Despite Nuzee Inc's significant maximum drawdown of
72.55% and a net income loss of
$8.7M from continuing operations, the company's recent price percent change of 24.5% and a Wall Street target price of $8 suggest potential for future growth. However, investors should consider the company's high mean deviation of 10.39, indicating substantial risk.
Main Points
Nuzee Inc. holds an average 'Buy' rating from one analyst. Is this consensus based on technical analysis? Traditional technical analysis typically uses price momentum, patterns, and trends derived from historical prices. It seeks to identify signals from the market sentiment, which reflects investors' perception of Nuzee's future value. Let's examine some aspects of Nuzee's technical analysis.
Using predictive
technical analysis, we can analyze different prices and returns patterns and
diagnose historical swings to determine the real value of Nuzee Inc. In general, sophisticated investors focus on analyzing Nuzee stock price patterns and their correlations with different microeconomic environment and drivers. They apply predictive analytics to build Nuzee's daily price indicators and compare them against related drivers such as
momentum indicators and various other types of predictive indicators. Using this methodology combined with a more conventional
technical analysis and
fundamental analysis, we attempt to find the most accurate representation of
Nuzee's intrinsic value. In addition to deriving basic predictive indicators for Nuzee, many experienced traders also check how macroeconomic factors affect Nuzee price patterns. Please read more on our
technical analysis page or use our predictive modules below to complement your research.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as Nuzee. Your research has to be compared to or analyzed against Nuzee's peers to derive any actionable benefits. When done correctly, Nuzee's competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy toward taking a position in Nuzee Inc.
Watch out for price decline
Please consider monitoring Nuzee on a daily basis if you are holding a position in it. Nuzee is trading at a penny-stock level, and the possibility of delisting is much higher compared to other delisted 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 Nuzee stock to be traded above the $1 level to remain listed. If Nuzee 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 does Nuzee Stands against Peers?
Analyzing Nuzee competition or peers my help you to expand the diversification possibilities of your existing portfolios and to get a better perspective on locking in new positions. Try to analyze the advantages of investing in traded instruments related to Nuzee across multiple sectors and
thematic ideas. A good competitive analysis can cover a lot of different areas. But what areas to choose depends on who you are. The more exhaustive you are in your analysis, the more effective your competitive analysis will be. Check out
Nuzee Competition DetailsCloser look at Nuzee Mean Deviation
Nuzee Inc has current Mean Deviation of 10.39. The mean deviation of the equity instrument is the first measure of the distances between each value of security historical prices and the mean. It gives us an idea of how spread out from the center the distribution of returns.
Mean Deviation is the average of the absolute values of the differences between price distribution numbers and their mean. Mean deviation of equity instrument with a lot of historical data is a biased estimator because the time horizon used in calculation will always be much smaller than the entire price history of the equity.
The mean deviation is typically used as a measure of dispersion for small investment horizon, otherwise standard deviation is a better measure of dispersion.
Mean Deviation | = | SUM(RET DEV)N |
| = | 10.39 |
| SUM | = | Summation notation |
| RET DEV | = | Sum of return deviations of Nuzee |
| N | = | Number of calculation points for selected time horizon |
Let's now compare Nuzee Mean Deviation to its closest peers:
| NUZE | 10.390591058769513 |
| BTOG | 5.65 |
| LSF | 6.54 |
| PLAG | 4.31 |
| SNAX | 3.75 |
As Benjamin Graham once said, "In the short run, the market is a voting machine but in the long run, it is a weighing machine." With a current typical price of $3.76, Nuzee Inc. is well below its 52-week high of $10.64, indicating a potential opportunity for investors to capitalize on. However, the company's high beta of 2.22 and downside deviation of 8.75 suggest considerable volatility and risk. Furthermore, Nuzee's negative net income of $8.7M and operating income loss of $8.9M are red flags for potential investors. Despite a strong current ratio of 6.51X and low total debt of $409.23K, the probability of bankruptcy stands at a worrying 96%, which should give investors pause..
Nuzee implied volatility may change after the surge
Nuzee Inc's stock exhibits a high volatility level, with a standard deviation of 29.59, indicating significant price fluctuations in short periods. This could lead to substantial gains or losses for investors. The recent surge in the stock's price may alter the implied volatility, a measure of expected future volatility. Investors should closely monitor this as it could affect the risk-return profile of their Nuzee Inc investment. The company's stock shows above-average volatility over the chosen time frame. Understanding market volatility trends can help investors time the market.
Using volatility indicators correctly allows traders to gauge Nuzee's stock risk against market volatility during bullish and bearish trends. The increased volatility in bear markets can impact Nuzee's stock price and stress investors as they see their share value drop, often prompting portfolio rebalancing.In conclusion, despite the current market valuation of Nuzee Inc at
$3.76, the analyst's overall consensus is a 'Buy' with only one analyst recommending a 'Buy'. The estimated target price ranges from a low of $21.84 to a high of
$26.64, indicating a potential upside of $33.85. However, investors should also be aware of the possible downside price of 0.0376. The fiscal year end in September could bring about significant changes in the company's financial position. Therefore, it may not be time to quit on Nuzee Inc just yet, but investors should keep a close eye on the company's performance and market trends..
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Vlad Skutelnik is a Macroaxis Contributor. Vlad covers stocks, funds, cryptocurrencies, and ETFs that are traded in North America, focusing primarily on fundamentals, valuation and market volatility. He has many years of experience in fintech, predictive investment analytics, and risk management.
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 Vlad Skutelnik do not own shares of Nuzee Inc. Please refer to our
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