Is Small Cap Stock a Good Investment?
Small Cap Investment Advice | RCC |
- Examine Small Cap's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
- Research Small Cap's leadership team and their track record. Good management can help Small Cap navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Oil & Gas Exploration & Production space and any emerging trends that could impact Small Cap's business and its evolving consumer preferences.
- Compare Small Cap's performance and market position to its competitors. Analyze how Small Cap is positioned in terms of product offerings, innovation, and market share.
- Check if Small Cap pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about Small Cap's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in Small Cap Premium stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Small Cap Premium is a good investment.
Sell | Buy |
Hold
Market Performance | Insignificant | Details | |
Volatility | Very steady | Details | |
Hype Condition | Stale | Details | |
Current Valuation | Fairly Valued | Details | |
Odds Of Distress | Very Low | Details | |
Economic Sensitivity | Moves indifferently to market moves | Details | |
Investor Sentiment | Alarmed | Details | |
Analyst Consensus | Strong Sell | Details | |
Financial Strenth (F Score) | Frail | Details | |
Financial Leverage | Inapplicable | Details | |
Reporting Quality (M-Score) | Unlikely Manipulator | Details |
Examine Small Cap Stock
Researching Small Cap's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). The company last dividend was issued on the 30th of October 2024.
To determine if Small Cap is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Small Cap's research are outlined below:
| Small Cap Premium has a frail financial position based on the latest SEC disclosures | |
| On 30th of October 2024 Small Cap paid $ 0.3594 per share dividend to its current shareholders | |
| Latest headline from news.google.com: 2 Small Cap AI Revolution Stocks for Your Watch List - Zacks Investment Research |
Small Cap Quarterly Liabilities And Stockholders Equity |
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Small Cap's market capitalization trends
The company currently falls under 'Mid-Cap' category with a total capitalization of 1.74 B.Market Cap |
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Small Cap's profitablity analysis
| Last Reported | Projected for Next Year | ||
| Return On Tangible Assets | 0.03 | 0.03 | |
| Return On Capital Employed | 0.07 | 0.08 | |
| Return On Assets | 0.03 | 0.03 | |
| Return On Equity | 0.13 | 0.13 |
Determining Small Cap's profitability involves analyzing its financial statements and using various financial metrics to determine if Small Cap is a good buy. For example, gross profit margin measures Small Cap's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Small Cap's profitability and make more informed investment decisions.
Please note, the presentation of Small Cap's financial position, as portrayed in its financial statements, is often influenced by management's estimates, judgments, and sometimes even manipulations. In the best case, Small Cap's management is honest, while the outside auditors are strict and uncompromising. Please utilize our Beneish M Score to check the likelihood of Small Cap's management manipulating its earnings.
Evaluate Small Cap's management efficiency
The current year's Return On Capital Employed is expected to grow to 0.08, whereas Return On Tangible Assets are forecasted to decline to 0.03. At present, Small Cap's Non Current Assets Total are projected to increase significantly based on the last few years of reporting. The current year's Intangible Assets is expected to grow to about 135.8 M, whereas Non Currrent Assets Other are projected to grow to (6.9 B). Small Cap's management efficiency ratios could be used to measure how well Small Cap manages its routine affairs as well as how well it operates its assets and liabilities.| Last Reported | Projected for Next Year | ||
| Book Value Per Share | 18.02 | 11.25 | |
| Tangible Book Value Per Share | 16.94 | 9.50 | |
| Enterprise Value Over EBITDA | 9.57 | 9.09 | |
| Price Book Value Ratio | 0.59 | 0.56 | |
| Enterprise Value Multiple | 9.57 | 9.09 | |
| Price Fair Value | 0.59 | 0.56 | |
| Enterprise Value | 8.6 B | 9 B |
Small Cap showcases strong leadership that adapts to market changes and drives innovation. Our analysis explores how this adaptability affects the stock's investment appeal.
Dividend Yield 0.0264 | Forward Dividend Yield 0.0264 |
Basic technical analysis of Small Stock
As of the 23rd of November, Small Cap has the Coefficient Of Variation of 1606.91, semi deviation of 0.3597, and Risk Adjusted Performance of 0.0425. In relation to fundamental indicators, the technical analysis model makes it possible for you to check existing technical drivers of Small Cap Premium, as well as the relationship between them.Small Cap's insider trading activities
Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific Small Cap insiders, such as employees or executives, is commonly permitted as long as it does not rely on Small Cap's material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases Small Cap insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.
Andrew Ahlborn over six months ago Acquisition by Andrew Ahlborn of 8347 shares of Small Cap subject to Rule 16b-3 |
Understand Small Cap's technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing Small Cap's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
| Risk Adjusted Performance | 0.0425 | |||
| Market Risk Adjusted Performance | (0.35) | |||
| Mean Deviation | 0.3602 | |||
| Semi Deviation | 0.3597 | |||
| Downside Deviation | 0.4743 | |||
| Coefficient Of Variation | 1606.91 | |||
| Standard Deviation | 0.503 | |||
| Variance | 0.253 | |||
| Information Ratio | (0.20) | |||
| Jensen Alpha | 0.0284 | |||
| Total Risk Alpha | (0.06) | |||
| Sortino Ratio | (0.21) | |||
| Treynor Ratio | (0.36) | |||
| Maximum Drawdown | 2.37 | |||
| Value At Risk | (0.70) | |||
| Potential Upside | 1.03 | |||
| Downside Variance | 0.2249 | |||
| Semi Variance | 0.1294 | |||
| Expected Short fall | (0.49) | |||
| Skewness | 0.463 | |||
| Kurtosis | 0.4515 |
| Risk Adjusted Performance | 0.0425 | |||
| Market Risk Adjusted Performance | (0.35) | |||
| Mean Deviation | 0.3602 | |||
| Semi Deviation | 0.3597 | |||
| Downside Deviation | 0.4743 | |||
| Coefficient Of Variation | 1606.91 | |||
| Standard Deviation | 0.503 | |||
| Variance | 0.253 | |||
| Information Ratio | (0.20) | |||
| Jensen Alpha | 0.0284 | |||
| Total Risk Alpha | (0.06) | |||
| Sortino Ratio | (0.21) | |||
| Treynor Ratio | (0.36) | |||
| Maximum Drawdown | 2.37 | |||
| Value At Risk | (0.70) | |||
| Potential Upside | 1.03 | |||
| Downside Variance | 0.2249 | |||
| Semi Variance | 0.1294 | |||
| Expected Short fall | (0.49) | |||
| Skewness | 0.463 | |||
| Kurtosis | 0.4515 |
Consider Small Cap's intraday indicators
Small Cap intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Small Cap stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
Small Cap Corporate Filings
10Q | 12th of November 2024 Quarterly performance report mandated by Securities and Exchange Commission (SEC), to be filed by publicly traded corporations | ViewVerify |
8K | 7th of November 2024 Report filed with the SEC to announce major events that shareholders should know about | ViewVerify |
| 14th of June 2024 Other Reports | ViewVerify | |
F4 | 29th of May 2024 The report filed by a party regarding the acquisition or disposition of a company's common stock, as well as derivative securities such as options, warrants, and convertible securities | ViewVerify |
Small Stock media impact
Far too much social signal, news, headlines, and media speculation about Small Cap that are available to investors today. That information is available publicly through Small media outlets and privately through word of mouth or via Small internal channels. However, regardless of the origin, that massive amount of Small data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of Small Cap news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Small Cap relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Small Cap's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Small Cap alpha.
Small Cap Corporate Management
| Dominique Mielle | Independent Director | Profile | |
| Gilbert Nathan | Independent Director | Profile | |
| Frank Filipps | Independent Director | Profile | |
| Adam Zausmer | Chief Credit Officer | Profile | |
| Julius Erving | Director | Profile |
Check out Your Equity Center to better understand how to build diversified portfolios, which includes a position in Small Cap Premium. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in main economic indicators. You can also try the Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
Is Oil & Gas Exploration & Production space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Small Cap. If investors know Small will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Small Cap listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Return On Equity 0.1426 |
The market value of Small Cap Premium is measured differently than its book value, which is the value of Small that is recorded on the company's balance sheet. Investors also form their own opinion of Small Cap's value that differs from its market value or its book value, called intrinsic value, which is Small Cap's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Small Cap's market value can be influenced by many factors that don't directly affect Small Cap's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
In summary, please note that there is a difference between Small Cap's value and its price, as these two are different measures arrived at by various means. Investors typically determine if Small Cap is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Small Cap's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.