Should you trust Polymet Mining (USA Stocks:PLM) recent analyst consensus?
 | By Gabriel Shpitalnik | Macroaxis Story |
Polymet Mining Corp (NYSE: PLM), a player in the Other Industrial Metals & Mining industry, has been a strong performer in the market. Despite an operating loss of $12.9M and net interest loss of $14.8M, the company has managed to maintain a strong buy consensus among analysts. With a possible upside price of $23.1 and a naive expected forecast value of $2.77, the potential upside is estimated at 6.67%. However, investors should consider the downside risk, with a possible downside price of $0.0195 and a value at risk of $7.83. The company's risk-adjusted performance stands at 0.0412, while the market risk-adjusted performance is at 0.4676. The company's shares short increased from 362.4K to 535.8K over the last month, indicating a short percent of 0.0029. With a standard deviation of 19.7, investors should be prepared for potential market volatility. Despite the challenges, the company's strong performance and industry position make it a compelling choice for investors. Polymet Mining Corp is set to announce its earnings today, with the forthcoming quarterly report anticipated on August 10, 2023. While some insiders appear indifferent towards the metals and mining sector, we are going to review the potential of acquiring Polymet as a hedging instrument for your existing portfolios. Should we adopt a more optimistic outlook in anticipation of a recovery?
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Reviewed by Raphi Shpitalnik
Polymet Mining Corp (NYSE: PLM) has shown promising signs of outperforming market expectations, despite reporting a net income loss of 34.1 million for the fiscal year ending in December. The company's total risk alpha of 0.9473, coupled with a beta of 0.5846, indicates a lower volatility compared to the broader market. Despite a negative return on assets of 0.0208 and a negative return on equity of 0.09, the company has managed to maintain a last price close to its 52-week high of 3.1701, currently at 1.95. However, investors should note the high standard deviation of 19.7 and downside deviation of 5.78, indicating potential risk. With a coefficient of variation standing at 2.2K, potential investors should consider these risk factors before investing.
Additional examination
One way to assess the asset utilization of Polymet Mining Corp is to determine how much profit is generated for every dollar of assets it reports. Polymet Mining has a negative asset utilization of -0.0208 percent, meaning it loses $0.000208 for each dollar of assets held by the company. This poor asset utilization suggests that the company is not effectively using each dollar of assets it has. In other words, the asset utilization of Polymet Mining Corp demonstrates a disappointing performance for each dollar spent on its assets.What is the right price you would pay to acquire a share of Polymet Mining? For most investors, it would be the price that gives them a wide margin of safety to have minimal downside risk. In other words, most investors are always looking for undervalued stocks. Even if the future performance is not entirely as expected, the loss of holding it is minimized, and the downside risk is negated. Please read more on our stock advisor page.
What is happening with Polymet Mining Corp this year
Annual and quarterly reports issued by Polymet Mining Corp are formal financial statements that are published yearly and quarterly and sent to Polymet stockholders. The reports show and break down the current year's ongoing operations and discuss plans for the upcoming year. Annual reports have been a requirement from the Securities and Exchange Commission (SEC) for businesses owned by the public since 1934.
Companies such as Polymet Mining often view their annual report as an effective marketing tool to disseminate their perspective on company future earnings or innovations. With this in mind, many companies devote large sums of money to making their reports attractive and informative. In such instances, the annual report becomes a forum through which a company can communicate to the general public any number of topics that may or may not be directly related to the actual data published in the reports.
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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 Polymet Mining Corp. Please refer to our Terms of Use for any information regarding our disclosure principles.