Supercom Story

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SPCB -- USA Stock  

USD 1.34  0.10  6.94%

Despite somewhat weak fundamental indicators, Supercom may actually be approaching a critical reversion point that can send shares even higher in April 2021. Supercom follows the market closely. We can now analyze Supercom as a potential investment option for your portfolios.
Published over three weeks ago
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Does Supercom (NASDAQ:SPCB) have strong fundamental indicators based on the current rise?
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.
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 Supercom income statement, its balance sheet, and the statement of cash flows. Potential Supercom investors and stakeholders use financial statements to determine how well the company is positioned to perform in the future. Although Supercom investors may use each financial statement separately, they are all related. The changes in Supercom's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Supercom'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 Supercom fundamental analysis is to do accurate financial forecasts. There are several possible objectives to fundamental analysis, such as projecting of Supercom performance into the future periods or doing a reasonable stock valuation. The intrinsic value of Supercom shares is the value that is considered the true value of the share. If the intrinsic value Supercom 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 Supercom.
Please read more on our fundamental analysis page.

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.

Are Supercom Earnings Expected to grow?

The future earnings power of Supercom involves the interaction of many company-specific, industry, and economic forces. Earnings estimates embody investors' opinions of Supercom factors such as sales growth, product demand, competitive industry environment, profit margins, and cost controls. Supercom stock prices adjust as these expectations change or are proven wrong. The main thing to remember is that equities with high expected earnings growth tend to underperform the market because it is usually difficult to meet the market's high expectations. Companies with low earnings expectations tend to do better than expected. Please use our latest analysis of Supercom expected earnings.

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.

Is Supercom valued fairly by the market?

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 Supercom is not uncomon. Many companies such as Supercom have both institutions investors and insiders sharing the ownership. Retail investors typically buy and sell stocks in round lots of 100 shares or more. Other other hand institutional investors are known to buy and sell in block trades of 10,000 shares or more. Let's take a look at how the ownership of Supercom is distributed among investors.

Ownership Allocation

Supercom shows a total of eighteen million seven hundred ninety thousand outstanding shares. Supercom 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
Retail Investors61.34

Will Supercom growth be justifiable after the rise?

Current Total Risk Alpha is up to -0.05. Price may slip again. Supercom is displaying above-average volatility over the selected time horizon. Investors should scrutinize Supercom independently to ensure intended market timing strategies are aligned with expectations about Supercom volatility. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Supercom's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Supercom's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

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 conclude, as of the 20th of March 2021, we believe that at this point, Supercom is undervalued with below average chance of bankruptcy within the next 2 years. Our ongoing buy vs. sell advice 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 Raphi Shpitalnik do not own shares of Supercom. Please refer to our Terms of Use for any information regarding our disclosure principles.

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