AB Dynamics Plc (AIM:ABDP)’s Target Weight Reaches 0.02190 as Profit Growth Hits 1.00927

AB Dynamics Plc (AIM:ABDP) has posted year over year net profit growth of 1.00927.  The net profit number is the nuts and bolts of a firm’s financial health.  Healthy and consistent net profit growth provide investors with confidence that the firm will continue to be profitable and result in the share price moving in a positive direction.  On the other hand, consistent negative numbers could raise serious red flags for shareholders or potential shareholders.

As many veteran investors have already seen, market movements are extremely hard to accurately predict. Financial news outlets are always producing headlines and offering predictions for future market performance. Sometimes the predictions are right, and sometimes the predictions are wrong. Investors may have a hard time separating fact from fiction when it comes to bullish and bearish sentiment. Adjusting the portfolio based strictly on headlines can be tempting for the amateur investor. Filtering out the noise and focusing on the pertinent data can help keep the individual focused and on track. Straying from the plan and basing investment decisions on news headlines may lead to portfolio confusion down the road. Crunching the numbers and paying attention to the important economic data can greatly help the investor see through the smoke when markets get muddled.

When looking to find solid stocks with smooth upward momentum, investors can take a look at the 125/250 day adjusted slope indicator. At the time of writing AB Dynamics Plc (AIM:ABDP) have a current value of 70.56727. The point of this calculation is to calculate a longer term average adjusted slope value that smooths out large stock price movements by using the average of the timeframe. This indicator is useful in helping find stocks that have been on an even upward trend over the past 6 months to a year.

AB Dynamics Plc (AIM:ABDP) of the Other sector closed the recent session at 22.600000 with a market value of $621267.

AB Dynamics Plc (AIM:ABDP) has a current suggested portfolio rate of 0.02190 (as a decimal) ownership. Target weight is the volatility adjusted recommended position size for a stock 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. The more recent volatility of a stock, the lower the target weight will be. The 3-month volatility stands at 33.398400 (decimal). This is the normal returns and standard deviation of the stock price over three months annualized.

As we move closer towards the end of the year, investors may be undertaking a portfolio review. Reviewing trades over the past six months, investors should be able to see what has worked and what has not. There might be some stocks that have outperformed the market, and there might be some underperformers as well. Focusing on what has worked so far this year may help provide a clearer picture for future moves. Pinpointing what went wrong can also help the investor see which areas of the portfolio need improvement. If the stock market continues on to reach new heights, investors might be looking to lock in some profits before making the next big trade.   

Debt

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In looking at some Debt ratios, AB Dynamics Plc (AIM:ABDP) has a debt to equity ratio of 0.00000 and a Free Cash Flow to Debt ratio of . 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 -1.69083. 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. AB Dynamics Plc’s ND to MV current stands at -0.037714. This ratio is calculated as follows: Net debt (Total debt minus Cash ) / Market value of the company.

In looking at some key ratios we note that the Piotroski F Score stands at 5 (1 to 10 scale) and the ERP5 rank holds steady at 7235. The Q.I. Value of AB Dynamics Plc (AIM:ABDP) currently reads 49.00000 on the Quant scale. The Free Cash Flow score of -28.575920 is also swinging some momentum at investors. The Great Britain based firm is currently valued at 609.

Investing in the stock market has traditionally offered bigger returns than other types of investments. Along with the opportunity for higher returns comes a higher amount of risk. Stocks can be exposed to both market risk and business or financial risk. Market risk may be evident when the overall market takes a nose dive. Investors may hold stock of a company that has been performing great, but due to poor market conditions, the stock decreases in value. Investors may look to offset this risk by investing in other vehicles that don’t tend to move together. The business risk with stocks involves factors that may cause a company to perform poorly. This may include bad management, heightened competition, and declining company profits. Investors may try to limit this risk by creating a diversified portfolio including stocks from different sectors.

Some other notable ratios include the Accrual Ratio of 0.524306, the Altman Z score of 27.051744, a Montier C-Score of 1.00000 and a Value Composite rank of 74. AB Dynamics Plc (AIM:ABDP) has Return on Invested Capital of 0.390292, with a 5-year average of 0.446851 and an ROIC quality score of 6.570549.  Why is ROIC important? It’s one of the most fundamental metrics in determining the value of a given stock.  It helps potential investors determine if the firm is using it’s invested capital to return profits.

Investors often hear the saying “buy low, sell high”. This may seem highly obvious to anybody looking to get into the stock market. Even though investors typically know they should do this, novices tend to do just the opposite, buy high and sell low. Often times, amateur investors will get carried away when a stock is trending higher. They may attempt to get in on the stock after a big move with hopes of the stock going higher and an overall thought that relates to the fear of missing out. Often times, investors will find themselves in a precarious situation when this occurs. They might have taken a chance on a stock that maybe was too good to be true. Investors may regret buying after the big move when the price has far exceeded the underlying value. Closely watching the fundamentals may help investors avoid getting into sticky situations such as buying too high.