Virco Story

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VIRC -- USA Stock  

USD 2.80  0.01  0.36%

The essential aim of this article is to break down our current position on Virco for investors considering to short it. We will analyze why Virco Manufacturing investors may still consider a stake in the business.
Published over a month ago
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Are Virco (NASDAQ:VIRC) investors starting to hold back?
About 15.0% of Virco Manufacturing outstanding shares are owned by insiders. Insiders ownership of Virco Manufacturing refers to the amount of Virco Manufacturing equity owned by Virco officers, directors, relatives of the leadership team, or anyone who has access to private information before it's made available to the public. Check out our latest analysis of Virco, including its current ownership diagnostics.
There are currently many different techniques concerning forecasting the market as a whole as well as predicting future values of individual securities such as Virco Manufacturing. 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 Virco Manufacturing

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

How important is Virco Manufacturing's Liquidity

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

How Virco utilizes its cash?

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

Sale by Donald Rudkin of 33000 shares of Virco Manufacturing

Legal trades by Virco Manufacturing 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:
Virco insider trading alert for sale of common stock $.01 par value by Donald Rudkin, the corporate stakeholder, on 24th of August 2020. This event was filed by Virco Mfg Corporation with SEC on 2020-08-24. 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 Virco

The current bullish price patterns experienced by current Virco Manufacturing shareholders may raise some interest from investors as it is trading at a share price of 2.31 on 3,005 in trading volume. The company directors and management have been very successful in rebalancing the company assets at opportune times to take advantage of market volatility in November. The stock standard deviation of daily returns for 30 days investing horizon is currently 2.81. The current volatility is consistent with the ongoing market swings in November 2020 as well as with Virco Manufacturing unsystematic, company-specific events.

Virco technical analysis suggests possible bounce back

Current maximum drawdown is at 16.75. Virco Manufacturing currently demonstrates below-verage downside deviation. It has Information Ratio of 0.02 and Jensen Alpha of 0.17. However, we do advice investors to further question Virco Manufacturing expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk.

Our Conclusion on Virco Manufacturing

Whereas many of the other players within the furnishings, fixtures & appliances industry are still a little expensive, even after the recent corrections, Virco Manufacturing may offer a potential longer-term growth to investors. To conclude, as of the 14th of December 2020, our analysis shows that Virco Manufacturing moves indifferently to market moves. The company is undervalued and projects below average chance of financial distress for the next 2 years. However, our primary 30 days buy-or-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 Gabriel Shpitalnik do not own shares of Virco Manufacturing. Please refer to our Terms of Use for any information regarding our disclosure principles.

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