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Will ENVIRONMENTAL TECTONICS price increase in August 2020?

July 4, 2020  By Rifka Kats
Macroaxis Story
Here I will go over some basic indicators drivers that ENVIRONMENTAL TECTONICS investors should consider in August. We estimate ENVIRONMENTAL TECTONICS as currently overvalued. The real value is approaching 0.39 per share. This firm dividends can provide a clue to the current value of the stock. ENVIRONMENTAL TECTONICS is not expected to issue dividends this year as it is trying to preserve or re-invest any of the funds available for distribution to stakeholders.
Published over a year ago
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Reviewed by Michael Smolkin

I believe the firm is overvalued at 0.39 per share with modest projections ahead. ENVIRONMENTAL TECTONICS has performance score of 1 on a scale of 0 to 100. The firm shows a Beta (market volatility) of -0.154, which means not very significant volatility relative to the market. Let's try to break down what ENVIRONMENTAL's beta means in this case. As returns on the market increase, returns on owning ENVIRONMENTAL TECTONICS are expected to decrease at a much lower rate. During the bear market, ENVIRONMENTAL TECTONICS is likely to outperform the market. Although it is extremely important to respect ENVIRONMENTAL TECTONICS historical returns, it is better to be realistic regarding the information on equity current trending patterns. The approach towards predicting future performance of any stock is to evaluate the business as a whole together with its past performance, including all available fundamental and technical indicators. By evaluating ENVIRONMENTAL TECTONICS technical indicators, you can now evaluate if the expected return of 0.19% will be sustainable into the future. ENVIRONMENTAL TECTONICS currently shows a risk of 10.07%. Please confirm ENVIRONMENTAL TECTONICS maximum drawdown, as well as the relationship between the downside variance and skewness to decide if ENVIRONMENTAL TECTONICS will be following its price patterns.
The performance of Environmmtl Tectonic in the marketplace will significantly impact your decision to invest in its stock. Revenue growth, profitability, competitive positioning, management quality, and industry trends can influence Environmmtl Tectonic's stock prices. When investing in Environmmtl Tectonic, there are several factors to consider and potential outcomes to expect. As a company performs well, its stock price may increase, allowing investors to benefit from price appreciation. However, Environmmtl Pink Sheet can experience significant price fluctuations due to market conditions, economic factors, industry trends, or company-specific news. This is why investing in stocks such as Environmmtl Tectonic carries risks, including the potential for capital loss. Stock prices can decline, and investors may incur losses if they sell shares at a lower price than their initial investment.

How important is Environmmtl Tectonic's Liquidity

Environmmtl Tectonic financial leverage refers to using borrowed capital as a funding source to finance Environmmtl Tectonic ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Environmmtl Tectonic 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 Environmmtl Tectonic'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 Environmmtl Tectonic'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 Environmmtl Tectonic's total debt and its cash.

How is Environmmtl allocating its cash?

To perform a cash flow analysis of Environmmtl Tectonic, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Environmmtl Tectonic is receiving and how much cash it distributes out in a given period. The Environmmtl Tectonic cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.

Is Environmmtl Tectonic valued correctly by the market?

ENVIRONMENTAL TECTONICS retains a total of 9.16 Million outstanding shares. Roughly 100.0 percent of ENVIRONMENTAL TECTONICS outstanding shares are held by regular investors with 0.0 (percent) owned by insiders and only 0.0 % by other corporate entities. Remember, it does not matter if the company is currently losing money. If the true value of the company is more than the market pays for it currently, you can still have a good investment opportunity. The modest gains experienced by current holders of ENVIRONMENTAL TECTONICS could raise concerns from investors as the firm closed today at a share price of 0.46 on slow start in volume. The company executives have been quite successful with maneuvering the stock at opportune times to take advantage of all market conditions in June. The stock standard deviation of daily returns for 30 days investing horizon is currently 10.07. The very high volatility is mostly attributed to the latest market swings and not very good earnings reports from some of the ENVIRONMENTAL TECTONICS partners.

ENVIRONMENTAL TECTONICS possible come-back in August

Variance is down to 123.2 as of today. ENVIRONMENTAL TECTONICS is showing large volatility of returns over the selected time horizon. We encourage all investors to investigate this asset further to make sure related market timing strategies are aligned with all the expectations about ENVIRONMENTAL TECTONICS implied risk. ENVIRONMENTAL TECTONICS is a potential penny stock. Although ENVIRONMENTAL TECTONICS may be in fact a good instrument to invest, many penny otc stocks are speculative in nature and are subject to artificial price hype. Please make sure you totally understand upside potential and downside risk of investing in ENVIRONMENTAL TECTONICS. We encourage investors to look for the signals such us email spams, message board hypes, claims of breakthroughs, volume upswings,sudden news releases, promotions that are not reported, or demotions released before SEC filings. Please also check biographies and work history of current and past company officers before investing in high volatility instruments, penny stocks, or equities with microcap classification. You can indeed make money on this equity instrument if you perfectly time your entry and exit. However, remember that penny stocks that has been the subject of an artificial hype usually unable to maintain its increased share price for more than just a few days. The price of a promoted high volatility instrument will almost always revert back. The one and only way to increase shareholder value is through legitimate performance backed up by solid fundamentals.

The Bottom Line On Investing in ENVIRONMENTAL TECTONICS

While many of the other players under specialty industrial machinery industry are still a little expensive, even after the recent corrections, ENVIRONMENTAL TECTONICS may offer a potential longer-term growth to investors. In closing, as of 4th of July 2020, our prevailing 30 days recommendation on the company is Strong Sell. We believe ENVIRONMENTAL TECTONICS is currently overvalued with below average odds of financial turmoil for the next two years. With a less-than optimistic outlook for your 30 days horizon, it may be a good time to drop some or all of your ENVIRONMENTAL TECTONICS holdings as it seems the potential growth was already fully factored into the current price. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to ENVIRONMENTAL TECTONICS.

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Editorial Staff

Rifka Kats is a Member of Macroaxis Editorial Board. Rifka writes about retail product and service companies from the perspective of a regular consumer and sophisticated investor at the same time. She is passionate about corporate ethics and equality in the workforce. 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 Rifka Kats do not own shares of Environmmtl Tectonic. Please refer to our Terms of Use for any information regarding our disclosure principles.

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