Red Lions Story

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RLH -- USA Stock  

USD 3.41  0.01  0.29%

It seems as Red Lions will continue to recover much faster as its share price surged up 28.15% today. The entity's current daily volatility is 5.0 percent, with a beta of 0.01 and an alpha of 0.84 over DOW. As many millenniums are excited about hotels, it is only fair to concentrate on Red Lions Hotels. We will analyze why Red Lions investors may still consider a stake in the business.
Published over three weeks ago
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Should we continue shadow Red Lions (NYSE:RLH) executives?
Red Lions Hotels has roughly 33.97 M in cash with (4.14 M) of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 1.33. The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Red Lions has an asset utilization ratio of 23.43 percent. This implies that the company is making $0.23 for each dollar of assets. An increasing asset utilization means that Red Lions Hotels is more efficient with each dollar of assets it utilizes for everyday operations.
Investing in Red Lions, 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 Red Lions 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.
Sophisticated investors, who have witnessed many market ups and downs, frequently view the market will even out over time. This tendency of Red Lions' stock price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy. Please use the tools below to analyze the current value of Red Lions in the context of predictive analytics.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as Red Lions. Your research has to be compared to or analyzed against Red Lions' peers to derive any actionable benefits. When done correctly, Red Lions' competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy towards taking a position in Red Lions Hotels.

How important is Red Lions's Liquidity

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

How Red Lions utilizes its cash?

To perform a cash flow analysis of Red Lions, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Red Lions is receiving and how much cash it distributes out in a given period. The Red Lions cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities. Red Lions Net Cash Flow from Operations is most likely to decrease significantly in the upcoming years. The last year's value of Net Cash Flow from Operations was reported at 6.19 Million

Red Lions Correlation with Peers

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

Acquisition by Ted Darnall of 5131 shares of Red Lions subject to Rule 16b-3

Legal trades by Red Lions 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:
Red Lions insider trading alert for grant of common stock by Ted Darnall, the corporate stakeholder, on 6th of January 2021. This event was filed by Red Lion Hotels Corp with SEC on 2021-01-06. 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.

An Additional Perspective On Red Lions Hotels

Red Lions appears to be very risky, given 1 month investment horizon. Red Lions Hotels maintains Sharpe Ratio (i.e. Efficiency) of 0.17, which implies the firm had 0.17% of return per unit of risk over the last month. Our standpoint towards forecasting the volatility of a stock is to use all available market data together with stock specific technical indicators that cannot be diversified away. By analyzing Red Lions Hotels technical indicators you can presently evaluate if the expected return of 0.87% is justified by implied risk. Please employ Red Lions Hotels Coefficient Of Variation of 578.41, semi deviation of 2.6, and Risk Adjusted Performance of 0.1881 to confirm if our risk estimates are consistent with your expectations.
Click cells to compare fundamentals   Check Volatility   Backtest Portfolio

Our perspective of the current Red Lions rise

Current risk adjusted performance is at 0.19. Red Lions Hotels shows above-average downside volatility for the selected time horizon. We advise investors to inspect Red Lions Hotels further and ensure that all market timing and asset allocation strategies are consistent with the estimation of Red Lions future alpha.

Our Conclusion on Red Lions

While few other entities under the lodging industry are still a bit expensive, Red Lions may offer a potential longer-term growth to stockholders. On the whole, as of the 1st of January 2021, our analysis shows that Red Lions barely shadows the market. The company is overvalued and projects low chance of financial distress for the next 2 years. However, our overall 30 days buy-hold-sell advice on the company is Buy.

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 Red Lions Hotels. Please refer to our Terms of Use for any information regarding our disclosure principles.

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