Superconductor Story

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SCON -- USA Stock  

USD 1.04  0.01  0.95%

Superconductor Techn is scheduled to announce its earnings today. While some of us are becoming more enthusiastic about technology space, let's outline Superconductor in greater detail to make a better estimate of its debt utilization. Let's try to inspect if Superconductor shares are reasonably priced going into December.
Published over three weeks ago
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Will Superconductor (OTC:SCON) be in financial trouble before December?
The company has a current ratio of 4.65, suggesting that it is liquid enough and is able to pay its financial obligations when due. The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Superconductor has an asset utilization ratio of 5.07 percent. This suggests that the company is making $0.0507 for each dollar of assets. An increasing asset utilization means that Superconductor is more efficient with each dollar of assets it utilizes for everyday operations.
Superconductor financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of Superconductor, including all of Superconductor's outstanding debt obligations, and compares it with the equity. In simple terms, the high financial leverage means the cost of production, together with running the business day-to-day, is high, whereas, lower financial leverage implies lower fixed cost investment in the business and generally considered by investors to be a good sign. So if creditors own a majority of Superconductor assets, the company is considered highly leveraged. Understanding the composition and structure of overall Superconductor debt and outstanding corporate bonds gives a good idea of how risky the capital structure of a business is and if it is worth investing in it. Please read more on our technical analysis page.

Watch out for price decline

Please consider monitoring Superconductor on a daily basis if you are holding a position in it. Superconductor is trading at a penny-stock level, and the possibility of delisting is much higher compared to other equities. However, just because the otc stock is trading under one dollar, does not mean it will be marked for deletion. Most exchanges require public instruments, such as Superconductor stock to be traded above the $1 level to remain listed. If Superconductor stock price falls below $1 for 30 consecutive trading days, the exchange can delist it. Once the company reaches this point, they will be sent an initial price violation notice directly from an exchange.

How important is Superconductor's Liquidity

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

How Superconductor utilizes its cash?

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

Superconductor exotic insider transaction detected

Legal trades by Superconductor 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:
Superconductor insider trading alert for general transaction of common stock by Allied Integral United Inc, the corporate stakeholder, on 7th of July 2020. This event was filed by Superconductor Technologi with SEC on 2020-07-07. Initial filing of beneficial ownership - SEC Form 3 [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.

A Deeper Perspective

Superconductor Techn reported the previous year's revenue of 729 K. Net Loss for the year was (6.13 M) with loss before overhead, payroll, taxes, and interest of (3.02 M).

Superconductor is getting wobbly

Latest coefficient of variation indicator falls down to -435.11. Possible price upswing? As of the 7th of November, Superconductor has the coefficient of variation of (435.11), and Risk Adjusted Performance of (0.26). In relation to fundamental indicators, the technical analysis model makes it possible for you to check existing technical drivers of Superconductor Techn, as well as the relationship between them. In other words, you can use this information to find out if the company will indeed mirror its model of past prices and volume data, or the prices will eventually revert. We were able to interpolate data for nineteen technical drivers for Superconductor, which can be compared to its competition. Please validate Superconductor Techn variance, value at risk, as well as the relationship between the Value At Risk and skewness to decide if Superconductor is priced more or less accurately, providing market reflects its prevalent price of 0.91 per share. Given that Superconductor Techn is a hitting penny stock territory we recommend to closely look at its total risk alpha.

Our Takeaway on Superconductor Investment

Whereas some other companies in the semiconductor equipment & materials industry are either recovering or due for a correction, Superconductor may not be performing as strong as the other in terms of long-term growth potentials. All things considered, as of the 7th of November 2020, our research shows that Superconductor is a rather out of control investment opportunity with a significantly high probability of distress in the next two years. From a slightly different view, the entity currently appears to be fairly valued. However, our primary 30 days buy-hold-sell advice on the company 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 Ellen Johnson do not own shares of Superconductor. Please refer to our Terms of Use for any information regarding our disclosure principles.

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