Should you trade your HTG Molecular (USA Stocks:HTGM) and ENDRA positions after a build-up?

When comparing ENDRA Life Sciences and HTG, it's important to look at how market fluctuations impact their stock prices. This analysis can help you determine if combining these companies in your portfolio could reduce overall market risk. You might also consider a pair trading strategy, where you take a long position in HTG while shorting ENDRA Life. For more details, check out our pair correlation module. Now, let’s examine ENDRA’s asset performance. The company has a negative asset utilization rate of -0.61%, meaning it loses about $0.006 for every dollar of assets. This suggests that ENDRA is not making the most of its resources, indicating inefficiency in generating profits from its assets.

Important Points

Investors may want to take a closer look at ENDRA Life Sciences (NASDAQ: NDRA) as it navigates a challenging financial landscape, highlighted by a reported EBITDA loss of 9.5M and a diluted EPS of 32.0. With cash and short-term investments standing at 2.8M, the company faces pressure to improve its cash flow, especially given its total cash from operating activities also reflects a loss of 9.5M. As the stock trades below its 200-day moving average of 34.83, investors should weigh the potential for recovery against the current financial headwinds.
Published over three months ago
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Reviewed by Raphi Shpitalnik

In the world of investing, timing can be everything. ENDRA Life Sciences (NASDAQ: NDRA) has recently caught the attention of investors, especially in the context of its performance within the healthcare diagnostics sector. With a market capitalization of just 755.6K and a current cash position of 2.8M, the company is navigating a challenging landscape, marked by a significant loss of 9.6M in free cash flow. As the stock trades around 0.48, many are left wondering if now is the moment to reevaluate their holdings in ENDRA, especially in light of the broader market dynamics and the recent momentum seen in similar stocks like HTG Molecular (NASDAQ: HTGM). With more millennials focusing on healthcare equipment and supplies, let's take a closer look at ENDRA Life Sciences and HTG Molecular as potential short-term trading opportunities. We'll explore the competitive landscape of both companies to see how they stack up against each other. ENDRA, known for its innovative imaging technology, and HTG, which specializes in molecular profiling, each have unique strengths that could attract investors. By understanding their positions in the market, we can identify potential trading strategies that might benefit from the growing interest in healthcare solutions.
Out of tens of thousands of stocks, funds, and ETFs that trade on global exchanges each represent an individual company which you can analyze using comparative analysis. To determine which one of the two entities, such as ENDRA or Intelligent is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step.

How important is ENDRA Life's Liquidity

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

Correlation Between ENDRA and Intelligent Bio Solutions

In general, Stock analysis is a method for investors and traders to make individual buying and selling decisions. Stock correlation analysis is also essential because it can help investors realize that they may not be as diversified as they think. Risk management strategies are usually required to make sure all portfolios are properly aligned against their risk tolerance level. You can consider holding ENDRA Life together with similar or unrelated positions with a negative correlation. For example, you can also add Intelligent Bio to your portfolio. If Intelligent Bio is not perfectly correlated to ENDRA Life it will diversify some of the market risks out of the positively correlated stocks in your portfolio. However, the disadvantage of this sort of hedging is that it can potentially affect your investment returns throughout market cycles. When ENDRA Life, for example, performs excellent and delivers stable returns, the negatively correlated position you locked in as a hedge may drag your returns down.
Are you currently holding both ENDRA Life and Intelligent Bio in your portfolio? Please note if you are using this as a pair-trade strategy between ENDRA Life and Intelligent Bio, watch out for correlation discrepancy over time. Relying on the historical price correlations and assuming that it will not change may lead to short-term losses. Please check pair correlation details between NDRA and INBS for more information.

A Deeper Perspective

Total Debt Breakdown

Let me now go over ENDRA Life total debt. Based on the latest financial disclosure, ENDRA Life Sciences has a Total Debt of 394.4 K. This is 99.99% lower than that of the Health Care Equipment & Supplies sector and 99.96% lower than that of the Health Care industry. The total debt for all United States stocks is 99.99% higher than that of the company.
As for HTG Molecular we see total debt of 4.83 M, which is 99.48% lower than that of the Health Care
Sector
928.8 M
NDRA394,4030.0422
Sector928.83 Million99.44
HTGM4.83 Million0.52
"Risk comes from not knowing what you're doing." - Warren Buffett. ENDRA Life Sciences (NASDAQ: NDRA) has been navigating a challenging landscape, with a current market capitalization of $755.58K and a staggering probability of bankruptcy at 95.18%. Despite a current ratio of 9.64X indicating strong liquidity, the company reported losses of $9.5M in EBITDA and $9.6M in free cash flow, raising concerns about its financial health. With a book value of $6.208 and cash reserves of $2.8M, investors may want to reassess their positions, especially given the EPS estimates for the current year at -11.5 and next year at -8.5. As the stock trades at a typical price of $0.48, the potential upside appears limited, making it crucial for shareholders to evaluate their risk tolerance in this volatile environment..

Will ENDRA Life continue to go out of control?

ENDRA Life Sciences is currently facing significant stock price fluctuations, with a volatility level of 257.99. This raises concerns about the company's stability and its ability to regain market control. Investors may wonder if this erratic behavior indicates deeper issues or if it's just a temporary phase. As the company navigates these challenges, its future remains uncertain, making it an intriguing option for those willing to take risks for potential rewards. While ENDRA Life Sciences could be a promising investment, it's essential to recognize that many penny stocks are speculative and can be influenced by artificial hype. Investors should be cautious and look for signs of manipulation, such as unsolicited promotions or sudden news releases. Thoroughly researching the company's leadership and understanding the risks involved is crucial before diving into high-volatility stocks like ENDRA.
Timing your investment is key, but remember that prices often revert after hype fades. True shareholder value comes from solid performance and strong fundamentals.Despite a significant drop of over 31 percent in ENDRA Life Sciences' stock, the outlook remains intriguing for potential investors. Analysts have set a target price as high as 18.87, suggesting that there may be considerable upside from current levels. With a consensus rating of "Strong Buy," it appears that some experts see value in the company, even as it faces challenges reflected in its current year EPS estimate of -11.5. As the fiscal year ends in December, investors might want to keep a close eye on upcoming developments that could influence the stock's trajectory. With a market valuation of just 0.45, there could be an opportunity for those willing to take a calculated risk..

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Editorial Staff

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 Vlad Skutelnik do not own shares of ENDRA Life Sciences. Please refer to our Terms of Use for any information regarding our disclosure principles.

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