SFE Safeguard stock Story

SFE -  USA Stock  

USD 6.92  0.10  1.42%

It looks as if Safeguard Scientifics may not have a good chance to recover from the latest dip as its shares fell again. The company's current daily volatility is 2.42 percent, with a beta of 0.02 and an alpha of 0.06 over DOW. As many millenniums are trying to avoid the latest volatility, we are going to digest Safeguard Scientifics Inc a little further to understand its historical price patterns. We will evaluate why recent Safeguard Scientifics price moves suggest a bounce in December.
Published over six months ago
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Should you take in Safeguard Scientifics Inc after the latest volatility surge?
Safeguard Scientifics Inc has roughly 13.61 M in cash with (13.56 M) of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 0.65. We provide advice to complement the current expert consensus on Safeguard Scientifics. Our dynamic recommendation engine harnesses a multidimensional algorithm to analyze the firm's potential to grow using all technical and fundamental data available at the time.
Investing in Safeguard Scientifics, 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 Safeguard Scientifics 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 Safeguard Scientifics' 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 Safeguard Scientifics 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 Safeguard Scientifics. Your research has to be compared to or analyzed against Safeguard Scientifics' peers to derive any actionable benefits. When done correctly, Safeguard Scientifics' 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 Safeguard Scientifics.

How important is Safeguard Scientifics's Liquidity

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

How SFE Safeguard utilizes its cash?

To perform a cash flow analysis of Safeguard Scientifics, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Safeguard Scientifics is receiving and how much cash it distributes out in a given period. The Safeguard Scientifics cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.
Safeguard Scientifics Net Cash Flow from Operations is projected to increase significantly based on the last few years of reporting. The past year's Net Cash Flow from Operations was at (8.14 Million)

Safeguard Scientifics Correlation with Peers

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

What is driving Safeguard Scientifics Investor Appetite?

Safeguard Scientifics New owns Efficiency Ratio (i.e. Sharpe Ratio) of -0.0075, which indicates the firm had -0.0075% of return per unit of risk over the last month. Macroaxis standpoint towards measuring the risk of any stock is to look at both systematic and unsystematic factors of the business, including all available market data and technical indicators. Safeguard Scientifics Inc exposes twenty-eight different technical indicators, which can help you to evaluate volatility that cannot be diversified away. Please be advised to validate Safeguard Scientifics Semi Deviation of 2.14, coefficient of variation of 3693.6, and Risk Adjusted Performance of 0.0363 to confirm the risk estimate we provide.
Click cells to compare fundamentals   Check Volatility   Backtest Portfolio

Will Safeguard price dip impact its balance sheet?

Latest mean deviation is at 1.94. Safeguard Scientifics Inc currently demonstrates below-verage downside deviation. It has Information Ratio of 0.02 and Jensen Alpha of 0.06. However, we do advice investors to further question Safeguard Scientifics Inc expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk.

Our Final Take On Safeguard Scientifics

Although some other firms in the asset management industry are either recovering or due for a correction, Safeguard may not be as strong as the others in terms of longer-term growth potentials. With an impartial outlook on the current market volatility, it may be better to hold off any inventment activity and neither purchase nor exit any shares of Safeguard Scientifics at this time. The Safeguard Scientifics Inc risk-reward trade off is not appealing enough to do any trading. 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 Safeguard Scientifics.

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 Safeguard Scientifics. Please refer to our Terms of Use for any information regarding our disclosure principles.

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