This firm has a beta of 1.417. Let's try to break down what Optinose's beta means in this case. Optinose returns are very sensitive to returns on the market. As the market goes up or down, Optinose is expected to follow. The beta indicator helps investors understand whether Optinose moves in the same direction as the rest of the market, and how volatile (i.e., risky) it is compared to the market (i.e., selected benchmark). In other words, if Optinose deviates very little from the market, it does not add much risk to the portfolio, but it also doesn't increase the expected returns.
There are currently many different techniques concerning forecasting the market as a whole as well as
predicting future values of individual securities such as OptiNose. Regardless of method or technology, to accurately forecast the stock market is more a matter of luck rather than a particular technique. Nevertheless, trying to predict the stock market accurately is still an essential part of the overall investment decision process. Using different forecasting techniques and comparing the results might improve your chances of accuracy even though unexpected events may often change the
market sentiment and impact your forecasting results.
Predictive Modules for OptiNose
Sophisticated investors, who have witnessed
many market ups and downs, anticipate that the market will even out over time. This tendency of OptiNose'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 note, it is not enough to conduct a financial or market analysis of a single entity such as OptiNose. Your research has to be compared to or analyzed against OptiNose's peers to derive any actionable benefits. When done correctly, OptiNose's competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy toward taking a position in OptiNose.
Watch out for price decline
Please consider monitoring OptiNose on a daily basis if you are holding a position in it. OptiNose is trading at a penny-stock level, and the possibility of delisting is much higher compared to other stocks. 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 OptiNose stock to be traded above the $1 level to remain listed. If OptiNose 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 OptiNose's Liquidity
OptiNose
financial leverage refers to using borrowed capital as a funding source to finance OptiNose ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. OptiNose 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. Financial leverage can amplify the potential profits to OptiNose's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of OptiNose's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the
breakdown between OptiNose's total debt and its cash.
OptiNose Gross Profit
OptiNose Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing OptiNose previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show OptiNose Gross Profit growth over the last 10 years. Please check OptiNose's
gross profit and other
fundamental indicators for more details.
Detailed Perspective On OptiNose
Optinose price slide over the last few months may encourage institutional investors to take a closer look at the company as it is trading at a share price of
3.92 on very low momentum in trading volume. The company directors and management were not very successful in positioning the company resources to exploit market volatility in
February. However, diversifying your holdings with Optinose or similar stocks can still protect your portfolio during high-volatility market scenarios. The stock standard deviation of daily returns for 30 days investing horizon is currently 3.73. The above-average risk is mostly attributed to market volatility and speculations regarding some of the upcoming earning calls from Optinose partners.
Analysis of Optinose
Latest skewness is at 1.6.
As of the 3rd of March, Optinose holds the
risk adjusted performance of
(0.010538), and Coefficient Of Variation of
(4,225). Compared to
fundamental indicators, the
technical analysis model allows you to check existing technical drivers of Optinose, as well as the relationship between them. Put it differently, you can use this information to find out if the company will indeed mirror its model of past market data, or the prices will eventually revert. We were able to interpolate nineteen
technical drivers for Optinose, which can be compared to its competitors. Please check
Optinose information ratio,
potential upside, as well as the
relationship between the Potential Upside and
kurtosis to decide if Optinose is priced some-what accurately, providing market reflects its current price of 3.92 per share. Given that Optinose has
jensen alpha of
(0.20), we recommend you to check out Optinose's recent market performance to make sure the company can sustain itself at a future point.
Our Final Take On Optinose
Whereas many other companies in the drug manufacturers—specialty & generic industry are either recovering or due for a correction, Optinose may not be as strong as the others in terms of longer-term growth potentials. To conclude, as of the 3rd of March 2021, our concluding 30 days buy-hold-sell recommendation on the company is
Sell. However, we believe Optinose is
undervalued with
significantly high odds of financial turmoil for the next two years.
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Raphi Shpitalnik is a Junior Member of Macroaxis Editorial Board. Raphael is a young entrepreneur who joined Macroaxis on a part-time basis at the beginning of the pandemic and eventually acquired a real taste 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 OptiNose. Please refer to our
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