Exela Story

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XELA -- USA Stock  

USD 0.53  0.04  8.16%

Macroaxis News
  
By Ellen Johnson
The entity current chance of distress is over 59.0 percent. This firm moves totally opposite to the market. Exela is out of control given 1 month investment horizon. Exela secures Sharpe Ratio (or Efficiency) of 0.2, which denotes the company had 0.2% of return per unit of risk over the last 1 month. Our philosophy towards predicting the volatility of a stock is to use Exela market data together with company specific technical indicators. We were able to analyze twenty-one different technical indicators, which can help you to evaluate if expected returns of 3.08% are justified by taking the suggested risk. Use Exela downside deviation of 10.2, mean deviation of 8.88, and coefficient of variation of 584.88 to evaluate company specific risk that cannot be diversified away.
Does Exela have anything more to drop some light on in July?

Exela has a beta of -0.8871. Let's try to break down what Exela's beta means in this case. As the market goes up, the company is expected to outperform it. However, if the market returns are negative, Exela will likely underperform. The beta indicator helps investors understand whether Exela 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 Exela deviates very little from the market, it does not add much risk to the portfolio, but it also doesn't increase the expected returns. Exela utilizes its assets almost 1.23 percent, getting $0.0123 for each dollar of assets held by the firm. An increasing asset utilization denotes the company is being more effective with each dollar of assets it shows. Put another way asset utilization of Exela shows how effective it operates for each dollar spent on its assets.
There are currently many different techniques concerning forecasting the market as a whole as well as predicting future values of individual securities such as Exela. 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 Exela


Watch out for price decline

Please consider monitoring Exela on a daily bases if you are holding a position in it. Exela is trading at a penny-stock level, and the possibility of delisting is much higher compared to other equities. However, just because the stock is trading under one dollar, does not mean it will be marked for deletion. Most exchanges require public instruments, such as Exela stock to be traded above the $1 level to remain listed. If Exela stock price falls below $1 for 30 consecutive trading days, the exchange can delist it. Once the company reaches this point, they will be sent an initial price violation notice directly from an exchange.

How important is Exela's Liquidity

Exela financial leverage refers to using borrowed capital as a funding source to finance Exela ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Exela financial leverage is typically calculated by taking the company's all of the 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. The map below shows the current breakdown between Exela's total debt and its cash.
Liquidity

How Exela utilizes its cash?

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

Conversion by James Reynolds of 906835 shares of Exela Technologies

Legal trades by Exela 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:
Exela Technologies insider trading alert for conversion of common stock par value $0.0001 per share (''common stock'') by James Reynolds, Chief Financial Officer, on 2nd of May 2020. This event was filed by Exela Technologies Inc with SEC on 2020-02-27. 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.

Breaking down Exela Indicators

Exela maintains probability of bankruptcy of 75.00 %. The firm reported previous year revenue of 1.56 B. Net Loss for the year was (512.42 M) with profit before overhead, payroll, taxes, and interest of 337.6 M. Exela is showing large volatility of returns over the selected time horizon. We encourage all investors to investigate this asset further to make sure related market timing strategies are aligned with all the expectations about Exela implied risk. Exela is a potential penny stock. Although Exela may be in fact a good instrument to invest, many penny stocks are speculative in nature and are subject to artificial price hype. Please make sure you totally understand upside potential and downside risk of investing in Exela. We encourage investors to look for the signals such us email spams, message board hypes, claims of breakthroughs, volume upswings,sudden news releases, promotions that are not reported, or demotions released before SEC filings. Please also check biographies and work history of current and past company officers before investing in high volatility instruments, penny stocks, or equities with microcap classification. You can indeed make money on this equity instrument if you perfectly time your entry and exit. However, remember that penny stocks that has been the subject of an artificial hype usually unable to maintain its increased share price for more than just a few days. The price of a promoted high volatility instrument will almost always revert back. The one and only way to increase shareholder value is through legitimate performance backed up by solid fundamentals.

Exela implied volatility may change after the build-up

Expected Short fall just dropped to -10.79, may suggest upcoming price decrease. Exela is showing large volatility of returns over the selected time horizon. We encourage all investors to investigate this asset further to make sure related market timing strategies are aligned with all the expectations about Exela implied risk. Exela is a potential penny stock. Although Exela may be in fact a good instrument to invest, many penny stocks are speculative in nature and are subject to artificial price hype. Please make sure you totally understand upside potential and downside risk of investing in Exela. We encourage investors to look for the signals such us email spams, message board hypes, claims of breakthroughs, volume upswings,sudden news releases, promotions that are not reported, or demotions released before SEC filings. Please also check biographies and work history of current and past company officers before investing in high volatility instruments, penny stocks, or equities with microcap classification. You can indeed make money on this equity instrument if you perfectly time your entry and exit. However, remember that penny stocks that has been the subject of an artificial hype usually unable to maintain its increased share price for more than just a few days. The price of a promoted high volatility instrument will almost always revert back. The one and only way to increase shareholder value is through legitimate performance backed up by solid fundamentals.

Our Final Perspective on Exela

While many of the other players under software?application industry are still a little expensive, even after the recent corrections, Exela may offer a potential longer-term growth to investors. To sum up, as of 30th of June 2020, we believe that at this point Exela is out of control with above average probability of bankruptcy within the next 2 years. From a slightly different point of view, the entity appears to be overvalued. Our final 30 days buy vs. sell advice on the company is Strong Sell. With a less-than optimistic outlook for your 30 days horizon, it may be a good time to exit some or all of your Exela 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 Exela.

About Contributor

Ellen Johnson is a Member of Macroaxs Editorial Board. Ellen covers public companies in North America focusing primarily on valuation and volatility. Six years of experience in predictive investment analytics and risk management. View Profile
This story should be regarded as informational only and should not be considered as 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 Ellen Johnson do not own shares of Exela. Please refer to our Terms of Use for any information regarding our disclosure principles.
Macroaxis is not a registered investment advisor or broker/dealer. All investments, including stocks, funds, ETFs, or cryptocurrencies, are speculative and involve substantial risk of loss. We encourage our investors to invest carefully. Much of our information is derived directly from data published by companies or submitted to governmental agencies which we believe are reliable, but are without our independent verification. Therefore, we cannot assure you that the information is accurate or complete. We do not in any way warrant or guarantee the success of any action you take in reliance on our statements or recommendations. Also, note that past performance is not necessarily indicative of future results. All investments carry risk, and all investment decisions of an individual remain the responsibility of that individual. There is no guarantee that systems, indicators, or signals will result in profits or that they will not result in losses. All investors are advised to fully understand all risks associated with any investing they choose to do. Hypothetical or simulated performance is not indicative of future results. We make no representations or warranties that any investor will, or is likely to, achieve profits similar to those shown because hypothetical or simulated performance is not necessarily indicative of future results. For more information please visit our terms and condition page