Still holding on to Borqs (NASDAQ:BRQS) given latest volatility fall?


USD 0.46  0.02  4.17%   

Given the investment horizon of 60 days Borqs Technologies is expected to under-perform the market. In addition to that, the company is 4.77 times more volatile than its market benchmark. It trades about -0.12 of its total potential returns per unit of risk. The DOW is currently generating roughly -0.02 per unit of volatility. As many investors are getting excited about technology space, it is fair to sum up Borqs Technologies. We will discuss how risky is to take a position in Borqs Technologies at this time.
Published over a month ago
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Borqs Technologies conducts business under Technology sector and is part of Software—Application industry.
The firm shows a Beta (market volatility) of 0.9746, which signifies possible diversification benefits within a given portfolio. Let's try to break down what Borqs's beta means in this case. Borqs Technologies returns are very sensitive to returns on the market. As the market goes up or down, Borqs Technologies is expected to follow. Even though it is essential to pay attention to Borqs Technologies 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. Borqs Technologies exposes twenty-seven different technical indicators, which can help you to evaluate its performance. Borqs Technologies has an expected return of -0.73%. Please be advised to confirm Borqs Technologies value at risk, as well as the relationship between the kurtosis and price action indicator to decide if Borqs Technologies performance from the past will be repeated at some point in the near future.
Volatility is a rate at which the price of Borqs Technologies or any other equity instrument increases or decreases for a given set of returns. It is measured by calculating the standard deviation of the annualized returns over a given period of time and shows the range to which the price of Borqs Technologies may increase or decrease. In other words, similar to Borqs's beta indicator, it measures the risk of Borqs Technologies and helps estimate the fluctuations that may happen in a short period of time. So if prices of Borqs Technologies fluctuate rapidly in a short time span, it is termed to have high volatility, and if it swings slowly in a more extended period, it is understood to have low volatility.
Please read more on our technical analysis page.

Watch out for price decline

Please consider monitoring Borqs Technologies on a daily basis if you are holding a position in it. Borqs Technologies is trading at a penny-stock level, and the possibility of delisting is much higher compared to other stocks. However, just because the stock is trading under one dollar, does not mean it will be marked for deletion. Most exchanges require public instruments, such as Borqs Technologies stock to be traded above the $1 level to remain listed. If Borqs Technologies stock price falls below $1 for 30 consecutive trading days, the exchange can delist it. Once the company reaches this point, they will be sent an initial price violation notice directly from an exchange.

How important is Borqs Technologies's Liquidity

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

How does Borqs utilize its cash?

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

A Deeper Analysis

The entity reported the previous year's revenue of 29.56 M. Net Loss for the year was (55.87 M) with profit before overhead, payroll, taxes, and interest of 2.61 M.

Our perspective of the latest Borqs Technologies spike

The variance is down to 30.34 as of today.
As of the 4th of October, Borqs Technologies shows the mean deviation of 4.3, and Risk Adjusted Performance of (0.23). Borqs Technologies 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 were able to break down and collect data for nineteen technical drivers for Borqs Technologies, which can be compared to its rivals. Please confirm Borqs Technologies standard deviation, value at risk, as well as the relationship between the Value At Risk and kurtosis to decide if Borqs Technologies is priced correctly, providing market reflects its regular price of 0.85 per share. Given that Borqs Technologies is a hitting penny stock territory we recommend to closely look at its total risk alpha.

Our Conclusion on Borqs Technologies

While some other companies in the software—application industry are either recovering or due for a correction, Borqs may not be as strong as the others in terms of longer-term growth potentials. The inconsistency in the assessment between current Borqs valuation and our trade advice on Borqs Technologies is due to the recent market swings and your selection of investing horizon. 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 Borqs Technologies.

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 Borqs Technologies. Please refer to our Terms of Use for any information regarding our disclosure principles.

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