Ocugen Story

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OCGN -- USA Stock  

USD 0.30  0.01  3.23%

It seems Ocugen will continue to recover much faster as its share price surged up 3.33% today. The firm's current daily volatility is 14.9 percent, with a beta of 0.07 and an alpha of 1.77 over DOW. As many millenniums are trying to avoid pharmaceutical products, it makes sense to outline Ocugen Inc a little further and try to understand its current market patterns. We will analyze why Ocugen investors may still consider a stake in the business.
Published over a month ago
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Will Ocugen (NASDAQ:OCGN) latest volatility rise scare institutional investors?
The company conducts business under Healthcare sector and is part of Biotechnology industry. Ocugen Inc currently holds 1.9 M in liabilities with Debt to Equity (D/E) ratio of 0.26, which may suggest the company is not taking enough advantage from borrowing. The entity has a current ratio of 3.36, suggesting that it is liquid enough and is able to pay its financial obligations when due.
Investing in Ocugen, 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 Ocugen 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.

Watch out for price decline

Please consider monitoring Ocugen on a daily bases if you are holding a position in it. Ocugen is trading at a penny-stock level, and the possibility of delisting is much higher compared to other equities. 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 Ocugen stock to be traded above the $1 level to remain listed. If Ocugen 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 Ocugen's Liquidity

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

How Ocugen utilizes its cash?

To perform a cash flow analysis of Ocugen, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Ocugen is receiving and how much cash it distributes out in a given period. The Ocugen cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities. Ocugen 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 (18.23 Million)

Ocugen Correlation with Peers

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

Purchase by Castillo Kirsten of 75000 shares of Ocugen

Legal trades by Ocugen 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:
Ocugen Inc insider trading alert for perchase of common stock by Castillo Kirsten, the corporate stakeholder, on 29th of May 2020. This event was filed by Ocugen Inc with SEC on 2020-05-29. 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.

What is driving Ocugen Investor Appetite?

Ocugen is out of control given 1 month investment horizon. Ocugen Inc maintains Sharpe Ratio (i.e. Efficiency) of 0.14, which implies the firm had 0.14% of return per unit of risk over the last month. Our standpoint towards forecasting the volatility of a stock is to use Ocugen Inc market data together with company specific technical indicators. We were able to analyze and collect data for twenty-seven different technical indicators, which can help you to evaluate if expected returns of 2.02% are justified by taking the suggested risk. Use Ocugen Coefficient Of Variation of 815.01, risk adjusted performance of 0.2019, and Semi Deviation of 7.73 to evaluate company specific risk that cannot be diversified away.
Click cells to compare fundamentals   Check Volatility   Backtest Portfolio

Will Ocugen growth be trustworthy after the rise?

The market risk adjusted performance is down to 24.4 as of today. Ocugen Inc is showing large volatility of returns over the selected time horizon. We encourage all investors to investigate this asset further to make sure related market timing strategies are aligned with all the expectations about Ocugen implied risk. Ocugen Inc is a potential penny stock. Although Ocugen may be in fact a good instrument to invest, many penny stocks are speculative in nature and are subject to artificial price hype. Please make sure you totally understand the upside potential and downside risk of investing in Ocugen Inc. We encourage investors to look for the signals such us email spams, message board hypes, claims of breakthroughs, volume upswings, sudden news releases, promotions that are not reported, or demotions released before SEC filings. Please also check biographies and work history of current and past company officers before investing in high volatility instruments, penny stocks, or equities with microcap classification. You can indeed make money on this equity instrument if you perfectly time your entry and exit. However, remember that penny stocks that have been the subject of an artificial hype usually unable to maintain its increased share price for more than just a few days. The price of a promoted high volatility instrument will almost always revert back. The only way to increase shareholder value is through legitimate performance backed up by solid fundamentals.

Our Conclusion on Ocugen

Whereas few other entities within the biotechnology industry are still a little expensive, even after the recent corrections, Ocugen may offer a potential longer-term growth to institutional investors. The bottom line, as of the 14th of August 2020, our analysis shows that Ocugen barely shadows the market. The company is overvalued and projects very low probability of bankruptcy for the next 2 years. Our present 30 days buy-hold-sell recommendation on the company is Strong Sell.

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 Ocugen Inc. Please refer to our Terms of Use for any information regarding our disclosure principles.

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