On the bright side, the company announced they will be sending out a holiday catalogue. This is an interesting move as fewer and fewer people site and go through this type of media. However, there is nostalgia in flipping through a catalogue, marking the pages and telling people what you want for the holidays. This could be another one of their hail marry attempts, but it is better than just standing there watching the company burn.
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
One area that Sears will greatly affect that may come as a shock factor is the amount of anchor stores they occupy in malls across America. If you take the time next time you are at or drive past a mall, note the anchor stores and what would happen if they leave. This can affect how people shop and if other stores leave. Also, if you are invested in real estate, be sure to review how a fallout such as this can affect your portfolio. Simon Capital is a company that deals in malls and research their fundamentals and see if it is the same across similar companies.
In my opinion, it is only a matter of time before we say farewell to Sears. However, I think we are going to be affected in a greater capacity then many think. The side effects of a company this large going away will certainly force the market to adjust. Sears occupies large store fronts and it may be difficult for another company to fill the spaces. Redevelopment is an option and it has been done in the past with similar spaces. Amazon is looking to have a small retail presences but to think they will fill some of these stores is a stretch. I think as investors we can anticipate an initial shock and then a period of adjusting, that is if Sears in fact closes. Being a negative Nancy is not what I enjoy doing, but sometimes as investors we have to swallow a bitter pill and move on. This once giant has served us well, but a change of the guard is in order.
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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
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