SANW SW Seed stock Story

SANW -  USA Stock  

USD 3.62  0.02  0.56%

Given the investment horizon of 90 days, SW Seed is expected to generate 1.08 times less return on investment than the market. In addition to that, the company is 4.13 times more volatile than its market benchmark. It trades about 0.02 of its total potential returns per unit of risk. The DOW is currently generating roughly 0.07 per unit of volatility. As many old-fashioned traders are trying to avoid consumer defensive space, it makes sense to focus on SW Seed Company a little further and try to understand its current volatility patterns. We are going to recap if the current expected returns justify SW Seed's volatility. SW Seed high volatility, while potentially profitable, can lead to more considerable losses for your portfolios.
Published over six months ago
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How risky is to double down on SW Seed in December?
The company conducts business under Consumer Defensive sector and is part of Farm Products industry. SW Seed has performance score of 1 on a scale of 0 to 100. The entity owns a Beta (Systematic Risk) of 0.6086, which indicates possible diversification benefits within a given portfolio. Let's try to break down what SW Seed's beta means in this case. As returns on the market increase, SW Seed returns are expected to increase less than the market. However, during the bear market, the loss on holding SW Seed will be expected to be smaller as well. Although it is extremely important to respect SW Seed Company existing price patterns, it is better to be realistic regarding the information on equity price patterns. The approach towards measuring 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 SW Seed Company technical indicators, you can at this time evaluate if the expected return of 0.0838% will be sustainable into the future. SW Seed Company at this moment owns a risk of 5.03%. Please validate SW Seed Company value at risk, and the relationship between the information ratio and kurtosis to decide if SW Seed Company will be following its current price history.
Volatility is a rate at which the price of SW Seed or any other equity instrument increases or decreases for a given set of returns. It is measured by calculating the standard deviation of the annualized returns over a given period of time and shows the range to which the price of SW Seed may increase or decrease. In other words, similar to SANW SW Seed's beta indicator, it measures the risk of SW Seed and helps estimate the fluctuations that may happen in a short period of time. So if prices of SW Seed fluctuate rapidly in a short time span, it is termed to have high volatility, and if it swings slowly in a more extended period, it is understood to have low volatility.
Please read more on our technical analysis page.

How important is SW Seed's Liquidity

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

How SANW SW Seed utilizes its cash?

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

Breaking it down a bit more

SW Seed Company reported the previous year's revenue of 79.58 M. Net Loss for the year was (19.67 M) with profit before overhead, payroll, taxes, and interest of 14.93 M.

Will SW Seed growth be reliable after the climb?

Latest semi variance is at 10.7. SW Seed Company shows above-average downside volatility for the selected time horizon. We advise investors to inspect SW Seed Company further and ensure that all market timing and asset allocation strategies are consistent with the estimation of SW Seed future alpha.

Our Conclusion on SW Seed

While some companies under the farm products industry are still a bit expensive, SW Seed may offer a potential longer-term growth to sophisticated investors. The inconsistency in the assessment between current SW Seed valuation and our trade advice on SW Seed 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 SW Seed.

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 Ellen Johnson do not own shares of SW Seed Company. Please refer to our Terms of Use for any information regarding our disclosure principles.

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