It looks as if TuanChe ADR may not have a good chance to recover from the latest dip as its shares fell again. The entity current daily volatility is 12.04 percent, with a beta of 0.77 and an alpha of -2.4 over Dow Jones Industrial. While some millenniums are indifferent towards current market swings, it makes sense to digest TuanChe ADR based on its technical indicators. We will cover the possibilities of making TuanChe ADR into a steady grower in March.
TuanChe ADR reports roughly 41.21 M in cash with (92.25 M) of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 2.17, which can makes it an attractive takeover target, given it will continue generating positive cash flow.
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. TuanChe ADR has an asset utilization ratio of 101.27 percent. This indicates that the company is making $1.01 for each dollar of assets. An increasing asset utilization means that TuanChe ADR is more efficient with each dollar of assets it utilizes for everyday operations.
Investing in TuanChe ADR, 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 TuanChe ADR 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.
Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of TuanChe ADR's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy.
Please consider monitoring TuanChe ADR on a daily basis if you are holding a position in it. TuanChe ADR is trading at a penny-stock level, and the possibility of delisting is much higher compared to other stocks. However, just because the stock is trading under one dollar, does not mean it will be marked for deletion. Most exchanges require public instruments, such as TuanChe ADR stock to be traded above the $1 level to remain listed. If TuanChe ADR stock 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 TuanChe ADR's Liquidity
TuanChe ADR financial leverage refers to using borrowed capital as a funding source to finance TuanChe ADR ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. TuanChe ADR 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 TuanChe ADR'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 TuanChe ADR'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 TuanChe ADR's total debt and its cash.
How does TuanChe utilize its cash?
At present, TuanChe ADR's Investments are projected to decrease significantly based on the last few years of reporting. . To perform a cash flow analysis of TuanChe ADR, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash TuanChe ADR is receiving and how much cash it distributes out in a given period. The TuanChe ADR cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.
TuanChe ADR Gross Profit
TuanChe ADR Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing TuanChe ADR previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show TuanChe ADR Gross Profit growth over the last 10 years. Please check TuanChe ADR's gross profit and other fundamental indicators for more details.
TuanChe ADR Correlation with Peers
Investors in TuanChe can reduce exposure to individual asset risk by holding a diversified portfolio of assets in addition to a long position in TuanChe ADR. Diversification will allow for the same portfolio return with reduced risk. The correlation table of TuanChe ADR and its peers is a two-dimensional matrix that shows the correlation coefficient between pairs of securities TuanChe 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 TuanChe for more details
Is TuanChe ADR valued correctly by the market?
TuanChe ADR owns Efficiency Ratio (i.e., Sharpe Ratio) of -0.22, which indicates the firm had -0.22% of return per unit of risk over the last 3 months. Macroaxis standpoint towards measuring the risk of any stock is to look at both systematic and unsystematic factors of the business, including all available market data and technical indicators. TuanChe ADR exposes twenty-one different technical indicators, which can help you to evaluate volatility that cannot be diversified away. Please be advised to validate TuanChe ADR risk adjusted performance of (0.18), and Coefficient Of Variation of (518.42) to confirm the risk estimate we provide.
The total risk alpha is down to -3.17 as of today.
As of the 15th of February 2023, TuanChe ADR has the coefficient of variation of (518.42), and Risk Adjusted Performance of (0.18). In relation to fundamental indicators, the technical analysis model makes it possible for you to check existing technical drivers of TuanChe ADR, as well as the relationship between them. In other words, you can use this information to find out if the company will indeed mirror its model of past prices and volume data, or the prices will eventually revert. We were able to break down nineteen technical drivers for TuanChe ADR, which can be compared to its competition. Please validate TuanChe ADRvariance, as well as the relationship between the value at risk and skewness to decide if TuanChe ADR is priced more or less accurately, providing market reflects its prevalent price of 0.71 per share. As TuanChe ADR is a penny stock we also advise to double-check its total risk alpha numbers.
Our Bottom Line On TuanChe ADR
Although some firms in the internet content & information industry are either recovering or due for a correction, TuanChe may not be as strong as the others in terms of longer-term growth potentials. Taking everything into account, as of the 15th of February 2023, we believe that at this point, TuanChe ADR is overvalued with close to average chance of distress within the next 2 years. Our actual buy-or-sell advice on the firm is Strong Sell.
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Rifka Kats is a Member of Macroaxis Editorial Board. Rifka 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
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