Reeds Story

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REED -- USA Stock  

USD 0.94  0.03  3.09%

It looks like Coca Cola will be up for a correction faster as its share price went up 1.24% today to Reeds's 2.68%As many rational traders are trying to avoid consumer defensive space, it makes sense to digest Reeds Inc a little further and understand how it stands against Coca Cola and other similar entities. We are going to discuss some of the competitive aspects of both Reeds and Coca Cola.
Published over two weeks ago
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What should I trade Coca Cola (NYSE:KO) or Reeds (NASDAQ:REED)?
By analyzing existing technical and fundamental indicators between Reeds and Coca Cola, you can compare the effects of market volatilities on both companies' prices and check if they can diversify away market risk if combined in one of your portfolios. You can also utilize pair trading strategies for matching a long position in Coca Cola with a short position in Reeds. Check out our pair correlation module for more information.

Let's begin by analyzing the assets.
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Reeds has an asset utilization ratio of 191.88 percent. This indicates that the company is making $1.92 for each dollar of assets. An increasing asset utilization means that Reeds Inc is more efficient with each dollar of assets it utilizes for everyday operations.
Out of tens of thousands of stocks, funds, and ETFs that trade on global exchanges each represent an individual company which you can analyze using comparative analysis. To determine which one of the two companies, such as Reeds or Coca Cola is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step.

How important is Reeds's Liquidity

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

Correlation Between Reeds and Coca-Cola

In general, stock analysis is a method for investors and traders to make individual buying and selling decisions. Stock correlation analysis is also essential because it can help investors realize that they may not be as diversified as they think. Risk management strategies are usually required to make sure all portfolios are properly aligned against their risk tolerance level. You can consider holding Reeds together with similar or unrelated positions with a negative correlation. For example, you can also add Coca Cola to your portfolio. If Coca Cola is not perfectly correlated to Reeds it will diversify some of the market risks out of the positively correlated stocks in your portfolio. However, the disadvantage of this sort of hedging is that it can potentially affect your investment returns throughout market cycles. When Reeds for example, for example, performs excellent and delivers stable returns, the negatively correlated position you locked in as a hedge may drag your returns down.
Please check pair correlation details between REED and KO for more information.


Are you currently holding both Reeds and Coca Cola in your portfolio?
Please note if you are using this as a pair-trade strategy between Reeds and Coca Cola, watch out for correlation discrepancy over time. Relying on the historical price correlations and assuming that it will not change may lead to short-term losses.

What is driving Reeds Investor Appetite?

Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include product or services discounts, promotions, as well as early payments on invoices or services rendered in advance.

Revenue Breakdown

Lets now check Reeds revenue. Based on the latest financial disclosure, Reeds Inc reported 38.09 M of revenue. This is 99.74% lower than that of the Consumer Defensive sector and significantly higher than that of the Beverages?Non-Alcoholic industry. The revenue for all United States stocks is 99.6% higher than that of Reeds. As for Coca Cola we see revenue of 33.01 B, which is much higher than that of the Beverages?Non-Alcoholic

33 B
REED38.09 Million0.12
KO33.01 Billion99.88

Will Reeds shareholders exit after the dip?

Latest sortino ratio is at 0.22. Reeds Inc is displaying above-average volatility over the selected time horizon. Investors should scrutinize Reeds Inc independently to ensure intended market timing strategies are aligned with expectations about Reeds volatility. Reeds Inc is a potential penny stock. Although Reeds 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 Reeds Inc. 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 Reeds 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.

Although some other entities under the beverages?non-alcoholic industry are still a bit expensive, Reeds may offer a potential longer-term growth to shareholders. To sum up, as of the 30th of March 2021, we see that Reeds moves indifferently to market moves. The firm is undervalued with low probability of distress within the next 24 months. However, our primary 30 days buy-or-sell advice on the firm 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 Reeds Inc. Please refer to our Terms of Use for any information regarding our disclosure principles.

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