Will LMF Acquisition (USA Stocks:ICU) drop in July?
 | By Vlad Skutelnik | Macroaxis Story |
LMF Acquisition Opportunities stock presents an intriguing opportunity for investors seeking to capitalize on the recent volatility in the market. The stock's standard deviation, a measure of price volatility, stands at 9.77, indicating a higher level of price fluctuation. However, with the mean deviation at 6.4, the recent spikes in volatility appear to be tapering off. Coupled with a potential upside of 12.39, this suggests that the stock could be a valuable addition to portfolios looking for potential growth amidst reduced volatility.
Main Ideas
LMF Acquisition Opportunities carries a debt of 9.08 million. Its current ratio of 0.37 indicates potential difficulty in meeting short-term financial obligations. However, this debt could be a strategic tool for investing in high-return growth. The company's market risk, or Beta, is 0.12, suggesting minimal market-related fluctuations. As market returns increase, LMF Acquisition's returns are expected to rise less than the market. Conversely, in a bear market, losses from holding LMF Acquisition are likely to be smaller. Currently, LMF Acquisition has a negative expected return of -0.95%. It's crucial to verify LMF Acquisition's total risk alpha and the relationship between the kurtosis and day typical price to predict future performance.Macroaxis uses a strict editorial review process to publish stories and blog posts. Our publishers support our company and may receive a small commission when the partner links or references are utilized. Commissions do not affect the opinions or evaluations of our editorial team. The information our editors and media partners deliver is confidential and licensed for your sole use as a Macroaxis user. We reserve all rights to the content of this article, and therefore copying or distributing this story in whole or in part is strictly prohibited.
Reviewed by Michael Smolkin
Every cloud has a silver lining, and the recent volatility spike in LMF Acquisition Opportunities stock may just be that silver lining for value investors. The stock, which operates in the biotechnology sector of the healthcare industry, has seen its daily typical price stabilize around $6.79, with a day median price of $6.58. This comes after a period of heightened volatility, which now appears to be tapering off. The company's valuation real value stands at $3.96, while its market value is pegged at $7.21, indicating a potential upside. Analysts have a consensus 'Buy' rating on the stock, with one analyst even suggesting a possible upside price of $17.41. The daily balance of power at 0.83 further underscores the potential for a bullish trend. However, investors should also be aware of the possible downside price of $0.0721. As the fiscal year end approaches in December, the stock's period momentum indicator of 1.93 suggests a positive momentum. In conclusion, LMF Acquisition Opportunities stock could be a potential value buy as the volatility spike begins to taper. Considering a 60-day investment horizon, LMF Acquisition Opportunities is projected to underperform the market. The company's volatility is 16.92 times higher than its market benchmark, trading at about -0.09 of its total potential returns per unit of risk, compared to the Dow Jones Industrial's -0.01 per unit of volatility. While many risk-averse investors may be swayed by the biotechnology sector, it's worth reviewing LMF Acquisition Opportunities. We'll assess the risk involved in investing in LMF Acquisition at this time.Volatility is a rate at which the price of LMF Acquisition or any other equity instrument increases or decreases for a given set of returns. It is measured by calculating the standard deviation of the annualized returns over a given period of time and shows the range to which the price of LMF Acquisition may increase or decrease. In other words, similar to LMF's beta indicator, it measures the risk of LMF Acquisition and helps estimate the fluctuations that may happen in a short period of time. So if prices of LMF Acquisition fluctuate rapidly in a short time span, it is termed to have high volatility, and if it swings slowly in a more extended period, it is understood to have low volatility. Please read more on our technical analysis page.
How important is LMF Acquisition's Liquidity
LMF Acquisition financial leverage refers to using borrowed capital as a funding source to finance LMF Acquisition Opportunities ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. LMF Acquisition 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 LMF Acquisition's 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 LMF Acquisition's 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 LMF Acquisition's total debt and its cash.
LMF Acquisition Volatility Drivers
LMF Acquisition unsystematic risk is unique to LMF Acquisition Oppo and usually not directly affected by the market or economic environment. An example of unsystematic risk is the possibility of poor earnings or a layoff due to coronavirus. One may mitigate nonsystematic risk by buying different securities in the same industry or by buying in different sectors. For example, if you have a position in LMF Acquisition you can also buy Virax Biolabs Group. You can also mitigate this risk by investing in the health care sector as well as in companies having nothing to do with it. This type of risk is also called diversifiable risk and can be understood from analyzing LMF Acquisition important indicators over time. Here we run a correlation analysis between relevant fundamental ratios over at least ten year period to find a relationship in the way they react to changes in LMF Acquisition income statement and balance sheet. Here are more details about LMF volatility.Click cells to compare fundamentals
Is LMF Acquisition valued wisely by the market?
The big decline in price over the last few months for LMF Acquisition Opportunitiesmay raise some interest from private investors. The stock closed today at a share price of 7.21 on 3,790,395 in trading volume. The company executives failed to add value to investors and position the firm supply of money to exploit market volatility in May. However, diversifying your holdings with LMF Acquisition or similar stocks can still protect your portfolios during high-volatility market scenarios. The stock standard deviation of daily returns for 90 days investing horizon is currently 11.13.The very high volatility is mostly attributed to the latest market swings and not very good earnings reports from some of the LMF Acquisition Oppo partners. Every cloud has a silver lining, and for LMF Acquisition Opportunities Stock, the recent spike in volatility could be just that. Despite a high probability of bankruptcy at 96%, the stock's potential upside of 12.39 and a price action indicator of 1.59 suggest there may be value to be found. The stock's variance of 95.41 and standard deviation of 9.77 indicate a high level of risk, but this is beginning to taper off. With a current valuation of $14.97M and market capitalization of $19.42M, this biotechnology stock could present an opportunity for investors willing to weather the storm. However, caution should be exercised given the company's high total debt of $9.08M and a low current ratio of 0.38X..
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