Ooma Story

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OOMA -- USA Stock  

USD 16.57  0.01  0.06%

It appears Ooma may not have a good chance to recover from the current slip as its shares fell again. The company's current daily volatility is 2.54 percent, with a beta of -0.16 and an alpha of -0.16 over DOW. As many baby boomers are still indifferent towards current volatility, Ooma Inc. We will evaluate if Ooma shares are reasonably priced going into December.
Published over two weeks ago
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Is Ooma (NYSE:OOMA) a new disruptor?
Ooma Inc currently holds roughly 25.34 M in cash with (1.74 M) of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 1.13. The company holds a Beta of -0.1552, which implies not very significant fluctuations relative to the market. Let's try to break down what Ooma's beta means in this case. As returns on the market increase, returns on owning Ooma are expected to decrease at a much lower rate. During the bear market, Ooma is likely to outperform the market. Even though it is essential to pay attention to Ooma Inc current trending patterns, it is always good to be careful when utilizing equity existing price patterns. Our philosophy towards forecasting any stock's future performance is to check both, its past performance charts as well as the business as a whole, including all available technical indicators. Ooma Inc exposes twenty-one different technical indicators, which can help you to evaluate its performance. Ooma Inc has an expected return of -0.16%. Please be advised to check Ooma Inc value at risk, and the relationship between the jensen alpha and semi variance to decide if Ooma Inc stock performance from the past will be repeated at some point in the near future.
Investing in Ooma, 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 Ooma 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 Ooma's Liquidity

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

How Ooma utilizes its cash?

To perform a cash flow analysis of Ooma, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Ooma is receiving and how much cash it distributes out in a given period. The Ooma cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities. Ooma Net Cash Flow from Operations is projected to decrease significantly based on the last few years of reporting. The past year's Net Cash Flow from Operations was at (7.56 Million)

Ooma Correlation with Peers

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

Sale by Ravi Narula of 3833 shares of Ooma

Legal trades by Ooma 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:
Ooma insider trading alert for sale of common stock by Ravi Narula, Chief Financial Officer, on 24th of November 2020. This event was filed by Ooma Inc with SEC on 2020-11-24. 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 Ooma Indicators

Ooma Inc maintains Sharpe Ratio (i.e. Efficiency) of -0.0647, which implies the firm had -0.0647% of return per unit of risk over the last month. Macroaxis standpoint towards forecasting the risk of any stock is to look at both systematic and unsystematic factors of the business, including all available market data and technical indicators. Ooma Inc exposes twenty-one different technical indicators, which can help you to evaluate volatility that cannot be diversified away. Please be advised to check Ooma Inc risk adjusted performance of (0.07), and Coefficient Of Variation of (1,575) to confirm the risk estimate we provide.
Click cells to compare fundamentals   Check Volatility   Backtest Portfolio

Are Ooma technical indicators showing a throwback?

Standard deviation is down to 2.67. It may suggest a possible volatility slip. Ooma Inc exhibits very low volatility with skewness of -0.38 and kurtosis of 2.22. However, we advise investors to further study Ooma Inc technical indicators to make sure all market info is available and is reliable.

Our Final Take On Ooma

Whereas other entities in the telecom services industry are either recovering or due for a correction, Ooma may not be as strong as the others in terms of longer-term growth potentials. With an impartial outlook on the current market volatility, it may be better to hold off any inventment activity and neither buy nor exit any shares of Ooma at this time. The Ooma Inc risk-reward trade off is not appealing enough to do any trading. 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 Ooma.

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

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