The9 Stock Buy Hold or Sell Recommendation

NCTY
 Stock
  

USD 1.64  0.05  3.14%   

Given the investment horizon of 90 days and your above-average risk tolerance, our recommendation regarding The9 Ltd ADR is 'Strong Sell'. Macroaxis provides The9 buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding The9 positions. The advice algorithm takes into account all of The9's available fundamental, technical, and predictive indicators you will find on this site.
  
The advice is provided from The9's buy-and-hold perspective. Additionally, see The9 Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. We conduct extensive research on individual companies such as The9 and provide practical buy, sell, or hold advice based on selected investing horizon and risk tolerance towards The9 Ltd ADR.

Execute The9 Buy or Sell Advice

The The9 recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on The9 Ltd ADR. Macroaxis does not own or have any residual interests in The9 Ltd ADR or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute The9's advice using the current market data and latest reported fundamentals.

Time Horizon

Risk Tolerance

Execute Advice
Sell The9Buy The9
Strong Sell

Volatility

Abnormally volatileDetails

Hype Condition

Under hypedDetails

Current Valuation

OvervaluedDetails

Odds of Distress

Very HighDetails

Economic Sensitivity

Hyperactively responds to market trendsDetails

Analyst Consensus

Not AvailableDetails

Reporting Quality (M-Score)

UnavailableDetails
For the selected time horizon The9 Ltd ADR has a Mean Deviation of 6.5, Semi Deviation of 8.78, Standard Deviation of 8.27, Variance of 68.32, Downside Variance of 83.28 and Semi Variance of 77.02
We provide advice to complement the current expert consensus on The9. Our dynamic recommendation engine harnesses a multidimensional algorithm to analyze the firm's potential to grow using all technical and fundamental data available at the time. To make sure The9 Ltd ADR is not overpriced, please validate all The9 fundamentals, including its price to book, cash flow from operations, last dividend paid, as well as the relationship between the cash and equivalents and total asset . Please also confirm The9 Ltd ADR price to earning to double-check your buy or sell decision is consistent with all fundamental data available and that the company can sustain itself in the current economic cycle.

The9 Trading Alerts and Improvement Suggestions

The9 Ltd ADR is way too risky over 90 days horizon
The9 Ltd ADR may become a speculative penny stock
The9 Ltd ADR appears to be risky and price may revert if volatility continues
The9 Ltd ADR has a very high chance of going through financial distress in the upcoming years
The company reported the previous year's revenue of 135.88 M. Net Loss for the year was (411.23 M) with loss before overhead, payroll, taxes, and interest of (188.65 K).
The9 Ltd ADR currently holds about 429.22 M in cash with (687.69 M) of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 18.21, which can makes it an attractive takeover target, given it will continue generating positive cash flow.
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The9 Returns Distribution Density

The distribution of The9's historical returns is an attempt to chart the future uncertainty of The9's future price movements. The chart of the probability distribution of The9 stock daily returns describes the distribution of returns around its average expected value. We use The9 Ltd ADR price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of The9 returns is essential to provide solid investment advice for The9 stock.
Mean Return0.50Value At Risk-15.54
Potential Upside13.22Standard Deviation8.27
   Return Density   
       Distribution  
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of The9 historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.

The9 Greeks

Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to The9 or Communication Services sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that The9 stock's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a The9 stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α
Alpha over DOW
0.25
β
Beta against DOW3.30
σ
Overall volatility
8.03
Ir
Information ratio 0.05

The9 Volatility Alert

The9 Ltd ADR is showing large volatility of returns over the selected time horizon. We encourage all investors to investigate this asset further to make sure related market timing strategies are aligned with all the expectations about The9 implied risk. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure The9'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 The9'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.

The9 Implied Volatility

The9's implied volatility" href="/stock-options/NCTY/The9-Ltd-ADR">The9's implied volatility exposes the market's sentiment of The9 Ltd ADR stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if The9's implied volatility" href="/stock-options/NCTY/The9-Ltd-ADR">The9'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 The9 stock will not fluctuate a lot when The9's options" href="/stock-options/NCTY/The9-Ltd-ADR">The9's options are near their expiration.

The9 Fundamentals Vs Peers

Comparing The9's fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze The9's direct or indirect competition across all of the common fundamentals between The9 and the related equities. This way, we can detect undervalued stocks with similar characteristics as The9 or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of The9's fundamental indicators could also be used in its relative valuation, which is a method of valuing The9 by comparing valuation metrics with those of similar companies.
    
 Better Than Average     
    
 Worse Than Average Compare The9 to competition
FundamentalsThe9Peer Average
Return On Equity(187.31) %(0.31) %
Return On Asset(29.45) %(0.14) %
Operating Margin(235.63) %(5.51) %
Current Valuation(292.82 M)16.62 B
Shares Outstanding19.83 M571.82 M
Shares Owned by Insiders2.13 %10.09 %
Shares Owned by Institutions7.12 %39.21 %
Number of Shares Shorted542.26 K4.71 M
Price to Earning0.73 X28.72 X
Price to Book0.03 X9.51 X
Price to Sales0.21 X11.42 X
Revenue135.88 M9.43 B
Gross Profit(188.65 K)27.38 B
EBITDA(272.72 M)3.9 B
Net Income(411.23 M)570.98 M
Cash and Equivalents429.22 M2.7 B
Cash per Share18.21 X5.01 X
Total Debt113.82 M5.32 B
Debt to Equity0.15 %48.70 %
Current Ratio1.93 X2.16 X
Book Value Per Share44.87 X1.93 K
Cash Flow from Operations(687.69 M)971.22 M
Short Ratio0.39 X4.00 X
Earnings Per Share(1.58) X3.12 X
Number of Employees7418.84 K
Beta1.42-0.15
Market Capitalization28.16 M19.03 B
Total Asset538.09 M29.47 B
Retained Earnings(3.5 B)9.33 B
Working Capital(350.71 M)1.48 B
Current Asset77.26 M9.34 B
Current Liabilities427.97 M7.9 B
Z Score-8.48.72

About The9 Buy or Sell Advice

When is the right time to buy or sell The9 Ltd ADR? Buying financial instruments such as The9 Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the stock market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Although The9 investors may find it confusing at the beginning, most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.

Use Investing Ideas to Build Portfolios

In addition to having The9 in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

Did You Try This Idea?

Run Small Value Thematic Idea Now

Small Value
Small Value Theme
Funds or Etfs that invest in the undervalued stocks of small to mid-sized companies. The Small Value theme has 40 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Small Value Theme or any other thematic opportunities.
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Additionally, see The9 Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. Note that the The9 Ltd ADR information on this page should be used as a complementary analysis to other The9's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.

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When running The9 Ltd ADR price analysis, check to measure The9's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy The9 is operating at the current time. Most of The9's value examination focuses on studying past and present price action to predict the probability of The9's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move The9's price. Additionally, you may evaluate how the addition of The9 to your portfolios can decrease your overall portfolio volatility.
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Is The9's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of The9. If investors know The9 will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about The9 listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Market Capitalization
39.1 M
Quarterly Revenue Growth YOY
62.21
Return On Assets
-0.29
Return On Equity
-1.87
The market value of The9 Ltd ADR is measured differently than its book value, which is the value of The9 that is recorded on the company's balance sheet. Investors also form their own opinion of The9's value that differs from its market value or its book value, called intrinsic value, which is The9's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because The9's market value can be influenced by many factors that don't directly affect The9's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between The9's value and its price as these two are different measures arrived at by different means. Investors typically determine The9 value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, The9's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.