Palatin Story

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PTN -- USA Stock  

USD 0.42  0.01  2.33%

Palatin is scheduled to announce its earnings tomorrow. While some baby boomers are getting worried about healthcare space, it is reasonable to outline Palatin as an investment alternative. What exactly are Palatin shareholders getting in October? Here we also measure the ability of Palatin to meet its long-term debt obligations, such as interest payments on debt, the final principal payment on the debt, and any other fixed obligations like lease payments.
Published over two weeks ago
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You think Palatin (AMEX:PTN) debt is an issue for institutional investors?
The company has 98.49 K in debt with debt to equity (D/E) ratio of 0.0, which may show that Palatin is not taking advantage of profits from borrowing. The company holds a Beta of 0.1447, which implies not very significant fluctuations relative to the market. Let's try to break down what Palatin's beta means in this case. As returns on the market increase, Palatin returns are expected to increase less than the market. However, during the bear market, the loss on holding Palatin will be expected to be smaller as well. Even though it is essential to pay attention to Palatin current trending patterns, it is always good to be careful when utilizing equity existing price patterns. Our philosophy towards forecasting any stock's future performance is to check both, its past performance charts as well as the business as a whole, including all available technical indicators. Palatin exposes twenty-one different technical indicators, which can help you to evaluate its performance. Palatin has an expected return of -0.0654%. Please be advised to check Palatin standard deviation, value at risk, as well as the relationship between the Value At Risk and kurtosis to decide if Palatin stock performance from the past will be repeated at some point in the near future.
Palatin financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of Palatin, including all of Palatin's outstanding debt obligations, and compares it with the equity. In simple terms, the high financial leverage means the cost of production, together with running the business day-to-day, is high, whereas, lower financial leverage implies lower fixed cost investment in the business and generally considered by investors to be a good sign. So if creditors own a majority of Palatin assets, the company is considered highly leveraged. Understanding the composition and structure of overall Palatin debt and outstanding corporate bonds gives a good idea of how risky the capital structure of a business is and if it is worth investing in it. Please read more on our technical analysis page.

Watch out for price decline

Please consider monitoring Palatin on a daily bases if you are holding a position in it. Palatin is trading at a penny-stock level, and the possibility of delisting is much higher compared to other equities. However, just because the stock is trading under one dollar, does not mean it will be marked for deletion. Most exchanges require public instruments, such as Palatin stock to be traded above the $1 level to remain listed. If Palatin stock price falls below $1 for 30 consecutive trading days, the exchange can delist it. Once the company reaches this point, they will be sent an initial price violation notice directly from an exchange.

How important is Palatin's Liquidity

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

How Palatin utilizes its cash?

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

Sale by Robert deVeer of 54000 shares of Palatin

Legal trades by Palatin 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:
Palatin insider trading alert for sale of common stock by Robert deVeer, the corporate stakeholder, on 2nd of October 2020. This event was filed by Palatin Technologies Inc with SEC on 2020-10-02. Statement of changes in beneficial ownership - SEC Form 4 [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.

Detailed Perspective On Palatin

Palatin reported the last year's revenue of 60.38 M. Total Income to common stockholders was 37.1 M with profit before taxes, overhead, and interest of 45.44 M.

Palatin implied volatility may change after the rise

The potential upside is down to 6.25 as of today. Palatin exhibits very low volatility with skewness of 1.91 and kurtosis of 7.58. However, we advise investors to further study Palatin technical indicators to make sure all market info is available and is reliable. Palatin is a potential penny stock. Although Palatin may be in fact a good instrument to invest, many penny stocks are speculative in nature and are subject to artificial price hype. Please make sure you totally understand the upside potential and downside risk of investing in Palatin. We encourage investors to look for the signals such us email spams, message board hypes, claims of breakthroughs, volume upswings, sudden news releases, promotions that are not reported, or demotions released before SEC filings. Please also check biographies and work history of current and past company officers before investing in high volatility instruments, penny stocks, or equities with microcap classification. You can indeed make money on this equity instrument if you perfectly time your entry and exit. However, remember that penny stocks that have been the subject of an artificial hype usually unable to maintain its increased share price for more than just a few days. The price of a promoted high volatility instrument will almost always revert back. The only way to increase shareholder value is through legitimate performance backed up by solid fundamentals.

The Bottom Line

Whereas other companies in the biotechnology industry are either recovering or due for a correction, Palatin may not be as strong as the others in terms of longer-term growth potentials. To conclude, as of the 27th of September 2020, our current 30 days buy vs. sell advice on the company is Strong Sell. However, we believe Palatin is currently undervalued with close to average probability of bankruptcy for the next two years.

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

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