| 2022 | 2023 | 2024 (projected) | Interest Expense | 164.2K | 147.8K | 151.6K | Gross Profit | 88.8K | 102.1K | 104.8K |
What is February outlook for Nextplay Technologies (USA Stocks:NXTP) given current volatility levels?
 | By Aina Ster | Macroaxis Story |
Nextplay Technologies currently holds $13.17 million in liabilities, with a Debt to Equity (D/E) ratio of 0.13. This ratio may suggest that Nextplay Technologies is not fully leveraging its borrowing potential. The company's current ratio stands at 1.11, indicating potential difficulties in meeting its financial obligations when they are due.
Debt can be beneficial for Nextplay Technologies until it faces challenges in repayment, either through new capital or free cash flow. If the company fails to meet its legal obligations to repay debt, shareholders could potentially lose their entire investment. However, a more common scenario is when companies like Nextplay Technologies issue additional shares at low prices, thereby diluting the value of existing shares. In such cases, debt can be a superior tool for Nextplay to invest in growth at high rates of return. When considering Nextplay Technologies' use of debt, it should always be evaluated in conjunction with cash and equity.
Nextplay Technologies has a performance score of 10 on a scale of zero to a hundred. The company's Beta (Market Risk) stands at 1.75, indicating a relatively significant risk compared to the market. As the market rises, the company is expected to outperform it. However, if the market declines, Nextplay Technologies is likely to underperform.
While it's important to monitor Nextplay Technologies' price patterns, it's also prudent to be realistic about what can be achieved with historical price patterns. Utilize Nextplay Technologies' standard deviation, as well as the relationship between the value at risk and kurtosis, to analyze future returns on Nextplay Technologies.
Key Takeaways
Investors seeking to capitalize on market volatility may find an attractive opportunity in Nextplay Technologies (NXTP). The company's high coefficient of variation at 764.41 and standard deviation of 30.36 indicate a significant level of price fluctuation, which can be advantageous for traders who thrive in volatile markets. However, it's important to note that this high volatility also comes with increased risk, as evidenced by the downside variance of 117.69.Macroaxis uses a strict editorial review process to publish stories and blog posts. Our publishers support our company and may receive a small commission when the partner links or references are utilized. Commissions do not affect the opinions or evaluations of our editorial team. The information our editors and media partners deliver is confidential and licensed for your sole use as a Macroaxis user. We reserve all rights to the content of this article, and therefore copying or distributing this story in whole or in part is strictly prohibited.
Reviewed by Raphi Shpitalnik
Buy when there's blood in the streets, even if the blood is your own. This time-honored investment wisdom might just apply to the highly volatile Nextplay Technologies (NASDAQ: NXTP) stock. The Media service company, with its fiscal year ending in February, has shown signs of extreme volatility which can be a potential goldmine for opportunistic investors. Despite the analyst consensus leaning towards a strong buy with a target price estimate of $20, the market valuation currently stands at a mere $1.67. This presents a possible upside price of $32.73. The naive expected forecast value is at $1.85, and the real value is estimated at $6.14. The valuation hype value is at $1.05, indicating a potential underestimation of the stock's worth. However, there's a possible downside price of $0.0167 to consider. In the world of investments, high risk often equates to high reward, and Nextplay Technologies might just be the next big break for the daring investor. Nextplay Technologies is currently projected to generate daily returns of 4.2261%, assuming a risk or volatility rate of 30.8771% over a 60-day horizon. As many investors are becoming increasingly interested in the media sector, it's worth taking a closer look at Nextplay Technologies. What can shareholders of Nextplay Technologies expect in February? Recent risk factors may influence the stock's value, as we currently assess Nextplay Technologies to be undervalued. The real value is estimated to be around $6.14 per share.Volatility is a rate at which the price of Nextplay Technologies 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 Nextplay Technologies may increase or decrease. In other words, similar to Nextplay's beta indicator, it measures the risk of Nextplay Technologies and helps estimate the fluctuations that may happen in a short period of time. So if prices of Nextplay Technologies 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 Nextplay Technologies on a daily basis if you are holding a position in it. Nextplay Technologies is trading at a penny-stock level, and the possibility of delisting is much higher compared to other pink sheets. However, just because the pink sheet is trading under one dollar, does not mean it will be marked for deletion. Most exchanges require public instruments, such as Nextplay Technologies stock to be traded above the $1 level to remain listed. If Nextplay Technologies pink sheet 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 Nextplay Technologies's Liquidity
Nextplay Technologies financial leverage refers to using borrowed capital as a funding source to finance Nextplay Technologies ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Nextplay Technologies 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 Nextplay Technologies' 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 Nextplay Technologies' 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 Nextplay Technologies's total debt and its cash.
Detailed Perspective On Nextplay Technologies
The latest price spike of Nextplay Technologies may encourage retail investors to take a closer look at the firm as it is trading at a share price of 1.67 on very low momentum in trading volume. The company directors and management may have good odds in positioning the firm resources to exploit market volatility in February. The stock standard deviation of daily returns for 90 days investing horizon is currently 30.88. The very high volatility is mostly attributed to the latest market swings and not very good earnings reports from some of the Nextplay Technologies partners.
Buy when there's blood in the streets. This old adage seems fitting when considering the high volatility of Nextplay Technologies (NXTP). With a Beta of 2.86, the stock's price movements are almost three times as volatile as the market, presenting potential opportunities for risk-tolerant investors.The company's high Coefficient of Variation at 764.41 and Standard Deviation of 30.36 further underscore this volatility. However, it's not all about risk. The company's Sortino Ratio of 0.3455 suggests that it has been somewhat successful in delivering returns that compensate for the downside risk. Moreover, with a Target Price of $100, there's a significant potential upside of 53.66. However, investors should be cautious as the Probability of Bankruptcy stands at a high 93.14%. As always, it's crucial to balance the potential rewards with the inherent risks. .
Building efficient market-beating portfolios requires time, education, and a lot of computing power!
The Portfolio Architect is an AI-driven system that provides multiple benefits to our users by leveraging cutting-edge machine learning algorithms, statistical analysis, and predictive modeling to automate the process of asset selection and portfolio construction, saving time and reducing human error for individual and institutional investors.
Try AI Portfolio ArchitectEditorial Staff
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 Aina Ster do not own shares of Nextplay Technologies. Please refer to our Terms of Use for any information regarding our disclosure principles.