| 2021 | 2022 | 2023 | 2024 (projected) | Short Long Term Debt Total | 41.7M | 54.0M | 62.1M | 65.2M | Total Assets | 133.0M | 145.6M | 167.5M | 175.9M |
Breaking up Alpine 4 (USA Stocks:ALPP) risk factors?
 | By Raphi Shpitalnik | Macroaxis Story |
In the world of investing, timing can be everything. As Alpine 4 Holdings (NASDAQ: ALPP) navigates the current market rally, it presents a compelling opportunity for investors looking to capitalize on its potential. Despite recent losses, the stock's valuation real value stands at $1.51, suggesting room for growth compared to its current market value of $0.36. Analysts have set a target price of $5, with the highest estimates reaching $5.55, indicating a strong upside potential. The company's fiscal year ends in December, a period that could bring pivotal developments. With a strong buy consensus from analysts, Alpine 4 Holdings might just be the strategic addition your portfolio needs. Alpine 4 Holdings is currently not generating positive expected returns and carries a 5.969% risk over the next 90 days. For conservative investors, it's important to consider this volatility. We'll discuss whether this high volatility might persist through November. While such volatility can offer profit opportunities, it also increases the risk of significant losses in your portfolio.
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Reviewed by Ellen Johnson
Alpine 4 Holdings has $54.01 million in liabilities and a Debt to Equity (D/E) ratio of 0.66, which is average compared to similar companies. Its current ratio is 1.46, indicating it can cover its short-term obligations. When evaluating Alpine 4's debt, consider its cash and equity as well. The company's Beta is 1.53, suggesting it is more volatile than the market. This means it might perform better when the market rises but could do worse if the market falls. Currently, Alpine 4 has a negative expected return of -0.0522%. Check its potential upside and the relationship between its rate of daily change and period momentum indicator to assess if past performance might repeat soon.
Key Takeaways
Alpine 4 Holdings (NASDAQ: ALPP) is catching the eye of investors looking for strategic opportunities amid a market rally, particularly from a volatility perspective. With a standard deviation of 5.91, the stock exhibits significant price fluctuations, which can be both a risk and an opportunity for savvy traders. The company's maximum drawdown of 38.33 suggests that while there have been substantial dips, these could present buying opportunities for those willing to ride out the volatility. Given the potential upside of 7.32, investors might find Alpine 4 Holdings an intriguing option to consider, especially if they are comfortable navigating the inherent risks of a volatile stock.Volatility is a rate at which the price of Alpine 4 or any other equity instrument increases or decreases for a given set of returns. It is measured by calculating the standard deviation of the annualized returns over a given period of time and shows the range to which the price of Alpine 4 may increase or decrease. In other words, similar to Alpine's beta indicator, it measures the risk of Alpine 4 and helps estimate the fluctuations that may happen in a short period of time. So if prices of Alpine 4 fluctuate rapidly in a short time span, it is termed to have high volatility, and if it swings slowly in a more extended period, it is understood to have low volatility. Please read more on our technical analysis page.Watch out for price decline
Please consider monitoring Alpine 4 on a daily basis if you are holding a position in it. Alpine 4 is trading at a penny-stock level, and the possibility of delisting is much higher compared to other stocks. However, just because the stock is trading under one dollar, does not mean it will be marked for deletion. Most exchanges require public instruments, such as Alpine 4 stock to be traded above the $1 level to remain listed. If Alpine 4 stock price falls below $1 for 30 consecutive trading days, the exchange can delist it. Once the company reaches this point, they will be sent an initial price violation notice directly from an exchange.
How important is Alpine 4's Liquidity
Alpine 4 financial leverage refers to using borrowed capital as a funding source to finance Alpine 4 Holdings ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Alpine 4 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 Alpine 4's 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 Alpine 4's 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 Alpine 4's total debt and its cash.
Alpine 4 Gross Profit
Alpine 4 Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Alpine 4 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 Alpine 4 Gross Profit growth over the last 10 years. Please check Alpine 4's gross profit and other fundamental indicators for more details.
Alpine 4 Volatility Drivers
Alpine 4 unsystematic risk is unique to Alpine 4 Holdings and usually not directly affected by the market or economic environment. An example of unsystematic risk is the possibility of poor earnings or a layoff due to coronavirus. One may mitigate nonsystematic risk by buying different securities in the same industry or by buying in different sectors. For example, if you have a position in Alpine 4 you can also buy Trinity Industries. You can also mitigate this risk by investing in the industrials sector as well as in companies having nothing to do with it. This type of risk is also called diversifiable risk and can be understood from analyzing Alpine 4 important indicators over time. Here we run a correlation analysis between relevant fundamental ratios over at least ten year period to find a relationship in the way they react to changes in Alpine 4 income statement and balance sheet. Here are more details about Alpine volatility.Click cells to compare fundamentals
Going after Alpine Financials
The small fall in market price for the last few months could raise concerns from retail investors as the firm is trading at a share price of 0.35655 on very low momentum in volume. The company management teams did not add much value to Alpine 4 investors in September. However, diversifying your holdings with Alpine 4 Holdings or similar stocks can still protect your portfolio during high-volatility market scenarios. The stock standard deviation of daily returns for 90 days investing horizon is currently 5.97. The very high volatility is mostly attributed to the latest market swings and not very good earnings reports from some of the Alpine 4 partners.
In the world of investing, fortune often favors the bold. Alpine 4 Holdings (NASDAQ: ALPP) is currently presenting a strategic buying opportunity, particularly as the market experiences a rally. Despite its high beta of 7.57, indicating significant volatility, the company's low price-to-book ratio of 0.46X suggests that the stock might be undervalued. With a market capitalization of just $9.65 million, the potential upside of 7.32% could attract investors looking for high-risk, high-reward scenarios. However, the probability of bankruptcy at 58.42% serves as a reminder of the inherent risks involved..
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