Plantronics Story

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PLT -- USA Stock  

USD 17.77  0.36  1.99%

It appears Plantronics will continue to recover much faster as its share price surged up 17.79% today. Plantronics's current daily volatility is 5.09 percent, with a beta of 0.86 and an alpha of -0.12 over DOW. While some of us are getting more passionate about plantronics, it makes sense to review Plantronics in greater detail to make a better estimate of its volatility. We will evaluate why we are still optimistic in anticipation of a recovery.
Published over a week ago
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Will the newest Plantronics volatility gain frighten private investors?
Plantronics has roughly 262.93 M in cash with 111.39 M of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 6.84. The entity has 1.68 B in debt with debt to equity (D/E) ratio of 2.85, meaning that Plantronics heavily relies on borrowing funds for operations. The firm has a current ratio of 1.33, which is typical for the industry and considered as normal.
Investing in Plantronics, just like investing in any other equity instrument, is characterized by a strong risk-return correlation. High risks mean high returns and low risk means lower expected returns. Risk management is the act of identifying and assessing the potential risk and developing strategies to minimize these risks and earn maximum possible profits while holding Plantronics along with other instruments in the same portfolio. Using conventional technical analysis and fundamental analysis to select individual securities into a portfolio complements risk management and adds value to overall investors' investing strategies.

How important is Plantronics's Liquidity

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

How Plantronics utilizes its cash?

To perform a cash flow analysis of Plantronics, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Plantronics is receiving and how much cash it distributes out in a given period. The Plantronics cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities. Plantronics Net Cash Flow from Operations is comparatively stable at the moment as compared to the past year. Plantronics reported Net Cash Flow from Operations of 78.02 Million in 2019

Plantronics Correlation with Peers

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

Detailed Perspective On Plantronics

Plantronics appears to be somewhat reliable, given 1 month investment horizon. Plantronics maintains Sharpe Ratio (i.e. Efficiency) of 0.0557, which implies the firm had 0.0557% 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. We have found twenty-eight technical indicators for Plantronics, which you can use to evaluate future volatility of the company. Please employ Plantronics Semi Deviation of 4.29, risk adjusted performance of 0.0125, and Coefficient Of Variation of 21599.66 to confirm if our risk estimates are consistent with your expectations.
Click cells to compare fundamentals   Check Volatility   Backtest Portfolio

Are Plantronics technical ratios showing a recoup?

The standard deviation is down to 4.62 as of today. Plantronics exhibits above-average semi-deviation for your current time horizon. We encourage investors to investigate Plantronics individually to make sure intended market timing strategies and available technical indicagtors are consistent with their estimates about Plantronics future systematic risk.

Our Conclusion on Plantronics

Whereas other companies within the communication equipment industry are still a little expensive, even after the recent corrections, Plantronics may offer a potential longer-term growth to private investors. 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 Plantronics nor sell 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 Plantronics.

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

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