How Much of Speedy Hire Plc (LSE:SDY) Is in Your Portfolio? Target Weight Stands at 2.9500%

When investors are recalibrating their portfolios they should take a look at current volatility levels and the target weight calculation of a given stock.  Speedy Hire Plc (LSE:SDY) has a current target weight (% as a decimal) of 2.9500%.  This means that any balanced portfolio should not be holding more than this percentage of stock within their holdings group.  This number is based on recent stock volatility for the past 100 days.

Investors might be searching high and low for the next great stock to trade. Professional investors may have their game plans honed and ready to roll, but amateurs may be fighting to stay above water in the markets. Leaping into the equity markets without any preparation may lead to quick losses. Keeping track of all the ins and outs of daily market activity can be exhausting, and investors may be best served if they are able to focus on the essentials and rise above the noise. Although successful trading might be measured differently from one person to another, the general principles of winners are generally the same. Snatching profits from the market may seem like an easy task when stocks are soaring, but things can always snap back in the blink of an eye. Investors who are able to prepare for any situation may find themselves ahead of the game when the inevitable bear market scenario rears its head.

50/200 Simple Moving Average Cross

Speedy Hire Plc (LSE:SDY) has a 1.01746 50/200 day moving average cross value. Cross SMA 50/200 (SMA = Simple Moving Average) and is calculated as follows:

Cross SMA 50/200 = 50 day moving average / 200day moving average. If the Cross SMA 50/200 value is greater than 1, it tell us that the 50 day moving average is above the 200 day moving average (golden cross), indicating an upward moving share price.

On the other hand if the Cross SMA 50/200 value is less than 1, this shows that the 50 day moving average is below the 200 day moving average (a death cross), and tells us that share prices has fallen recently and may continue to do so.

Returns and Margins

Taking look at some key returns and margins data we can note the following:

Speedy Hire Plc (LSE:SDY) has Return on Invested Capital of 0.130611, with a 5-year average of 0.077667 and an ROIC quality score of 8.29794. 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.

Some traders may be using technical analysis to try and beat the stock market. There are many different indicators that traders have at their disposal. The sheer amount of indicators may leave the trader wondering which ones to use. Studying different technical indicators and signals may be worthwhile and educational, but the average investor may only end up focusing on a couple different indicators that actually work. Finding which indicators to follow and trade on may take some time and effort. Scoping out the proper signals and figuring out which ones tend to work the best may be on the minds of many traders. Trying to follow too many technical indicators might not be the best idea, and it may even cause more confusion. Once the signals have been chosen, traders may spend a lot of time back testing strategies before diving into the market.

Speedy Hire Plc (LSE:SDY) of the Support Services sector closed the recent session at 0.584 with a market value of $385663.

In looking at some Debt ratios, Speedy Hire Plc (LSE:SDY) has a debt to equity ratio of 0.36099 and a Free Cash Flow to Debt ratio of 0.388509.  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 1.7662.  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.  Speedy Hire Plc’s ND to MV current stands at 0.207263. This ratio is calculated as follows: Net debt (Total debt minus Cash ) / Market value of the company.

Drilling down into some additional key near-term indicators we note that the Capex to PPE ratio stands at 0.161677 for Speedy Hire Plc (LSE:SDY).  The Capex to PPE ratio shows you how capital intensive a company is. Stocks with an increasing (year over year) ratio may be moving to be more capital intensive and often underperform the market. Higher Capex also often means lower Free Cash Flow (Operating cash flow – Capex) generation and lower dividends as companies don’t have the cash to pay dividends if they are investing more in the business.

Novice investors might be striving to create a trading strategy that produces results in the equity market. Once all the research is complete and the stocks are picked, they may need to decide what kind of time frame they will be working with in terms of buying and selling. Some investors will be making longer-term term plays, and others will be trying to make shorter-term moves. At some point, every investor will have to decide when to sell a winner and when to cut loose a loser. This can be one of the most difficult decisions to make. Investors may find it really hard to sell an underperforming stock when they still believe that it will turn around and move to profit. Waiting around for a turn around that may never come can lead to the undoing of a well crafted portfolio. Regularly staying on top of the markets may allow the investor to make educated buy or sell decisions when the time comes. This may involve following major economic data, studying company fundamentals, and checking in on historical price movement and trends. Investors who are able to keep their emotions in check might find themselves in a better position than those who let emotions get the best of them. 

In addition to Capex to PPE we can look at Cash Flow to Capex.  This ration compares a stock’s operating cash flow to its capital expenditure and can identify if a firm can generate enough cash to meet investment needs.  Investors are looking for a ratio greater than one, which indicates that the firm can meet that need. Comparing to other firms in the same industry is relevant for this ratio. Speedy Hire Plc (LSE:SDY)’s Cash Flow to Capex stands at 6.259259.

Near-Term Growth Drilldown

Now we’ll take a look at some key growth data as decimals. One year cash flow growth ratio is calculated on a trailing 12 months basis and is a one year percentage growth of a firm’s cash flow from operations.  This number stands at -0.02312 for Speedy Hire Plc (LSE:SDY).  The one year Growth EBIT ratio stands at 0.80203 and is a calculation of one year growth in earnings before interest and taxes.  The one year EBITDA growth number stands at 0.26406 which is calculated similarly to EBIT Growth with just the addition of amortization.

Taking even a further look we note that the 1 year Free Cash Flow (FCF) Growth is at -0.00759.  The one year growth in Net Profit after Tax is 0.79825 and lastly sales growth was 0.06149.

Stock market investors may be well aware of how turbulent the investing climate can be. Markets might be surging to new highs leaving the average investor to wonder what will happen next. When everything is going higher in the stock market, it may seem as though every pick is going to be a winner. Conversely, when things are going down, investors may be cursing the day they ever entered the markets. These ups and downs are a normal part of investing in the stock market. Having a well thought out investing plan may help ease the burden of day to day volatility. Many successful investors and traders will preach the wonders of sticking to an outlined plan. It may take some time to actually realize how well the plan is working. If after some time the results continue to be sub-par, then it may be time to devise a different plan.