Virco Story

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VIRC -- USA Stock  

USD 2.80  0.01  0.36%

It appears Virco Manufacturing will continue to recover much faster as its share price surged up 7.26% today. The entity's current daily volatility is 3.52 percent, with a beta of -0.16 and an alpha of 0.38 over DOW. Whilst many millenniums are getting more into overall trading value increase, it makes sense to go over Virco Manufacturing. We will analyze why it could be a much better year for Virco Manufacturing shareholders.
Published over three weeks ago
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Is Virco Manufacturing (NASDAQ:VIRC) stock way too aggressive for baby boomers?
Virco Manufacturing conducts business under Consumer Cyclical sector and is part of Furnishings, Fixtures & Appliances industry.
Investing in Virco Manufacturing, 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 Virco Manufacturing 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 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.

Virco Manufacturing Correlation with Peers

Investors in Virco can reduce exposure to individual asset risk by holding a diversified portfolio of assets in addition to a long position in Virco Manufacturing. Diversification will allow for the same portfolio return with reduced risk. The correlation table of Virco Manufacturing and its peers is a two-dimensional matrix that shows the correlation coefficient between pairs of securities Virco 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 Virco for more details

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

Virco Manufacturing appears to be unstable, given 1 month investment horizon. Virco Manufacturing owns Efficiency Ratio (i.e. Sharpe Ratio) of 0.0932, which indicates the firm had 0.0932% 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 Virco Manufacturing, which you can use to evaluate future volatility of the company. Please operate Virco Manufacturing Semi Deviation of 2.83, coefficient of variation of 946.15, and Risk Adjusted Performance of 0.1191 to confirm if our risk estimates are consistent with your expectations.
Click cells to compare fundamentals   Check Volatility   Backtest Portfolio

Over 3 percent rise for Virco Manufacturing. What does it mean for investors?

Virco Manufacturing current variance builds up over 11.9. Virco Manufacturing shows above-average downside volatility for the selected time horizon. We advise investors to inspect Virco Manufacturing further and ensure that all market timing and asset allocation strategies are consistent with the estimation of Virco Manufacturing future alpha.

Our Final Perspective on Virco Manufacturing

Whereas some other firms under the furnishings, fixtures & appliances industry are still a bit expensive, Virco Manufacturing may offer a potential longer-term growth to investors. All things considered, as of the 28th of December 2020, we believe that at this point, Virco Manufacturing is unstable with below average probability of bankruptcy within the next 2 years. From a slightly different point of view, the entity appears to be undervalued. However, our up-to-date 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 Raphi 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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