Supercom Story

<div class='circular--portrait' style='background:#FF01C9;color: #E6E6FA;font-size:4em;'>SU</div>
SPCB -- USA Stock  

USD 1.34  0.10  6.94%

It appears Supercom will continue to recover much faster as its share price surged up 54.48% today. Supercom current daily volatility is 11.35 percent, with a beta of 0.88 and an alpha of 1.53 over DOW. As many of us are excited about saving accounts, it is fair to go over Supercom. We will cover the possibilities of making Supercom into a steady grower in April.
Published over three weeks ago
View all stories for Supercom | View All Stories
Is Supercom (NASDAQ:SPCB) stock way too aggressive for baby boomers?
The company conducts business under Industrials sector and is part of Security & Protection Services industry.
We provide advice to complement the current expert consensus on Supercom. Our dynamic recommendation engine harnesses a multidimensional algorithm to analyze the firm's potential to grow using all technical and fundamental data available at the time.
Investing in Supercom, 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 Supercom 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 Supercom's 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 Supercom 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 Supercom. Your research has to be compared to or analyzed against Supercom's peers to derive any actionable benefits. When done correctly, Supercom's 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 Supercom.

Watch out for price decline

Please consider monitoring Supercom on a daily basis if you are holding a position in it. Supercom is trading at a penny-stock level, and the possibility of delisting is much higher compared to other equities. However, just because the stock is trading under one dollar, does not mean it will be marked for deletion. Most exchanges require public instruments, such as Supercom stock to be traded above the $1 level to remain listed. If Supercom stock price falls below $1 for 30 consecutive trading days, the exchange can delist it. Once the company reaches this point, they will be sent an initial price violation notice directly from an exchange.

How important is Supercom's Liquidity

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

How Supercom utilizes its cash?

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

Supercom Correlation with Peers

Investors in Supercom can reduce exposure to individual asset risk by holding a diversified portfolio of assets in addition to a long position in Supercom. Diversification will allow for the same portfolio return with reduced risk. The correlation table of Supercom and its peers is a two-dimensional matrix that shows the correlation coefficient between pairs of securities Supercom 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 Supercom for more details

Is Supercom valued fairly by the market?

Supercom is dangerous given 1 month investment horizon. Supercom owns Efficiency Ratio (i.e. Sharpe Ratio) of 0.15, which indicates the firm had 0.15% 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 were able to break down twenty-one different technical indicators, which can help you to evaluate if expected returns of 1.71% are justified by taking the suggested risk. Use Supercom Semi Deviation of 5.79, risk adjusted performance of 0.1342, and Coefficient Of Variation of 661.71 to evaluate company specific risk that cannot be diversified away.
ASAZY
SOMLF
ALLE
SCTBF
MSA
ASAZY
-0.390.44-0.030.67
ASAZY
SOMLF
-0.39-0.42-0.560.14
SOMLF
ALLE
0.44-0.420.320.01
ALLE
SCTBF
-0.03-0.560.32-0.58
SCTBF
MSA
0.670.140.01-0.58
MSA
ASAZY
SOMLF
ALLE
SCTBF
MSA
Click cells to compare fundamentals   Check Volatility   Backtest Portfolio

Another 3 percent rise for Supercom

Current expected short fall is at -8.79.
As of the 19th of March, Supercom has the Risk Adjusted Performance of 0.1342, coefficient of variation of 661.71, and Semi Deviation of 5.79. In relation to fundamental indicators, the technical analysis model makes it possible for you to check existing technical drivers of Supercom, 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 were able to break down nineteen technical drivers for Supercom, which can be compared to its competition. Please validate Supercom treynor ratio, as well as the relationship between the potential upside and expected short fall to decide if Supercom is priced more or less accurately, providing market reflects its prevalent price of 2.24 per share. Please also confirm Supercom total risk alpha, which is currently at (0.046459) to double-check the company can sustain itself at a future point.

Our Bottom Line On Supercom

Whereas other companies within the security & protection services industry are still a little expensive, even after the recent corrections, Supercom may offer a potential longer-term growth to investors. To sum up, as of the 19th of March 2021, we believe that at this point, Supercom is undervalued with below average probability of bankruptcy within the next 2 years. Our concluding Buy-Hold-Sell recommendation on the company is Hold.

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 Vlad Skutelnik do not own shares of Supercom. 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