Safeguard Story

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SFE -- USA Stock  

USD 6.65  0.16  2.47%

The predictive indicators we use to evaluate Safeguard help investors to analyze its daily demand and supply, volume, patterns, and price swings to determine the real value of Safeguard Scientifics. We apply different methods to arrive at the intrinsic value of Safeguard based on widely used predictive technical indicators. Let's first try to digest why Safeguard Scientifics investors are seeking stability amid unprecedented economic uncertainty.
Published over a month ago
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Is Safeguard Scientifics (NYSE:SFE) gaining more confidence from shareholders?
On a scale of 0 to 100, Safeguard Scientifics holds a performance score of 6. The entity has a beta of 1.3318, which indicates a somewhat significant risk relative to the market. Let's try to break down what Safeguard's beta means in this case. As the market goes up, the company is expected to outperform it. However, if the market returns are negative, Safeguard Scientifics will likely underperform. Although it is vital to follow Safeguard Scientifics current price movements, it is good to be conservative about what you can do with the information regarding equity historical returns. The philosophy 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 inspecting Safeguard Scientifics technical indicators, you can presently evaluate if the expected return of 0.31% will be sustainable into the future. Please operates Safeguard Scientifics total risk alpha, expected short fall, market facilitation index, as well as the relationship between the value at risk and daily balance of power to make a quick decision on whether Safeguard Scientifics existing price patterns will revert.
The successful prediction of Safeguard Scientifics stock price could yield a significant profit to investors. But is it possible? The efficient-market hypothesis suggests that all published stock prices of traded companies, such as Safeguard Scientifics, already reflect all publicly available information. This academic statement is a fundamental principle of many financial and investing theories used today. However, the typical investor usually disagrees with a 'textbook' version of this hypothesis and continually tries to find mispriced stocks to increase returns. We use internally-developed statistical techniques to arrive at the intrinsic value of Safeguard Scientifics based on Safeguard Scientifics hews, social hype, general headline patterns, and widely used predictive technical indicators.
We also calculate exposure to Safeguard Scientifics's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Safeguard Scientifics's related companies.

Use Technical Analysis to project Safeguard expected Price

Safeguard Scientifics technical stock analysis exercises models and trading practices based on price and volume transformations, such as the moving averages, relative strength index, regressions, price and return correlations, business cycles, stock market cycles, or different charting patterns.
A focus of Safeguard Scientifics technical analysis is to determine if market prices reflect all relevant information impacting that market. A technical analyst looks at the history of Safeguard Scientifics trading pattern rather than external drivers such as economic, fundamental, or social events. It is believed that price action tends to repeat itself due to investors' collective, patterned behavior. Hence technical analysis focuses on identifiable price trends and conditions. More Info...

How 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)

What is driving Safeguard Scientifics Investor Appetite?

The latest surge in Safeguard Scientifics short term price appreciation created some momentum for shareholders as it was traded today as low as 7.53 and as high as 7.98 per share. The company management teams have successfully maneuvered the company at convenient times to take advantage of all market conditions in February. The stock standard deviation of daily returns for 30 days investing horizon is currently 3.21. The above-average risk is mostly attributed to market volatility and speculations regarding some of the upcoming earning calls from Safeguard Scientifics partners.
 2020 2021 (projected)
PPandE Turnover4.954.92
Long Term Debt to Equity0.580.63

Deferred Revenue Breakdown

Safeguard Scientifics Deferred Revenue is decreasing over the years with stable fluctuation. Ongoing Deferred Revenue is projected to grow to about 5.4 M this year. Deferred Revenue usually refers to a component of Total Liabilities representing the carrying amount of consideration received or receivable on potential earnings that were not recognized as revenue; including sales; license fees; and royalties; but excluding interest income. Safeguard Scientifics Deferred Revenue is projected to decrease significantly based on the last few years of reporting. The past year's Deferred Revenue was at 4.09 Million
2010
2011
2020
2021
20109.61 Million
20113.56 Million
20204.09 Million
20215.38 Million

Will Safeguard shareholders exit after the dip?

Latest Sortino Ratio is up to 0.1. Price may dip again. Safeguard Scientifics currently demonstrates below-average downside deviation. It has Information Ratio of 0.08 and Jensen Alpha of 0.22. However, we advise investors to further question Safeguard Scientifics expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Safeguard Scientifics' stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Safeguard Scientifics' stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Although other companies under the asset management industry are still a bit expensive, Safeguard Scientifics may offer a potential longer-term growth to shareholders. The bottom line, as of the 4th of March 2021, we see that Safeguard Scientifics responds to the market. The firm is overvalued with very low odds of distress within the next 24 months. However, our ongoing 30 days buy-hold-sell recommendation on the firm 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 Gabriel Shpitalnik 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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