Daiseki is getting woozy

Macroaxis News
  
By Achuva Shats
Today's article will digest Daiseki. We will evaluate why we are still optimistic in anticipation of a recovery. Assuming the 30 trading days horizon, Daiseki is expected to generate 2.38 times more return on investment than the market. However, the company is 2.38 times more volatile than its market benchmark. It trades about 0.07 of its potential returns per unit of risk. The market is currently generating roughly 0.17 per unit of risk.
Daiseki classifies itself under Industrials sector and is part of Waste Management industry. This firm has accumulated 6.36 M in total debt with debt to equity ratio (D/E) of 0.06, which may suggest the firm is not taking enough advantage from borrowing. The company has a current ratio of 3.42, suggesting that it is liquid and has the ability to pay its financial obligations in time and when they become due. Daiseki Ltd Ord utilizes its assets almost 7.65 percent, getting $0.0765 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 Daiseki shows how effective it operates for each dollar spent on its assets.
Investing in Daiseki, 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 Daiseki 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.
Hype
Prediction
LowEstimated ValueHigh
20.6324.5028.37
Details
Intrinsic
Valuation
LowReal ValueHigh
19.6023.4727.34
Details

How important is Daiseki's Liquidity

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

How Daiseki utilizes its cash?

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

Daiseki Correlation with Peers

Investors in Daiseki can reduce exposure to individual asset risk by holding a diversified portfolio of assets in addition to a long position in Daiseki Ltd Ord. Diversification will allow for the same portfolio return with reduced risk. The correlation table of Daiseki and its peers is a two-dimensional matrix that shows the correlation coefficient between pairs of securities Daiseki 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.
Click cells to compare fundamentals   Check VolatilityBacktest Portfolio

Daiseki Target Price Odds to finish over Current Price

Current PriceHorizonTarget PriceOdds to move above the current price in 30 days
 24.50 30 days 24.50 
about 5.14
Based on a normal probability distribution, the odds of Daiseki to move above the current price in 30 days from now is about 5.14 (This Daiseki Ltd Ord probability density function shows the probability of Daiseki OTC Stock to fall within a particular range of prices over 30 days) .
Assuming the 30 trading days horizon, Daiseki Ltd Ord has a beta of -0.1477 suggesting as returns on benchmark increase, returns on holding Daiseki are expected to decrease at a much lower rate. During the bear market, however, Daiseki Ltd Ord is likely to outperform the market. Additionally The company has an alpha of 0.0768, implying that it can potentially generate 0.0768% excess return over DOW after adjusting for the inherited market risk (beta).
 Daiseki Price Density 
      Price 
α
Alpha over DOW
=0.08
β
Beta against DOW=-0.15
σ
Overall volatility
=1.52
Ir
Information ratio =-0.04

What is driving Daiseki Investor Appetite?

Daiseki preserves 1 k of number of employees. Daiseki appears to be somewhat reliable, given 1 month investment horizon. Daiseki Ltd Ord secures Sharpe Ratio (or Efficiency) of 0.0717, which denotes the company had 0.0717% of return per unit of risk over the last 1 month. Our philosophy towards predicting 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 Daiseki Ltd Ord, which you can use to evaluate future volatility of the firm. Please utilize Daiseki Ltd Ord mean deviation of 2.51, and coefficient of variation of 3206.29 to check if our risk estimates are consistent with your expectations.

Daiseki possible relapse in July

Ongoing total risk alpha is at -0.88. Daiseki Ltd Ord is displaying above average volatility of 6.87 over selected time horizon. Investors should scrutinize Daiseki Ltd Ord independently to ensure intended market timing strategies are aligned with expectations about Daiseki volatility.

Our Bottom Line On Daiseki Ltd Ord

While many of the other players under waste management industry are still a little expensive, even after the recent corrections, Daiseki may offer a potential longer-term growth to investors. All in all, as of 30th of June 2020, we believe that at this point Daiseki is overvalued with very small probability of financial unrest within the next 2 years. Our concluding recommendation on the firm 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 Daiseki 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 Daiseki.

About Contributor

Achuva Shats is a Member of Macroaxs Editorial Board. Achuva writes about retail product and service companies from the perspective of a regular consumer and sophisticated investor at the same time. She is passionate about corporate ethics and equality in the workforce 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 Achuva Shats do not own shares of Daiseki Ltd Ord. Please refer to our Terms of Use for any information regarding our disclosure principles.
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