Paramount Story

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PZG -- USA Stock  

USD 1.10  0.06  5.17%

37% of stocks are less volatile than Paramount, and above 95% of all equities are expected to generate higher returns over the next 90 days. While some risk-seeking shareholders are getting worried about basic materials space, it is reasonable to digest Paramount Gold Nevada as a possible investment alternative. We will discuss why it could be a different year for Paramount Gold shareholders.
Published over three months ago
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Will Paramount Gold (AMEX:PZG) latest volatility spike continue?
The company runs under Basic Materials sector within Gold industry.
Volatility is a rate at which the price of Paramount Gold 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 Paramount Gold may increase or decrease. In other words, similar to Paramount's beta indicator, it measures the risk of Paramount Gold and helps estimate the fluctuations that may happen in a short period of time. So if prices of Paramount Gold 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.

Watch out for price decline

Please consider monitoring Paramount Gold on a daily basis if you are holding a position in it. Paramount Gold 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 Paramount Gold stock to be traded above the $1 level to remain listed. If Paramount Gold 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 Paramount Gold's Liquidity

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

How Paramount utilizes its cash?

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

Breaking it down

Paramount Gold Nevada reported the last year's revenue of 332.37 K. Reported Net Loss for the year was (7.1 M) with loss before taxes, overhead, and interest of (610.02 K).

Will Paramount Gold latest dip continue?

Latest treynor ratio is at 0.79. Paramount Gold Nevada shows above-average downside volatility for the selected time horizon. We advise investors to inspect Paramount Gold Nevada further and ensure that all market timing and asset allocation strategies are consistent with the estimation of Paramount Gold future alpha.

Our Conclusion on Paramount Gold

Although some other entities under the gold industry are still a bit expensive, Paramount Gold may offer a potential longer-term growth to shareholders. With a relatively neutral outlook on the latest economy, it is better to hold off any trading of Paramount as the current risk-reward utility is not appealing enough. 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 Paramount Gold.

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 Achuva Shats do not own shares of Paramount Gold Nevada. Please refer to our Terms of Use for any information regarding our disclosure principles.

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