Westwater Story

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It seems Westwater Resources will continue to recover much faster as its share price surged up 49.32% today. The entity's current daily volatility is 9.22 percent, with a beta of 0.87 and an alpha of 0.34 over DOW. As many of us are excited about westwater resources, it is fair to sum up Westwater Resources. We will evaluate why recent Westwater Resources price moves suggest a bounce in November.
Published over two weeks ago
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Will the latest Westwater Resources volatility spike frighten retail investors?
Westwater Resources has about 2.33 M in cash with (11.79 M) of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 0.31. The company has 765 K in debt with debt to equity (D/E) ratio of 0.04, which may show that the company is not taking advantage of profits from borrowing. Westwater Resources has a current ratio of 0.78, suggesting that it has not enough short term capital to pay financial commitments when the payables are due.
Investing in Westwater 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 Westwater 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.

How important is Westwater Resources's Liquidity

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

How Westwater utilizes its cash?

To perform a cash flow analysis of Westwater Resources, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Westwater Resources is receiving and how much cash it distributes out in a given period. The Westwater Resources cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities. Westwater Resources Net Cash Flow from Operations is relatively stable at the moment as compared to the past year. Westwater Resources reported last year Net Cash Flow from Operations of (14.16 Million)

Another Outlook On Westwater Resources

Westwater Resources is extremely dangerous given 1 month investment horizon. Westwater Resources shows Sharpe Ratio of 0.12, which attests that the company had 0.12% of return per unit of risk over the last month. Our standpoint towards determining the risk of a stock is to use both market data as well as company specific technical data. We are able to interpolate and break down twenty-eight different technical indicators, which can help you to evaluate if expected returns of 1.13% are justified by taking the suggested risk. Use Westwater Resources Downside Deviation of 5.48, mean deviation of 4.76, and Market Risk Adjusted Performance of 0.4732 to evaluate company specific risk that cannot be diversified away.
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Will Westwater Resources latest spike continue?

Total Risk Alpha just dropped to -0.14, may connote upcoming price depreciation. Westwater Resources is displaying above-average volatility over the selected time horizon. Investors should scrutinize Westwater Resources independently to ensure intended market timing strategies are aligned with expectations about Westwater Resources volatility.

Our Takeaway on Westwater Resources Investment

While many of the other players under the other industrial metals & mining industry are still a bit expensive, Westwater Resources may offer a potential longer-term growth to retail investors. All things considered, as of the 4th of October 2020, our research shows that Westwater Resources is a rather extremely dangerous investment opportunity with a very small probability of financial unrest in the next two years. From a slightly different view, the entity currently appears to be overvalued. Our actual 30 days buy-or-sell advice on the enterprise is Hold.

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

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