Is Vitality Products a good short term buy?
 | By Rifka Kats | Macroaxis Story |
In spite of rather weak fundamental drivers, Vitality Products exhibited solid returns over the last few months and may actually be approaching a breakup point. This firm almost neglects market trends.
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Reviewed by Gabriel Shpitalnik
The company has accumulated 1.19 M in total debt. Vitality Products has a current ratio of 0.28, indicating that it has a negative working capital and may not be able to pay financial obligations in time and when they become due. The firm dividends can provide clues to the current value of the stock. The entity is not projected to issue dividends this year as it is trying to preserve or re-invest any of the funds available for distribution to stakeholders. Lets now check Vitality Products Current Ratio. In accordance with recently published financial statements Vitality Products has Current Ratio of 0.29 times. This is much higher than that of the sector, and significantly higher than that of Current Ratio industry, The Current Ratio for all stocks is notably lower than Vitality Products.
Typically, a company's financial statements are the reports that show the financial position of the company. There are three main documents that fall into the category of financial statements. These documents include Vitality Products income statement, its balance sheet, and the statement of cash flows. Potential Vitality Products investors and stakeholders use financial statements to determine how well the company is positioned to perform in the future. Although Vitality Products investors may use each financial statement separately, they are all related. The changes in Vitality Products's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Vitality Products's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet, but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.
The goal of Vitality Products fundamental analysis is to do accurate financial forecasts. There are several possible objectives to fundamental analysis, such as projecting of Vitality Products performance into the future periods or doing a reasonable stock valuation. The intrinsic value of Vitality Products shares is the value that is considered the true value of the share. If the intrinsic value of Vitality is higher than its market price, buying is generally recommended. If it is equal to the market price, it is recommended to hold; and if it is less than the market price, then one should sell all shares Vitality Products. Please read more on our fundamental analysis page. Watch out for price decline
Please consider monitoring Vitality Products on a daily basis if you are holding a position in it. Vitality Products is trading at a penny-stock level, and the possibility of delisting is much higher compared to other pink sheets. However, just because the pink sheet is trading under one dollar, does not mean it will be marked for deletion. Most exchanges require public instruments, such as Vitality Products stock to be traded above the $1 level to remain listed. If Vitality Products pink sheet 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 Vitality Products's Liquidity
Vitality Products financial leverage refers to using borrowed capital as a funding source to finance Vitality Products ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Vitality Products 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. Financial leverage can amplify the potential profits to Vitality Products' owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Vitality Products' financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the breakdown between Vitality Products's total debt and its cash.
Breaking down the case for Vitality Products
Vitality Products preserves 4.73 m of current valuation. Vitality Products has a beta of -0.2909. Let's try to break down what Vitality's beta means in this case. Vitality Products returns are very sensitive to returns on the market. As the market goes up or down, Vitality Products is expected to follow. The beta indicator helps investors understand whether Vitality Products 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 Vitality deviates very little from the market, it does not add much risk to the portfolio, but it also doesn't increase the expected returns. Vitality Products shows a total of thirty-one million one hundred twenty thousand outstanding shares. Vitality Products maintains significant amount of outstanding shares owned by insiders. An insider is usually defined as a CEO, other corporate executive, director, or institutional investor who own at least 10% of the company outstanding shares. Since such a large part of the company is owned by insiders, it is advisable to analyze if each of these insiders have been buying or selling the stock in recent months. Please note that no matter how much assets the company owns, if the real value of the the company is less than the current market value, you may not be able to make money on it.
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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 Rifka Kats do not own shares of Vitality Products. Please refer to our Terms of Use for any information regarding our disclosure principles.