Has Wynnstay Group plc (AIM:WYN) Hit a Sweet Spot? Target Weight For Portfolio Skips Higher to 0.04460

A recent look at ownership and volatility brings us to a 0.04460 target portfolio weight (as a decimal) for Wynnstay Group plc (AIM:WYN) Target weight is the volatility adjusted recommended stock position size for a position in your portfolio.  The maximum target weight is 7% for any given stock.  The indicator is based off of the 100 day volatility reading and calculates a target weight accordingly.  If a stock has been more volatile of late, the lower the target weight will be.  The 3-month volatility stands at 13.278400 (decimal).  This is the normal returns and standard deviation of the stock price over three months annualized. 

Successful stock market traders generally have a keen ability to cut losses short and let winners run. This may sound easy, but novice traders have the tendency to actually extend losses and fail to secure profits. New stock market traders may encounter a few different scenarios when starting out. They may make a few early trades that prove to be big winners, or they may get taken to the cleaner right out of the gate. When a trader experiences big wins from the start, this may create an inflated sense of confidence. On the flip side, a string of early losses can be so discouraging that the trader throws in the towel without really even getting into the game. 

Wynnstay Group plc (AIM:WYN) of the Food Producers sector closed the recent session at 4.100000 with a market value of $103382.

Taking look at some key returns data we can note the following:

So how has Wynnstay Group plc (AIM:WYN) performed in terms of returns?  The ROIC quality score stands at 8.958852 whilet he actual return on invested capital holds at  0.111697.  Wynnstay Group plc’s book to market ratio is at 1.086488 while the book to market mean difference is 0.17692. 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. Wynnstay Group plc (AIM:WYN) has seen free cash flow growth of -0.383758 and has a free cash flow score of 0.187970.  Free Cash Flow Score (FCF Score) is a value that is calculated by combining Free cash flow growth with free cash flow stability. It thus gives you a combined indication of free cash flow quality.

Drilling down into some additional key near-term indicators we note that the Capex to PPE ratio stands at 0.094524 for Wynnstay Group plc (AIM:WYN).  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.

Following a pre-defined trading system might be a solid choice for securing profits in the stock market. Defining goals before creating a plan can be a good way to start the trader off on the right path. There are bound to be many ups and downs throughout the trading process. Being able to manage wins and losses may be one of the most important factors to becoming a successful trader. Without a researched plan, traders may realize how quick the losses can pile up. Properly managing risk, position size, entry and exit points, and stops, may come with experience, but it is typically necessary in order to stay above water in the fast paced market environment.

In addition to Capex to PPE we can look at Cash Flow to Capex.  This ration compares a stock’s operating cash flow to its capital expenditure and can identify if a firm can generate enough cash to meet investment needs.  Investors are looking for a ratio greater than one, which indicates that the firm can meet that need. Comparing to other firms in the same industry is relevant for this ratio. Wynnstay Group plc (AIM:WYN)’s Cash Flow to Capex stands at 4.104004.

Debt

In looking at some Debt ratios, Wynnstay Group plc (AIM:WYN) has a debt to equity ratio of 0.09723 and a Free Cash Flow to Debt ratio of 0.697232.  This ratio provides 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 0.82187.  This ratio reveals how easily a company 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.  Wynnstay Group plc’s ND to MV current stands at 0.085344. This ratio is calculated as follows: Net debt (Total debt minus Cash ) / Market value of the company.

Investors looking to secure stock market profits may be tweaking an existing strategy or looking to devise a brand new one. As the stock market keeps charging higher, investors will have to figure out how they want to play the next few months. Identifying market tops and possible correction levels may be very tricky. With the markets trading at current levels, the situation for the average investor may be widely varied. Some investors will be trading with a shorter-term plan, while others may be focused on a longer-term investment time frame. There are many financial professionals who are predicting a sharp reversal in the stock market, but there are also those who believe that the upswing will keep pushing stocks higher over the coming months. Investors will need to decide for themselves which way they think the momentum is going to swing and prepare accordingly.   

Near-Term Growth Drilldown

Now we’ll take a look at some key growth data as decimals. One year cash flow growth ratio is calculated on a trailing 12 months basis and is a one year percentage growth of a firm’s cash flow from operations.  This number stands at 0.87280 for Wynnstay Group plc (AIM:WYN).  The one year Growth EBIT ratio stands at 0.14521 and is a calculation of one year growth in earnings before interest and taxes.  The one year EBITDA growth number stands at 0.11446 which is calculated similarly to EBIT Growth with just the addition of amortization.

Taking even a further look we note that the 1 year Free Cash Flow (FCF) Growth is at 0.36357.  The one year growth in Net Profit after Tax is 0.13316 and lastly sales growth was 0.09873.

50/200 Simple Moving Average Cross

Wynnstay Group plc (AIM:WYN) has a 0.90611 50/200 day moving average cross value. Cross SMA 50/200 (SMA = Simple Moving Average) and is calculated as follows:

Cross SMA 50/200 = 50 day moving average / 200day moving average. If the Cross SMA 50/200 value is greater than 1, it tell us that the 50 day moving average is above the 200 day moving average (golden cross), indicating an upward moving share price.

On the other hand if the Cross SMA 50/200 value is less than 1, this shows that the 50 day moving average is below the 200 day moving average (a death cross), and tells us that share prices has fallen recently and may continue to do so.

Coming up with a viable and solid stock investment plan might be on the minds of many individual investors. A solid plan might entail defining the overall objective and recognizing tangible restraints. Figuring out these details may help the investor focus on the most important aspects of investing in the stock market. Following strategies set forth by others may work, but they may also leave the investor in a quandary. What worked in the past for one person may not work in the future for another. Investors may need to craft the plan keeping in mind the long-term goals. Although some investors and traders focus on the short-term, many investors are more interested in making the grade over a number of years, and not a number of days or months. Plans may need to be set up so that they are flexible and have the ability to withstand unforeseen shifts and rapidly changing stock market scenarios. Flexibility may end up being the key to a successful plan down the road. Investors may also want to do regular check-ins on portfolio performance in order to keep tabs on how well the plan is working.

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