Northern Story

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NTIC -- USA Stock  

USD 14.70  0.01  0.07%

30% of stocks are less volatile than Northern, and 93% of all traded equity instruments are projected to make higher returns than the company over the 90 days investment horizon. As many old-fashioned traders are trying to avoid basic materials space, it makes sense to go over Northern Technologies Intl a little further and try to understand its current volatility patterns. We will analyze if the expected returns on Northern Technologies will justify its current volatility.
Published over a week ago
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Will Northern Technologies (NASDAQ:NTIC) current volatility spike continue?
Northern Technologies conducts business under Basic Materials sector and is part of Specialty Chemicals industry.
Volatility is a rate at which the price of Northern Technologies or any other equity instrument increases or decreases for a given set of returns. It is measured by calculating the standard deviation of the annualized returns over a given period of time and shows the range to which the price of Northern Technologies may increase or decrease. In other words, similar to Northern's beta indicator, it measures the risk of Northern Technologies and helps estimate the fluctuations that may happen in a short period of time. So if prices of Northern Technologies fluctuate rapidly in a short time span, it is termed to have high volatility, and if it swings slowly in a more extended period, it is understood to have low volatility.
Please read more on our technical analysis page.

How important is Northern Technologies's Liquidity

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

How Northern utilizes its cash?

To perform a cash flow analysis of Northern Technologies, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Northern Technologies is receiving and how much cash it distributes out in a given period. The Northern Technologies cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.

Acquisition by Matthew Wolsfeld of 55244 shares of Northern Technologies subject to Rule 16b-3

Legal trades by Northern Technologies 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:
Northern insider trading alert for grant of stock option (right to buy) by Matthew Wolsfeld, CFO and Corporate Secretary, on 3rd of September 2020. This event was filed by Northern Technologies Int with SEC on 2020-09-03. 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.

Breaking down the case for Northern Technologies

The entity reported the previous year's revenue of 45.79 M. Net Loss for the year was (1.29 M) with profit before overhead, payroll, taxes, and interest of 16.03 M.

How will Northern investors react to the next slip?

Current Skewness is up to -0.07. Price may slip again. Northern Technologies Intl shows above-average downside volatility for the selected time horizon. We advise investors to inspect Northern Technologies Intl further and ensure that all market timing and asset allocation strategies are consistent with the estimation of Northern Technologies future alpha. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Northern Technologies' stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Northern Technologies' 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 Final Perspective on Northern Technologies

Whereas some other firms under the specialty chemicals industry are still a bit expensive, Northern Technologies may offer a potential longer-term growth to investors. With a relatively neutral outlook on the current economy, it is better to hold off any trading of Northern as the current risk-reward utility is not appealing enough. 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 Northern Technologies.

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 Ellen Johnson do not own shares of Northern Technologies Intl. Please refer to our Terms of Use for any information regarding our disclosure principles.

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