Radcom Story

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RDCM -- USA Stock  

USD 9.44  0.24  2.48%

As many baby boomers are still indifferent towards communication services space, it makes sense to summarize Radcom. Why are we still confident in hope for a quick recovery. Here I will also summarize some basic indicators that Radcom investors should consider in September.
Published over a month ago
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Radcom (NASDAQ:RDCM) continues to hike
Radcom is undervalued at 13.34 per share with modest projections ahead. On a scale of 0 to 100, Radcom holds a performance score of 12. The company holds a Beta of 0.0516, which implies not very significant fluctuations relative to the market. Let's try to break down what Radcom's beta means in this case. As returns on the market increase, Radcom returns are expected to increase less than the market. However, during the bear market, the loss on holding Radcom will be expected to be smaller as well. Although it is vital to follow Radcom current trending patterns, it is good to be conservative about what you can do with the information regarding 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 Radcom technical indicators, you can presently evaluate if the expected return of 0.45% will be sustainable into the future. Please employ Radcom jensen alpha, semi variance, day typical price, as well as the relationship between the maximum drawdown and accumulation distribution to make a quick decision on whether Radcom historical price patterns will revert.

How important is Radcom's Liquidity

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

How Radcom utilizes its cash?

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

A Deeper look at Radcom

Radcom has a total of 13.94 Million outstanding shares. Radcom has significant amount of outstanding shares owned by insiders. An insider is usually defined as a CEO, other corporate executive, director, or institutional investor who own at least 10% of the company outstanding shares. Since such a large part of the company is owned by insiders, it is advisable to analyze if each of these insiders have been buying or selling the stock in recent months. Remember, it does not matter who owns the company or if the company is currently losing money. If the true value of the company is more than the market pays for it currently, you can still have a good investment opportunity.

Ownership Breakdown

Retail Investors
42.48%
Insiders
23.15%
Institutions
34.37%
Retail Investors42.48
Insiders23.15
Institutions34.37

Another 3 percent hike for Radcom

New Information Ratio is up to 0.04. Price may pull down again. As of the 11th of August 2020, Radcom holds the Semi Deviation of 1.91, risk adjusted performance of 0.2286, and Coefficient Of Variation of 714.97. Compared to fundamental indicators, the technical analysis model allows you to check existing technical drivers of Radcom, 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 were able to break down and interpolate data for nineteen technical drivers for Radcom, which can be compared to its competitors. Please check Radcom variance, as well as the relationship between the maximum drawdown and semi variance to decide if Radcom is priced some-what accurately, providing market reflects its current price of 9.25 per share. Given that Radcom has jensen alpha of 0.3554, we recommend you to check out Radcom's recent market performance to make sure the company can sustain itself at a future point.

The Bottom Line

While some other firms within the telecom services industry are still a little expensive, even after the recent corrections, Radcom may offer a potential longer-term growth to stakeholders. Taking everything into account, as of the 11th of August 2020, our primary 30 days buy vs. sell advice on the company is Buy. We believe Radcom is currently undervalued with very small odds of financial turmoil 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 Achuva Shats do not own shares of Radcom. Please refer to our Terms of Use for any information regarding our disclosure principles.

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