Build-A-Bear Stock Story

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Gabriel Shpitalnik .  Story
BBW
 Stock
  

USD 17.93  0.01  0.06%   

By Gabriel Shpitalnik
Macroaxis Story
Lets try to focus on the odds of Build-A-Bear Workshop to fully recover from the latest fall as its shares went up 6.65%. This firm current daily volatility is 4.72 percent, with a beta of 1.97 and an alpha of 0.07 over DOW. As many baby boomers are still indifferent towards retail, it makes sense to focus on Build-A-Bear Workshop. We will evaluate why we are still optimistic in anticipation of a recovery.
Published over a month ago
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Build-A-Bear Workshop Current Investor Sentiment

Investor biases related to Build-A-Bear Workshop's public news can be used to forecast risks associated with investment in Build-A-Bear. The trend in average sentiment can be used to explain how an investor holding Build-A-Bear can time the market purely based on public headlines and social activities around Build-A-Bear Workshop. Please note that most equiteis that are difficult to arbitrage are affected by market sentiment the most.
Build-A-Bear Workshop's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Build-A-Bear Workshop's and other traded tickers. The bigger the bubble, the more accurate is the estimated score. Higher bars for a given day show more participation in the average Build-A-Bear Workshop's news discussions. The higher the estimate score, the more favorable is the investor's outlook on Build-A-Bear Workshop.

Build-A-Bear Workshop Maximum Pain Price across 2022-07-15 Option Contracts

Build-A-Bear Workshop's options can also be used to analyze investors' bias and current market sentiment in the context of behavioral finance. For example, Max pain usually refers to a trading concept that asserts that market manipulation can cause the market price of Build-A-Bear Workshop close to the expiration of its current option contract to expire worthlessly. According to most research, about 35% of options are not executed, with roughly 50% traded out before expiration. So, Max pain occurs when market makers reach a net favorable position across all options at a strike price where option holders stand to lose the most money. By contrast, option sellers may reap the most after selling more options than buying, causing them to expire worthlessly. Please continue to view the detailed analysis of Build-A-Bear Workshop's options.
Is Build A Bear Workshop (NYSE:BBW) a new disruptor?
Build-A-Bear Workshop has roughly 32.84 M in cash with 28.08 M of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 2.2.
The firm shows a Beta (market volatility) of 1.9721, which signifies a somewhat significant risk relative to the market. Let's try to break down what Build-A-Bear'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, Build-A-Bear Workshop will likely underperform. Even though it is essential to pay attention to Build-A-Bear Workshop historical returns, it is always good to be careful when utilizing equity current trending patterns. Our philosophy towards foreseeing any stock's future performance is to check both, its past performance charts as well as the business as a whole, including all available technical indicators. Build-A-Bear Workshop exposes twenty-one different technical indicators, which can help you to evaluate its performance. Build-A-Bear Workshop has an expected return of -0.23%. Please be advised to confirm Build-A-Bear Workshop information ratio, as well as the relationship between the potential upside and kurtosis to decide if Build-A-Bear Workshop performance from the past will be repeated at some point in the near future.
Investing in Build-A-Bear Workshop, 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 Build-A-Bear Workshop 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, frequently view the market will even out over time. This tendency of Build-A-Bear Workshop'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 Build-A-Bear Workshop in the context of predictive analytics.
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Please note, it is not enough to conduct a financial or market analysis of a single entity such as Build-A-Bear Workshop. Your research has to be compared to or analyzed against Build-A-Bear Workshop's peers to derive any actionable benefits. When done correctly, Build-A-Bear Workshop'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 Build-A-Bear Workshop.

How important is Build-A-Bear Workshop's Liquidity

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

How does Build-A-Bear utilize its cash?

To perform a cash flow analysis of Build-A-Bear Workshop, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Build-A-Bear Workshop is receiving and how much cash it distributes out in a given period. The Build-A-Bear Workshop cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.
Build-A-Bear Workshop Net Cash Flow from Operations is fairly stable at the moment as compared to the past year. Build-A-Bear Workshop reported Net Cash Flow from Operations of 28.08 Million in 2021

Build-A-Bear Workshop Correlation with Peers

Investors in Build-A-Bear can reduce exposure to individual asset risk by holding a diversified portfolio of assets in addition to a long position in Build-A-Bear Workshop. Diversification will allow for the same portfolio return with reduced risk. The correlation table of Build-A-Bear Workshop and its peers is a two-dimensional matrix that shows the correlation coefficient between pairs of securities Build-A-Bear 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 Build-A-Bear for more details

Breaking down Build-A-Bear Workshop Further

Build-A-Bear Workshop secures Sharpe Ratio (or Efficiency) of -0.0477, which signifies that the company had -0.0477% of return per unit of risk over the last 3 months. Macroaxis standpoint towards foreseeing the risk of any stock is to look at both systematic and unsystematic factors of the business, including all available market data and technical indicators. Build-A-Bear Workshop exposes twenty-one different technical indicators, which can help you to evaluate volatility that cannot be diversified away. Please be advised to confirm Build-A-Bear Workshop risk adjusted performance of (0.009443), and Mean Deviation of 3.47 to double-check the risk estimate we provide.
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Our perspective of the latest Build-A-Bear Workshop climb

Build-A-Bear Workshop risk adjusted performance is up to -0.01.
As of the 26th of May, Build-A-Bear Workshop shows the risk adjusted performance of (0.009443), and Mean Deviation of 3.47. Build-A-Bear Workshop technical analysis gives you the methodology to make use of historical prices and volume patterns to determine a pattern that approximates the direction of the firm's future prices. Put another way, you can use this information to find out if the firm will indeed mirror its model of historical prices and volume momentum, or the prices will eventually revert. We have analyzed nineteen technical drivers for Build-A-Bear Workshop, which can be compared to its rivals. Please confirm Build-A-Bear Workshop information ratio, as well as the relationship between the potential upside and kurtosis to decide if Build-A-Bear Workshop is priced correctly, providing market reflects its regular price of 17.79 per share. Given that Build-A-Bear Workshop has jensen alpha of 0.0683, we suggest you to validate Build-A-Bear Workshop's prevailing market performance to make sure the company can sustain itself at a future point.

Our Final Take On Build-A-Bear Workshop

While many other companies in the specialty retail industry are either recovering or due for a correction, Build-A-Bear may not be as strong as the others in terms of longer-term growth potentials. With an impartial outlook on the current market volatility, it may be better to hold off any inventment activity and neither buy nor trade any shares of Build-A-Bear Workshop at this time. The Build-A-Bear Workshop risk-reward trade off 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 Build-A-Bear Workshop.

Editorial Staff

Gabriel Shpitalnik is a Member of Macroaxis Editorial Board. Gabriel is a young entrepreneur and writes predominantly on the business, technology, and finance sector. He likes to analyze different equity instruments across a wide range of industries focusing primarily on consumer products and evolving technologies. View Profile
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 Build-A-Bear Workshop. Please refer to our Terms of Use for any information regarding our disclosure principles.

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