5 High-beta stocks: Banro Corporation (BAA) , Golden Star Resources (GSS) ,North American Palladium (PAL), BPZ Resources (BPZ)
BY BRETT DEANE - INVESTOR WIRED DECEMBER 23, 2014
Beta is a measure of a security’s or portfolio’s volatility. A beta of 1 means that the security or portfolio is neither more nor less volatile or risky than the wider market. A beta of more than 1 indicates greater volatility and a beta of less than 1 indicates less. Beta is an important component of the Capital Asset Pricing Model, which attempts to use volatility and risk to estimate expected returns.
Beta is a mathematical measure of the sensitivity of rates of return on a portfolio or a given stock compared with rates of return on the market as a whole. A high beta (greater than 1.0) indicates moderate or high price volatility. A beta of 1.5 forecasts a 1.5% change in the return on an asset for every 1% change in the return on the market. High-beta stocks are best to own in a strong bull market but are worst to own in a bear market
Banro Corporation (USA)(NYSEMKT:BAA) has beta value of 1.65 .The company has the market capitalization of $ 34.31M .Return on assets ratio of the company was 0.30 % while its return on equity ratio was 0.40 %. ATR value of company was 0.01 while stock volatility for week was 6.38 % while for month was 9.16 %. Debt to equity ratio of the company was 0.42 and its current ratio was 0.40
Golden Star Resources Ltd. (USA)(NYSEMKT:GSS) is currently valued at $ 278.41M. The company has 259.49M shares outstanding and 61 % shares of the company were owned by institutional investors. The company has 0.89 values in price to sale ratio while price to book ratio was recorded as 0.93. The company earned $ -173.50M in prior twelve months on revenue of $ 338.40M. It beta stands at 1.08.
North American Palladium Ltd (USA)(NYSEMKT:PAL) has the market capitalization of $ 49.50M while 384.94M shares were outstanding. Beta factor, which measures the riskiness of the security, was recorded as 2.63. In the trailing twelve months, net profit margin of the company was -36.90% while gross profit margin was 25.70%.
BPZ Resources Inc(NYSE:BPZ) has market value of $ 24.39M while its EPS was booked as -0.53in the last 12 months. The stock has 118.66M shares outstanding while 53% shares of the company were owned by institutional investors. In the profitability analysis, the company has net profit margin -79.00%. Beta value of the company was 1.77; beta is used to measure riskiness of the security.