Polymet Story

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PLM -- USA Stock  

USD 3.45  0.05  1.43%

Polymet Mining is generating 1.4932% of daily returns assuming volatility of 14.497% on return distribution over 90 days investment horizon. As many old-fashioned traders are trying to avoid basic materials space, it makes sense to summarize Polymet Mining a little further and try to understand its current volatility patterns. We will evaluate if the latest Polymet Mining price volatility suggests a bounce in October. The new Polymet risk factors may impact the value of the stock as we estimate Polymet Mining as currently overvalued. The real value is approaching 3.02 per share.
Published over two weeks ago
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Is Polymet Mining (AMEX:PLM) hike feasible based on new volatility?
The company runs under Basic Materials sector within Other Industrial Metals & Mining industry. Polymet Mining holds a performance score of 7 on a scale of zero to a hundred. The company holds a Beta of 0.4604, which implies possible diversification benefits within a given portfolio. Let's try to break down what Polymet's beta means in this case. As returns on the market increase, Polymet Mining returns are expected to increase less than the market. However, during the bear market, the loss on holding Polymet Mining will be expected to be smaller as well. Although it is vital to follow Polymet Mining current trending patterns, it is good to be conservative about what you can do with the information regarding equity existing price patterns. Our philosophy towards forecasting future performance of any stock is to look not only at its past charts but also at the business as a whole, including all fundamental and technical indicators. To evaluate if Polymet Mining expected return of 1.49 will be sustainable into the future, we have found twenty-eight different technical indicators, which can help you to check if the expected returns are sustainable. Use Polymet Mining maximum drawdown, as well as the relationship between the expected short fall and rate of daily change to analyze future returns on Polymet Mining.
Volatility is a rate at which the price of Polymet Mining or any other equity instrument increases or decreases for a given set of returns. It is measured by calculating the standard deviation of the annualized returns over a given period of time and shows the range to which the price of Polymet Mining may increase or decrease. In other words, similar to Polymet's beta indicator, it measures the risk of Polymet Mining and helps estimate the fluctuations that may happen in a short period of time. So if prices of Polymet Mining fluctuate rapidly in a short time span, it is termed to have high volatility, and if it swings slowly in a more extended period, it is understood to have low volatility. Please read more on our technical analysis page.

How important is Polymet Mining's Liquidity

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

How Polymet utilizes its cash?

To perform a cash flow analysis of Polymet Mining, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Polymet Mining is receiving and how much cash it distributes out in a given period. The Polymet Mining cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.

Breaking it down

Reported Net Loss for the year was (64.64 M) with profit before taxes, overhead, and interest of 0.

Are Polymet Mining technical ratios showing a bounce back?

New expected short fall indicator falls down to -11.37. Possible price surge? Polymet Mining is displaying above-average volatility over the selected time horizon. Investors should scrutinize Polymet Mining independently to ensure intended market timing strategies are aligned with expectations about Polymet Mining volatility.

The Current Takeaway on Polymet Mining Investment

While other companies under the other industrial metals & mining industry are still a bit expensive, Polymet Mining may offer a potential longer-term growth to stakeholders. To conclude, as of the 6th of September 2020, we believe that Polymet Mining is currently overvalued with very small probability of distress in the next two years. Our ongoing 30 days buy vs. sell advice on the company 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 Polymet Mining. Please refer to our Terms of Use for any information regarding our disclosure principles.

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