Trecora Story

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TREC -- USA Stock  

USD 7.81  0.13  1.64%

It appears Trecora Resources will continue to recover much faster as its share price surged up 2.25% today. The company current daily volatility is 1.93 percent, with a beta of 1.3 and an alpha of 0.1 over DOW. As many millenniums are trying to avoid trecora resources, it makes sense to go over Trecora Resources a little further and try to understand its current market patterns. We will evaluate why we are still optimistic in anticipation of a recovery.
Published over a month ago
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Should you acquire Trecora Resources after the current volatility rise?
Trecora Resources currently holds roughly 51.86 M in cash with 22.45 M of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 2.09.
We provide advice to complement the current expert consensus on Trecora Resources. 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.
Investing in Trecora Resources, just like investing in any other equity instrument, is characterized by a strong risk-return correlation. High risks mean high returns and low risk means lower expected returns. Risk management is the act of identifying and assessing the potential risk and developing strategies to minimize these risks and earn maximum possible profits while holding Trecora Resources along with other instruments in the same portfolio. Using conventional technical analysis and fundamental analysis to select individual securities into a portfolio complements risk management and adds value to overall investors' investing strategies.
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

Trecora Resources Correlation with Peers

Investors in Trecora can reduce exposure to individual asset risk by holding a diversified portfolio of assets in addition to a long position in Trecora Resources. Diversification will allow for the same portfolio return with reduced risk. The correlation table of Trecora Resources and its peers is a two-dimensional matrix that shows the correlation coefficient between pairs of securities Trecora is related in some way. The cells in the table are color-coded to highlight significantly positive and negative relationships. Each cell shows the correlation between one pair of equities and can be used to run pair trading strategies or create efficient portfolios with your current brokerage.
Please check volatility of Trecora for more details

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?

We consider Trecora Resources not too volatile. Trecora Resources owns Efficiency Ratio (i.e. Sharpe Ratio) of 0.0686, which indicates the firm had 0.0686% of return per unit of risk over the last month. Our standpoint towards measuring the volatility of a stock is to use all available market data together with stock specific technical indicators that cannot be diversified away. We have found twenty-one technical indicators for Trecora Resources, which you can use to evaluate future volatility of the company. Please validate Trecora Resources Risk Adjusted Performance of 0.0966, semi deviation of 1.39, and Coefficient Of Variation of 880.08 to confirm if the risk estimate we provide is consistent with the expected return of 0.13%.
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0.51-0.31-0.370.31
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0.510.060.080.57
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-0.370.080.780.14
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0.310.570.270.14
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Click cells to compare fundamentals   Check Volatility   Backtest Portfolio

Will Trecora Resources current rise continue?

Current downside variance is at 2.41. Trecora Resources has relatively low volatility with skewness of 0.5 and kurtosis of -0.33. However, we advise all investors to independently investigate Trecora Resources to ensure all accessible information is consistent with the expectations about its upside potential and future expected returns. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Trecora Resources' stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Trecora Resources' 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 Trecora Resources

Whereas some other entities under the specialty chemicals industry are still a bit expensive, Trecora Resources may offer a potential longer-term growth to investors. With a less-than optimistic outlook for your 30 days horizon, it may be a good time to quit some or all of your Trecora Resources holdings as it seems the potential growth was already fully factored into the current price. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Trecora Resources.

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 Trecora Resources. Please refer to our Terms of Use for any information regarding our disclosure principles.

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