Optical Cable Corporation (NasdaqGM:OCC) Providing Profits of 0.19439: Is it Time to Take Action?

Investors looking to measure the profitability of Optical Cable Corporation (NasdaqGM:OCC) should take note of the one year net profit growth ratio of 0.19439.  Ultimately profitability is the metric that matters for a firm and it’s investors.  Companies able to post consistent profits likely will see consistent share price growth as well.

Investors studying the fundamentals might be conducting in-depth company research before deciding when to purchase a particular stock. The investor checklist may include studying the scope of a company’s competitive industry advantage, examining company management, and trying to get a general feel if the stock is valued properly. Once the decision is made that the company is a good fit for the portfolio, it may be wise to assess whether or not current conditions and price levels indicate proper levels for share purchase. The timing of purchasing a researched stock obviously comes with some level of trepidation. Investors will only know in the future whether they got in at the right price. A stock that looks very attractive today may not be as attractive in the future. Sometimes the investor will just have to trust their research and instinct when purchasing shares. 

When looking to find solid stocks with smooth upward momentum, investors can take a look at the 125/250 day adjusted slope indicator. At the time of writing Optical Cable Corporation (NasdaqGM:OCC) have a current value of 7.27983. The point of this calculation is to calculate a longer term average adjusted slope value that smooths out large stock price movements by using the average of the timeframe. This indicator is useful in helping find stocks that have been on an even upward trend over the past 6 months to a year.

Optical Cable Corporation (NasdaqGM:OCC) of the Technology Hardware & Equipment sector closed the recent session at 4.829000 with a market value of $35913.

Optical Cable Corporation (NasdaqGM:OCC) has a current suggested portfolio rate of 0.04320 (as a decimal) ownership. Target weight is the volatility adjusted recommended position size for a stock in your portfolio. The maximum target weight is 7% for any given stock. The indicator is based off of the 100 day volatility reading and calculates a target weight accordingly. The more recent volatility of a stock, the lower the target weight will be. The 3-month volatility stands at 82.739400 (decimal). This is the normal returns and standard deviation of the stock price over three months annualized.

From time to time, investors may need to decide when to sell a winner. This can be one of the tougher portfolio decisions to make. When a winning stock keeps rising, it can be tough to part with it. Investors may become hesitant to sell because they don’t want to miss out on greater profits in the future. Sometimes this strategy will work, and other times investors may be watching all previous gains evaporate. Being able to sell a winner can provide obvious profits, and it may even be a confidence booster for the average investor. On the flip side, investors may also be faced with the decision of when to sell a loser. Even the most researched trades can go sour. Being able to detach from the trade mentally can end up saving the investor more grief down the line. Holding onto a stock with the hopes of a giant turnaround can be a recipe for portfolio disaster. Being able to cut losses is just as much a part of the process as being able to cash in winners. Learning from mistakes and being able to wipe the slate clean can help the investor be better prepared for future endeavors in the markets.     

Debt

In looking at some Debt ratios, Optical Cable Corporation (NasdaqGM:OCC) has a debt to equity ratio of 0.46652 and a Free Cash Flow to Debt ratio of 0.000000. This ratio provides insight as to how high the firm’s total debt is compared to its free cash flow generated. In terms of Net Debt to EBIT, that ratio stands at -9.16783. This ratio reveals how easily a company is able to pay interest and capital on its net outstanding debt. The lower the ratio the better as that indicates that the company is able to meet its interest and capital payments. Lastly we’ll take note of the Net Debt to Market Value ratio. Optical Cable Corporation’s ND to MV current stands at 0.293572. This ratio is calculated as follows: Net debt (Total debt minus Cash ) / Market value of the company.

In looking at some key ratios we note that the Piotroski F Score stands at 3 (1 to 10 scale) and the ERP5 rank holds steady at 12901. The Q.I. Value of Optical Cable Corporation (NasdaqGM:OCC) currently reads 50.00000 on the Quant scale. The Free Cash Flow score of -5.110218 is also swinging some momentum at investors. The United States of America based firm is currently valued at 105.

When it comes to securing profits in the stock market, investors may be trying to find a perfect system to help attain that goal. Dedicated investors may try strategies that have been passed on to them from other seasoned investors. Even after reading every piece of literature about investing, it might be hard to figure out which way is the best way to successfully conquer the market.  Studying up on company fundamentals and following technical stock levels can be a good place to start, but creating and implementing a plan can be difficult. As we all know, markets change over time. What drives a market during one point in time may not drive the market at a future date. Knowing what to look for when studying technical levels or fundamentals may help lead down the path to increased profits. Many investors will choose to study the indicators with the highest probability of forecasting future market action. 

Some other notable ratios include the Accrual Ratio of -0.078643, the Altman Z score of 3.767936, a Montier C-Score of -1.00000 and a Value Composite rank of 51. Optical Cable Corporation (NasdaqGM:OCC) has Return on Invested Capital of -0.033786, with a 5-year average of -0.015227 and an ROIC quality score of 1.463980.  Why is ROIC important? It’s one of the most fundamental metrics in determining the value of a given stock.  It helps potential investors determine if the firm is using it’s invested capital to return profits.

Investors may be taking a closer look stock market trends as we move into the second half of the year. Investors often have to grapple with the timing of selling a stock. After all the research is done and the portfolio is rounded out, the time will eventually come when decisions need to be made about whether to hold a winner or sell to lock up some profits. Often times, investors will hold on to a certain stock for much too long letting profits erode. Thinking that a hot stock will keep going higher and higher, may lead to lost profits further down the road. On the flip side, investors may become emotionally attached to a stock and not be able to part ways when the time has come. Avoiding the trap of waiting for a stock to bounce back and just break even can lead to the undoing of the portfolio. The belief that a particular stock will definitely come back to the buying level may leave investors out in the cold. Being able to keep the emotions in check and stay focused on the pertinent data, may help the stock portfolio thrive into the future.