Is Medallion Resources outlook positive for August 2020?
 | By Vlad Skutelnik | Macroaxis Story |
In this story, I am going to address all latest Medallion Resources shareholders. I will look into why, despite the latest dip, the longer-term fundamental drivers of the firm are still sound. Assuming the 30 trading days horizon, Medallion Resources is expected to generate 5.6 times more return on investment than the market. However, the company is 5.6 times more volatile than its market benchmark. It trades about 0.2 of its potential returns per unit of risk. The market is currently generating roughly 0.12 per unit of risk. The entity current probability of financial unrest is under 42 percent. Will the firm executives continue to add value?
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Reviewed by Rifka Kats
This firm classifies itself under Basic Materials sector and is part of Other Industrial Metals & Mining industry. The company has accumulated 30.07 K in total debt with debt to equity ratio (D/E) of 0.41, which is about average as compared to similar companies. Medallion Resources has a current ratio of 1.15, suggesting that it may not be capable to disburse its financial obligations in time and when they become due. Medallion Resources holds a performance score of 13 on a scale of zero to a hundred. The company secures a Beta (Market Risk) of 0.8592, which conveys possible diversification benefits within a given portfolio. Let's try to break down what Medallion's beta means in this case. Medallion Resources returns are very sensitive to returns on the market. As the market goes up or down, Medallion Resources is expected to follow. Although it is essential to pay attention to Medallion Resources price patterns, it is also good to be reasonable about what you can do with equity historical price patterns. Our philosophy towards estimating future potential of any stock is to look not only at its past charts but also at the business as a whole, including all available fundamental and technical indicators. To evaluate if Medallion Resources expected return of 2.06 will be sustainable into the future, we have found twenty-one different technical indicators, which can help you to check if the expected returns are sustainable. Use Medallion Resources standard deviation and the relationship between the treynor ratio and kurtosis to analyze future returns on Medallion Resources.
Investing in Medallion 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 Medallion 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.
Watch out for price decline
Please consider monitoring Medallion Resources on a daily basis if you are holding a position in it. Medallion Resources 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 Medallion Resources stock to be traded above the $1 level to remain listed. If Medallion Resources 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 Medallion Resources's Liquidity
Medallion Resources financial leverage refers to using borrowed capital as a funding source to finance Medallion Resources ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Medallion 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. Financial leverage can amplify the potential profits to Medallion Resources' 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 Medallion Resources' 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 Medallion Resources's total debt and its cash.
Medallion Resources Correlation with Peers
Investors in Medallion can reduce exposure to individual asset risk by holding a diversified portfolio of assets in addition to a long position in Medallion Resources. Diversification will allow for the same portfolio return with reduced risk. The correlation table of Medallion Resources and its peers is a two-dimensional matrix that shows the correlation coefficient between pairs of securities Medallion 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. Please check volatility of Medallion for more details
A Deeper look at Medallion
Medallion Resources preserves 5.24 m of current valuation. Medallion Resources is out of control given 1 month investment horizon. Medallion Resources has Sharpe Ratio of 0.2, which conveys that the firm had 0.2% of return per unit of risk over the last month. Our standpoint towards estimating the volatility of a stock is to use Medallion Resources market data together with company specific technical indicators. We were able to break down and interpolate twenty-one different technical indicators, which can help you to evaluate if expected returns of 2.06% are justified by taking the suggested risk. Use Medallion Resources risk adjusted performance of 0.4589, downside deviation of 9.18, and mean deviation of 7.74 to evaluate company specific risk that cannot be diversified away.
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