Sonoma Story

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SNOA -- USA Stock  

USD 8.11  0.06  0.73%

Sonoma Pharmaceuticals is currently generating 0.4739% in daily expected returns and assumes 6.6577% risk (volatility on return distribution) over the 60 days horizon. While some of us are excited about healthcare space, it makes sense to go over Sonoma Pharmaceuticals in greater detail to make a better estimate of its risk and reward. We will analyze why it could be a different year for Sonoma Pharmaceuticals shareholders. The current Sonoma risk factors may impact the value of the stock as we estimate Sonoma Pharmaceuticals as currently fairly valued. The real value is approaching 8.86 per share.
Published over a month ago
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Sonoma Pharmaceuticals (NASDAQ:SNOA) high volatility trend continues
Sonoma Pharmaceuticals conducts business under Healthcare sector and is part of Drug Manufacturers?Specialty & Generic industry. On a scale of 0 to 100, Sonoma Pharmaceuticals holds a performance score of 5. The entity has a beta of -0.075, which indicates not very significant fluctuations relative to the market. Let's try to break down what Sonoma's beta means in this case. As returns on the market increase, returns on owning Sonoma Pharmaceuticals are expected to decrease at a much lower rate. During the bear market, Sonoma Pharmaceuticals is likely to outperform the market. Although it is vital to follow Sonoma Pharmaceuticals 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 Sonoma Pharmaceuticals technical indicators, you can presently evaluate if the expected return of 0.47% will be sustainable into the future. Please operates Sonoma Pharmaceuticals variance, maximum drawdown, as well as the relationship between the Maximum Drawdown and semi variance to make a quick decision on whether Sonoma Pharmaceuticals existing price patterns will revert.
Volatility is a rate at which the price of Sonoma Pharmaceuticals or any other equity instrument increases or decreases for a given set of returns. It is measured by calculating the standard deviation of the annualized returns over a given period of time and shows the range to which the price of Sonoma Pharmaceuticals may increase or decrease. In other words, similar to Sonoma's beta indicator, it measures the risk of Sonoma Pharmaceuticals and helps estimate the fluctuations that may happen in a short period of time. So if prices of Sonoma Pharmaceuticals fluctuate rapidly in a short time span, it is termed to have high volatility, and if it swings slowly in a more extended period, it is understood to have low volatility. Please read more on our technical analysis page.

How important is Sonoma Pharmaceuticals's Liquidity

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

How Sonoma utilizes its cash?

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

Acquisition by Bruce Thornton of 27777 shares of Sonoma Pharmaceuticals subject to Rule 16b-3

Legal trades by Sonoma Pharmaceuticals insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
Sonoma insider trading alert for grant of stock option (right to buy) by Bruce Thornton, COO, on 13th of January 2021. This event was filed by Sonoma Pharmaceuticals In with SEC on 2021-01-13. Statement of changes in beneficial ownership - SEC Form 4. Bruce Thornton currently serves as executive vice president - international operations and sales of Sonoma Pharmaceuticals [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

Breaking it down

The current price rise of Sonoma Pharmaceuticals created some momentum for investors as it was traded today as low as 6.21 and as high as 6.36 per share. The company directors and management may have good odds in positioning the company resources to exploit market volatility in January. The stock standard deviation of daily returns for 30 days investing horizon is currently 6.66. The very high volatility is mostly attributed to the latest market swings and not very good earnings reports from some of the Sonoma Pharmaceuticals partners.

Is Sonoma Pharmaceuticals getting off balance?

Jensen alpha is down to 0.47. It may suggest a possible volatility slip. As of the 12th of December 2020, Sonoma Pharmaceuticals has the Risk Adjusted Performance of 0.0911, semi deviation of 3.03, and Coefficient Of Variation of 1401.09. In relation to fundamental indicators, the technical analysis model makes it possible for you to check existing technical drivers of Sonoma Pharmaceuticals, as well as the relationship between them. In other words, you can use this information to find out if the company will indeed mirror its model of past prices and volume data, or the prices will eventually revert. We have collected data for nineteen technical drivers for Sonoma Pharmaceuticals, which can be compared to its competition. Please validate Sonoma Pharmaceuticals variance, maximum drawdown, as well as the relationship between the Maximum Drawdown and semi variance to decide if Sonoma Pharmaceuticals is priced more or less accurately, providing market reflects its prevalent price of 6.25 per share. Given that Sonoma Pharmaceuticals has jensen alpha of 0.4673, we advise you to double-check Sonoma Pharmaceuticals's current market performance to make sure the company can sustain itself at a future point.

Our Conclusion on Sonoma Pharmaceuticals

Whereas other entities in the drug manufacturers?specialty & generic industry are either recovering or due for a correction, Sonoma may not be as strong as the others in terms of longer-term growth potentials. The inconsistency in the assessment between current Sonoma valuation and our trade advice on Sonoma Pharmaceuticals is due to the recent market swings and your selection of investing horizon. 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 Sonoma Pharmaceuticals.

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 Ellen Johnson do not own shares of Sonoma Pharmaceuticals. Please refer to our Terms of Use for any information regarding our disclosure principles.

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