Strata Story

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SSKN -- USA Stock  

USD 1.41  0.03  2.08%

Given the investment horizon of 90 days, Strata Skin is expected to generate 1.18 times less return on investment than the market. In addition to that, the company is 3.86 times more volatile than its market benchmark. It trades about 0.04 of its total potential returns per unit of risk. The DOW is currently generating roughly 0.19 per unit of volatility. As many old-fashioned traders are trying to avoid healthcare space, it makes sense to outline Strata Skin Sciences a little further and try to understand its current volatility patterns. What exactly are Strata Skin shareholders getting in September?
Published over a month ago
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Should you take over more of Strata (NASDAQ:SSKN) based on latest volatility?
Strata Skin Sciences conducts business under Healthcare sector and is part of Medical Devices industry. On a scale of 0 to 100, Strata Skin holds a performance score of 2. The entity has a beta of -0.2599, which indicates not very significant fluctuations relative to the market. Let's try to break down what Strata's beta means in this case. As returns on the market increase, returns on owning Strata Skin are expected to decrease at a much lower rate. During the bear market, Strata Skin is likely to outperform the market. Although it is vital to follow Strata Skin Sciences 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 Strata Skin Sciences technical indicators, you can presently evaluate if the expected return of 0.26% will be sustainable into the future. Please operates Strata Skin information ratio, potential upside, as well as the relationship between the Potential Upside and kurtosis to make a quick decision on whether Strata Skin Sciences existing price patterns will revert.
Volatility is a rate at which the price of Strata Skin 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 Strata Skin may increase or decrease. In other words, similar to Strata's beta indicator, it measures the risk of Strata Skin and helps estimate the fluctuations that may happen in a short period of time. So if prices of Strata Skin 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.

Watch out for price decline

Please consider monitoring Strata Skin on a daily bases if you are holding a position in it. Strata Skin 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 Strata Skin stock to be traded above the $1 level to remain listed. If Strata Skin 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 Strata Skin's Liquidity

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

How Strata utilizes its cash?

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

Acquisition by Rubinstein Samuel of 14228 shares of Strata Skin subject to Rule 16b-3

Legal trades by Strata Skin 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:
Strata Skin Sciences insider trading alert for grant of sskn common stock by Rubinstein Samuel, the corporate stakeholder, on November 26, 2019. This event was filed by Strata Skin Sciences Inc with SEC on 2019-11-26. Statement of changes in beneficial ownership - SEC Form 4 [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.

Detailed Perspective On Strata Skin

The entity reported the previous year's revenue of 30.83 M. Net Loss for the year was (3.49 M) with profit before overhead, payroll, taxes, and interest of 20.27 M.

Will Strata Skin continue to go insane?

The mean deviation is down to 4.03 as of today. Strata Skin Sciences is displaying above-average volatility over the selected time horizon. Investors should scrutinize Strata Skin Sciences independently to ensure intended market timing strategies are aligned with expectations about Strata Skin volatility.

Our Final Takeaway

Whereas some other companies in the medical devices industry are either recovering or due for a correction, Strata Skin may not be performing as strong as the other in terms of long-term growth potentials. To summarize, as of the 11th of August 2020, we believe Strata Skin is currently undervalued. It almost neglects market trends and projects very high chance of distress in the next two years. However, our current 30 days buy vs. sell advice on the company 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 Strata Skin Sciences. Please refer to our Terms of Use for any information regarding our disclosure principles.

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