Odyssey Story

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OMEX -- USA Stock  

USD 6.90  0.21  3.14%

As many rational traders are trying to avoid industrials space, it makes sense to break down Odyssey Marine Exploration a little further and understand how it stands against DLH Holdings and other similar entities. We are going to inspect some of the competitive aspects of both Odyssey and DLH Holdings.
Published over a month ago
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Will Odyssey Marine (NASDAQ:OMEX) shadow DLH Holdings price jump?
By analyzing existing basic indicators between Odyssey Marine and DLH Holdings, you can compare the effects of market volatilities on both companies' prices and check if they can diversify away market risk if combined in one of your portfolios. You can also utilize pair trading strategies for matching a long position in DLH Holdings with a short position in Odyssey Marine. Check out our pair correlation module for more information.

Let's begin by analyzing the assets. The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Odyssey Marine has an asset utilization ratio of 35.87 percent. This suggests that the company is making $0.36 for each dollar of assets. An increasing asset utilization means that Odyssey Marine Exploration is more efficient with each dollar of assets it utilizes for everyday operations.
Out of tens of thousands of stocks, funds, and ETFs that trade on global exchanges each represent an individual company which you can analyze using comparative analysis. To determine which one of the two companies, such as Odyssey or Global is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step.

How important is Odyssey Marine's Liquidity

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

Correlation Between Odyssey and Global Payments

In general, stock analysis is a method for investors and traders to make individual buying and selling decisions. Stock correlation analysis is also essential because it can help investors realize that they may not be as diversified as they think. Risk management strategies are usually required to make sure all portfolios are properly aligned against their risk tolerance level. You can consider holding Odyssey Marine together with similar or unrelated positions with a negative correlation. For example, you can also add Global Payments to your portfolio. If Global Payments is not perfectly correlated to Odyssey Marine it will diversify some of the market risks out of the positively correlated stocks in your portfolio. However, the disadvantage of this sort of hedging is that it can potentially affect your investment returns throughout market cycles. When Odyssey Marine for example, for example, performs excellent and delivers stable returns, the negatively correlated position you locked in as a hedge may drag your returns down. Please check pair correlation details between OMEX and GPN for more information.

Note

Are you currently holding both Odyssey Marine and Global Payments in your portfolio? Please note if you are using this as a pair-trade strategy between Odyssey Marine and Global Payments, watch out for correlation discrepancy over time. Relying on the historical price correlations and assuming that it will not change may lead to short-term losses.

Exercise or conversion by John Longley of 20167 shares of Odyssey Marine subject to Rule 16b-3

Legal trades by Odyssey Marine 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:
Odyssey insider trading alert for exercise of restricted stock unit (rsu) by John Longley, President & COO, on 23rd of December 2020. This event was filed by Odyssey Marine Exploratio with SEC on 2020-12-23. 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.

Another Deeper Perspective

Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include product or services discounts, promotions, as well as early payments on invoices or services rendered in advance.

Revenue Breakdown

Lets now take a look at Odyssey Marine revenue. Based on the latest financial disclosure, Odyssey Marine Exploration reported 2.48 M of revenue. This is 99.93% lower than that of the Industrials sector and significantly higher than that of the Specialty Business Services industry. The revenue for all United States stocks is 99.97% higher than that of Odyssey Marine. As for DLH Holdings we see revenue of 212.68 M, which is much higher than that of the Specialty Business Services

DLHC
212.7 M
OMEX2.48 Million1.15
Sector0.00.0
DLHC212.68 Million98.85

Possible December throwback of Odyssey?

Current risk adjusted performance is at 0.13. Odyssey Marine Exploration shows above-average downside volatility for the selected time horizon. We advise investors to inspect Odyssey Marine Exploration further and ensure that all market timing and asset allocation strategies are consistent with the estimation of Odyssey Marine future alpha.

Our Bottom Line On Odyssey Marine Explo

While some companies within the specialty business services industry are still a little expensive, even after the recent corrections, Odyssey Marine may offer a potential longer-term growth to investors. While some in two-three weeks oriented investors may not share our view, we believe it may not be a good time to pick up new shares of Odyssey.

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 Achuva Shats do not own shares of Odyssey Marine Exploration. Please refer to our Terms of Use for any information regarding our disclosure principles.

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