Should you take over Blueknight Energy (NASDAQ:BKEP) based on recent technical indicators?


USD 4.63  0.00  0.00%   

As many millenniums are excited about energy space, it is only fair to recap Blueknight Energy LP against current market trends. As expected, Blueknight Energy is starting to reaffirm its true potential as insiders are becoming more and more confident in the future outlook. The returns on investing in Blueknight Energy and the market returns of the last few months appear highly unrelated. The symptom of healthy technical and fundamental indicators of the firm suggests a short-term price swing for insiders of Blueknight. The stock is currently in an active upward rally.
Published over three months ago
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This firm's average rating is Hold from 1 analysts. Do analysts base this consensus on technical analyses? We know that typical technical analysis utilizes price momentum, patterns, and trends looking at historical prices. It aims to identify signals based on Blueknight Energy market sentiment investors' perception of the future value of Blueknight. Let us look at a few aspects of Blueknight technical analysis. About 33.0% of the company shares are held by institutions such as insurance companies. Blueknight Energy has price-to-book (P/B) ratio of 0.35. Some equities with similar Price to Book (P/B) outperform the market in the long run. The entity next dividend is scheduled to be issued on the 4th of November 2021.
Using predictive technical analysis, we will analyze different prices and returns patterns and diagnose historical swings to determine the real value of Blueknight Energy Partners. In general, we focus on analyzing Blueknight Energy stock price patterns and their correlations with different microeconomic environment and drivers. We also apply predictive analytics to build Blueknight Energy's daily price indicators and compare them against related drivers such as momentum indicators and various other types of predictive indicators. Using this methodology combined with a more conventional technical analysis and fundamental analysis, we attempt to find the most accurate representation of Blueknight Energy's intrinsic value. In addition to deriving basic predictive indicators for Blueknight Energy, we also check how macroeconomic factors affect Blueknight Energy price patterns. Please read more on our technical analysis page or use our predictive modules below to complement your research.
Sophisticated investors, who have witnessed many market ups and downs, frequently view the market will even out over time. This tendency of Blueknight Energy'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. Please use the tools below to analyze the current value of Blueknight Energy in the context of predictive analytics.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as Blueknight Energy. Your research has to be compared to or analyzed against Blueknight Energy's peers to derive any actionable benefits. When done correctly, Blueknight Energy's competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy towards taking a position in Blueknight Energy.

How important is Blueknight Energy's Liquidity

Blueknight Energy financial leverage refers to using borrowed capital as a funding source to finance Blueknight Energy Partners ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Blueknight Energy 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. Please check the breakdown between Blueknight Energy's total debt and its cash.

How does Blueknight utilize its cash?

To perform a cash flow analysis of Blueknight Energy, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Blueknight Energy is receiving and how much cash it distributes out in a given period. The Blueknight Energy cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.

What is driving Blueknight Energy Investor Appetite?

The company has a beta of 0.0672. Let's try to break down what Blueknight'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, Blueknight Energy will likely underperform. The beta indicator helps investors understand whether Blueknight Energy 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 Blueknight deviates very little from the market, it does not add much risk to the portfolio, but it also doesn't increase the expected returns. Blueknight Energy reported the previous year's revenue of 114.98 M. Net Income was 8.15 M with profit before overhead, payroll, taxes, and interest of 49.56 M.

Our perspective of the recent Blueknight Energy roll up

Recent kurtosis is at 0.69. Blueknight Energy LP exhibits very low volatility with skewness of -0.08 and kurtosis of 0.69. However, we advise investors to further study Blueknight Energy LP technical indicators to make sure all market info is available and is reliable. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Blueknight Energy's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Blueknight Energy's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Blueknight Energy Implied Volatility

Blueknight Energy's implied volatility exposes the market's sentiment of Blueknight Energy LP stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Blueknight Energy's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Blueknight Energy stock will not fluctuate a lot when Blueknight Energy's options are near their expiration.

Our Final Takeaway

Although some firms under the oil & gas midstream industry are still a bit expensive, Blueknight Energy may offer a potential longer-term growth to insiders. While some insiders may not share our view we believe that the current risk-reward utility is not appealing enough to do any trading. 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 Blueknight Energy.

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 Gabriel Shpitalnik do not own shares of Blueknight Energy Partners. Please refer to our Terms of Use for any information regarding our disclosure principles.

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