FcCC builds up more than 10 percent albeit modest market slip

Today's article will go over FcCC. We will look into why albeit cyclical market disturbance, the long term basic indicators of the company are still strong. FcCC Inc barely shadows the market. The returns on investing in FcCC and the market returns of the last few months appear uncorrelated. Strong basic indicators of the company may suggest signs of short term price drift for investors. This firm current odds of financial turmoil is under 89%. Will the firm executives continue to add value?
Published over a year ago
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Reviewed by Vlad Skutelnik

FcCC has a beta of 0.0975. Let's try to break down what FcCC's beta means in this case. As the market goes up, the company is expected to outperform it. However, if the market returns are negative, FcCC will likely underperform. The beta indicator helps investors understand whether FcCC moves in the same direction as the rest of the market, and how volatile (i.e., risky) it is compared to the market (i.e., selected benchmark). In other words, if FcCC deviates very little from the market, it does not add much risk to the portfolio, but it also doesn't increase the expected returns.

How important is FCCC's Liquidity

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

Breaking down the case for FCCC

FcCC retains probability of bankruptcy of 96.18 %. The company reported previous year revenue of 1 K. Net Loss for the year was (54 K) with profit before overhead, payroll, taxes, and interest of 0. FcCC is selling for under 0.21. That is 10.53 percent up. The latest price is at 0.21.

Over 3 percent build-up for FcCC today. What does it mean for investors?

Skewness is down to 0.11. It may suggest a possible volatility slip. FcCC Inc is displaying above-average volatility of 6.79 over the selected time horizon. Investors should scrutinize FcCC Inc independently to ensure intended market timing strategies are aligned with expectations about FcCC volatility. FcCC Inc is a potential penny stock. Although FcCC may be in fact a good instrument to invest, many penny otc stocks are speculative in nature and are subject to artificial price hype. Please make sure you totally understand the upside potential and downside risk of investing in FcCC Inc. We encourage investors to look for the signals such us email spams, message board hypes, claims of breakthroughs, volume upswings, sudden news releases, promotions that are not reported, or demotions released before SEC filings. Please also check biographies and work history of current and past company officers before investing in high volatility instruments, penny stocks, or equities with microcap classification. You can indeed make money on this equity instrument if you perfectly time your entry and exit. However, remember that penny stocks that have been the subject of an artificial hype usually unable to maintain its increased share price for more than just a few days. The price of a promoted high volatility instrument will almost always revert back. The only way to increase shareholder value is through legitimate performance backed up by solid fundamentals.

The Current Takeaway on FcCC Investment

Whereas some firms under shell companies industry are still a bit expensive, FcCC may offer a potential longer-term growth to investors. To conclude, as of 10th of July 2020, we believe that FcCC is currently overvalued with very high chance of financial distress in the next two years. Our current 30 days buy-hold-sell advice on the company is Sell. With a less-than optimistic outlook for your 30 days horizon, it may be a good time to exit some or all of your FcCC holdings as it seems the potential growth was already fully factored into the current price. 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 FcCC.

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Editorial 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 FCCC Inc. Please refer to our Terms of Use for any information regarding our disclosure principles.

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