Alkaline Water slumps over 2 percent
 | By Vlad Skutelnik | Macroaxis Story |
This post is geared to all Alkaline Water retail investors as well as to investors considering exiting their position in the enterprise. I will evaluate if Alkaline Water shares are sensibly priced going into August and whether retail investors should be worried. Will the latest Alkaline risk factors impact the value of the stock? We estimate Alkaline Water as currently overvalued. The real value is approaching 1.48 per share. Alkaline Water shows a prevailing Real Value of $1.48 per share. The current price of the firm is $2.02. Based on Macroaxis valuation methodology, the firm appears to be overvalued. Our model approximates the value of Alkaline Water from analyzing the firm fundamentals such as current valuation of 71.74 M, return on equity of (352.96) %, and profit margin of (36.93) % as well as examining its technical indicators and Probability Of Bankruptcy. In general, we favor buying undervalued instruments and selling overvalued instruments since, at some point, asset prices and their ongoing real values will blend.
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Reviewed by Ellen Johnson
This firm conducts business under Consumer Defensive sector and is part of Beverages—Non-Alcoholic industry. We provide buy or sell advice to complement the prevailing expert consensus on Alkaline Water. Our dynamic recommendation engine makes use of a multidimensional algorithm to analyze the company's potential to grow using all technical and fundamental data available at the time. Volatility is a rate at which the price of Alkaline Water 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 Alkaline Water may increase or decrease. In other words, similar to Alkaline's beta indicator, it measures the risk of Alkaline Water and helps estimate the fluctuations that may happen in a short period of time. So if prices of Alkaline Water 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 Alkaline Water on a daily basis if you are holding a position in it. Alkaline Water is trading at a penny-stock level, and the possibility of delisting is much higher compared to other pink sheets. However, just because the pink sheet is trading under one dollar, does not mean it will be marked for deletion. Most exchanges require public instruments, such as Alkaline Water stock to be traded above the $1 level to remain listed. If Alkaline Water pink sheet 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 Alkaline Water's Liquidity
Alkaline Water financial leverage refers to using borrowed capital as a funding source to finance Alkaline Water ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Alkaline Water 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 Alkaline Water'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 Alkaline Water'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 Alkaline Water's total debt and its cash.
What is driving Alkaline Water Investor Appetite?
Alkaline Water makes 16.27 x price to book. The latest price spikes of Alkaline Water may raise some interest from investors as it closed today at a share price of 1.84 on 2,199,100 in trading volume. The company directors and management may have good odds in positioning the firm resources to exploit market volatility in August. The stock standard deviation of daily returns for 30 days investing horizon is currently 7.18. The very high volatility is mostly attributed to the latest market swings and not very good earnings reports from some of the Alkaline Water partners.
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