Strata Story

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SSKN -- USA Stock  

USD 1.41  0.03  2.08%

It looks like Abbott Laboratories will be up for a correction faster as its share price went up 0.98% today to Strata Skin's 6.15%As many rational traders are trying to avoid healthcare space, it makes sense to outline Strata Skin Sciences a little further and understand how it stands against Abbott Laboratories and other similar entities. We are going to inspect some of the competitive aspects of both Strata and Abbott.
Published over a month ago
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Are retail investors picking up Strata Skin (NASDAQ:SSKN) or Abbott Laboratories?
By analyzing existing basic indicators between Strata Skin and Abbott, you can compare the effects of market volatilities on both companies' prices and check if they can diversify away market risk if combined in one of your portfolios. You can also utilize pair trading strategies for matching a long position in Abbott with a short position in Strata Skin. Check out our pair correlation module for more information.

Let's begin by analyzing the assets. The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Strata Skin has an asset utilization ratio of 71.78 percent. This suggests that the company is making $0.72 for each dollar of assets. An increasing asset utilization means that Strata Skin Sciences is more efficient with each dollar of assets it utilizes for everyday operations.
Out of tens of thousands of stocks, funds, and ETFs that trade on global exchanges each represent an individual company which you can analyze using comparative analysis. To determine which one of the two companies, such as Strata or Zimmer is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step.

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.

Correlation Between Strata and Zimmer Biomet Holdings

In general, stock analysis is a method for investors and traders to make individual buying and selling decisions. Stock correlation analysis is also essential because it can help investors realize that they may not be as diversified as they think. Risk management strategies are usually required to make sure all portfolios are properly aligned against their risk tolerance level. You can consider holding Strata Skin together with similar or unrelated positions with a negative correlation. For example, you can also add Zimmer Biomet to your portfolio. If Zimmer Biomet is not perfectly correlated to Strata Skin it will diversify some of the market risks out of the positively correlated stocks in your portfolio. However, the disadvantage of this sort of hedging is that it can potentially affect your investment returns throughout market cycles. When Strata Skin for example, for example, performs excellent and delivers stable returns, the negatively correlated position you locked in as a hedge may drag your returns down. Please check pair correlation details between SSKN and ZBH for more information.

Note

Are you currently holding both Strata Skin and Zimmer Biomet in your portfolio? Please note if you are using this as a pair-trade strategy between Strata Skin and Zimmer Biomet, watch out for correlation discrepancy over time. Relying on the historical price correlations and assuming that it will not change may lead to short-term losses.

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

Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include product or services discounts, promotions, as well as early payments on invoices or services rendered in advance.

Revenue Breakdown

Let me now go over Strata Skin revenue. Based on the latest financial disclosure, Strata Skin Sciences reported 30.83 M of revenue. This is 99.6% lower than that of the Healthcare sector and 98.32% lower than that of the Medical Instruments & Supplies industry. The revenue for all United States stocks is 99.67% higher than that of Strata Skin. As for Abbott Laboratories we see revenue of 31.44 B, which is much higher than that of the Medical Instruments & Supplies

ABT
31.4 B
SSKN30.83 Million0.0926
Sector1.84 Billion5.51
ABT31.44 Billion94.39

Our take on Strata Skin to reverse

Strata Skin risk adjusted performance is up to 0.01. As of the 11th of August 2020, Strata Skin has the coefficient of variation of (265,733), and Risk Adjusted Performance of 0.0068. In relation to fundamental indicators, the technical analysis model makes it possible for you to check existing technical drivers of Strata Skin Sciences, 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 interpolate and analyze data for nineteen technical drivers for Strata Skin Sciences, which can be compared to its competition. Please validate Strata Skin Sciences information ratio, potential upside, as well as the relationship between the Potential Upside and kurtosis to decide if Strata Skin is priced more or less accurately, providing market reflects its prevalent price of 1.22 per share. Given that Strata Skin Sciences is a hitting penny stock territory we recommend to closely look at its total risk alpha.

Our Final Take On Strata Skin

Whereas few other entities within the medical instruments & supplies industry are still a little expensive, even after the recent corrections, Strata Skin may offer a potential longer-term growth to institutional investors. On the whole, as of the 11th of August 2020, our concluding 30 days buy-or-sell advice on the company is Strong Sell. However, we believe Strata Skin is undervalued with very high odds of distress for the next two years.

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 Strata Skin Sciences. Please refer to our Terms of Use for any information regarding our disclosure principles.

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