Unusual Activity Spotted in Labtech Systems Ltd (LBT.AX)

Shares of Labtech Systems Ltd (LBT.AX) have seen the needle move 0.00% or 0.00 in the most recent session. The ASX listed company saw a recent bid of 0.26 on 70037 volume.

Investors have a wide range of stocks to choose from when attempting to stuff the portfolio with winners. Investors may be looking at cyclical stocks which have the tendency to go up or down with the overall economy. Some examples of cyclical stocks include home builders, auto, and airlines. On the other end, investors may be taking a look at defensive stocks. Defensive stocks are generally less risky as they tend to be able to thrive in down times. Some examples of defensive stocks include the drug industry, food, and beverages. Investors may have to do the homework in every category to help determine which stocks are the top of the crop.

Turning to Return on Assets or ROA, Labtech Systems Ltd (LBT.AX) has a current ROA of -17.13. This is a profitability ratio that measures net income generated from total company assets during a given period. This ratio reveals how quick a company can turn it’s assets into profits. In other words, the ratio provides insight into the profitability of a firm’s assets. The ratio is calculated by dividing total net income by the average total assets.

A higher ROA compared to peers in the same industry, would suggest that company management is able to effectively generate profits from their assets. Similar to the other ratios, a lower number might raise red flags about management’s ability when compared to other companies in a similar sector.

Now let’s take a look at how the fundamentals are stacking up for Labtech Systems Ltd (LBT.AX). Fundamental analysis takes into consideration market, industry and stock conditions to help determine if the shares are correctly valued. Labtech Systems Ltd currently has a yearly EPS of -0.04. This number is derived from the total net income divided by shares outstanding. In other words, EPS reveals how profitable a company is on a share owner basis.

Another key indicator that can help investors determine if a stock might be a quality investment is the Return on Equity or ROE. Labtech Systems Ltd (LBT.AX) currently has Return on Equity of -25.30. ROE is a ratio that measures profits generated from the investments received from shareholders.

In other words, the ratio reveals how effective the firm is at turning shareholder investment into company profits. A company with high ROE typically reflects well on management and how well a company is run at a high level. A firm with a lower ROE might encourage potential investors to dig further to see why profits aren’t being generated from shareholder money.

Another ratio we can look at is the Return on Invested Capital or more commonly referred to as ROIC. Labtech Systems Ltd (LBT.AX) has a current ROIC of -19.28. ROIC is calculated by dividing Net Income – Dividends by Total Capital Invested. Similar to ROE, ROIC measures how effectively company management is using invested capital to generate company income. A high ROIC number typically reflects positively on company management while a low number typically reflects the opposite. 

The direction of stock market moves in the short-term are highly unpredictable. Many investors will be tempted to ride the wave whether the trend is buying or selling. Fearful investors may make hasty decisions such as panic buying or selling. Investors may feel compelled to buy stocks after a major run higher. This can be related to the fear or missing out. On the other end, investors may be quick to sell quality stocks when the market is in the midst of a broad sell-off. This behavior often translates into falling into the trap of buying high and selling low. 

Leave a Comment