Paramount Story

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PZG -- USA Stock  

USD 1.16  0.03  2.52%

The underlying objective of this short story is to digest Paramount as an investment oportunity for October. We will discuss why recent Paramount Gold price moves suggest a bounce in October.
Published over a month ago
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Is Paramount Gold (AMEX:PZG) outlook positive for October 2020?
Paramount Gold has performance score of 2 on a scale of 0 to 100. The company holds a Beta of -0.1147, which implies not very significant fluctuations relative to the market. Let's try to break down what Paramount's beta means in this case. As returns on the market increase, returns on owning Paramount Gold are expected to decrease at a much lower rate. During the bear market, Paramount Gold is likely to outperform the market. Although it is extremely important to respect Paramount Gold Nevada current trending patterns, it is better to be realistic regarding the information on equity existing price patterns. The philosophy towards forecasting future performance of any stock is to evaluate the business as a whole together with its past performance, including all available fundamental and technical indicators. By analyzing Paramount Gold Nevada technical indicators, you can presently evaluate if the expected return of 0.15% will be sustainable into the future. Paramount Gold Nevada right now holds a risk of 4.38%. Please check Paramount Gold Nevada potential upside, as well as the relationship between the kurtosis and day typical price to decide if Paramount Gold Nevada will be following its historical price patterns.
There are currently many different techniques concerning forecasting the market as a whole as well as predicting future values of individual securities such as Paramount Gold Nevada. Regardless of method or technology, to accurately forecast the stock market is more a matter of luck rather than a particular technique. Nevertheless, trying to predict the stock market accurately is still an essential part of the overall investment decision process. Using different forecasting techniques and comparing the results might improve your chances of accuracy even though unexpected events may often change the market sentiment and impact your forecasting results.

Predictive Modules for Paramount Gold


Watch out for price decline

Please consider monitoring Paramount Gold on a daily bases 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 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. Paramount Gold Nevada is a potential penny stock. Although Paramount Gold 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 Paramount Gold Nevada. 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.

Will Paramount Gold continue to go ballistic?

The jensen alpha is down to 0.26 as of today. As of the 21st of September, Paramount Gold holds the Semi Deviation of 2.97, coefficient of variation of 1655.6, and Risk Adjusted Performance of 0.0738. Compared to fundamental indicators, the technical analysis model allows you to check existing technical drivers of Paramount Gold, as well as the relationship between them. Put it differently, you can use this information to find out if the company will indeed mirror its model of past market data, or the prices will eventually revert. We have collected data for nineteen technical drivers for Paramount Gold Nevada, which can be compared to its competitors. Please check Paramount Gold Nevada information ratio, potential upside, as well as the relationship between the Potential Upside and kurtosis to decide if Paramount Gold Nevada is priced some-what accurately, providing market reflects its current price of 1.13 per share. Given that Paramount Gold is a hitting penny stock territory we advise to closely look at its total risk alpha.

Although some other entities under the gold industry are still a bit expensive, Paramount Gold may offer a potential longer-term growth to shareholders. The inconsistency in the assessment between current Paramount valuation and our trade advice on Paramount Gold is due to the recent market swings and your selection of investing horizon. 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 Vlad Skutelnik 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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