Pounding the Pavement on Shares of Great Lakes Dredge & Dock Corporation (NasdaqGS:GLDD), Rocket Pharmaceuticals, Inc. (NasdaqGM:RCKT)

The Current Ratio of Great Lakes Dredge & Dock Corporation (NasdaqGS:GLDD) is 1.27.  The Current Ratio is used by investors to determine whether a company can pay short term and long term debts.  The current ratio looks at all the liquid and non-liquid assets compared to the company’s total current liabilities.  A high current ratio indicates that the company has little trouble managing their working capital.  A low current ratio (when the current liabilities are higher than the current assets) indicates that the company may have trouble paying their short term obligations.

Dedicated investors often strive hard to set themselves up for success. Finding long-lasting success in the stock market may not be an easy endeavor. The mindset of a short-term trader may differ greatly from that of a long-term investor. Investors often have to be prepared for many different situations. Obtaining the proper knowledge about stocks and the investing world is typically a main goal for active traders and investors. Once the investor is armed with knowledge, they may be able to see things that others cannot. This may involve staying up to date on various fundamentals, technicals, and macro-economic conditions. 

Volatility & Price

Stock volatility is a percentage that indicates whether a stock is a desirable purchase.  Investors look at the Volatility 12m to determine if a company has a low volatility percentage or not over the course of a year.  The Volatility 12m of Great Lakes Dredge & Dock Corporation (NasdaqGS:GLDD) is 41.393200.  This is calculated by taking weekly log normal returns and standard deviation of the share price over one year annualized.  The lower the number, a company is thought to have low volatility.  The Volatility 3m is a similar percentage determined by the daily log normal returns and standard deviation of the share price over 3 months.  The Volatility 3m of Great Lakes Dredge & Dock Corporation (NasdaqGS:GLDD) is 31.308100.  The Volatility 6m is the same, except measured over the course of six months.  The Volatility 6m is 33.518600.

We can now take a quick look at some historical stock price index data. Great Lakes Dredge & Dock Corporation (NasdaqGS:GLDD) presently has a 10 month price index of 1.90450. The price index is calculated by dividing the current share price by the share price ten months ago. A ratio over one indicates an increase in share price over the period. A ratio lower than one shows that the price has decreased over that time period. Looking at some alternate time periods, the 12 month price index is 2.13535, the 24 month is 2.15714, and the 36 month is 2.36465. Narrowing in a bit closer, the 5 month price index is 1.49083, the 3 month is 1.43419, and the 1 month is currently 1.10449.

The Leverage Ratio of Great Lakes Dredge & Dock Corporation (NasdaqGS:GLDD) is 0.486264.  Leverage ratio is the total debt of a company divided by total assets of the current and past year divided by two.  Companies take on debt to finance their day to day operations.  The leverage ratio can measure how much of a company’s capital comes from debt.  With this ratio, investors can better estimate how well a company will be able to pay their long and short term financial obligations.

C-Score
Great Lakes Dredge & Dock Corporation (NasdaqGS:GLDD) currently has a Montier C-score of 1.00000. This indicator was developed by James Montier in an attempt to identify firms that were cooking the books in order to appear better on paper. The score ranges from zero to six where a 0 would indicate no evidence of book cooking, and a 6 would indicate a high likelihood. A C-score of -1 would indicate that there is not enough information available to calculate the score. Montier used six inputs in the calculation. These inputs included a growing difference between net income and cash flow from operations, increasing receivable days, growing day’s sales of inventory, increasing other current assets, decrease in depreciation relative to gross property plant and equipment, and high total asset growth.

F Score, ERP5 and Magic Formula

The Piotroski F-Score is a scoring system between 1-9 that determines a firm’s financial strength.  The score helps determine if a company’s stock is valuable or not.  The Piotroski F-Score of Great Lakes Dredge & Dock Corporation (NasdaqGS:GLDD) is 7.  A score of nine indicates a high value stock, while a score of one indicates a low value stock.  The score is calculated by the return on assets (ROA), Cash flow return on assets (CFROA), change in return of assets, and quality of earnings.  It is also calculated by a change in gearing or leverage, liquidity, and change in shares in issue.  The score is also determined by change in gross margin and change in asset turnover.

The ERP5 Rank is an investment tool that analysts use to discover undervalued companies.  The ERP5 looks at the Price to Book ratio, Earnings Yield, ROIC and 5 year average ROIC.  The ERP5 of Great Lakes Dredge & Dock Corporation (NasdaqGS:GLDD) is 7612.  The lower the ERP5 rank, the more undervalued a company is thought to be. The MF Rank (aka the Magic Formula) is a formula that pinpoints a valuable company trading at a good price.  The formula is calculated by looking at companies that have a high earnings yield as well as a high return on invested capital.  The MF Rank of Great Lakes Dredge & Dock Corporation (NasdaqGS:GLDD) is 3449.  A company with a low rank is considered a good company to invest in.  The Magic Formula was introduced in a book written by Joel Greenblatt, entitled, “The Little Book that Beats the Market”.

Shareholder Yield

The Q.i. Value of Great Lakes Dredge & Dock Corporation (NasdaqGS:GLDD) is 10.00000.  The Q.i. Value is a helpful tool in determining if a company is undervalued or not.  The Q.i. Value is calculated using the following ratios: EBITDA Yield, Earnings Yield, FCF Yield, and Liquidity.  The lower the Q.i. value, the more undervalued the company is thought to be.  The Value Composite One (VC1) is a method that investors use to determine a company’s value.  The VC1 of Great Lakes Dredge & Dock Corporation (NasdaqGS:GLDD) is 29.  A company with a value of 0 is thought to be an undervalued company, while a company with a value of 100 is considered an overvalued company.  The VC1 is calculated using the price to book value, price to sales, EBITDA to EV, price to cash flow, and price to earnings.  Similarly, the Value Composite Two (VC2) is calculated with the same ratios, but adds the Shareholder Yield.  The Value Composite Two of Great Lakes Dredge & Dock Corporation (NasdaqGS:GLDD) is 39.

New investors may be looking at the soaring stock market and wondering if now is a good time to try and get in on the action. Leaping into the market without proper research or a solid plan may leave the investor on the short end of the stick. Creating a stock investing plan can be as simple or complex as the individual chooses. Sometimes, keeping things simple may be the best way to go. Other times, there may be more than meets the eye, and a deep-dive into the crucial data may be required. New investors may be extremely excited to start buying stocks. They may have heard some great water cooler talk about the next big stock. There is always a possibility that the hot stock chatter may end up coming to fruition, but it could just as likely turn out to be terribly erroneous. Many individuals in the financial world will be quick to provide these can’t lose picks, but until this information is thoroughly researched, investors may want to proceed with caution.

Rocket Pharmaceuticals, Inc. (NasdaqGM:RCKT) presently has a current ratio of 9.70. The current ratio, also known as the working capital ratio, is a liquidity ratio that displays the proportion of current assets of a business relative to the current liabilities. The ratio is simply calculated by dividing current liabilities by current assets. The ratio may be used to provide an idea of the ability of a certain company to pay back its liabilities with assets. Typically, the higher the current ratio the better, as the company may be more capable of paying back its obligations.

When it comes to investing, overconfidence can be detrimental to securing profits in the stock market. When investors have some early short-term wins, this may lead them to believe that it is their skill and superior knowledge that produced the winners. All though this may occasionally be the case, investors may quickly realize that it is very hard to consistently produce winning results. Sometimes a few wins can lead the investor to believe that they can make any trade work. This may create a situation where the individual gets in much deeper than they should have. Conducting the proper stock research before any trade can help the investor make sure that they are getting into a position for the right reasons.

Volatility & Price

Stock volatility is a percentage that indicates whether a stock is a desirable purchase.  Investors look at the Volatility 12m to determine if a company has a low volatility percentage or not over the course of a year.  The Volatility 12m of Rocket Pharmaceuticals, Inc. (NasdaqGM:RCKT) is 68.290600.  This is calculated by taking weekly log normal returns and standard deviation of the share price over one year annualized.  The lower the number, a company is thought to have low volatility.  The Volatility 3m is a similar percentage determined by the daily log normal returns and standard deviation of the share price over 3 months.  The Volatility 3m of Rocket Pharmaceuticals, Inc. (NasdaqGM:RCKT) is 68.368400.  The Volatility 6m is the same, except measured over the course of six months.  The Volatility 6m is 67.663300.

We can now take a quick look at some historical stock price index data. Rocket Pharmaceuticals, Inc. (NasdaqGM:RCKT) presently has a 10 month price index of 0.88763. The price index is calculated by dividing the current share price by the share price ten months ago. A ratio over one indicates an increase in share price over the period. A ratio lower than one shows that the price has decreased over that time period. Looking at some alternate time periods, the 12 month price index is 0.86500, the 24 month is 1.38400, and the 36 month is 1.38400. Narrowing in a bit closer, the 5 month price index is 1.17687, the 3 month is 1.13294, and the 1 month is currently 0.96810.

F Score, ERP5 and Magic Formula

The Piotroski F-Score is a scoring system between 1-9 that determines a firm’s financial strength.  The score helps determine if a company’s stock is valuable or not.  The Piotroski F-Score of Rocket Pharmaceuticals, Inc. (NasdaqGM:RCKT) is 1.  A score of nine indicates a high value stock, while a score of one indicates a low value stock.  The score is calculated by the return on assets (ROA), Cash flow return on assets (CFROA), change in return of assets, and quality of earnings.  It is also calculated by a change in gearing or leverage, liquidity, and change in shares in issue.  The score is also determined by change in gross margin and change in asset turnover.

The ERP5 Rank is an investment tool that analysts use to discover undervalued companies.  The ERP5 looks at the Price to Book ratio, Earnings Yield, ROIC and 5 year average ROIC.  The ERP5 of Rocket Pharmaceuticals, Inc. (NasdaqGM:RCKT) is 18883.  The lower the ERP5 rank, the more undervalued a company is thought to be. The MF Rank (aka the Magic Formula) is a formula that pinpoints a valuable company trading at a good price.  The formula is calculated by looking at companies that have a high earnings yield as well as a high return on invested capital.  The MF Rank of Rocket Pharmaceuticals, Inc. (NasdaqGM:RCKT) is 16303.  A company with a low rank is considered a good company to invest in.  The Magic Formula was introduced in a book written by Joel Greenblatt, entitled, “The Little Book that Beats the Market”.

The Leverage Ratio of Rocket Pharmaceuticals, Inc. (NasdaqGM:RCKT) is 0.197508.  Leverage ratio is the total debt of a company divided by total assets of the current and past year divided by two.  Companies take on debt to finance their day to day operations.  The leverage ratio can measure how much of a company’s capital comes from debt.  With this ratio, investors can better estimate how well a company will be able to pay their long and short term financial obligations.

The Q.i. Value of Rocket Pharmaceuticals, Inc. (NasdaqGM:RCKT) is 75.00000.  The Q.i. Value is a helpful tool in determining if a company is undervalued or not.  The Q.i. Value is calculated using the following ratios: EBITDA Yield, Earnings Yield, FCF Yield, and Liquidity.  The lower the Q.i. value, the more undervalued the company is thought to be.  The Value Composite One (VC1) is a method that investors use to determine a company’s value.  The VC1 of Rocket Pharmaceuticals, Inc. (NasdaqGM:RCKT) is 80.  A company with a value of 0 is thought to be an undervalued company, while a company with a value of 100 is considered an overvalued company.  The VC1 is calculated using the price to book value, price to sales, EBITDA to EV, price to cash flow, and price to earnings.  Similarly, the Value Composite Two (VC2) is calculated with the same ratios, but adds the Shareholder Yield.  The Value Composite Two of Rocket Pharmaceuticals, Inc. (NasdaqGM:RCKT) is 83.

C-Score
Rocket Pharmaceuticals, Inc. (NasdaqGM:RCKT) currently has a Montier C-score of -1.00000. This indicator was developed by James Montier in an attempt to identify firms that were cooking the books in order to appear better on paper. The score ranges from zero to six where a 0 would indicate no evidence of book cooking, and a 6 would indicate a high likelihood. A C-score of -1 would indicate that there is not enough information available to calculate the score. Montier used six inputs in the calculation. These inputs included a growing difference between net income and cash flow from operations, increasing receivable days, growing day’s sales of inventory, increasing other current assets, decrease in depreciation relative to gross property plant and equipment, and high total asset growth.

Investors have a few distinct options when approaching the stock market. One option is to follow the crowd and trade with the consensus. Another way is to go against the herd and adopt a contrarian strategy. When it comes down to it, the investor will typically have to make this decision with their best interests in mind. In general, no investor wants to miss out on a winning stock. Far too often, investors will be overcome with the fear of missing out and get into a stock way too late. Just because a stock has been over performing and seeing large gains does not mean that those gains are going to continue into the future. Investors may be too quick to get into a hot stock without putting in the proper time and energy to research whether or not it is still a good stock at current trading levels. Investors who take the time to do their homework for every trade may find themselves a step ahead of the crowd in the long run.

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