Rocky Mountain dips today despite market ascent
 | By Ellen Johnson | Macroaxis Story |
In this story, I am going to address all latest Rocky Mountain shareholders. I will look into why, despite the latest dip, the longer-term fundamental drivers of the firm are still sound. Given the investment horizon of 30 days, Rocky Mountain is expected to generate 2.16 times less return on investment than the market. In addition to that, the company is 2.41 times more volatile than its market benchmark. It trades about 0.02 of its total potential returns per unit of risk. The market is currently generating roughly 0.11 per unit of volatility. We estimate Rocky Mountain as currently overvalued. The real value is approaching 3.70 per share.
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Reviewed by Raphi Shpitalnik
This firm conducts business under Consumer Defensive sector and is part of Confectioners industry. The company currently holds 2.7 M in liabilities with Debt to Equity (D/E) ratio of 0.14, which may suggest the firm is not taking enough advantage from borrowing. Rocky Mountain Choco has a current ratio of 2.38, suggesting that it is liquid enough and is able to pay its financial obligations when due. We provide buy or sell recommendations to complement the recent expert consensus on Rocky Mountain Choco. Our dynamic recommendation engine exercises a multidimensional algorithm to analyze the firm's potential to grow using all technical and fundamental data available at the time.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as Rocky Mountain. Your research has to be compared to or analyzed against Rocky Mountain's peers to derive any actionable benefits. When done correctly, Rocky Mountain's competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy toward taking a position in Rocky Mountain Chocolate.
Investing in Rocky Mountain, just like investing in any other equity instrument, is characterized by a strong risk-return correlation. High risks mean high returns and low risk means lower expected returns. Risk management is the act of identifying and assessing the potential risk and developing strategies to minimize these risks and earn maximum possible profits while holding Rocky Mountain along with other instruments in the same portfolio. Using conventional technical analysis and fundamental analysis to select individual securities into a portfolio complements risk management and adds value to overall investors' investing strategies.
Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of Rocky Mountain's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy.
How important is Rocky Mountain's Liquidity
Rocky Mountain financial leverage refers to using borrowed capital as a funding source to finance Rocky Mountain Chocolate ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Rocky Mountain 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 Rocky Mountain'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 Rocky Mountain'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 Rocky Mountain's total debt and its cash.
Rocky Mountain Gross Profit
Rocky Mountain Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Rocky Mountain 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 Rocky Mountain Gross Profit growth over the last 10 years. Please check Rocky Mountain's gross profit and other fundamental indicators for more details.
Rocky Mountain Correlation with Peers
Investors in Rocky can reduce exposure to individual asset risk by holding a diversified portfolio of assets in addition to a long position in Rocky Mountain Chocolate. Diversification will allow for the same portfolio return with reduced risk. The correlation table of Rocky Mountain and its peers is a two-dimensional matrix that shows the correlation coefficient between pairs of securities Rocky is related in some way. The cells in the table are color-coded to highlight significantly positive and negative relationships. Each cell shows the correlation between one pair of equities and can be used to run pair trading strategies or create efficient portfolios with your current brokerage. Please check volatility of Rocky for more details
Is Rocky Mountain valued objectively by the market?
The entity reported previous year revenue of 31.85 M. Net Income was 1.03 M with profit before overhead, payroll, taxes, and interest of 9.96 M. Rocky Mountain is trading at 4.00. This is -0.74 percent decrease. Day highest price was 4.1.
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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 Ellen Johnson do not own shares of Rocky Mountain Chocolate. Please refer to our Terms of Use for any information regarding our disclosure principles.