Compared to Champion, which has a 52-week high of
4.79, Leap Therapeutics (NASDAQ:LPTX) shows more stability with a current market cap of just
12.3M and a net income of
-67.6M. While Leap's stock price has been relatively low, its cash reserves of
90.88M and minimal debt of
266K suggest it might be less volatile than Champion, but the company's ongoing losses and high price-to-sales ratio of 160.10X indicate significant risk. Investors should weigh Leap's promising clinical pipeline against its financial challenges before considering an entry point.
Key Takeaways
By examining key indicators for Leap Therapeutics and Champion, you can assess how market fluctuations impact their stock prices and whether combining them could help diversify risk. Pair trading is another option—consider going long on Champion while shorting Leap Therapeutics. Our
pair correlation tool offers deeper insights.
Looking at asset efficiency, Leap's asset utilization is currently negative, at -0.96%. This means the company is losing about $0.0096 for every dollar of assets it owns. Such low efficiency indicates Leap isn’t making the most of its resources, which could be a red flag for investors evaluating its operational effectiveness.
Investment perspective, in general, refers to a viewpoint or opinion regarding investment opportunity in Leap Therapeutics. 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 Leap Therapeutics, 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.
Watch out for price decline
Please consider monitoring Leap Therapeutics on a daily basis if you are holding a position in it. Leap Therapeutics 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 Leap Therapeutics stock to be traded above the $1 level to remain listed. If Leap Therapeutics 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 Leap Therapeutics's Liquidity
Leap Therapeutics
financial leverage refers to using borrowed capital as a funding source to finance Leap Therapeutics ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Leap Therapeutics 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 Leap Therapeutics' 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 Leap Therapeutics' 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 Leap Therapeutics's total debt and its cash.
Leap Therapeutics Gross Profit
Leap Therapeutics Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Leap Therapeutics 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 Leap Therapeutics Gross Profit growth over the last 10 years. Please check Leap Therapeutics'
gross profit and other
fundamental indicators for more details.
Detailed Perspective On Leap Therapeutics
Total Debt Breakdown
Let me now go over Leap Therapeutics total debt. Based on the latest financial disclosure, Leap Therapeutics has a Total Debt of 266
K. This is 99.99% lower than that of the Biotechnology sector and 99.92% lower than that of the
Health Care industry. The total debt for all United States stocks is 99.99% higher than that of Leap Therapeutics.
As for Champion Gaming we see total debt of 1.77
M, which is 99.46% lower than that of the Health Care
| LPTX | 266,000 | 0.0814 |
| Sector | 324.78 Million | 99.38 |
| WGRFF | 1.77 Million | 0.54 |
A penny saved is a penny earned, but in the case of Leap Therapeutics (NASDAQ:LPTX), the risk-reward balance is far from straightforward. The stock has experienced significant volatility, with a 52-week high of 4.79 and a current typical price of just 0.29, reflecting sharp swings in investor sentiment. While its beta of -0.22 suggests low correlation with broader market movements, the company faces substantial challenges, including an operating loss of 70.1 million and a market capitalization of only 12.28 million. Compared to Champion, which tends to be more volatile, Leap's risk profile appears more subdued, but its high price-to-sales ratio of 160.10X and a maximum drawdown of 35.66 indicate considerable downside potential. For investors willing to tolerate high risk, the potential upside of 11.11% might be tempting, but caution remains warranted given the company's ongoing losses and limited financial cushion..
Over 3 percent rise for Leap Therapeutics. What does it mean for investors?
Despite a recent 3% rise, Leap Therapeutics’ decrease in its Value at Risk to -11.11 signals caution. This drop suggests the stock could be more prone to a dip soon. While the short-term move looks promising, the increased risk means investors should stay vigilant. Leap shows higher-than-average volatility over recent periods, which is typical for a penny stock. Though it might present an opportunity, many penny stocks are driven by hype and speculative trading, making them risky bets. Be wary of false signals like spam emails, exaggerated message board claims, sudden news, or unverified promotions.
Always research the backgrounds of company leaders before investing in volatile or microcap stocks. Timing can lead to gains, but beware—artificial hype often causes quick price swings that revert just as fast. Real value comes from strong fundamentals and consistent performance.Given the current landscape, Leap Therapeutics presents a mixed picture. While there’s some potential upside—estimated at around
6.39—the overall valuation remains cautious, with a valuation real value close to
0.97. The market seems to be tempering expectations, especially considering the limited analyst coverage and the consensus hold rating. For investors willing to accept a higher risk, there might be a small window for gains, but the downside risk appears significant, with a possible downside price as low as
0.003. In short, Leap’s prospects are uncertain, and it’s best approached with careful consideration of the risks involved..
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Nico Santiago is a PR Contributor to Macroaxis Editorial Board. Nico is a relatively new author here at Macroaxis and he likes to work on advertising and sponsored content and marketing for the company. Nico spends most of his time surfing when the weather is nice and he spends the rest of the year writing for various blogs and companies, as he works on his upcoming books, The Rise of the Financial Machines and Time Series Modelling with AI.
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