Eastern Merchants (Sri Lanka) Buy Hold or Sell Recommendation
| EMERN0000 | LKR 6.50 0.10 1.52% |
Assuming the 90 days trading horizon and your highly speculative risk level, our recommendation regarding Eastern Merchants PLC is 'Strong Sell'. Macroaxis provides Eastern Merchants buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding EMERN0000 positions.
Check out Eastern Merchants Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. In addition, we conduct extensive research on individual companies such as Eastern and provide practical buy, sell, or hold advice based on investors' investing horizon and their risk tolerance towards Eastern Merchants PLC. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in board of governors.
Eastern |
Execute Eastern Merchants Buy or Sell Advice
The Eastern recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Eastern Merchants PLC. Macroaxis does not own or have any residual interests in Eastern Merchants PLC or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Eastern Merchants' advice using the current market data and latest reported fundamentals.
Time Horizon
Risk Tolerance
 |  |
Strong Sell
Market Performance | Modest | Details | |
Volatility | Slightly risky | Details | |
Hype Condition | Stale | Details | |
Current Valuation | Overvalued | Details | |
Odds Of Distress | About Average | Details | |
Economic Sensitivity | Slowly supersedes the market | Details | |
Analyst Consensus | Not Available | Details | |
Reporting Quality (M-Score) | Inapplicable | Details |
Eastern Merchants Returns Distribution Density
The distribution of Eastern Merchants' historical returns is an attempt to chart the uncertainty of Eastern Merchants' future price movements. The chart of the probability distribution of Eastern Merchants daily returns describes the distribution of returns around its average expected value. We use Eastern Merchants PLC price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Eastern Merchants returns is essential to provide solid investment advice for Eastern Merchants.
| Mean Return | 0.02 | Value At Risk | -3.33 | Potential Upside | 4.55 | Standard Deviation | 2.91 |
Return Density |
| Distribution |
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Eastern Merchants historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.
Eastern Merchants Greeks
Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Eastern Merchants or Eastern sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Eastern Merchants' price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Eastern stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α | Alpha over Dow Jones | 0.08 | |
β | Beta against Dow Jones | -0.57 | |
σ | Overall volatility | 2.62 | |
Ir | Information ratio | -0.04 |
Eastern Merchants Volatility Alert
Eastern Merchants PLC shows above-average downside volatility for the selected time horizon. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Eastern Merchants' stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Eastern Merchants' stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.Eastern Merchants Market Momentum
Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as Eastern . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.
About Eastern Merchants Buy or Sell Advice
When is the right time to buy or sell Eastern Merchants PLC? Buying financial instruments such as Eastern Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.
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Other Information on Investing in Eastern Stock
Eastern Merchants financial ratios help investors to determine whether Eastern Stock is cheap or expensive when compared to a particular measure, such as profits or enterprise value. In other words, they help investors to determine the cost of investment in Eastern with respect to the benefits of owning Eastern Merchants security.