China Literature Limited Stock Analysis

CHLLF Stock  USD 4.78  0.00  0.00%   
China Literature holds a debt-to-equity ratio of 0.047. China Literature's financial risk is the risk to China Literature stockholders that is caused by an increase in debt.

Asset vs Debt

Equity vs Debt

China Literature's liquidity is one of the most fundamental aspects of both its future profitability and its ability to meet different types of ongoing financial obligations. China Literature's cash, liquid assets, total liabilities, and shareholder equity can be utilized to evaluate how much leverage the Company is using to sustain its current operations. For traders, higher-leverage indicators usually imply a higher risk to shareholders. In addition, it helps China Pink Sheet's retail investors understand whether an upcoming fall or rise in the market will negatively affect China Literature's stakeholders.
For many companies, including China Literature, marketable securities, inventories, and receivables are the most common assets that could be converted to cash. However, for China Literature Limited, the most critical issue when managing liquidity is ensuring that current assets are properly aligned with current liabilities. If they are not, China Literature's management will need to obtain alternative financing to ensure there are always enough cash equivalents on the balance sheet to meet obligations.
Given that China Literature's debt-to-equity ratio measures a Company's obligations relative to the value of its net assets, it is usually used by traders to estimate the extent to which China Literature is acquiring new debt as a mechanism of leveraging its assets. A high debt-to-equity ratio is generally associated with increased risk, implying that it has been aggressive in financing its growth with debt. Another way to look at debt-to-equity ratios is to compare the overall debt load of China Literature to its assets or equity, showing how much of the company assets belong to shareholders vs. creditors. If shareholders own more assets, China Literature is said to be less leveraged. If creditors hold a majority of China Literature's assets, the Company is said to be highly leveraged.
China Literature Limited is fairly valued with Real Value of 4.78 and Hype Value of 4.78. The main objective of China Literature pink sheet analysis is to determine its intrinsic value, which is an estimate of what China Literature Limited is worth, separate from its market price. There are two main types of China Literature's stock analysis: fundamental analysis and technical analysis.
The China Literature pink sheet is traded in the USA on PINK Exchange, with the market opening at 09:30:00 and closing at 16:00:00 every Mon,Tue,Wed,Thu,Fri except for officially observed holidays in the USA. Here, you can get updates on important government artifacts, including earning estimates, SEC corporate filings, announcements, and China Literature's ongoing operational relationships across important fundamental and technical indicators.
  
Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in China Literature Limited. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in metropolitan statistical area.

China Pink Sheet Analysis Notes

About 61.0% of the company shares are held by company insiders. The company has price-to-book (P/B) ratio of 0.99. Some equities with similar Price to Book (P/B) outperform the market in the long run. China Literature had not issued any dividends in recent years. China Literature Limited, an investment holding company, operates an online literature platform in the Peoples Republic of China. China Literature Limited is a subsidiary of Tencent Holdings Limited. China Literature is traded on OTC Exchange in the United States.The quote for China Literature Limited is published daily by the National Quotation Bureau and the company does not need to meet minimum requirements or file with the SEC. For more info on China Literature Limited please contact Wu Cheng at 86 21 6187 0500 or go to https://ir.yuewen.com.

China Literature Investment Alerts

China Literature generated a negative expected return over the last 90 days
About 61.0% of the company shares are held by company insiders

China Market Capitalization

The company currently falls under 'Mid-Cap' category with a current market capitalization of 4.78 B. Market capitalization usually refers to the total value of a company's stock within the entire market. To calculate China Literature's market, we take the total number of its shares issued and multiply it by China Literature's current market price. To manage market risk and economic uncertainty, many investors today build portfolios that are diversified across equities with different market capitalizations. However, as a general rule, conservative investors tend to hold large-cap stocks, and those looking for more risk prefer small-cap and mid-cap equities.

China Profitablity

The company has Profit Margin (PM) of 0.12 %, which maeans that even a very small decline in it revenue will erase profits resulting in a net loss. This is way below average. Similarly, it shows Operating Margin (OM) of 0.1 %, which suggests for every 100 dollars of sales, it generated a net operating income of $0.1.

Technical Drivers

China Literature technical analysis gives you the methodology to make use of historical prices and volume patterns to determine a pattern that approximates the direction of the firm's future prices.

China Literature Price Movement Analysis

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China Literature Debt to Cash Allocation

Many companies such as China Literature, eventually find out that there is only so much market out there to be conquered, and adding the next product or service is only half as profitable per unit as their current endeavors. Eventually, the company will reach a point where cash flows are strong, and extra cash is available but not fully utilized. In this case, the company may start buying back its stock from the public or issue more dividends.
China Literature Limited has accumulated 382.54 M in total debt with debt to equity ratio (D/E) of 0.05, which may suggest the company is not taking enough advantage from borrowing. China Literature has a current ratio of 2.85, suggesting that it is liquid and has the ability to pay its financial obligations in time and when they become due. Debt can assist China Literature until it has trouble settling it off, either with new capital or with free cash flow. So, China Literature's shareholders could walk away with nothing if the company can't fulfill its legal obligations to repay debt. However, a more frequent occurrence is when companies like China Literature sell additional shares at bargain prices, diluting existing shareholders. Debt, in this case, can be an excellent and much better tool for China to invest in growth at high rates of return. When we think about China Literature's use of debt, we should always consider it together with cash and equity.

China Literature Assets Financed by Debt

Typically, companies with high debt-to-asset ratios are said to be highly leveraged. The higher the ratio, the greater risk will be associated with the China Literature's operation. In addition, a high debt-to-assets ratio may indicate a low borrowing capacity of China Literature, which in turn will lower the firm's financial flexibility.

About China Pink Sheet Analysis

Pink Sheet analysis is the technique used by a trader or investor to examine and evaluate how China Literature prices is reacting to, or reflecting on a current market direction and economic conditions. It can be used to make informed decisions about market timing, and when buying or selling China shares will generate the highest return on investment. We also built our pink sheet analysis module to help investors to gain an insight into the world economy as a whole, the stock market, thematic ideas. a specific sector, or an individual Pink Sheet such as China Literature. By using and applying China Pink Sheet analysis, traders can create a robust methodology for identifying China entry and exit points for their positions.
China Literature Limited, an investment holding company, operates an online literature platform in the Peoples Republic of China. China Literature Limited is a subsidiary of Tencent Holdings Limited. China Literature is traded on OTC Exchange in the United States.

Be your own money manager

As an investor, your ultimate goal is to build wealth. Optimizing your investment portfolio is an essential element in this goal. Using our pink sheet analysis tools, you can find out how much better you can do when adding China Literature to your portfolios without increasing risk or reducing expected return.

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