Macroaxis Stories

Will Medallion Resources continue to ascent in July?

June 29, 2020  By Rifka Kats
Macroaxis Story
Today we will digest Medallion Resources. We will analyze why it could be a much better year for Medallion Resources shareholders. Medallion Resources follows the market closely. We were able to break down and interpolate twenty-six available fundamentals for Medallion Resources, which can be compared to its peers in the industry. To make sure the equity is not overpriced, please verify all Medallion Resources financials, including its price to book, book value per share, working capital, as well as the relationship between the cash and equivalents and beta . As Medallion Resources appears to be a penny stock we also strongly suggest to check its price to book numbers. Use Medallion Resources to enhance returns of your portfolios. The stock experiences a very speculative upward sentiment. The trend is possibly hyped up. Check odds of Medallion Resources to be traded at $0.1375 in 30 days.
Published over a year ago
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Reviewed by Michael Smolkin

Medallion Resources has accumulated 30.07 K in total debt with debt to equity ratio (D/E) of 0.41, which is about average as compared to similar companies. This firm has a current ratio of 1.15, suggesting that it may not be capable to disburse its financial obligations in time and when they become due. Medallion Resources secures negative usage of assets of -397.53 %, lossing $3.9753 for each dollar of assets held by the firm. Inadequate asset utilization conveys that the company is being less effective with each dollar of assets it secures. Strictly speaking asset utilization of Medallion Resources shows how discouraging it operates for each dollar spent on its assets.
Out of tens of thousands of stocks, funds, and ETFs that trade on global exchanges each represent an individual company which you can analyze using comparative analysis. To determine which one of the two entities, such as Medallion or Canada is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step.

How important is Medallion Resources's Liquidity

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

Correlation Between Medallion and Canada Rare Earth

In general, Pink Sheet analysis is a method for investors and traders to make individual buying and selling decisions. Pink Sheet correlation analysis is also essential because it can help investors realize that they may not be as diversified as they think. Risk management strategies are usually required to make sure all portfolios are properly aligned against their risk tolerance level. You can consider holding Medallion Resources together with similar or unrelated positions with a negative correlation. For example, you can also add Canada Rare to your portfolio. If Canada Rare is not perfectly correlated to Medallion Resources it will diversify some of the market risks out of the positively correlated stocks in your portfolio. However, the disadvantage of this sort of hedging is that it can potentially affect your investment returns throughout market cycles. When Medallion Resources, for example, performs excellent and delivers stable returns, the negatively correlated position you locked in as a hedge may drag your returns down.
Are you currently holding both Medallion Resources and Canada Rare in your portfolio? Please note if you are using this as a pair-trade strategy between Medallion Resources and Canada Rare, watch out for correlation discrepancy over time. Relying on the historical price correlations and assuming that it will not change may lead to short-term losses. Please check pair correlation details between MLLOF and RAREF for more information.

A Deeper look at Medallion

Medallion Resources preserves 11.35 % of shares owned by insiders. Net Loss for the year was (756.23 K) with loss before overhead, payroll, taxes, and interest of (95.69 K). The company has a beta of 0.8115. Let's try to break down what Medallion's beta means in this case. As the market goes up, the company is expected to outperform it. However, if the market returns are negative, Medallion Resources will likely underperform. The beta indicator helps investors understand whether Medallion Resources moves in the same direction as the rest of the market, and how volatile (i.e., risky) it is compared to the market (i.e., selected benchmark). In other words, if Medallion deviates very little from the market, it does not add much risk to the portfolio, but it also doesn't increase the expected returns. Net Loss for the year was (756.23 K) with loss before overhead, payroll, taxes, and interest of (95.69 K).

As of the 29th of June, Medallion Resources secures the risk adjusted performance of 0.3158, mean deviation of 13.32, and downside deviation of 18.02. In connection with fundamental indicators, the technical analysis model lets you check existing technical drivers of Medallion Resources, as well as the relationship between them. Strictly speaking, you can use this information to find out if the firm will indeed mirror its model of past prices, or the prices will eventually revert. We were able to break down and interpolate nineteen technical drivers for Medallion Resources, which can be compared to its peers in the industry. Please verify Medallion Resources standard deviation and the relationship between the treynor ratio and kurtosis to decide if Medallion Resources is priced some-what accurately, providing market reflects its recent price of 0.11 per share. As Medallion Resources appears to be a penny stock we also strongly suggest to check its total risk alpha numbers.

Our Final Take On Medallion Resources

While many of the other players under other industrial metals & mining industry are still a little expensive, even after the recent corrections, Medallion Resources may offer a potential longer-term growth to investors. To sum up, as of 29th of June 2020, our up-to-date 30 days Buy/Hold/Sell recommendation on the firm is Hold. We believe Medallion Resources is overvalued with below average probability of distress for the next two years. With somewhat neutral outlook on your 30 days horizon, it may be better to hold off any trading activity and neither check out new shares of Medallion or short your existing holdings in the OTC Stock. It seems the expected volatility has not yet been 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 Medallion Resources.

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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 Medallion Resources. Please refer to our Terms of Use for any information regarding our disclosure principles.

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