The company holds a Beta of -1.0552, which implies a somewhat significant risk relative to the market. Let's try to break down what Ocean's beta means in this case. As the market becomes more bullish, returns on owning Ocean Power are expected to decrease slowly. On the other hand, during market turmoil, Ocean Power is expected to outperform it slightly. Although it is extremely important to respect
Ocean Power Tech current trending patterns, it is better to be realistic regarding the information on equity existing
price patterns. The philosophy towards forecasting
future performance of any stock is to evaluate the business as a whole together with its past performance, including all
available fundamental and
technical indicators. By analyzing
Ocean Power Tech technical indicators, you can presently evaluate if the expected return of 0.0154% will be sustainable into the future.
Ocean Power Tech right now holds a risk of 4.84%. Please check Ocean Power Tech
semi deviation,
jensen alpha, as well as the
relationship between the Jensen Alpha and
semi variance to decide if Ocean Power Tech will be following its historical
price patterns.
Typically, a company's
financial statements are the reports that show the
financial position of the company. There are three main documents that fall into the category of financial statements. These documents include Ocean Power income statement, its balance sheet, and the statement of cash flows. Potential Ocean Power investors and stakeholders use financial statements to determine how well the company is positioned to perform in the future. Although Ocean Power investors may use each financial statement separately, they are all related. The changes in Ocean Power's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Ocean Power's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet, but not equivalent to net income shown on the income statement. Please read more on our
technical analysis and
fundamental analysis pages.
The goal of Ocean Power
fundamental analysis is to do accurate financial forecasts. There are several possible objectives to fundamental analysis, such as projecting of Ocean Power performance into the future periods or doing a reasonable stock valuation. The intrinsic value of Ocean Power shares is the value that is considered the true value of the share. If
the intrinsic value of Ocean is higher than its market price, buying is generally recommended. If it is equal to the market price, it is recommended to hold; and if it is less than the market price, then one should sell all shares Ocean Power. Please read more on our
fundamental analysis page.
Watch out for price decline
Please consider monitoring Ocean Power on a daily basis if you are holding a position in it. Ocean Power 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 Ocean Power stock to be traded above the $1 level to remain listed. If Ocean Power 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 effective is Ocean Power in utilizing its assets?
Ocean Power Technologies reports assets on its Balance Sheet. It represents the amount of Ocean resources that either has an existing economic value or will provide some form of benefits in the future. By effectively utilizing its assets, Ocean Power aims to generate revenue, control costs, drive operational efficiency, and enhance profitability. Optimizing asset utilization helps maximize shareholder value and maintain a competitive position in the Heavy Electrical Equipment space. To get a better handle on how balance sheet or income statements item affect Ocean volatility, please check the breakdown of all its
fundamentals.
Ocean Power Gross Profit
Ocean Power Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Ocean Power 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 Ocean Power Gross Profit growth over the last 10 years. Please check Ocean Power's
gross profit and other
fundamental indicators for more details.
Detailed Perspective On Ocean Power
The entity reported the previous year's revenue of 1.16
M. Net Loss for the year was (10.78
M) with loss before overhead, payroll, taxes, and interest of (105
K).
Are Ocean Power technical ratios showing a recoup?
The coefficient of variation is down to -8609.94 as of today. Ocean Power Tech exhibits very low volatility with skewness of 1.32 and kurtosis of 3.92. However, we advise investors to further study Ocean Power Tech technical indicators to make sure all market info is available and is reliable. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Ocean Power's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Ocean Power's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.
Our Bottom Line On Ocean Power Tech
When is the right time to buy or sell Ocean Power Tech? Buying stocks such as Ocean Power isn't very hard. However, what challenging for most investors is doing it at the right time. Proper market timing is something most people cannot do without
sophisticated tools, which help to isolate the right opportunities, deliver winning trades and diversify portfolios on a daily basis.
To sum up, as of the 4th of July 2021, we believe that at this point, Ocean Power is
overvalued with
low chance of distress within the next 2 years. Our final buy-sell recommendation on the firm is
Strong Sell.
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Rifka Kats is a Member of Macroaxis Editorial Board. Rifka writes about retail product and service companies from the perspective of a regular consumer and sophisticated investor at the same time. She is passionate about corporate ethics and equality in the workforce.
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 Rifka Kats do not own shares of Ocean Power Technologies. Please refer to our
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