Telia Company AB (publ) (OM:TELIA)’s Volatility Moves the Target Weight to 0.05220 With 0.03521 Sales Growth

Telia Company AB (publ) (OM:TELIA) of the Mobile Telecommunications sector might have recently popped up on investor’s radars as the 20396516 market cap company based out of Sweden recently closed at 42.870000.  The stock has seen year over year sales growth of 0.03521 giving it a traded value of $54518.

Investors may be intent on creating unique strategies when approaching the equity markets. Individuals with longer-term mindsets may have completely different strategies than those who trade in the short-term. Whatever class they fall under, investors may have to decide how aggressive they want to be in order to capitalize on these strategies. Navigating the bull market may make things a bit easier for some and much harder for others. Many investors will set their sights on dips and corrections. This may prove to be a successful strategy, but this may also create many missed opportunities. Keeping track of key economic data along with market trends and earnings information typically seems to be a boon to any strategy. Highly active traders may keep close watch after the markets have a sleepy session or two. Investors staying the course might actually be relieved when activity cools a bit. 

Telia Company AB (publ) (OM:TELIA)  closed the recent session at 42.870000 with a market value of $20396516.

With most major indexes showing strength, it is safe to assume that many investors may have their heads in the clouds. With many stocks frequently hitting new milestone highs, investors may be scrambling to make sure that they aren’t missing out on possible returns. Maybe some stocks have been doing well, but others not in the portfolio have been doing much better. There is rarely any substitute for hard work and dedication. Investors may get complacent with stocks that they are familiar with. Branching out into uncharted waters may help broaden the horizon and start the gears grinding for new trading ideas. Traders and investors will no doubt be closely monitoring the markets as we move into the second half of the year. It remains to be seen whether optimism or pessimism will rule going in to the next round of quarterly earnings reporting.

Turning to 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 0.22212 for Telia Company AB (publ) (OM:TELIA). The one year Growth EBIT ratio stands at -0.08090 and is a calculation of one year growth in earnings before interest and taxes. The one year EBITDA growth number holds at -0.06030 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 0.07730. The one year growth in Net Profit after Tax is -0.69077 and lastly sales growth was 0.03521.

Investors may be trying to decide if the current market environment remains bullish. It can be extremely difficult to decide when to sell, especially when data seems positive and most signs are pointing higher. Jumping in to buy stocks on a pullback may seem like a good idea, but following specific sectors may become increasingly more important. Following long-term trends may help the investor see the bigger picture of what has been going on with a specific stock or sector. Deciding to sell a winner after a big run can be tempting, but knowing the underlying causes for the run may help identify if there may indeed be more room for gains. Avoiding common investing pitfalls may take many years to master, but it may end up determining long-term success.

Telia Company AB (publ) (OM:TELIA) has a current suggested portfolio ownership target rate of 0.05220 (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 21.179400 (decimal), the 6-month at 19.342100 and the 12-month at 22.647900.  This is the normal returns and standard deviation of the stock price over three months annualized.

Taking look at some key returns and margins data we can note the following: Telia Company AB (publ) (OM:TELIA) has Return on Invested Capital (ROIC) of 0.099458, with a 5-year average of 0.110867 and an ROIC quality score of 9.065714. 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.

Changing lanes and looking at some Debt ratios, Telia Company AB (publ) (OM:TELIA) has a debt to equity ratio of 0.95709 and a Free Cash Flow to Debt ratio of 0.128207.  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 5.18739.  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.  Telia Company AB (publ)’s ND to MV current stands at 0.363020. This ratio is calculated as follows: Net debt (Total debt minus Cash ) / Market value of the company.

Investors constantly have to weigh risk against reward when trying to extract profits and maximum value from the stock market. Making educated investment decisions typically requires dedication, rational thinking, and self-control. Once the individual investor starts developing good habits, they can start to eliminate the bad ones that may be costing them enormous amounts of hard earned money. Everybody is prone to make mistakes at some point, and being able to realize what contributed to the mistake can help with corrective actions. Repeating the same mistakes over and over again in the stock market will most likely lead the investor down the wrong path.