Palatin Story

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PTN -- USA Stock  

USD 0.45  0.01  2.27%

It seems Palatin may not have a good chance to recover from the latest slide as its shares fell again. Palatin's current daily volatility is 2.88 percent, with a beta of 0.07 and an alpha of -0.48 over DOW. As many millenniums are trying to avoid the latest volatility, we are going to outline Palatin a little further to understand its historical price patterns. We will evaluate if Palatin shares are reasonably priced going into December.
Published over a week ago
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What does a latest Palatin volatility slide mean for institutional investors?
The company runs under Healthcare sector within Biotechnology industry. We provide trade recommendations to complement the recent expert consensus on Palatin. Our dynamic recommendation engine exercises a multidimensional algorithm to analyze the firm's potential to grow using all technical and fundamental data available at the time.
Investing in Palatin, 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 Palatin 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.

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.

Palatin Correlation with Peers

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

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 maintains Sharpe Ratio (i.e. Efficiency) of -0.2, which implies the firm had -0.2% of return per unit of risk over the last month. Macroaxis standpoint towards forecasting the risk of any stock is to look at both systematic and unsystematic factors of the business, including all available market data and technical indicators. Palatin exposes twenty-one different technical indicators, which can help you to evaluate volatility that cannot be diversified away. Please be advised to check Palatin risk adjusted performance of (0.19), and Coefficient Of Variation of (623.60) to confirm the risk estimate we provide.
Click cells to compare fundamentals   Check Volatility   Backtest Portfolio

Another setback for Palatin institutional investors

Latest total risk alpha is at -0.73. Palatin exhibits very low volatility with skewness of 0.49 and kurtosis of 0.92. 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.

Our Bottom Line On Palatin

Whereas some other firms 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 sum up, as of the 17th of November 2020, we believe that at this point, Palatin is undervalued with significantly high chance of bankruptcy within the next 2 years. However, our concluding buy-hold-sell recommendation 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 Raphi Shpitalnik do not own shares of Palatin. Please refer to our Terms of Use for any information regarding our disclosure principles.

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