Eland Oil & Gas PLC (AIM:ELA)’s Volatility Moves the Target Weight to 0.02850 With 63.37007 Sales Growth

Eland Oil & Gas PLC (AIM:ELA) of the Oil & Gas Producers sector might have recently popped up on investor’s radars as the 359947 market cap company based out of Great Britain recently closed at 1.270000.  The stock has seen year over year sales growth of 63.37007 giving it a traded value of $301.

Investors studying the fundamentals might be conducting in-depth company research before deciding when to purchase a particular stock. The investor checklist may include studying the scope of a company’s competitive industry advantage, examining company management, and trying to get a general feel if the stock is valued properly. Once the decision is made that the company is a good fit for the portfolio, it may be wise to assess whether or not current conditions and price levels indicate proper levels for share purchase. The timing of purchasing a researched stock obviously comes with some level of trepidation. Investors will only know in the future whether they got in at the right price. A stock that looks very attractive today may not be as attractive in the future. Sometimes the investor will just have to trust their research and instinct when purchasing shares. 

So how has Eland Oil & Gas PLC (AIM:ELA) performed in terms of returns?  The ROIC quality score stands at -0.361398 whilet he actual return on invested capital holds at  0.213468.  Eland Oil & Gas PLC’s book to market ratio is at 0.977742 while the book to market mean difference is -0.95501. This indicator tells you how a company is currently valued in terms of Book to Market compared to its average Book to Market over the past 10 years. It’s important to note that BM is the inverse of the Price to book ratio. Thus a high BM ratio means a company is undervalued.

In glancing at some key ratios we note that the Piotroski F-Score is at 8 (1 to 10 scale) and the ERP5 rank is at 4529. The Q.I. Value of Eland Oil & Gas PLC (AIM:ELA) currently reads 15.00000 on the Quant scale. The Free Cash Flow score of 1.407933 is also swinging some momentum at investors. The Great Britain based firm is currently valued at 301.

Some other notable ratios include the Accrual Ratio of 0.315086, the Altman Z score of 3.439234, a Montier C-Score of 2.00000 and a Value Composite rank of 25.

Debt

In looking at some Debt ratios, Eland Oil & Gas PLC (AIM:ELA) currently has a debt to equity ratio of 0.07211 and a Free Cash Flow to Debt ratio of -0.119084. This ratio gives insight as to how high the firm’s total debt is compared to its free cash flow generated. In terms of Net Debt to EBIT, that ratio stands at -0.09206. This ratio reveals how easily a firm is able to pay interest and capital on its net outstanding debt. The lower the ratio the better as that indicates that the company is able to meet its interest and capital payments. Lastly we’ll take note of the Net Debt to Market Value ratio. Eland Oil & Gas PLC’s ND to MV current stands at -0.012182. This ratio is calculated as follows: Net debt (Total debt minus Cash ) / Market value of the company.

From time to time, investors may need to decide when to sell a winner. This can be one of the tougher portfolio decisions to make. When a winning stock keeps rising, it can be tough to part with it. Investors may become hesitant to sell because they don’t want to miss out on greater profits in the future. Sometimes this strategy will work, and other times investors may be watching all previous gains evaporate. Being able to sell a winner can provide obvious profits, and it may even be a confidence booster for the average investor. On the flip side, investors may also be faced with the decision of when to sell a loser. Even the most researched trades can go sour. Being able to detach from the trade mentally can end up saving the investor more grief down the line. Holding onto a stock with the hopes of a giant turnaround can be a recipe for portfolio disaster. Being able to cut losses is just as much a part of the process as being able to cash in winners. Learning from mistakes and being able to wipe the slate clean can help the investor be better prepared for future endeavors in the markets.   

Eland Oil & Gas PLC (AIM:ELA) are showing an adjusted slope average of the past 125 and 250 days of 0.31914.  The Adjusted Slope 125/250d indicator is equal to the average annualized exponential regression slope, over the past 125 and 250 trading days, multiplied by the coefficient of determination (R2).  The purpose of this calculation is to provide a longer term average adjusted slope value that levels out large share price movements by using the average. This indicator is useful in helping find stocks that have been on a smooth upward trend over the past 6 months to a year.

Drilling down into some additional key near-term indicators we note that the Capex to PPE ratio stands at 0.144301 for Eland Oil & Gas PLC (AIM:ELA).  The Capex to PPE ratio shows you how capital intensive a company is. Stocks with an increasing (year over year) ratio may be moving to be more capital intensive and often underperform the market. Higher Capex also often means lower Free Cash Flow (Operating cash flow – Capex) generation and lower dividends as companies don’t have the cash to pay dividends if they are investing more in the business.

When it comes to securing profits in the stock market, investors may be trying to find a perfect system to help attain that goal. Dedicated investors may try strategies that have been passed on to them from other seasoned investors. Even after reading every piece of literature about investing, it might be hard to figure out which way is the best way to successfully conquer the market.  Studying up on company fundamentals and following technical stock levels can be a good place to start, but creating and implementing a plan can be difficult. As we all know, markets change over time. What drives a market during one point in time may not drive the market at a future date. Knowing what to look for when studying technical levels or fundamentals may help lead down the path to increased profits. Many investors will choose to study the indicators with the highest probability of forecasting future market action. 

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