MariMed Inc. cultivates, manufactures, and distributes medical and recreational cannabis throughout the country and abroad. MariMed Inc. was founded in 2011 and is headquartered in Norwood, Massachusetts. Marimed Inc. is listed on the OTC Exchange as a Drug Manufacturers Specialty Generic. It has a share capital of 339.35 million. A total of 17.9% of Marimed’s outstanding shares are owned by insiders and another 17.9% by institutional investors. Regardless of the company’s assets, you may only be able to profit from it if its actual market value is equal to its current market value.
MRMD Stock Highlights
In addition to over-the-counter electronic trading for MRMD Stock, the NASD also provides a regulated electronic trading platform for MRMD. The firm has a market cap of 142.43 million dollars, which means it is classified as ‘Small-Cap.’ Using the current market price of Marimed, we can determine its market value.
Many investors construct portfolios of securities with varying market capitalizations to reduce market risk and economic uncertainty. Large-cap companies are preferred by cautious investors, whereas small- and mid-cap companies are selected by risk-seeking investors.
Marimed operates within the Healthcare sector and the Drug Manufacturers—Specialty & Generic market. It has outstanding shares of 339.35 million.
The company has around $8.44 million in cash and $35.85 million in positive cash flow from operations, translating into a 0.03 ratio cash per share.
MRMD Stock Assessment
According to a normal probability distribution, Marimed’s price is about 84.76 percent likely to surpass its current price in 90 days. Using Marimed’s probability density function, we can determine whether it is expected that Marimed OTC stock will fall within a particular price range over the next 90 days. Marimed has a beta of 0.0713 with a 90 days investing horizon.
As a result, Marimed is expected to perform less than the benchmark when market returns improve. As a result, the predicted loss on holding Marimed should be significantly lower during a down market. Furthermore, Marimed has a negative alpha, which indicates that owning this instrument does not justify the risk involved. Marimed significantly underperforms the NYSE Composite.
Risk Analysis of MRMD Stock
Marimed’s market risk premium is the extra return an investor receives from maintaining an extended position within a diversified portfolio while receiving the maximum potential return on their investment. To determine whether an investment in Marimed is an acceptable rate of return, analysts and investors often use (CAPM).
Risk and reward are central to the Capital Asset Pricing Model (CAPM), often expressed by investors using alpha and beta metrics. Although alpha and beta are two of the most important metrics used to analyze Marimed’s performance relative to the market, volatility measures also play a crucial role.
Marimed’s trading risk is primarily attributed to its market volatility and company-specific occurrences. As an investor, you must understand the concept of risk-adjusted return before you begin trading. The Sharpe ratio is the most common way of determining Marimed’s risk. By owning a riskier asset than Marimed, you get more profits in exchange for the increased volatility you experience.
Using standard deviation and excess return to evaluate reward per unit of risk yields the Shape ratio. To comprehend Marimed’s volatility, one must compare it to a benchmark. In conventional theory, the risk-free return is equal to the yield on the shortest-dated U.S. Treasury security, such as a 3-year bond.