OIBRQ OTC Stock Story

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OIBRQ
 Stock
  

USD 0.14  0.02  16.67%   

By Raphi Shpitalnik
Macroaxis Story
It appears that Oi SA will continue to recover much faster as its share price surged up 31.25% today. The firm current daily volatility is 9.59 percent, with a beta of -1.4 and an alpha of 0.32 over DOW. As many baby boomers are still indifferent towards overall trading value increase, it makes sense to recap Oi SA ADR. We will cover the possibilities of making Oi SA into a steady grower in July.
Published over a month ago
View all stories for Oi SA | View All Stories

Breaking down Oi SA (OTC:OIBRQ) volatility decline

The entity classifies itself under Communication Services sector and is part of Telecom Services industry.
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Oi SA has an asset utilization ratio of 35.73 percent. This suggests that the company is making $0.36 for each dollar of assets. An increasing asset utilization means that Oi SA ADR is more efficient with each dollar of assets it utilizes for everyday operations.
Investing in Oi SA, 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 Oi SA 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 Oi SA's 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 Oi SA in the context of predictive analytics.
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Please note, it is not enough to conduct a financial or market analysis of a single entity such as Oi SA. Your research has to be compared to or analyzed against Oi SA's peers to derive any actionable benefits. When done correctly, Oi SA'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 Oi SA ADR.

Watch out for price decline

Please consider monitoring Oi SA on a daily basis if you are holding a position in it. Oi SA is trading at a penny-stock level, and the possibility of delisting is much higher compared to other equities. However, just because the otc stock is trading under one dollar, does not mean it will be marked for deletion. Most exchanges require public instruments, such as Oi SA stock to be traded above the $1 level to remain listed. If Oi SA 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 Oi SA's Liquidity

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

How does OIBRQ utilize its cash?

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

Oi SA Correlation with Peers

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

A Deeper Perspective

Oi SA appears to be out of control, given 3 months investment horizon. Oi SA ADR retains Efficiency (Sharpe Ratio) of 0.0748, which implies the firm had 0.0748% of return per unit of price deviation over the last 3 months. Our approach into forecasting 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 Oi SA ADR technical indicators you can today evaluate if the expected return of 0.72% is justified by implied risk. Please evaluate Oi SA's standard deviation of 9.48, and Market Risk Adjusted Performance of (0.42) to confirm if our risk estimates are consistent with your expectations.
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Our perspective of the recent Oi SA roll up

The value at risk is down to -12.5 as of today. Oi SA ADR 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 Oi SA implied risk. Oi SA ADR is a potential penny stock. Although Oi SA may be in fact a good instrument to invest, many penny otc 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 Oi SA ADR. 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 OIBRQ 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.

The Current Takeaway on Oi SA Investment

Although some companies under the telecom services industry are still a bit expensive, Oi SA may offer a potential longer-term growth to insiders. With a less-than optimistic outlook for your 90 days horizon, it may be a good time to short some or all of your Oi SA holdings as it seems the potential growth was already 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 Oi SA.

Editorial Staff

Raphi Shpitalnik is a Junior Member of Macroaxis Editorial Board. Raphael is a young entrepreneur who joined Macroaxis on a part-time base at the beginning of the pandemic and eventually acquired a real test for investing and fintech. He likes to analyze different equity instruments across a wide range of industries, focusing primarily on consumer products, sports, fintech, cannabis, and AI. View Profile
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 Oi SA ADR. Please refer to our Terms of Use for any information regarding our disclosure principles.

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