Appetite?

Novagold Resources appears to be not too volatile, given 1 month investment horizon. Novagold Resources has Sharpe Ratio of 0.12, which conveys that the firm had 0.12% 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 Novagold Resources, which you can use to evaluate future volatility of the firm. Please exercise Novagold Resources Mean Deviation of 2.81, downside deviation of 3.71, and Risk Adjusted Performance of 0.1366 to check out if our risk estimates are consistent with your expectations.
Click cells to compare fundamentals   Check Volatility   Backtest Portfolio

Are Novagold Resources technical ratios showing a collapse?

Latest downside variance is at 13.74. Novagold Resources shows above-average downside volatility for the selected time horizon. We advise investors to inspect Novagold Resources further and ensure that all market timing and asset allocation strategies are consistent with the estimation of Novagold Resources future alpha.

Our Conclusion on Novagold Resources

Although many other companies within the gold industry are still a little expensive, even after the recent corrections, Novagold Resources may offer a potential longer-term growth to shareholders. With a somewhat neutral outlook on your 30 days horizon, it may be better to hold off any trading activity and neither acquire new shares of Novagold nor exit your existing holdings in the Stock. It seems the expected volatility 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 Novagold Resources.

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 Raphi Shpitalnik do not own shares of Novagold Resources. Please refer to our Terms of Use for any information regarding our disclosure principles.

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