Pure Cycle Story

<div class='circular--portrait' style='background:#FF6600;color: #FFFAFA;font-size:4em;'>PC</div>
PCYO -- USA Stock  

USD 10.26  0.14  1.38%

Pure Cycle is scheduled to announce its earnings today. While some institutional investors are becoming indifferent towards utilities space, we are going to outline the feasibility of picking up Pure Cycle as a potential hedging instrument for your current portfolios. We will cover the possibilities of Pure Cycle recovering given the latest economic outlook.
Published over three weeks ago
View all stories for Pure Cycle | View All Stories
What is December outlook for Pure Cycle (NASDAQ:PCYO)?
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Pure Cycle has an asset utilization ratio of 35.69 percent. This suggests that the company is making $0.36 for each dollar of assets. An increasing asset utilization means that Pure Cycle is more efficient with each dollar of assets it utilizes for everyday operations.
What is the right price you would pay to acquire a share of Pure Cycle? For most investors, it would be the price that gives them a wide margin of safety to have minimal downside risk. In other words, most investors are always looking for undervalued stocks. Even if the future performance is not entirely as expected, the loss of holding it is minimized, and the downside risk is negated. Please read more on our stock advisor page.

How important is Pure Cycle's Liquidity

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

How Pure Cycle utilizes its cash?

To perform a cash flow analysis of Pure Cycle, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Pure Cycle is receiving and how much cash it distributes out in a given period. The Pure Cycle cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities. Pure Cycle Net Cash Flow from Operations is quite stable at the moment as compared to the past year. The company's current value of Net Cash Flow from Operations is estimated at 22.36 Million

Exercise or conversion by Harrison Augur of 6500 shares of Pure Cycle subject to Rule 16b-3

Legal trades by Pure Cycle 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:
Pure Cycle insider trading alert for exercise of non-statutory stock option (right to buy) by Harrison Augur, the corporate stakeholder, on 13th of October 2020. This event was filed by Pure Cycle Corp with SEC on 2020-10-13. Statement of changes in beneficial ownership - SEC Form 4. Harrison Augur currently serves as independent chairman of the board of Pure Cycle [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.

Is Pure Cycle a risky opportunity?

Let's check the volatility. Pure Cycle is looking slightly risky at this time. Whether you invest your money or manage your clients' funds, remember that it is easy to forget that behind Pure Cycle (NASDAQ:PCYO) stock is an actual business venture. So, do not let stock picking become an abstract concept by ignoring the elementary risk calculations. picking up a share of a Pure Cycle stock makes you a part-owner of that company.

Will Pure Cycle price slide impact its balance sheet?

Latest Skewness is up to -0.06. Price may slide again. Pure Cycle currently demonstrates below-verage downside deviation. It has Information Ratio of 0.01 and Jensen Alpha of 0.04. However, we do advice investors to further question Pure Cycle expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk.

Our Bottom Line On Pure Cycle

When is the right time to buy or sell Pure Cycle? Buying stocks such as Pure Cycle 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 bases. With a somewhat neutral outlook on your 30 days horizon, it may be better to hold off any trading activity and neither buy new shares of Pure Cycle nor quit your existing holdings in the Stock. It seems the expected volatility has not yet been fully factored into the current price. 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 Pure Cycle.

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 Raphi Shpitalnik do not own shares of Pure Cycle. Please refer to our Terms of Use for any information regarding our disclosure principles.

Would you like to provide feedback on the content of this article?

You can get in touch with us directly or send us a quick note via email to editors@macroaxis.com