As November approaches, Charles & Colvard investors might be contemplating a strategic pivot, especially with the stock's price percent change showing a dip of -3.03. Despite the challenges, the potential upside of 8.28 could entice those looking for a rebound in the luxury goods sector, suggesting a possible shift in sentiment.
Important Highlights
The asset utilization ratio measures how effectively a company uses its assets to generate revenue. For Charles & Colvard, this ratio stands at 61.26%, indicating the company earns $0.61 for every dollar of assets it holds. A rising asset utilization ratio suggests that Charles & Colvard is becoming more efficient in using its assets to support daily operations.
The successful prediction of Charles Colvard
stock price could yield a significant profit to investors. But is it possible? The efficient-market hypothesis suggests that all published
stock prices of traded companies, such as Charles Colvard, already reflect all publicly available information. This academic statement is a fundamental principle of many financial and investing theories used today. However, the typical investor usually disagrees with a 'textbook' version of this hypothesis and continually tries to find mispriced stocks to increase returns. We use internally-developed statistical techniques to arrive at
the intrinsic value of Charles Colvard based on Charles Colvard hews, social hype, general headline patterns, and widely used
predictive technical indicators. We also calculate exposure to Charles Colvard's
market risk, different
technical and
fundamental indicators, relevant financial multiples and ratios, and then
comparing them to Charles Colvard's related companies.
Watch out for price decline
Please consider monitoring Charles Colvard on a daily basis if you are holding a position in it. Charles Colvard 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 Charles Colvard stock to be traded above the $1 level to remain listed. If Charles Colvard 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.
Use Technical Analysis to project Charles expected Price
Charles Colvard technical stock analysis exercises models and trading practices based on price and volume transformations, such as the moving averages, relative strength index, regressions, price and return correlations, business cycles, stock market cycles, or different charting patterns.
A focus of Charles Colvard technical analysis is to determine if market prices reflect all relevant information impacting that market. A technical analyst looks at the history of Charles Colvard trading pattern rather than external drivers such as economic, fundamental, or social events. It is believed that price action tends to repeat itself due to investors' collective, patterned behavior. Hence technical analysis focuses on identifiable price trends and conditions.
More Info...Charles Colvard Gross Profit
Charles Colvard Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Charles Colvard 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 Charles Colvard Gross Profit growth over the last 10 years. Please check Charles Colvard's
gross profit and other
fundamental indicators for more details.
What is the case for Charles Colvard Investors
Charles Colvard price fall over the last few months could raise concerns from retail investors as the firm is trading at a share price of
1.60 on very low momentum in volume. The company directors and management were not very successful in positioning the firm resources to exploit market volatility in
September. However, diversifying your holdings with Charles Colvard or similar stocks can still protect your portfolio during high-volatility market scenarios. The stock standard deviation of daily returns for 90 days investing horizon is currently 4.31. This high volatility is attributed to the latest market swings and not-so-good earnings reports for some of the Charles Colvard partners.
Current Deferred Revenue Breakdown
Charles Colvard Current Deferred Revenue yearly trend continues to be relatively stable with very little volatility. Current Deferred Revenue is likely to drop to about 419.1
K. Current Deferred Revenue usually refers to revenue that has been collected but not yet earned, typically from prepaid service contracts or subscriptions. This amount is considered a liability until the service is provided or the subscription period ends. At this time, Charles Colvard's Current Deferred Revenue is relatively stable compared to the past year.
| 2011 | 131,389 |
| 2018 | 156,306 |
| 2019 | 794,740 |
| 2020 | 774,891 |
| 2021 | 452,866 |
| 2022 | 566,896 |
| 2023 | 651,930 |
| 2024 | 419,068 |
Investors often say that past performance is not indicative of future results, and this might be particularly relevant for Charles & Colvard as November approaches. With a market capitalization of just 4.93 million and a probability of bankruptcy at 60.53%, the company faces significant challenges. Despite a gross profit of 10.74 million, the return on equity stands at a concerning 46% loss, raising questions about its financial health. The company's current ratio of 5.27X suggests it has ample liquidity to cover short-term liabilities, but the market's skepticism is evident in its low price-to-book ratio of 0.16X. Investors may need to weigh these factors carefully before deciding whether to shift gears on this NASDAQ-listed stock.
Are Charles Colvard technical indicators showing a correction?
Charles & Colvard's stock is currently showing signs that may indicate a potential correction, as evidenced by a decrease in kurtosis to 1.27. This metric, which assesses the tails of return distributions, suggests that the stock's price movements might become less extreme, hinting at reduced volatility. For investors, this could mean a period of more stable price action, offering a break from the wild swings typical of more volatile stocks. As the market adjusts to this change, it might be a good time to reassess positions and strategies regarding Charles & Colvard. The stock exhibits low volatility, with a skewness of -0.06 and kurtosis of 1.27, which can help investors time the market and manage risk during both bullish and bearish trends.
Our Conclusion on Charles Colvard
While other companies in the luxury goods industry are either recovering or due for a correction, Charles Colvard may not be performing as strong as the other in terms of long-term growth potentials. With a relatively neutral outlook on the latest economy, it is better to hold off any trading of Charles as the current risk-reward utility is not appealing enough. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Charles Colvard.
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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 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 Rifka Kats do not own shares of Charles Colvard. Please refer to our
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