The Chaikin Money Flow Indicator is an oscillator developed by Marc Chaikin. An oscillator is an indicator that is used as a counter trend showing when the market is overbought or oversold. These indicators are momentum based. The CMF is based largely on the Accumulation Distribution Line; it compares the close value with the high and the low for that same day. Generally, CMF indicator could be used as an indicator of buying and selling pressure. When CMF is above zero it is indicator of buying pressure and when it is below zero it is indicator of selling pressure.
Investors often struggle with keeping their emotions in check when approaching the stock market. New investors can have a tendency to sell off winners too quick as well as hold onto losers for way too long. Some will argue that it is never a bad thing to take profits when they are on the table, but this can leave the investor with a large amount of regret if the stock continues to surge after selling. On the other end, investors may hold onto losers for way too long hoping for a bounce back. Holding out for better days can lead to even more exaggerated losses that can leave the investor with an even bigger feeling of regret. Battling to keep emotions separated from important investing decisions can be a big plus for investors over the long haul. Of course, this idea is easier to preach and much harder to follow.
Aurora Cannabis Inc (TSE) (NYSE:ACB) last released its quarterly earnings data on Monday, November 12th. The company reported $0.09 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of ($0.04) by $0.13. The business had revenue of $22.71 million for the quarter. Aurora Cannabis Inc (TSE) had a return on equity of 8.57% and a net margin of 224.33%.
Aurora Cannabis Inc (TSE) (ACB) Shares Gap Down to $6.25
Investors and traders may also want to monitor additional technical levels of shares of Aurora Cannabis Inc (ACB.TO). A frequently used tool among technical stock analysts is the moving average. Moving averages are considered to be lagging indicators that simply take the average price of a stock over a certain period of time. Moving averages can be very helpful for identifying peaks and troughs. They may also be used to assist the trader figure out proper support and resistance levels for the stock. Currently, the 200-day MA is sitting at 9.25, and the 50-day is 10.7.
The 14-day ADX for Aurora Cannabis Inc (ACB.TO) is currently at 21.59. In general, and ADX value from 0-25 would represent an absent or weak trend. A value of 25-50 would support a strong trend. A value of 50-75 would signify a very strong trend, and a value of 75-100 would point to an extremely strong trend. Checking in on some other technical levels, the 14-day RSI is currently at 38.71, the 7-day stands at 34.91, and the 3-day is sitting at 31.1. The Relative Strength Index (RSI) is a momentum oscillator that measures the speed and change of stock price movements. The RSI was developed by J. Welles Wilder, and it oscillates between 0 and 100. Generally, the RSI is considered to be oversold when it falls below 30 and overbought when it heads above 70. RSI can be used to detect general trends as well as finding divergences and failure swings.
At the time of writing, Aurora Cannabis Inc (ACB.TO) has a 14-day Commodity Channel Index (CCI) of -78.25. Developed by Donald Lambert, the CCI is a versatile tool that may be used to help spot an emerging trend or provide warning of extreme conditions. CCI generally measures the current price relative to the average price level over a specific time period. CCI is relatively high when prices are much higher than average, and relatively low when prices are much lower than the average. Investors may be watching other technical indicators such as the Williams Percent Range or Williams %R. The Williams %R is a momentum indicator that helps measure oversold and overbought levels. This indicator compares the closing price of a stock in relation to the highs and lows over a certain time period. A common look back period is 14 days. Aurora Cannabis Inc (ACB.TO)’s Williams %R presently stands at -82.55. The Williams %R oscillates in a range from 0 to -100. A reading between 0 and -20 would indicate an overbought situation. A reading from -80 to -100 would indicate an oversold situation.
Investors may have a solid plan in place to start trading the equity market. Sometimes, these plans never get to be fully realized because of the lack of discipline in the early stages. When a new investor goes into the red right out the gate, there can be a tendency to take on too much risk trying to get back to even. This may result in the investor abandoning the plan and making too many unreasonable trades with exorbitant expectations. Finding the self control to not get discouraged with early losses may help the investor stick to the plan and eventually start achieving longer-term goals.
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Aurora Cannabis Inc. (TSX:ACB) currently has a Value Composite score of 72. Similarly, the Value Composite Two (VC2) is calculated with the same ratios, but adds the Shareholder Yield. The Value Composite Two of Aurora Cannabis Inc. (TSX:ACB) is 81.
Some investors will scour the markets looking for cheap, quality stocks. These stocks can be attractive for investors looking to find a bargain that could turn into a big winner. Investors may be cautious when searching for these types of stocks. Often times, a stock will see a huge jump and then everyone will hop on the bandwagon to buy without checking into the fundamentals. Sometimes this strategy may work out, but in many cases, the stock has already made the run and become too expensive to add to the portfolio. Conducting diligent research and constantly adding to the individual’s overall market education level may help the investor sift through the sea of stocks and find those names that are really worth getting into.
Technicals at a GlanceIn taking a look at some other notable technicals, Aurora Cannabis Inc. (TSX:ACB)’s ROIC is -0.193653. The ROIC 5 year average is -0.110002 and the ROIC Quality ratio is 0.611093. ROIC is a profitability ratio that measures the return that an investment generates for those providing capital. ROIC helps show how efficient a firm is at turning capital into profits.
There are many different tools to determine whether a company is profitable or not. One of the most popular ratios is the “Return on Assets” (aka ROA). This score indicates how profitable a company is relative to its total assets. The Return on Assets for Aurora Cannabis Inc. (TSX:ACB) is 0.499773. This number is calculated by dividing net income after tax by the company’s total assets. A company that manages their assets well will have a higher return, while a company that manages their assets poorly will have a lower return.
Shareholder YieldWe also note that Aurora Cannabis Inc. (TSX:ACB) has a Shareholder Yield of -1.595616 and a Shareholder Yield (Mebane Faber) of -1.44129. The first value is calculated by adding the dividend yield to the percentage of repurchased shares. The second value adds in the net debt repaid yield to the calculation. Shareholder yield has the ability to show how much money the firm is giving back to shareholders via a few different avenues. Companies may issue new shares and buy back their own shares. This may occur at the same time. Investors may also use shareholder yield to gauge a baseline rate of return.
Aurora Cannabis Inc. (TSX:ACB) has a current MF Rank of 13449. Developed by hedge fund manager Joel Greenblatt, the intention of the formula is to spot high quality companies that are trading at an attractive price. The formula uses ROIC and earnings yield ratios to find quality, undervalued stocks. In general, companies with the lowest combined rank may be the higher quality picks.
Price IndexWe can now take aquick look at some historical stock price index data. Aurora Cannabis Inc. (TSX:ACB) presently has a 10 month price index of 0.56079. The price index is calculated by dividing the current share price by the share price ten months ago. A ratio over one indicates an increase in share price over the period. A ratio lower than one shows that the price has decreased over that time period. Looking at some alternate time periods, the 12 month price index is 1.23058, the 24 month is 2.88994, and the 36 month is 16.82377. Narrowing in a bit closer, the 5 month price index is 0.85595, the 3 month is 1.03289, and the 1 month is currently 0.79365.
The Piotroski F-Score is a scoring system between 1-9 that determines a firm’s financial strength. The score helps determine if a company’s stock is valuable or not. The Piotroski F-Score of Aurora Cannabis Inc. (TSX:ACB) is 3. A score of nine indicates a high value stock, while a score of one indicates a low value stock. The score is calculated by the return on assets (ROA), Cash flow return on assets (CFROA), change in return of assets, and quality of earnings. It is also calculated by a change in gearing or leverage, liquidity, and change in shares in issue. The score is also determined by change in gross margin and change in asset turnover.
When it comes to investing in the equity market, discipline can play a major role in achieving ones goals. A few bad moves can send the investor’s confidence spiraling. Acting purely on emotion can lead to impulsive decisions that may cause the losses to pile up. Creating a solid plan and following through with the plan can help investors stay on track and focus on the proper details. Markets are constantly going up and down and the investing ride can sometimes be a bumpy one. Being able to see the big picture and focus on the important data can help keep the investor tuned in to the right channel. Investors who expect to jump into the market and immediately start raking in the profits may find out fairly quickly that trading without a plan can be a recipe for defeat.
Taking a look at valuation rankings for Prairie Mining Limited (ASX:PDZ), we see that the stock has a Value Composite score of 96. Adding a sixth ratio, shareholder yield, we can view the Value Composite 2 score which is currently sitting at 97.
Investing in the stock market can be highly unpredictable. Veteran investors may have spent many years studying the market. At some point along the way, many investors may have had to make some tough decisions. Making the tough stock portfolio decisions can seem like a daunting task, especially if some wrong calls have been made in the past. Investors who are able to quickly learn from previous mistakes may be much better situated if they are able to keep from repeating those mistakes. When just starting out, investors may want to go slow and steady in order to focus on the simpler investing ideas first.
In taking a look at some other notable technicals, Prairie Mining Limited (ASX:PDZ)’s ROIC is -1.142960. The ROIC 5 year average is -0.968268 and the ROIC Quality ratio is -2.141739. ROIC is a profitability ratio that measures the return that an investment generates for those providing capital. ROIC helps show how efficient a firm is at turning capital into profits.
The Q.i. Value of Prairie Mining Limited (ASX:PDZ) is 82.00000. The Q.i. Value is a helpful tool in determining if a company is undervalued or not. The Q.i. Value is calculated using the following ratios: EBITDA Yield, Earnings Yield, FCF Yield, and Liquidity. The lower the Q.i. value, the more undervalued the company is thought to be.
The FCF Yield 5yr Average is calculated by taking the five year average free cash flow of a company, and dividing it by the current enterprise value. Enterprise Value is calculated by taking the market capitalization plus debt, minority interest and preferred shares, minus total cash and cash equivalents. The average FCF of a company is determined by looking at the cash generated by operations of the company. The Free Cash Flow Yield 5 Year Average of Prairie Mining Limited (ASX:PDZ) is -0.112774.
Shareholder YieldWe also note that Prairie Mining Limited (ASX:PDZ) has a Shareholder Yield of -0.277541 and a Shareholder Yield (Mebane Faber) of -0.26732. The first value is calculated by adding the dividend yield to the percentage of repurchased shares. The second value adds in the net debt repaid yield to the calculation. Shareholder yield has the ability to show how much money the firm is giving back to shareholders via a few different avenues. Companies may issue new shares and buy back their own shares. This may occur at the same time. Investors may also use shareholder yield to gauge a baseline rate of return.
MF RankPrairie Mining Limited (ASX:PDZ) has a current MF Rank of 16233. Developed by hedge fund manager Joel Greenblatt, the intention of the formula is to spot high quality companies that are trading at an attractive price. The formula uses ROIC and earnings yield ratios to find quality, undervalued stocks. In general, companies with the lowest combined rank may be the higher quality picks.
PIWe can now take aquick look at some historical stock price index data. Prairie Mining Limited (ASX:PDZ) presently has a 10 month price index of 0.69091. The price index is calculated by dividing the current share price by the share price ten months ago. A ratio over one indicates an increase in share price over the period.
A ratio lower than one shows that the price has decreased over that time period. Looking at some alternate time periods, the 12 month price index is 0.73077, the 24 month is 0.92683, and the 36 month is 1.65217. Narrowing in a bit closer, the 5 month price index is 0.90476, the 3 month is 0.88372, and the 1 month is currently 0.83516.
Equity market investors have plenty of information available to them when making stock selections. One of the toughest parts of selecting stocks may be figuring out which data to pay attention to. There are always swirling headlines in today’s financial news media. While some information may be highly important, other information may be much less important. Knowing exactly what to look for when doing stock research may take a lot of time to master. Investors who are able to stay highly focused may find it much easier to spot opportunities in the market. Once the investor knows what to look for, the stock market puzzle may be a bit easier to start piecing together.