| 2021 | 2022 | 2023 | 2024 (projected) | Total Current Liabilities | 12.5M | 7.1M | 14.2M | 7.4M | Total Assets | 266.8M | 234.8M | 151.7M | 114.4M |
Should you short Cassava Sciences (USA Stocks:SAVA) after the current volatility rise?
 | By Ellen Johnson | Macroaxis Story |
Cassava Sciences currently has approximately $197.23 million in cash, with a positive cash flow from operations of $82.03 million. This results in a cash-per-share (CPS) ratio of 4.92. On a scale of 0 to 100, the company has a performance score of 7. Its Beta, which measures market volatility, is -0.19, indicating minimal fluctuations compared to the market. As market returns increase, Cassava Sciences' returns are expected to decrease at a much lower rate. During bear markets, the company is likely to outperform the broader market. For further insights, check Cassava Sciences' skewness and the relationship between its potential upside and rate of daily change to assess whether its price patterns will revert.
Main Considerations
Investing in Cassava Sciences (SAVA) presents a unique opportunity amid its current high volatility, particularly given its recent price action. With a last price of $29.11 and a potential upside of 20.78%, investors may find the risk-reward profile appealing, especially considering the company's focus on neurodegenerative diseases. However, the stock's Treynor Ratio of -4.73 indicates a significant risk relative to market returns, suggesting that hedging strategies could be prudent for those looking to mitigate potential losses. As the market continues to react to clinical trial results and broader industry trends, maintaining a cautious approach may be wise for investors navigating this turbulent landscape.Macroaxis uses a strict editorial review process to publish stories and blog posts. Our publishers support our company and may receive a small commission when the partner links or references are utilized. Commissions do not affect the opinions or evaluations of our editorial team. The information our editors and media partners deliver is confidential and licensed for your sole use as a Macroaxis user. We reserve all rights to the content of this article, and therefore copying or distributing this story in whole or in part is strictly prohibited.
Reviewed by Raphi Shpitalnik
In the world of investing, uncertainty is the only certainty. Cassava Sciences (SAVA), a clinical-stage biotechnology company focused on developing treatments for neurodegenerative diseases, has recently experienced significant stock volatility, raising questions about the right time to hedge investments. With an analyst consensus rating of "Hold" and a current price hovering around $26.37, investors are weighing the potential risks and rewards. The company's lead product candidate, simufilam, has completed its Phase 2 clinical trial, yet the market remains cautious amid fluctuating valuations and mixed analyst predictions. As the landscape evolves, understanding how to navigate this volatility could be crucial for safeguarding investments. Eighty-eight percent of stocks are less volatile than Cassava Sciences, and 81% of all traded equity instruments are projected to yield higher returns than the company over a 90-day investment horizon. While many risk-takers are entering the pharmaceutical sector, some investors are concerned about Cassava Sciences' current volatility. We will analyze whether the expected returns justify this volatility. The existing risk factors may affect the stock's value, as we currently estimate Cassava Sciences to be undervalued, with a real value approaching $44.48 per share.Volatility is a rate at which the price of Cassava Sciences 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 Cassava Sciences may increase or decrease. In other words, similar to Cassava's beta indicator, it measures the risk of Cassava Sciences and helps estimate the fluctuations that may happen in a short period of time. So if prices of Cassava Sciences 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.
How important is Cassava Sciences's Liquidity
Cassava Sciences financial leverage refers to using borrowed capital as a funding source to finance Cassava Sciences ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Cassava Sciences 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 Cassava Sciences' 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 Cassava Sciences' 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 Cassava Sciences's total debt and its cash.
Cassava Sciences Gross Profit
Cassava Sciences Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Cassava Sciences 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 Cassava Sciences Gross Profit growth over the last 10 years. Please check Cassava Sciences' gross profit and other fundamental indicators for more details.
Cassava Sciences Volatility Drivers
Cassava Sciences unsystematic risk is unique to Cassava Sciences 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 Cassava Sciences you can also buy CureVac NV. You can also mitigate this risk by investing in the health care 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 Cassava Sciences 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 Cassava Sciences income statement and balance sheet. Here are more details about Cassava volatility.Click cells to compare fundamentals
Another angle On Cassava Sciences
Net Loss for the year was (97.22 M) with loss before overhead, payroll, taxes, and interest of (68.03 M).
In the world of investing, timing is everything. Cassava Sciences (SAVA) has been experiencing significant volatility, with a market capitalization of $1.4 billion and a beta of -0.57, indicating a tendency to move inversely to the market.The company's lead product, simufilam, is in the clinical trial phase, which adds to the uncertainty surrounding its future performance. With a potential upside of 20.78% and a current price action indicator of 6.92, investors may want to consider hedging their positions, especially given the high semi-deviation of 7.38 and a maximum drawdown of 47.97%. Additionally, the company's return on equity stands at a loss of 0.34, highlighting the risks involved in this biotech investment..
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