Stonemor Story

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STON -- USA Stock  

USD 1.78  0.09  4.81%

The underlying goal of this short thesis is to outline Stonemor as an investment oportunity for April. We will inspect why recent Stonemor Partners price moves suggest a bounce in April.
Published over two weeks ago
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Our projection for Stonemor Partners (NYSE:STON) in April
This firm beta is close to zero. Let's try to break down what Stonemor's beta means in this case. Stonemor Partners returns are very sensitive to returns on the market. As the market goes up or down, Stonemor Partners is expected to follow. The beta indicator helps investors understand whether Stonemor Partners moves in the same direction as the rest of the market, and how volatile (i.e., risky) it is compared to the market (i.e., selected benchmark). In other words, if Stonemor deviates very little from the market, it does not add much risk to the portfolio, but it also doesn't increase the expected returns.
There are currently many different techniques concerning forecasting the market as a whole as well as predicting future values of individual securities such as Stonemor Partners. Regardless of method or technology, to accurately forecast the stock market is more a matter of luck rather than a particular technique. Nevertheless, trying to predict the stock market accurately is still an essential part of the overall investment decision process. Using different forecasting techniques and comparing the results might improve your chances of accuracy even though unexpected events may often change the market sentiment and impact your forecasting results.

Predictive Modules for Stonemor Partners

Sophisticated investors, who have witnessed many market ups and downs, frequently view the market will even out over time. This tendency of Stonemor Partners' 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 Stonemor Partners 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 Stonemor Partners. Your research has to be compared to or analyzed against Stonemor Partners' peers to derive any actionable benefits. When done correctly, Stonemor Partners' 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 Stonemor Partners.

How important is Stonemor Partners's Liquidity

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

How Stonemor utilizes its cash?

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

Acquisition by Spencer Goldenberg of 4545 shares of Stonemor Partners subject to Rule 16b-3

Legal trades by Stonemor Partners 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:
Stonemor insider trading alert for grant of restricted phantom common stock by Spencer Goldenberg, the corporate stakeholder, on 3rd of March 2021. This event was filed by Stonemor Inc with SEC on 2021-03-03. 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.

A Deeper look at Stonemor

Stonemor Partners LP is displaying above-average volatility over the selected time horizon. Investors should scrutinize Stonemor Partners LP independently to ensure intended market timing strategies are aligned with expectations about Stonemor Partners volatility. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Stonemor Partners' stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Stonemor Partners' 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.

Stonemor Partners to recuperate in April

The standard deviation is down to 7.21 as of today. Stonemor Partners LP is displaying above-average volatility over the selected time horizon. Investors should scrutinize Stonemor Partners LP independently to ensure intended market timing strategies are aligned with expectations about Stonemor Partners volatility. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Stonemor Partners' stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Stonemor Partners' 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 Final Perspective on Stonemor Partners

Whereas some other firms under the personal services industry are still a bit expensive, Stonemor Partners may offer a potential longer-term growth to institutional investors. On the whole, as of the 23rd of March 2021, we believe that at this point, Stonemor Partners is risky with close to average probability of financial unrest within the next 2 years. From a slightly different point of view, the entity appears to be undervalued. However, our concluding 30 days 'Buy-vs-Sell' recommendation 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 Stonemor Partners LP. Please refer to our Terms of Use for any information regarding our disclosure principles.

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