Sky Solar Story

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SKYS -- USA Stock  

USD 7.17  0.00  0.00%

Even with relatively weak basic indicators, Sky Solar may actually be approaching a critical reversion point that can send shares even higher in October 2020. Sky Solar Holdings probability of distress is under 39 percent. Will Sky Solar retail investors continue to take over in October?
Published over three weeks ago
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Does Sky Solar (NASDAQ:SKYS) have invariable basic indicators based on the latest spike?
Sky Solar is very risky given 1 month investment horizon. Sky Solar Holdings owns Efficiency Ratio (i.e. Sharpe Ratio) of 0.17, which indicates the firm had 0.17% of return per unit of risk over the last month. Our standpoint towards measuring the risk of a stock is to use both market data as well as company specific technical data. We are able to interpolate and collect twenty-eight different technical indicators, which can help you to evaluate if expected returns of 1.8% are justified by taking the suggested risk. Use Sky Solar Holdings Coefficient Of Variation of 897.4, risk adjusted performance of 0.136, and Semi Deviation of 5.51 to evaluate company specific risk that cannot be diversified away.
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 Sky Solar income statement, its balance sheet, and the statement of cash flows. Potential Sky Solar investors and stakeholders use financial statements to determine how well the company is positioned to perform in the future. Although Sky Solar investors may use each financial statement separately, they are all related. The changes in Sky Solar's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Sky Solar'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 Sky Solar fundamental analysis is to do accurate financial forecasts. There are several possible objectives to fundamental analysis, such as projecting of Sky Solar performance into the future periods or doing a reasonable stock valuation. The intrinsic value of Sky Solar shares is the value that is considered the true value of the share. If the intrinsic value Sky Solar 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 Sky Solar. Please read more on our fundamental analysis page.

How important is Sky Solar's Liquidity

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

How Sky Solar utilizes its cash?

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

Another Deeper Perspective

Although in the United States, the Securities and Exchange Commission has enforced strong rules to prevent insiders from engaging in insider trading, finding insiders among active shareholders of Sky Solar is not uncomon. Institutional investor usually refers to an organization that invests money in Sky Solar on behalf of clients or other money managers. Buying and selling of large positions of Sky Solar stock by institutional investors can create supply and demand imbalances that result in sudden price moves of Sky Solar stock. Let's take a look at how the ownership of Sky Solar is distributed among investors.

Ownership Allocation

Sky Solar Holdings shows a total of twenty million nine hundred eighty thousand outstanding shares. Sky Solar Holdings maintains significant amount of outstanding shares owned by insiders. An insider is usually defined as a CEO, other corporate executive, director, or institutional investor who own at least 10% of the company outstanding shares. Since such a large part of the company is owned by insiders, it is advisable to analyze if each of these insiders have been buying or selling the stock in recent months. Please note that no matter how much assets the company owns, if the real value of the company is less than the current market value, you may not be able to make money on it.

Retail Investors
69.09%
Insiders
25.53%
Institutions
5.38%
Retail Investors69.09
Insiders25.53
Institutions5.38

Our take on today Sky Solar spike

Latest coefficient of variation is at 897.4. Sky Solar Holdings is displaying above-average volatility over the selected time horizon. Investors should scrutinize Sky Solar Holdings independently to ensure intended market timing strategies are aligned with expectations about Sky Solar volatility.

Our Bottom Line On Sky Solar Holdings

While few other entities within the utilities?renewable industry are still a little expensive, even after the recent corrections, Sky Solar may offer a potential longer-term growth to retail investors. To sum up, as of the 26th of September 2020, we believe that at this point, Sky Solar is overvalued with below average probability of distress within the next 2 years. Our ongoing Buy-Hold-Sell recommendation on the enterprise 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 Raphi Shpitalnik do not own shares of Sky Solar Holdings. Please refer to our Terms of Use for any information regarding our disclosure principles.

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