Should I short all of Fusion and Advent?

Considering an investment in Advent Technologies Holdings might be intriguing, especially with its current price hovering near the 52-week low of 1.71. Despite reporting an operating income loss of 57.4M, the company's debt-free balance sheet could provide a cushion for future growth opportunities.

Main Ideas

By examining the fundamental indicators of Advent Technologies and Fusion, you can assess how market fluctuations impact their stock prices and determine if combining them in a portfolio might reduce risk. Pair trading strategies could be employed by taking a long position in Fusion and a short position in Advent Technologies. For more details, explore our [pair correlation](#) module. Now, let's delve into asset analysis. The asset utilization ratio measures the revenue generated per dollar of assets. Advent Technologies has a ratio of 13.99%, indicating it earns $0.14 for every dollar of assets. A rising asset utilization ratio suggests that Advent Technologies is becoming more efficient in using its assets for daily operations.
Published over two weeks ago
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Reviewed by Raphi Shpitalnik

Timing is everything, especially when it comes to investing. Advent Technologies Holdings, a player in the renewable utilities sector, presents a complex picture for potential investors. With a current valuation of $5.2 million and a price-to-book ratio of 0.67X, the stock might seem like a bargain at first glance. However, a deeper dive reveals some challenging figures, such as a net income loss of $71.4 million and a daunting 96% probability of bankruptcy. These numbers suggest a company navigating turbulent waters, raising questions about its financial health and future prospects. Despite a 52-week high of $18.9, the stock's recent performance has been less than stellar, with its 50-day moving average at 2.18 and a 200-day moving average of 3.83. For those considering fusion investments to optimize their portfolios, Advent Technologies Holdings requires careful consideration of both its potential and its pitfalls. Fusion Fuel's stock price jumped 2.00% today, while Advent Technologies saw a significant rise of 76.32%. With many investors steering clear of the electric utilities sector, it's worth taking a closer look at Advent Technologies Holdings to see how it measures up against Fusion Fuel and similar companies. Let's delve into the competitive strengths of both Advent and Fusion to better understand their market positions.
Investment perspective, in general, refers to a viewpoint or opinion regarding investment opportunity in Advent Technologies. It encompasses the assessment of an investment's potential risks and rewards, and expectations for its performance over time. Several factors influence the investment perspective on Advent Technologies, including investment goals, risk tolerance, time horizon, market conditions, and research and analysis. Investors have varying goals, such as capital preservation, income generation, or long-term growth. Risk tolerance plays a significant role in shaping an investor's perspective, with some being more risk-averse and others willing to take on higher risks for potential returns.

How important is Advent Technologies's Liquidity

Advent Technologies financial leverage refers to using borrowed capital as a funding source to finance Advent Technologies Holdings ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Advent Technologies 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. Financial leverage can amplify the potential profits to Advent Technologies' owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Advent Technologies' financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the breakdown between Advent Technologies's total debt and its cash.

Advent Technologies Gross Profit

Advent Technologies Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Advent Technologies previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Advent Technologies Gross Profit growth over the last 10 years. Please check Advent Technologies' gross profit and other fundamental indicators for more details.

Is Advent Technologies valued appropriately 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 products or services discounts, promotions, as well as early payments on invoices or services rendered in advance.

Revenue Breakdown

Let me take a closer look at Advent Technologies revenue. Based on the latest financial disclosure, Advent Technologies Holdings reported 4.86 M of revenue.
This is 99.88% lower than that of the Electric Utilities sector and significantly higher than that of the Utilities industry. The revenue for all United States stocks is 99.95% higher than that of Advent Technologies. As for Fusion Fuel we see revenue of 4.06 M, which is much higher than that of the Utilities
Advent4.86 Million
Sector0.0
Fusion4.06 Million
4.9 M
Advent
Sector
4.1 M
Fusion
They say, "Don't put all your eggs in one basket," and when it comes to diversifying your portfolio, Advent Technologies Holdings might be worth a closer look. Trading on the NASDAQ, this company in the renewable utilities sector has seen its stock price fluctuate significantly, with a 52-week high of $18.90 and a low of $1.71. Despite a challenging financial landscape, indicated by a net income loss of 71.4 million and a probability of bankruptcy at 96%, Advent's current ratio of 5.16X suggests it has a strong liquidity position. With insiders holding 16.64% of shares, there's a notable level of internal confidence, which could be a positive sign for potential investors considering the stock's current valuation and potential upside..

Will Advent Technologies recent roll up continue?

Advent Technologies Holdings has recently seen a significant rise in its stock performance, but with a standard deviation of 13.55, it's clear that the journey has been quite bumpy. This level of volatility suggests that while there is potential for further gains, investors should be prepared for possible swings. The key question is whether this momentum can continue, as the stock's recent behavior highlights both opportunities and risks. Investors need to carefully consider these aspects, balancing the potential for growth with the inherent volatility.
Understanding market trends can help investors time their decisions, using volatility indicators to assess Advent Technologies' stock risk during both up and down markets. In bear markets, increased volatility can affect the stock price, prompting investors to adjust their portfolios as prices drop.Advent Technologies Holdings has shown impressive resilience today, bucking the broader market's downward trend. This performance might catch the eye of investors looking for opportunities in a volatile market. However, it's crucial to weigh this against the current analyst consensus, which leans towards a "Strong Sell." With the analyst target price estimated at 7.65, there's a potential upside to consider, but also significant risks, especially with a possible downside price of 0.0335. As always, it's important to conduct thorough research and consider your risk tolerance before making any investment decisions..

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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 Gabriel Shpitalnik do not own shares of Advent Technologies Holdings. Please refer to our Terms of Use for any information regarding our disclosure principles.

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