Will Cemtrex (NASDAQ:CETX) price continue to rise in September?

CETX
 Stock
  

USD 0.21  0.01  4.55%   

Whilst many millenniums are getting more into technology space, it makes sense to break down Cemtrex against current trends within the economy. As expected, Cemtrex is starting to reaffirm its true potential as investors are becoming more and more confident in the future outlook. A lot of the movements of the company stock price movements has been a reflection of what is happening in the market overall. The appearance of strong basic indicators of the company suggests a short-term price swing for investors of Cemtrex. Cemtrex is scheduled to announce its earnings tomorrow.
Published over a month ago
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Cemtrex's average rating is Strong Buy 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 Cemtrex market sentiment investors' perception of the future value of Cemtrex. Let us look at a few aspects of Cemtrex technical analysis. The company has Profit Margin (PM) of (36.69) %, which may suggest that it does not properly executes on its current pricing strategies or is unable to control all of the operational costs. This is way below average. Similarly, it shows Operating Margin (OM) of (26.03) %, which suggests for every $100 dollars of sales, it generated a net operating loss of -0.26.
Using predictive technical analysis, we will analyze different prices and returns patterns and diagnose historical swings to determine the real value of Cemtrex. In general, we focus on analyzing Cemtrex stock price patterns and their correlations with different microeconomic environment and drivers. We also apply predictive analytics to build Cemtrex'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 Cemtrex's intrinsic value. In addition to deriving basic predictive indicators for Cemtrex, we also check how macroeconomic factors affect Cemtrex 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 Cemtrex'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 Cemtrex 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 Cemtrex. Your research has to be compared to or analyzed against Cemtrex's peers to derive any actionable benefits. When done correctly, Cemtrex'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 Cemtrex.

Watch out for price decline

Please consider monitoring Cemtrex on a daily basis if you are holding a position in it. Cemtrex 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 Cemtrex stock to be traded above the $1 level to remain listed. If Cemtrex 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 Cemtrex's Liquidity

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

How does Cemtrex utilize its cash?

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

Cemtrex exotic insider transaction detected

Legal trades by Cemtrex insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
Cemtrex insider trading alert for general transaction of series a preferred stock by Aron Govil, the corporate stakeholder, on 9th of October 2021. This event was filed by Cemtrex Inc with SEC on 2014-11-13. Initial filing of beneficial ownership - SEC Form 3 [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

Closer look at Cemtrex Mean Deviation

Cemtrex has current Mean Deviation of 4.26. The mean deviation of the equity instrument is the first measure of the distances between each value of security historical prices and the mean. It gives us an idea of how spread out from the center the distribution of returns.

Mean Deviation is the average of the absolute values of the differences between price distribution numbers and their mean. Mean deviation of equity instrument with a lot of historical data is a biased estimator because the time horizon used in calculation will always be much smaller than the entire price history of the equity. The mean deviation is typically used as a measure of dispersion for small investment horizon, otherwise standard deviation is a better measure of dispersion.

Mean Deviation 
 = 
SUM(RET DEV) 
 = 
4.26
SUM = Summation notation
RET DEV = Sum of return deviations of Cemtrex
N = Number of calculation points for selected time horizon
Let's now compare Cemtrex Mean Deviation to its closest peers:
CETX
BBU
CODI
IEP
IGC
CETX4.25983791368228
BBU2.61
CODI2.15
IEP0.92
IGC5.65

Are Cemtrex technical ratios showing a recoup?

Current downside variance is at 33.79. Cemtrex is displaying above-average volatility over the selected time horizon. Investors should scrutinize Cemtrex independently to ensure intended market timing strategies are aligned with expectations about Cemtrex volatility. Cemtrex is a potential penny stock. Although Cemtrex may be in fact a good instrument to invest, many penny stocks are speculative in nature and are subject to artificial price hype. Please make sure you totally understand the upside potential and downside risk of investing in Cemtrex. We encourage investors to look for the signals such us email spams, message board hypes, claims of breakthroughs, volume upswings, sudden news releases, promotions that are not reported, or demotions released before SEC filings. Please also check biographies and work history of current and past company officers before investing in high volatility instruments, penny stocks, or equities with microcap classification. You can indeed make money on Cemtrex instrument if you perfectly time your entry and exit. However, remember that penny stocks that have been the subject of an artificial hype usually unable to maintain its increased share price for more than just a few days. The price of a promoted high volatility instrument will almost always revert back. The only way to increase shareholder value is through legitimate performance backed up by solid fundamentals.

Our Bottom Line On Cemtrex

While some firms within the software—infrastructure industry are still a little expensive, even after the recent corrections, Cemtrex may offer a potential longer-term growth to investors. With a somewhat neutral outlook on your 90 days horizon, it may be better to hold off any trading activity and neither trade new shares of Cemtrex nor exit your existing holdings in the Stock. It seems the expected volatility has not yet been fully factored into the current price. 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 Cemtrex.

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 Vlad Skutelnik do not own shares of Cemtrex. Please refer to our Terms of Use for any information regarding our disclosure principles.

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