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Indicator Description

Cash and Equivalents In A Nutshell

Cash and equivalents is exactly what it says, cash and anything that can be converted to cash quickly. Liquid assets would fall under this category and that could be a car, some machinery, or anything that can sell quickly to be turned into cash.

When taking a look at the fundamentals of a stock, you check over everything, the debt, cash flow, outstand shares, and then there is cash and equivalents.

Closer Look at Cash and Equivalents

This is important for a few reasons, and first is you want to know how quickly the company can use these in the case of a complete meltdown in cash flow. There are ratios out there that can tell you how many times the company can pay debts, but you want to ensure cash and equivalents are at respectable levels.

Cash flow is the lifeblood of a company and if that begins to slow there could be some real issues on the horizon. Typically you will know if a company is having cash flow issues and Sears is an example as money continues to be pumped into the company while it is failing.

With all of this being said, be sure to take a real good look at this data point and discover what makes up this line item. Of course there are many other items you should be looking at beside cash and equivalents, but this is a main factor. Technically, this may not be of much use as there is not much of an indicator. Sure there may be data points you can plot at the bottom of a chart, but this should be used more fundamentally than anything. If you ever get stuck, reach out to an investing community and see what others are doing in the market today. When in doubt, research more and more by surfing the web and reading articles. It is important to know what to look for in a stock and learning this will be time well spent.

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Analyzing currently trending equities could be an opportunity to develop a better portfolio based on different market momentums that they can trigger. Utilizing the top trending stocks is also useful when creating a market-neutral strategy or pair trading technique involving a short or a long position in a currently trending equity.

Use Investing Themes to Complement your positions

You can quickly originate your optimal portfoio using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

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Run Coal Thematic Idea Now

Coal
Coal Theme
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Coal theme has 12 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Coal Theme or any other thematic opportunities.
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