Trecora Story

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TREC -- USA Stock  

USD 7.78  0.02  0.26%

Trecora Resources Revenue Per Employee is projected to decrease significantly based on the last few years of reporting. The past year's Revenue Per Employee was at 1.1 Million. The current year Average Assets is expected to grow to about 237.7 M, whereas Net Income Per Employee is forecasted to decline to (65.5 K). The primary aim of this article is to break down Trecora potential for April. We are going to analyze if Trecora Resources is reasonably priced going into April.
Published over a month ago
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What can we learn from Trecora Resources (NYSE:TREC) current price fluctuation
The company has a beta of 1.2967. Let's try to break down what Trecora's beta means in this case. As returns on the market increase, Trecora Resources returns are expected to increase less than the market. However, during the bear market, the loss on holding Trecora Resources will be expected to be smaller as well. The beta indicator helps investors understand whether Trecora Resources 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 Trecora 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 Trecora Resources. 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 Trecora Resources

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

How important is Trecora Resources's Liquidity

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

How Trecora utilizes its cash?

To perform a cash flow analysis of Trecora Resources, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Trecora Resources is receiving and how much cash it distributes out in a given period. The Trecora Resources cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.
Trecora Resources Net Cash Flow from Operations is projected to increase significantly based on the last few years of reporting. The past year's Net Cash Flow from Operations was at 25.57 Million

Exercise or conversion by Silberman Michael W of 2673 shares of Trecora Resources subject to Rule 16b-3

Legal trades by Trecora Resources 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:
Trecora insider trading alert for exercise of restricted stock units by Silberman Michael W, General Counsel and Secretary, on 1st of April 2021. This event was filed by Trecora Resources with SEC on 2021-04-01. 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.

What is driving Trecora Resources Investor Appetite?

The modest gains experienced by current holders of Trecora Resources created some momentum for investors as it was traded today as low as 7.52 and as high as 7.89 per share. The company directors and management have been quite successful in maneuvering the stock at opportune times to take advantage of all market conditions in February. The stock standard deviation of daily returns for 30 days investing horizon is currently 1.92. The below-average Stock volatility is a good sign for longer-term investment options and for buy-and-hold investors.

Returns Breakdown

Return on Investment(4.73)
Return on Assets(5.59)
Return on Equity(9.93)
Return Capital0.1
Return on Sales0.12

Our perspective of the current Trecora Resources rise

The standard deviation is down to 1.93 as of today.
As of the 7th of March, Trecora Resources has the Coefficient Of Variation of 880.08, semi deviation of 1.39, and Risk Adjusted Performance of 0.0966. In relation to fundamental indicators, the technical analysis model makes it possible for you to check existing technical drivers of Trecora Resources, 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 analyze and collect data for nineteen technical drivers for Trecora Resources, which can be compared to its competition. Please validate Trecora Resources standard deviation, value at risk, kurtosis, as well as the relationship between the jensen alpha and semi variance to decide if Trecora Resources is priced more or less accurately, providing market reflects its prevalent price of 7.73 per share. Given that Trecora Resources has jensen alpha of 0.0987, we advise you to double-check Trecora Resources's current market performance to make sure the company can sustain itself at a future point.

The Bottom Line

Whereas many other companies within the specialty chemicals industry are still a little expensive, even after the recent corrections, Trecora Resources may offer a potential longer-term growth to investors. Taking everything into account, as of the 7th of March 2021, our final 30 days advice on the company is Strong Buy. We believe Trecora Resources is currently fairly valued with low probability of bankruptcy 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 Achuva Shats do not own shares of Trecora Resources. Please refer to our Terms of Use for any information regarding our disclosure principles.

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