Sonoma Story

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SNOA -- USA Stock  

USD 8.17  0.06  0.73%

It appears Sonoma Pharmaceuticals will continue to recover much faster as its share price surged up 42.90% today. The entity's current daily volatility is 6.61 percent, with a beta of -0.07 and an alpha of 0.47 over DOW. While some millenniums are indifferent towards elevated trading volume, it makes sense to go over Sonoma Pharmaceuticals. We will evaluate why we are still optimistic in anticipation of a recovery.
Published over a month ago
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Will Sonoma Pharmaceuticals (NASDAQ:SNOA) current volatility rise scare investors?
Sonoma Pharmaceuticals conducts business under Healthcare sector and is part of Drug Manufacturers?Specialty & Generic industry.
Investing in Sonoma Pharmaceuticals, just like investing in any other equity instrument, is characterized by a strong risk-return correlation. High risks mean high returns and low risk means lower expected returns. Risk management is the act of identifying and assessing the potential risk and developing strategies to minimize these risks and earn maximum possible profits while holding Sonoma Pharmaceuticals along with other instruments in the same portfolio. Using conventional technical analysis and fundamental analysis to select individual securities into a portfolio complements risk management and adds value to overall investors' investing strategies.
Sophisticated investors, who have witnessed many market ups and downs, frequently view the market will even out over time. This tendency of Sonoma Pharmaceuticals' stock price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy. Please use the tools below to analyze the current value of Sonoma Pharmaceuticals in the context of predictive analytics.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as Sonoma Pharmaceuticals. Your research has to be compared to or analyzed against Sonoma Pharmaceuticals' peers to derive any actionable benefits. When done correctly, Sonoma Pharmaceuticals' competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy towards taking a position in Sonoma Pharmaceuticals.

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.

Sonoma Pharmaceuticals Correlation with Peers

Investors in Sonoma can reduce exposure to individual asset risk by holding a diversified portfolio of assets in addition to a long position in Sonoma Pharmaceuticals. Diversification will allow for the same portfolio return with reduced risk. The correlation table of Sonoma Pharmaceuticals and its peers is a two-dimensional matrix that shows the correlation coefficient between pairs of securities Sonoma is related in some way. The cells in the table are color-coded to highlight significantly positive and negative relationships. Each cell shows the correlation between one pair of equities and can be used to run pair trading strategies or create efficient portfolios with your current brokerage. Please check volatility of Sonoma for more details

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

Sonoma Pharmaceuticals appears to be moderately volatile, given 1 month investment horizon. Sonoma Pharmaceuticals owns Efficiency Ratio (i.e. Sharpe Ratio) of 0.0706, which indicates the firm had 0.0706% of return per unit of risk over the last month. Our standpoint towards measuring the volatility of a stock is to use all available market data together with stock specific technical indicators that cannot be diversified away. We have found twenty-seven technical indicators for Sonoma Pharmaceuticals, which you can use to evaluate future volatility of the company. Please operate Sonoma Pharmaceuticals Coefficient Of Variation of 1401.09, risk adjusted performance of 0.0911, and Semi Deviation of 3.03 to confirm if our risk estimates are consistent with your expectations.
Click cells to compare fundamentals   Check Volatility   Backtest Portfolio

Over 3 percent rise for Sonoma Pharmaceuticals. What does it mean for investors?

Sonoma Pharmaceuticals current coefficient of variation builds up over 1401.09. Sonoma Pharmaceuticals is displaying above-average volatility over the selected time horizon. Investors should scrutinize Sonoma Pharmaceuticals independently to ensure intended market timing strategies are aligned with expectations about Sonoma Pharmaceuticals volatility.

Our Conclusion on Sonoma Pharmaceuticals

Whereas some firms within the drug manufacturers?specialty & generic industry are still a little expensive, even after the recent corrections, Sonoma Pharmaceuticals may offer a potential longer-term growth to investors. 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 Achuva Shats 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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