The company is losing money quicker than ever and there is very minimal hope. This wouldn’t be surprise to the market, but rather another obstacle the retail space would have to overcome and adjust too. Might there be some fallout, sure. Malls could begin to lose foot traffic affecting other stores, but as investors you have to look at other areas or be patient and find the investments that are offering value during this current phase.
Typically, a company's
financial statements are the reports that show the
financial position of the company. There are three main documents that fall into the category of financial statements. These documents include Global X income statement, its balance sheet, and the statement of cash flows. Potential Global X investors and stakeholders use financial statements to determine how well the company is positioned to perform in the future. Although Global X investors may use each financial statement separately, they are all related. The changes in Global X's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Global X's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet, but not equivalent to net income shown on the income statement. Please read more on our
technical analysis and
fundamental analysis pages.
The goal of Global X
fundamental analysis is to do accurate financial forecasts. There are several possible objectives to fundamental analysis, such as projecting of Global X performance into the future periods or doing a reasonable stock valuation. The intrinsic value of Global X shares is the value that is considered the true value of the share. If
the intrinsic value of Global is higher than its market price, buying is generally recommended. If it is equal to the market price, it is recommended to hold; and if it is less than the market price, then one should sell all shares Global X. Please read more on our
fundamental analysis page.
How important is Global X's Liquidity
Global X
financial leverage refers to using borrowed capital as a funding source to finance Global X Funds ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Global X 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. Financial leverage can amplify the potential profits to Global X's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Global X's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the
breakdown between Global X's total debt and its cash.
Sector Allocation
Exchange-Traded Funds use many different techniques to achieve diversification. One of the ways Global X ETF is managing risk is by picking assets from different sectors and across various asset classes. It helps to ensure that returns are uncorrelated, and risk is spread across the underlying asset classes and industries. Within the same asset class, diversification can be achieved by investing in various investment styles through cross-sector allocation. Below map breaks down Global X sector allocation.
VolatilityAn Additional Perspective On Global X Funds
What should you do if you are invested in this stock, and that would be to probably look for an exit strategy. Provided a miracle doesn’t happen, it may be the end of Sears and their long reign as a retailer people used to know and love. Think of the retails space going through the change as we did when the Internet became the norm. New people rose and others faded, the same is happening here.
If you were looking at investing in Sears, you should look elsewhere as this is a sinking ship and the captain appears to be going down with it. Search for value and other companies who are hurting, but due to the market conditions rather than a cash flow issue, as this can provide you with some value when the market returns and the company begins to grow again.
There was a jump in the stock when the company posted numbers that were bad, but not as bad as people where thinking. This could simply be a dead cat bounce, but if you still have interest in the company, exercise caution and be sure to take a good long look at the fundamentals and if the company can sustain into the future. Consult an investing professional if you are stuck and looking for a position to enter in replacement or if you are just looking for retail exposure. Equities in this realm will likely be at a discount and now may be the time to dig in and find the diamond in the rough.
Building efficient market-beating portfolios requires time, education, and a lot of computing power!
The Portfolio Architect is an AI-driven system that provides multiple benefits to our users by leveraging cutting-edge machine learning algorithms, statistical analysis, and predictive modeling to automate the process of asset selection and portfolio construction, saving time and reducing human error for individual and institutional investors.
Try AI Portfolio ArchitectEditorial Staff
Nathan Young is a Senior Member of Macroaxis Editorial Board - US Equity Analysis. With years of experience in the financial sector, Nathan brings a diverse base of knowledge. Specifically, he has in-depth understanding of application of technical and fundamental analysis across different equity instruments. Utilizing SEC filings and technical indicators, Nathan provides a reputable analysis of companies trading in the United States.
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 Nathan Young do not own shares of Global X Funds. Please refer to our
Terms of Use for any information regarding our disclosure principles.
Would you like to provide feedback on the content of this article?
You can get in touch with us directly or send us a quick note via email to
editors@macroaxis.com