Ree Automotive Stock Story

REE

Stock

USD 1.32 0.03 2.22%

Macroaxis Story

Ree Automotive is scheduled to announce its earnings today. As some millenniums are still trying to avoid ree automotive space, I will try to digest Ree Automotive a little further in order to understand its potential as a viable investment. We will evaluate if Ree Automotive shares are reasonably priced given the latest economic outlook.

Published over a month ago

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Do analysts believe Ree Automotive (NASDAQ:REE) will continue to surge?

The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Ree Automotive has an asset utilization ratio of 0.76 percent. This indicates that the company is making $0.007565 for each dollar of assets. An increasing asset utilization means that Ree Automotive is more efficient with each dollar of assets it utilizes for everyday operations.

What is the right price you would pay to acquire a share of Ree Automotive? For most investors, it would be the price that gives them a wide margin of safety to have minimal downside risk. In other words, most investors are always looking for undervalued stocks. Even if the future performance is not entirely as expected, the loss of holding it is minimized, and the downside risk is negated.

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Watch out for price decline

Please consider monitoring Ree Automotive on a daily basis if you are holding a position in it. Ree Automotive is trading at a penny-stock level, and the possibility of delisting is much higher compared to other equities. 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 Ree Automotive stock to be traded above the $1 level to remain listed. If Ree Automotive 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.

What is happening with Ree Automotive this year

Annual and quarterly reports issued by Ree Automotive are formal financial statements that are published yearly and quarterly and sent to Ree Automotive stockholders. The reports show and break down the current year's ongoing operations and discuss plans for the upcoming year. Annual reports have been a requirement from the Securities and Exchange Commission (SEC) for businesses owned by the public since 1934.

Companies such as Ree Automotive often view their annual report as an effective marketing tool to disseminate their perspective on company future earnings or innovations. With this in mind, many companies devote large sums of money to making their reports attractive and informative. In such instances, the annual report becomes a forum through which a company can communicate to the general public any number of topics that may or may not be directly related to the actual data published in the reports.

How does Ree Automotive utilize its cash?

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

Is Ree Automotive a risky opportunity?

Let's check the volatility. Ree Automotive is looking slightly risky at this time. Whether you invest your money or manage your clients' funds, remember that it is easy to forget that behind Ree Automotive (NASDAQ:REE) stock is an actual business venture. So, do not let stock picking become an abstract concept by ignoring the elementary risk calculations. purchasing a share of a Ree Automotive stock makes you a part-owner of that company.

Our take on today Ree Automotive surge

The kurtosis is down to 1.23 as of today. Ree Automotive exhibits very low volatility with skewness of -0.09 and kurtosis of 1.23. However, we advise investors to further study Ree Automotive 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 Ree Automotive'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 Ree Automotive'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.

Ree Automotive Implied Volatility

Ree Automotive's implied volatility exposes the market's sentiment of Ree Automotive stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Ree Automotive'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 Ree Automotive stock will not fluctuate a lot when Ree Automotive's options are near their expiration.

The Current Takeaway on Ree Automotive Investment

Although other companies in the recreational vehicles industry are either recovering or due for a correction, Ree Automotive may not be performing as strong as the other in terms of long-term growth potentials. While some shareholders 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 Ree Automotive.

Editorial Staff

Ellen Johnson is a Member of Macroaxis Editorial Board. Ellen covers public companies in North America, focusing primarily on valuation and volatility. Six years of experience in predictive investment analytics and risk management. 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 Ellen Johnson do not own shares of Ree Automotive. Please refer to our Terms of Use for any information regarding our disclosure principles.

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