RROYF ascents today despite modest market dip
 | By Raphi Shpitalnik | Macroaxis Story |
In this post, I will digest Re Royalties. We will look into why despite regular market tumult, the longer-term fundamental drivers of the firm are still sound. Assuming the 30 trading days horizon, Re Royalties is expected to under-perform the market. In addition to that, the company is 1.52 times more volatile than its market benchmark. It trades about -0.09 of its total potential returns per unit of risk. The market is currently generating roughly 0.1 per unit of volatility.
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 Rifka Kats
The firm classifies itself under Utilities sector and is part of Utilities—Renewable industry. Re Royalties has a current ratio of 29.23, suggesting that it is liquid and has the ability to pay its financial obligations in time and when they become due. Re Royalties is OVERVALUED at 0.65 per share with modest projections ahead. Re Royalties owns a negative utilization of current and long term assets of -1.21 %, losing $0.0121 for each dollar of current and long term assets held by the company. Discouraging asset utilization implies the company is being less productive with each dollar of current and long term assets it owns. Strictly speaking asset utilization of Re Royalties shows how wasteful it operates for each dollar spent on its current and long term assets.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as RE Royalties. Your research has to be compared to or analyzed against RE Royalties' peers to derive any actionable benefits. When done correctly, RE Royalties' 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 RE Royalties.
Investing in RE Royalties, 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 RE Royalties 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 RE Royalties' 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.
Watch out for price decline
Please consider monitoring RE Royalties on a daily basis if you are holding a position in it. RE Royalties is trading at a penny-stock level, and the possibility of delisting is much higher compared to other otcs. However, just because the otc stock is trading under one dollar, does not mean it will be marked for deletion. Most exchanges require public instruments, such as RE Royalties stock to be traded above the $1 level to remain listed. If RE Royalties otc 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 RE Royalties's Liquidity
RE Royalties financial leverage refers to using borrowed capital as a funding source to finance RE Royalties ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. RE Royalties 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 RE Royalties' 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 RE Royalties' 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 RE Royalties's total debt and its cash.
RE Royalties Correlation with Peers
Investors in RROYF can reduce exposure to individual asset risk by holding a diversified portfolio of assets in addition to a long position in RE Royalties. Diversification will allow for the same portfolio return with reduced risk. The correlation table of RE Royalties and its peers is a two-dimensional matrix that shows the correlation coefficient between pairs of securities RROYF 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 RROYF for more details
Details
Re Royalties preserves 3 of number of employees. Re Royalties is selling at 0.75. That is 0.63 percent increase. Day highest price was 0.75.
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 Raphi Shpitalnik do not own shares of RE Royalties. Please refer to our Terms of Use for any information regarding our disclosure principles.