Is Assure Holdings (USA Stocks:IONM) volatility declining?

Macroaxis Story

Assure Holdings Corp currently has approximately 792K in cash, with a positive cash flow from operations of 8.03M. This results in a cash-per-share (CPS) ratio of 0.06. The company has a Beta (market volatility) of 1.667, indicating a somewhat significant risk relative to the market. If the market rises, the company is expected to outperform it. However, if the market yields negative returns, Assure Holdings is likely to underperform. While it's important to consider Assure Holdings Corp's historical returns, it's also crucial to be realistic about the equity's current trending patterns. Our primary approach to predicting the future performance of any stock involves evaluating the business as a whole, along with its past performance, including all available fundamental and technical indicators. By analyzing Assure Holdings Corp's technical indicators, you can currently assess whether the expected return of 0.0473% will be sustainable in the future. At present, Assure Holdings Corp shows a risk of 8.87%. Please verify Assure Holdings Corp's variance, value at risk, and the relationship between the Value At Risk and skewness to determine if Assure Holdings Corp will continue to follow its price patterns.

Major Takeaways

Assure Holdings Corp's recent 7.14% dip in stock price presents a potential buying opportunity for investors who can stomach high volatility. The company's high Coefficient of Variation at 13.5K and Standard Deviation of 8.91 indicate significant price fluctuations, which could lead to substantial gains for risk-tolerant investors. However, with a Total Risk Alpha of -0.81, investors should be prepared for potential losses.

Published over three months ago

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Reviewed by Rifka Kats

Assure Holdings Corp, a prominent player in the healthcare sector listed on NASDAQ, has recently experienced a significant dip in its stock price, falling over 7%. This volatility may present a potential buying opportunity for savvy investors. The company's real value is currently estimated at 1.19, significantly higher than its market value of 0.26, indicating a potential undervaluation. Furthermore, the analyst consensus for the stock is a strong buy, with a target price estimated at 4, offering a substantial upside from the current levels. Despite the recent loss, the potential upside price of 9.12 suggests that Assure Holdings Corp could be a profitable investment in the long run. Considering an investment horizon of 60 days, Assure Holdings is projected to yield a return on investment that is 1.42 times lower than the market average. Furthermore, the company's volatility is 13.21 times higher than its market benchmark. It trades approximately 0.01 of its total potential returns per unit of risk. Currently, the Dow Jones Industrial Average is generating about 0.1 per unit of volatility. While the healthcare equipment and supplies sector is attracting many risk-takers, some investors are not entirely comfortable with the current volatility of Assure Holdings. We will discuss a few points that insiders of Assure Holdings should keep in mind regarding its volatility. The recent risk factors associated with Assure may influence the stock's value, as we currently estimate Assure Holdings to be undervalued. The real value is nearing $1.19 per share.

Is Assure Holdings (USA Stocks:IONM) volatility declining?

Volatility is a rate at which the price of Assure Holdings 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 Assure Holdings may increase or decrease. In other words, similar to Assure's beta indicator, it measures the risk of Assure Holdings and helps estimate the fluctuations that may happen in a short period of time. So if prices of Assure Holdings 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 Assure Holdings on a daily basis if you are holding a position in it. Assure Holdings is trading at a penny-stock level, and the possibility of delisting is much higher compared to other stocks. However, just because the stock is trading under one dollar, does not mean it will be marked for deletion. Most exchanges require public instruments, such as Assure Holdings stock to be traded above the $1 level to remain listed. If Assure Holdings stock 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 Assure Holdings's Liquidity

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

Assure Holdings Gross Profit

Assure Holdings Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Assure Holdings previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Assure Holdings Gross Profit growth over the last 10 years. Please check Assure Holdings' gross profit and other fundamental indicators for more details.

Assure Holdings Volatility Drivers

Assure Holdings unsystematic risk is unique to Assure Holdings Corp and usually not directly affected by the market or economic environment. An example of unsystematic risk is the possibility of poor earnings or a layoff due to coronavirus. One may mitigate nonsystematic risk by buying different securities in the same industry or by buying in different sectors. For example, if you have a position in Assure Holdings you can also buy Novo Integrated Sciences. You can also mitigate this risk by investing in the health care sector as well as in companies having nothing to do with it. This type of risk is also called diversifiable risk and can be understood from analyzing Assure Holdings important indicators over time. Here we run a correlation analysis between relevant fundamental ratios over at least ten year period to find a relationship in the way they react to changes in Assure Holdings income statement and balance sheet. Here are more details about Assure volatility.

	Total Assets	Net Debt	Total Liab	Common Stock	Capital Stock	Good Will	Total Revenue	Gross Profit	Net Income	Tax Provision	Ptb Ratio	Pb Ratio	Ev To Sales	Payout Ratio	Pfcf Ratio	Pe Ratio	Current Ratio	Graham Number	Ebt Per Ebit	Quick Ratio	Cash Ratio	Debt Ratio	Market Cap
Total Assets		0.43	0.8	-0.09	-0.09	0.22	0.29	-0.08	-0.12	0.27	0.24	0.24	0.06	-0.12	0.18	0.01	0.04	0.69	0.87	0.04	-0.5	0.04	0.57
Net Debt	0.43		0.67	-0.82	-0.82	-0.57	-0.26	-0.58	-0.81	0.75	0.12	0.12	0.69	0.57	0.4	0.03	-0.33	0.21	0.34	-0.34	-0.44	0.84	0.1
Total Liab	0.8	0.67		-0.41	-0.41	-0.3	-0.08	-0.3	-0.42	0.72	0.22	0.22	0.47	0.32	0.3	0.33	-0.26	0.46	0.65	-0.27	-0.62	0.49	0.63
Common Stock	-0.09	-0.82	-0.41		1.0	0.48	0.11	0.24	0.55	-0.73	-0.07	-0.07	-0.66	-0.61	-0.23	0.14	0.19	0.34	-0.23	0.19	0.24	-0.79	0.19
Capital Stock	-0.09	-0.82	-0.41	1.0		0.48	0.11	0.24	0.55	-0.73	-0.07	-0.07	-0.66	-0.61	-0.23	0.14	0.19	0.34	-0.23	0.19	0.24	-0.79	0.19
Good Will	0.22	-0.57	-0.3	0.48	0.48		0.72	0.71	0.81	-0.67	0.02	0.02	-0.64	-0.6	-0.26	-0.52	0.52	0.06	0.45	0.53	0.23	-0.76	-0.07
Total Revenue	0.29	-0.26	-0.08	0.11	0.11	0.72		0.84	0.58	-0.4	0.0	0.0	-0.31	-0.51	-0.27	-0.54	0.58	-0.16	0.54	0.58	0.19	-0.58	-0.17
Gross Profit	-0.08	-0.58	-0.3	0.24	0.24	0.71	0.84		0.83	-0.44	-0.08	-0.08	-0.32	-0.44	-0.38	-0.41	0.51	-0.47	0.24	0.52	0.35	-0.62	-0.16
Net Income	-0.12	-0.81	-0.42	0.55	0.55	0.81	0.58	0.83		-0.55	-0.06	-0.06	-0.64	-0.57	-0.41	-0.24	0.42	-0.31	0.15	0.43	0.37	-0.8	0.04
Tax Provision	0.27	0.75	0.72	-0.73	-0.73	-0.67	-0.4	-0.44	-0.55		0.1	0.1	0.77	0.67	0.17	0.36	-0.42	-0.01	0.22	-0.42	-0.43	0.84	0.46
Ptb Ratio	0.24	0.12	0.22	-0.07	-0.07	0.02	0.0	-0.08	-0.06	0.1		1.0	-0.01	0.01	-0.24	-0.23	0.49	0.16	0.2	0.49	0.29	0.04	0.12
Pb Ratio	0.24	0.12	0.22	-0.07	-0.07	0.02	0.0	-0.08	-0.06	0.1	1.0		-0.01	0.01	-0.24	-0.23	0.49	0.16	0.2	0.49	0.29	0.04	0.12
Ev To Sales	0.06	0.69	0.47	-0.66	-0.66	-0.64	-0.31	-0.32	-0.64	0.77	-0.01	-0.01		0.72	0.17	0.13	-0.33	-0.02	-0.03	-0.34	-0.25	0.88	0.18
Payout Ratio	-0.12	0.57	0.32	-0.61	-0.61	-0.6	-0.51	-0.44	-0.57	0.67	0.01	0.01	0.72		0.22	0.18	-0.39	-0.13	-0.04	-0.4	-0.22	0.79	-0.04
Pfcf Ratio	0.18	0.4	0.3	-0.23	-0.23	-0.26	-0.27	-0.38	-0.41	0.17	-0.24	-0.24	0.17	0.22		0.5	-0.39	0.21	0.1	-0.39	-0.16	0.33	-0.03
Pe Ratio	0.01	0.03	0.33	0.14	0.14	-0.52	-0.54	-0.41	-0.24	0.36	-0.23	-0.23	0.13	0.18	0.5		-0.62	0.2	-0.22	-0.62	-0.34	0.2	0.48
Current Ratio	0.04	-0.33	-0.26	0.19	0.19	0.52	0.58	0.51	0.42	-0.42	0.49	0.49	-0.33	-0.39	-0.39	-0.62		-0.12	0.18	1.0	0.71	-0.48	-0.23
Graham Number	0.69	0.21	0.46	0.34	0.34	0.06	-0.16	-0.47	-0.31	-0.01	0.16	0.16	-0.02	-0.13	0.21	0.2	-0.12		0.33	-0.12	-0.39	0.0	0.53
Ebt Per Ebit	0.87	0.34	0.65	-0.23	-0.23	0.45	0.54	0.24	0.15	0.22	0.2	0.2	-0.03	-0.04	0.1	-0.22	0.18	0.33		0.18	-0.35	-0.06	0.35
Quick Ratio	0.04	-0.34	-0.27	0.19	0.19	0.53	0.58	0.52	0.43	-0.42	0.49	0.49	-0.34	-0.4	-0.39	-0.62	1.0	-0.12	0.18		0.71	-0.48	-0.23
Cash Ratio	-0.5	-0.44	-0.62	0.24	0.24	0.23	0.19	0.35	0.37	-0.43	0.29	0.29	-0.25	-0.22	-0.16	-0.34	0.71	-0.39	-0.35	0.71		-0.33	-0.36
Debt Ratio	0.04	0.84	0.49	-0.79	-0.79	-0.76	-0.58	-0.62	-0.8	0.84	0.04	0.04	0.88	0.79	0.33	0.2	-0.48	0.0	-0.06	-0.48	-0.33		0.11
Market Cap	0.57	0.1	0.63	0.19	0.19	-0.07	-0.17	-0.16	0.04	0.46	0.12	0.12	0.18	-0.04	-0.03	0.48	-0.23	0.53	0.35	-0.23	-0.36	0.11

Click cells to compare fundamentals

Breaking it down a bit more

The recent indifference towards the small price fluctuations of Assure Holdings Corp may raise some interest from insiders. The stock closed today at a share price of 0.26 on 151,469 in trading volume. The company executives did not add any value to Assure Holdings investors in November. However, most investors can still diversify their portfolios with Assure Holdings Corp to hedge their inherited risk against high-volatility market scenarios. The stock standard deviation of daily returns for 90 days investing horizon is currently 8.87. The very high volatility is mostly attributed to the latest market swings and not very good earnings reports from some of the Assure Holdings partners.

	2020	2021	2022	2023 (projected)
Book Value per Share	53.02	49.39	7.27	7.46
Asset Turnover	0.09	0.72	0.29	0.38

Book Value per Share Asset Turnover

As Warren Buffet once wisely noted, be fearful when others are greedy and greedy when others are fearful.

This sentiment may apply to Assure Holdings Corp, a healthcare company traded on NASDAQ, which recently saw its stock dip over 7%. Despite this drop, the company's fundamentals suggest a potential buying opportunity. With a book value per share of 0.24X and cash per share of 0.06X, the company's financial health appears stable. Furthermore, Assure Holdings Corp has a robust working capital of $16.42 million and total assets of $24.25 million. However, potential investors should be aware of the company's high volatility, as indicated by a standard deviation of 8.91 and a semi variance of 51.53. Despite the recent dip, the company's potential upside of 13.64 and a target price of $4 suggest that this could be a valuable addition to a risk-tolerant investor's portfolio. .

Is Assure Holdings recent decline permanent?

Assure Holdings Corp's stock has recently displayed a skewness of 0.68, indicating a decreasing degree of asymmetry in its returns distribution. This suggests that the stock's returns are becoming more normally distributed, which could be a sign of reduced volatility. However, it's important to understand that this doesn't necessarily imply that the recent decline in the stock's price is permanent. While the decreased skewness might suggest a stabilization in the stock's price movements, it's essential to consider other factors such as the company's financial health, market conditions, and industry trends before making any definitive conclusions. As of December 8th, Assure Holdings reports a Downside Deviation of 8.69, mean deviation of 6.53, and Risk Adjusted Performance of 0.0141. Assure Holdings Corp's technical analysis provides a methodology to utilize historical prices and volume patterns to determine a pattern that approximates the direction of the firm's future prices. In other words, this information can be used to ascertain if the firm will indeed mirror its model of historical prices and volume momentum, or if the prices will eventually revert. We were able to interpolate nineteen technical drivers for Assure Holdings Corp, which can be compared to its competitors. Please verify Assure Holdings Corp's variance, value at risk, as well as the relationship between the Value At Risk and skewness to decide if Assure Holdings Corp is priced correctly, given that the market reflects its regular price of 0.26 per share. As Assure Holdings Corp appears to be a penny stock, we also recommend validating its total risk alpha numbers.

Our Final Take On Assure Holdings

Although few other entities in the medical care facilities industry are either recovering or due for a correction, Assure may not be as strong as the others in terms of longer-term growth potentials. With an impartial outlook on the current market volatility, it may be better to hold off any inventment activity and neither take up nor quit any shares of Assure Holdings at this time. The Assure Holdings Corp risk-reward trade off is not appealing enough to do any trading. 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 Assure Holdings.

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Editorial Staff

Gabriel Shpitalnik is a Member of Macroaxis Editorial Board. Gabriel is a young entrepreneur and writes predominantly on the business, technology, and finance sector. He likes to analyze different equity instruments across a wide range of industries focusing primarily on consumer products and evolving technologies. 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 Gabriel Shpitalnik do not own shares of Assure Holdings Corp. Please refer to our Terms of Use for any information regarding our disclosure principles.

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