The latest Peninsula Minerals price dip may encourage shareholders to take a closer look at the company as it is trading at a share price of 0.14 on very low momentum in trading volume. The company executives were unable to exploit market volatilities in November. However, diversifying your overall positions with Peninsula Minerals can protect your principal portfolio during market swings. The stock standard deviation of daily returns for 90 days investing horizon is currently 5.0. This high volatility is attributed to the latest market swings and not so good earnings reports for some of the Peninsula Minerals partners.
Breaking down Peninsula (OTC:PENMF) volatility
 | By Gabriel Shpitalnik | Macroaxis Story |
Peninsula Minerals is currently producing negative expected returns and takes up 4.9999% volatility of returns over 60 trading days. While some risk-loving traders are indifferent towards current market volatility, it is reasonable to digest the risk of investing in Peninsula Minerals. We will go over a few points Peninsula Minerals shareholders should remember regarding its volatility. The latest above-average Peninsula Minerals' volatility may impact the value of the otc stock as we project Peninsula Minerals as currently overvalued. The real value, according to our calculations, is approaching 0.13 per share.
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Reviewed by Ellen Johnson
The company classifies itself under Energy sector and is part of Uranium industry. Volatility is a rate at which the price of Peninsula Energy or any other equity instrument increases or decreases for a given set of returns. It is measured by calculating the standard deviation of the annualized returns over a given period of time and shows the range to which the price of Peninsula Energy may increase or decrease. In other words, similar to Peninsula's beta indicator, it measures the risk of Peninsula Energy and helps estimate the fluctuations that may happen in a short period of time. So if prices of Peninsula Energy fluctuate rapidly in a short time span, it is termed to have high volatility, and if it swings slowly in a more extended period, it is understood to have low volatility. Please read more on our technical analysis page.
Watch out for price decline
Please consider monitoring Peninsula Energy on a daily basis if you are holding a position in it. Peninsula Energy is trading at a penny-stock level, and the possibility of delisting is much higher compared to other otcs. However, just because the otc stock is trading under one dollar, does not mean it will be marked for deletion. Most exchanges require public instruments, such as Peninsula Energy stock to be traded above the $1 level to remain listed. If Peninsula Energy otc 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 Peninsula Energy's Liquidity
Peninsula Energy financial leverage refers to using borrowed capital as a funding source to finance Peninsula Energy ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Peninsula Energy 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 Peninsula Energy'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 Peninsula Energy'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 Peninsula Energy's total debt and its cash.
Breaking it down
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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 Gabriel Shpitalnik do not own shares of Peninsula Energy. Please refer to our Terms of Use for any information regarding our disclosure principles.