Is Orbcomm (NASDAQ:ORBC) a new disruptor?

It appears Orbcomm will continue to recover much faster as its share price surged up 52.05% today. This firm current daily volatility is 7.53 percent, with a beta of 2.19 and an alpha of 0.67 over DOW. As many baby boomers are still indifferent towards millennials best, it makes sense to go over Orbcomm. We will analyze why Orbcomm investors may still consider a stake in the business.
Published over a year ago
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Reviewed by Gabriel Shpitalnik

Orbcomm currently holds roughly 40.38 M in cash with 48.42 M of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 0.51.
On a scale of 0 to 100, Orbcomm holds a performance score of 8. The company holds a Beta of 2.1885, which implies a somewhat significant risk relative to the market. Let's try to break down what Orbcomm's beta means in this case. As the market goes up, the company is expected to outperform it. However, if the market returns are negative, Orbcomm will likely underperform. Although it is vital to follow Orbcomm current trending patterns, it is good to be conservative about what you can do with the information regarding 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. We have found twenty-one technical indicators for Orbcomm, which you can use to evaluate the performance of the company. Please employ Orbcomm coefficient of variation, maximum drawdown, skewness, as well as the relationship between the information ratio and downside variance to make a quick decision on whether Orbcomm historical price patterns will revert.

How important is ORBCOMM's Liquidity

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

ORBCOMM Correlation with Peers

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

Breaking down ORBCOMM Further

Orbcomm appears to be moderately volatile, given 1 month investment horizon. Orbcomm maintains Sharpe Ratio (i.e. Efficiency) of 0.12, which implies the firm had 0.12% of return per unit of risk over the last month. Our standpoint towards forecasting the volatility of a stock is to use all available market data together with stock specific technical indicators that cannot be diversified away. By analyzing Orbcomm technical indicators you can presently evaluate if the expected return of 0.89% is justified by implied risk. Please employ Orbcomm Risk Adjusted Performance of 0.1217, semi deviation of 2.87, and Coefficient Of Variation of 731.75 to confirm if our risk estimates are consistent with your expectations.
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Another 3 percent rise for Orbcomm

The variance is down to 54.19 as of today.
As of the 9th of April, Orbcomm holds the Coefficient Of Variation of 731.75, semi deviation of 2.87, and Risk Adjusted Performance of 0.1217. Compared to fundamental indicators, the technical analysis model allows you to check existing technical drivers of Orbcomm, 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 have analyzed nineteen technical drivers for Orbcomm, which can be compared to its competitors. Please check Orbcomm coefficient of variation, maximum drawdown, skewness, as well as the relationship between the information ratio and downside variance to decide if Orbcomm is priced some-what accurately, providing market reflects its current price of 11.51 per share. Given that Orbcomm has jensen alpha of 0.6686, we recommend you to check out Orbcomm's recent market performance to make sure the company can sustain itself at a future point.

Our Final Takeaway

Whereas many of the other players under the telecom services industry are still a bit expensive, Orbcomm may offer a potential longer-term growth to investors. The inconsistency in the assessment between current Orbcomm valuation and our trade advice on Orbcomm is due to the recent market swings and your selection of investing horizon. 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 Orbcomm.

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Editorial Staff

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

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