Ocean Story

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OPTT -- USA Stock  

USD 3.75  0.13  3.35%

It looks like Prysmian SPA will continue to recover much faster as its share price surged up 2.09% today to Ocean Power's 33.9713%. As many rational traders are trying to avoid industrials space, it makes sense to review Ocean Power a little further and understand how it stands against Prysmian SPA and other similar entities. We are going to break down some of the competitive aspects of both Ocean and Prysmian.
Published over a month ago
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Will Prysmian (OTC:PRYMF) shadow Ocean Power price growth?
By analyzing existing basic indicators between Ocean Power and Prysmian, 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 Prysmian with a short position in Ocean Power. 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. Ocean Power has an asset utilization ratio of 15.07 percent. This implies that the company is making $0.15 for each dollar of assets. An increasing asset utilization means that Ocean Power 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 Ocean or FELTY is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step.

How important is Ocean Power's Liquidity

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

Correlation Between Ocean and FUJI ELECTRIC LTD

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 Ocean Power together with similar or unrelated positions with a negative correlation. For example, you can also add FUJI ELECTRIC to your portfolio. If FUJI ELECTRIC is not perfectly correlated to Ocean Power 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 Ocean Power 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 OPTT and FELTY for more information.


Are you currently holding both Ocean Power and FUJI ELECTRIC in your portfolio?
Please note if you are using this as a pair-trade strategy between Ocean Power and FUJI ELECTRIC, 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.

Breaking it down a bit more

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 check Ocean Power revenue. Based on the latest financial disclosure, Ocean Power reported 1.56 M of revenue. This is 99.96% lower than that of the Industrials sector and significantly higher than that of the Electrical Equipment & Parts industry. The revenue for all United States stocks is 99.98% higher than that of the company. As for Prysmian SPA we see revenue of 11 B, which is much higher than that of the Electrical Equipment & Parts

11 B
OPTT1.56 Million0.0142
PRYMF11 Billion99.99

Our perspective of the newest Ocean Power gain

The semi variance is down to 15.48 as of today. Ocean Power is displaying above-average volatility over the selected time horizon. Investors should scrutinize Ocean Power independently to ensure intended market timing strategies are aligned with expectations about Ocean Power volatility.

Our Conclusion on Ocean Power

Whereas few other entities within the electrical equipment & parts industry are still a little expensive, even after the recent corrections, Ocean Power may offer a potential longer-term growth to private investors. To summarize, as of the 23rd of January 2021, our analysis shows that Ocean Power almost neglects market trends. The firm is overvalued and projects high chance of bankruptcy for the next 2 years. Our primary 30 days buy-hold-sell advice on the firm 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 Ellen Johnson do not own shares of Ocean Power Tech. Please refer to our Terms of Use for any information regarding our disclosure principles.

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