What should I exit first TuanChe (NASDAQ:TC) or Tencent Holdings?


USD 0.97  0.02  2.11%   

While some millenniums may be indifferent towards communication services space, we will examine how strong are TuanChe fundamentals compared to Tencent Holdings. We are going to analyze some of the competitive aspects of both TuanChe and Tencent.
Published over two months ago
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By analyzing existing fundamental indicators between TuanChe and Tencent, you can compare the effects of market volatilities on both companies' prices and check if they can diversify away market risk if combined in one of your portfolios. You can also utilize pair trading strategies for matching a long position in Tencent with a short position in TuanChe. Check out our pair correlation module for more information.

Let's begin by analyzing the assets.
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. TuanChe has an asset utilization ratio of 14.6 percent. This suggests that the company is making $0.15 for each dollar of assets. An increasing asset utilization means that TuanChe Limited is more efficient with each dollar of assets it utilizes for everyday operations.

Watch out for price decline

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

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

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions.
It is good to see analyst projects for TuanChe ADR, but it might be worth checking our own buy vs. sell analysis

Is TuanChe ADR valued fairly by the market?

Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include product or services discounts, promotions, as well as early payments on invoices or services rendered in advance.

Revenue Breakdown

Lets now check TuanChe revenue. Based on the latest financial disclosure, TuanChe Limited reported 357.55 M of revenue. This is 97.57% lower than that of the Communication Services sector and significantly higher than that of the Internet Content & Information industry. The revenue for all United States stocks is 96.21% higher than that of TuanChe. As for Tencent Holdings we see revenue of 556.06 B, which is much higher than that of the Internet Content & Information

556.1 B
TC357.55 Million0.0643
TCTZF556.06 Billion99.94

Our perspective of the current TuanChe rise

TuanChe current risk adjusted performance builds up over 0.17.
As of the 3rd of October, TuanChe has the Risk Adjusted Performance of 0.168, coefficient of variation of 715.34, and Semi Deviation of 6.1. In relation to fundamental indicators, the technical analysis model makes it possible for you to check existing technical drivers of TuanChe Limited, as well as the relationship between them. In other words, you can use this information to find out if the company will indeed mirror its model of past prices and volume data, or the prices will eventually revert. We were able to break down nineteen technical drivers for TuanChe Limited, which can be compared to its competition. Please validate TuanChe Limited variance, as well as the relationship between the value at risk and skewness to decide if TuanChe is priced more or less accurately, providing market reflects its prevalent price of 3.58 per share. Given that TuanChe Limited has jensen alpha of 1.15, we advise you to double-check TuanChe Limited's current market performance to make sure the company can sustain itself at a future point.

The Bottom Line

Whereas many of the other players within the internet content & information industry are still a little expensive, even after the recent corrections, TuanChe may offer a potential longer-term growth to investors. While some investors may not share our view we believe it may be a good time to drop TuanChe as the risk-reward trade off is not appealing enough to hold a position. 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 TuanChe.

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 TuanChe ADR. Please refer to our Terms of Use for any information regarding our disclosure principles.

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