Polar Story

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POLA -- USA Stock  

USD 15.97  3.01  23.23%

It appears Polar Power will continue to recover much faster as its share price surged up 22.11% today. The entity current daily volatility is 12.35 percent, with a beta of 1.26 and an alpha of 1.16 over DOW. While many traders are getting carried away by overanalyzing saving accounts, it is reasonable to go over Polar Power. I will address the reasons why this entity does not get much respect from investors under the current market uncertainty.
Published over a week ago
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Will the current Polar Power volatility rise frighten investors?
This firm conducts business under Industrials sector and is part of Electrical Equipment & Parts industry. The company currently holds 4.64 M in liabilities with Debt to Equity (D/E) ratio of 0.31, which is about average as compared to similar companies. Polar Power has a current ratio of 5.44, suggesting that it is liquid enough and is able to pay its financial obligations when due.
Investing in Polar Power, 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 Polar Power 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.
Sophisticated investors, who have witnessed many market ups and downs, frequently view the market will even out over time. This tendency of Polar Power's stock price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy. Please use the tools below to analyze the current value of Polar Power in the context of predictive analytics.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as Polar Power. Your research has to be compared to or analyzed against Polar Power's peers to derive any actionable benefits. When done correctly, Polar Power's competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy towards taking a position in Polar Power.

How important is Polar Power's Liquidity

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

How Polar utilizes its cash?

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

Polar Power Correlation with Peers

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

Disposition of 60000 shares by Zavala Luis of Polar Power subject to Rule 16b-3

Legal trades by Polar Power 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:
Polar Power insider trading alert for disposition of stock option (right to buy) by Zavala Luis, Chief Financial Officer, on 13th of May 2020. This event was filed by Polar Power Inc with SEC on 2020-05-13. Annual statement of changes in beneficial ownership - SEC Form 5 [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.

A Deeper Perspective

Polar Power is very risky given 1 month investment horizon. Polar Power maintains Sharpe Ratio (i.e. Efficiency) of 0.15, which implies the firm had 0.15% of return per unit of risk over the last month. Our standpoint towards forecasting the risk of a stock is to use both market data as well as company specific technical data. We were able to interpolate data for twenty-seven different technical indicators, which can help you to evaluate if expected returns of 1.86% are justified by taking the suggested risk. Use Polar Power Risk Adjusted Performance of 0.1226, semi deviation of 6.81, and Coefficient Of Variation of 904.8 to evaluate company specific risk that cannot be diversified away.
Click cells to compare fundamentals   Check Volatility   Backtest Portfolio

Over 3 percent rise for Polar Power. What does it mean for investors?

The market risk adjusted performance is down to 1.05 as of today. Polar Power is displaying above-average volatility over the selected time horizon. Investors should scrutinize Polar Power independently to ensure intended market timing strategies are aligned with expectations about Polar Power volatility.

Our Conclusion on Polar Power

Whereas some other companies within the electrical equipment & parts industry are still a little expensive, even after the recent corrections, Polar Power may offer a potential longer-term growth to investors. While some in two-three weeks oriented investors may not share our view, we believe it may not be a good time to acquire new shares of Polar.

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

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