EXCO Resources NL (:XCOOQ) has been making waves when its stock price touched $0.1025 following the most recent close. The stock is traded on OTC in the Oils-Energy sector and Oil and Gas – Exploration and Production – United States industry.
The mathematical calculation that represents the degree of change over time is known as “percentage change”. In finance, it serves many purposes, and is often used to represent the price change of a commodity.
EXCO Resources NL (:XCOOQ)’s Price Change % over the last week is 70.83%. It’s % Price Change over the previous month is 164.86% and previous three months is 463.19%. Finally, looking back over the past year-to-date, EXCO Resources NL (:XCOOQ)’s Price Change % is 439.47%.
Percentage change can be applied to any quantity that is measured over time any given time period. Say you are tracking the price of a stock. If the price increased, the formula [(New Price – Old Price)/Old Price] is applied and then take that number and multiply it by 100. If the price of a stock decreased, the formula [(Old Price – New Price)/Old Price] is applied then multiplied by 100. The formula can be used to track the prices of both individual commodities and large market listings, and also used to compare the values of different currencies. Balance sheets with comparative financial statements often will include prices of specific stocks at different time periods alongside the percentage change over the same periods of time.
Average Volume is the amount of securities traded in a day on average over a specific time period. Trading activity relates to the liquidity of a security. When average volume is high, the stock has high liquidity and can be therefore easily traded, while conversely, when the trading volume is low, the commodity will be less expensive as traders are not as willing to purchase it. Average volume has an effect on the price of the security. EXCO Resources NL (:XCOOQ) has seen 74860.2 shares trade hands on an average basis.
EXCO Resources NL (:XCOOQ)’s 52-Week High-Low Range Price % is 23.97. Countless factors affect a security’s price and, therefore, its range. Macroeconomic factors such as interest rates and the economic cycle significantly impact the price of securities over lengthy periods of time. A big recession, for example, can dramatically widen the price range equities as they plummet in price.
Considering that price volatility is equivalent to risk, a commodity’s trading range is a great indicator of risk. Conservative investors will gravitate towards securities with smaller price fluctuations as compared to securities with larger price swings, preferring to invest in relatively stable sectors such as health care, utilities, and telecommunications and avoiding high-beta sectors like commodities, technology, and financials.
A 52-week high/low is the highest and lowest share price that a stock has traded at during the previous year. Investors and traders consider the 52-week high or low as a crucial factor in determining a given stock’s current value while also predicting future price movements. When a commodity trades within its 52-week price range (the range that exists between the 52-week low and the 52-week high), investors usually show more interest as the price nears either the high or the low.
One of the more popular strategies used by traders is to buy when the price eclipses its 52-week high or to sell when the price drops below its 52-week low. The rationale involved with this strategy says that if the price breaks out either above or below the 52-week range, there is momentum enough to continue the price fluctuation in a positive direction. EXCO Resources NL (:XCOOQ)’s high over the last year was $0.38 while its low was $0.01.
Beta measures the volatility of a security in comparison to the market as a whole. The tendency of a security’s returns is to respond to swings in the market. For example, a beta of 1 means that the security’s price will move in lockstep with the market. A beta of less than 1 indicates that the security will be less volatile relative to the market. A beta of greater than 1 tells us that the security’s price will be more volatile than the market. Beta is an expression of the tradeoff between maximizing return and minimizing risk. EXCO Resources NL (:XCOOQ)’s Beta number is 4.88.
Outstanding Shares refers to all stocks currently held by all shareholders, including blocks held by institutional and insider investors, of a given company. Outstanding shares are shown on a company’s balance sheet as “Capital Stock.” The number of shares outstanding is used to calculate key metrics such as a company’s earnings per share (EPS), cash flow per share (CFPS) and its market cap. The number of outstanding shares is not static, as it can fluctuate greatly over time. EXCO Resources NL (:XCOOQ)’s number of shares outstanding is 21.59m.
Penny stock trading has become extremely popular over the years because new traders with less capital can take larger positions. These stocks are so attractive because they have the potential to bring in huge returns.
The SEC describes penny stocks as any stock trading below $5 per share whether they trading through the Over The Counter Bulletin Board (OTCBB) or on the traditional, larger markets. Penny stocks, often referred to as microcap stocks, are usually newer or smaller companies with limited resources that are looking for access to capital through the open markets.
Companies who are trading on the OTC (over the counter) markets have fewer regulations hanging over them as contrasted with those stocks listed on the NYSE and NASDAQ.
Penny stocks traded on the NYSE or NASDAQ face stricter compliance requirements and are less likely to be fraudulent. Sometimes trading in the OTC markets is like living in wild west.
Penny stocks have a reputation of being highly risky assets thanks to their lack of history, volatility and liquidity. These stocks are more suitable for traders who can handle highly risky investments.
Disclaimer: The views, opinions, and information expressed in this article are those of the authors and do not necessarily reflect the official policy or position of any company stakeholders, financial professionals, or analysts. Examples of analysis performed within this article are only examples. They should not be utilized to make stock portfolio or financial decisions as they are based only on limited and open source information. Assumptions made within the analysis are not reflective of the position of any analysts or financial professionals.