Red Lions Story

RLH -- USA Stock

USD 3.45 0.01 0.29%

Macroaxis Story

The stock goes through an active upward rally. While some stockholders are becoming indifferent towards consumer cyclical space, we are going to concentrate on the feasibility of locking in Red Lions as a potential hedging instrument for your current portfolios. We will cover the possibilities of Red Lions recovering given the current economic outlook.

Published over two weeks ago

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Do analysts believe Red Lions (NYSE:RLH) will continue to rise?

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.

What is the right price you would pay to acquire a share of Red Lions? For most investors, it would be the price that gives them a wide margin of safety to have minimal downside risk. In other words, most investors are always looking for undervalued stocks. Even if the future performance is not entirely as expected, the loss of holding it is minimized, and the downside risk is negated. Please read more on our stock advisor page.

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

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.

Is Red Lions a risky opportunity?

Let's check the volatility. Red Lions is looking slightly risky at this time. Whether you invest your money or manage your clients' funds, remember that it is easy to forget that behind Red Lions (NYSE:RLH) stock is an actual business venture. So, do not let stock picking become an abstract concept by ignoring the elementary risk calculations. locking in a share of a Red Lions stock makes you a part-owner of that company.

Our perspective of the current Red Lions rise

Risk adjusted performance is down to 0.19. It may hint to a possible volatility drop. As of the 3rd of January, Red Lions holds the Coefficient Of Variation of 578.41, risk adjusted performance of 0.1881, and Semi Deviation of 2.6. Compared to fundamental indicators, the technical analysis model allows you to check existing technical drivers of Red Lions, 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 nineteen technical drivers for Red Lions Hotels, which can be compared to its competitors. Please check Red Lions Hotels information ratio, as well as the relationship between the potential upside and kurtosis to decide if Red Lions Hotels is priced some-what accurately, providing market reflects its current price of 3.46 per share. Given that Red Lions has jensen alpha of 0.8352, we recommend you to check out Red Lions Hotels's recent market performance to make sure the company can sustain itself at a future point.

Our Final Takeaway

While some companies under the lodging industry are still a bit expensive, Red Lions may offer a potential longer-term growth to stockholders. The inconsistency in the assessment between current Red Lions valuation and our trade advice on Red Lions 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 Red Lions.

About Contributor

Raphi Shpitalnik is a Junior Member of Macroaxs Editorial Board. Raphael is a young entrepreneur who joined Macroaxis on a part-time base at the beginning of the pandemic and eventually acquired a real test for investing and fintech. He likes to analyze different equity instruments across a wide range of industries, focusing primarily on consumer products, sports, fintech, cannabis, and AI. View Profile

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

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