8IP Emerging Companies Limited
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Quick analysis of 8IP Emerging Companies Limited (30 sec.)

1. Valuation of 8IP Emerging Companies Limited (5 min.)

Live pricePrice per share (EOD)

A$0.03

Book Value per Share

A$0.75

2. Growth of 8IP Emerging Companies Limited (5 min.)

Is 8IP Emerging Companies Limited growing?

	Current year	Previous year	Grow	Grow %
How rich?	$560.1k	$2.3m	-$1.4m	-155.7%

How much money is 8IP Emerging Companies Limited making?

	Current year	Previous year	Grow	Grow %
Making money	-$168.3k	-$103.2k	-$65.1k	?
Net Profit Margin	-123.2%	-688.1%	-	-

How much money comes from the company's main activities?

Quarterly Yearly

3. Financial Health of 8IP Emerging Companies Limited (5 min.)

4. Comparing to competitors in the Asset Management industry (5 min.)

Industry Rankings (Asset Management)

Fundamentals of 8IP Emerging Companies Limited

Financial Health

Profitability Details

	Compared to previous year	Compared to industry
The company is making a huge loss.
Using its assets, the company is very inefficient in making profit.
Using its investors money, the company is very inefficient in making profit.

Operating Efficiency Details

	Compared to previous year	Compared to industry

Liquidity Details

	Compared to previous year	Compared to industry
The company is very able to pay all its short-term debts.
The company is very able to pay all its short-term debts with the most liquid assets.

Solvency Details

	Compared to previous year	Compared to industry
The company is very able to pay all its debts by selling its assets.
The company is very able to pay all its debts with equity.

1.1. Profitability of 8IP Emerging Companies Limited.

1.1. Profitability

1.1.1. Net Profit Margin

Measures how much net profit 8IP Emerging Companies Limited earns for each $1 of revenue.

Above 10% is considered healthy but always compare 8IP Emerging Companies Limited to the Asset Management industry mean.
A Net Profit Margin of 0.0% means that $0.00 for each $1 in revenue is generated as profit.

Let's take a look of the Net Profit Margin trends of 8IP Emerging Companies Limited:

The MRQ is 0.0%. The data is not here.

Trends

Current period		Compared to		+/-
MRQ	-	TTM	-123.2%	+123.2%
TTM	-123.2%	YOY	-688.1%	+564.9%
TTM	-123.2%	5Y	-140.1%	+17.0%
5Y	-140.1%	10Y	-140.1%	0.0%

Compared to industry (Asset Management)

Period	Company	Industry (mean)	+/-
MRQ	-	73.2%	-73.2%
TTM	-123.2%	71.9%	-195.1%
YOY	-688.1%	77.8%	-765.9%
5Y	-140.1%	66.5%	-206.6%
10Y	-140.1%	62.6%	-202.7%

Measures how much net profit 8IP Emerging Companies Limited earns for each $1 of revenue.

Revenue is the amount of profit 8IP Emerging Companies Limited generates before taxes and all other costs. For example, when you buy a cup of coffee it will cost you $3. The company does not earn $3 in profit but also has to pay various costs and taxes to create that cup of coffee. Let's assume the cost of creating a cup of coffee is $1.5.

The $3 you pay for a cup of coffee is called revenue.
The $1.5 that’s left over when all costs to create that cup of coffee (including taxes) are deduced from the revenue is called net profit.

The net profit margin looks at how much net profit 8IP Emerging Companies Limited earns for each $1 in revenue.

How to use net profit margin

Higher profit margin is better (more profit).
Above 10% is considered healthy but always compare 8IP Emerging Companies Limited to the Asset Management industry mean.
Can be used to compare companies within the Asset Management industry.

You typically want a high profit margin. This means that for each $1 in sales, 8IP Emerging Companies Limited makes more profit. This shows the investor how efficiently 8IP Emerging Companies Limited is operating in general and compared to other companies in the same industry. 8IP Emerging Companies Limited operates in the Asset Management industry.

Why do investors use net profit margin in their analysis

It helps investors to determine the efficiency of 8IP Emerging Companies Limited. If profit margins remain low (compared to the Asset Management industry mean) and there are no improvements to make in production costs or other areas that might be a warning sign. If profit margins are high that means the company has low overhead costs and is efficiently using its resources to generate profit.

The three steps every investor should look at:

What is the current net profit margin?
The current most recent quarter (MRQ) Net Profit Margin of 8IP Emerging Companies Limited is 0.00. This means that 8IP Emerging Companies Limited earned $0.00 for each $1 in revenue in the most recent quarter.
How does it compare to the industry?
The mean MRQ Net Profit Margin of the Asset Management industry is 73.2%.
What is the trend?
The trend is important because it shows you how 8IP Emerging Companies Limited is performing over time. The most recent quarter might be important if 8IP Emerging Companies Limited released a new product or service. And you can use MRQ to see if they performed better vs last year. You can find all the trends for 8IP Emerging Companies Limited up to 10 years back (depending if the company existed 10 years ago) when you exit this learning section.

Things to be aware of

Only compare 8IP Emerging Companies Limited with other companies in the same industry (Asset Management).
Net profit margin should rise over the years.
Can be influenced when 8IP Emerging Companies Limited sells assets (profit will increase while costs remain the same).
It won’t show what part of 8IP Emerging Companies Limited is doing great or needs improvement (it only looks at total revenue and total net income).

How to calculate net profit margin

Net profit margin = net income / total revenue * 100%

Real example of 8IP Emerging Companies Limited

You need the following data to determine net profit margin:

Income statement from the period you want to calculate (for example, MRQ or TTM).

Net income MRQ 8IP Emerging Companies Limited = -235
Total revenue MRQ 8IP Emerging Companies Limited =
$-235 / $ = 0.00 or 0.0%

Higher is better

The higher the net profit margin, the more efficient the company is generating income. This helps investors to determine how the company is managing money. The net profit margin is an important indicator when diving into the financial health of a company. Overall, you want to see the net profit margin rising over the years. That means the company improved their production and made it more efficient (if possible).

You can use the net profit margin to compare companies within the same industry. If there are two companies where one is much bigger but the smaller one has a higher net profit margin, that means the smaller company is more efficiently using operational costs.

Important: Profit margins can be very different between industries. Companies with assembly lines or transports are much more prone to see shifting in prices for fuel, ingredients and maintenance compared to companies that only provide services. You should never compare net profit margin between different industries.

1.1.2. Return on Assets

Shows how efficient 8IP Emerging Companies Limited is using its assets to generate profit.

Above 5% is considered healthy but always compare 8IP Emerging Companies Limited to the Asset Management industry mean.
-24.4% Return on Assets means that 8IP Emerging Companies Limited generated $-0.24 profit for each $1 in assets.

Let's take a look of the Return on Assets trends of 8IP Emerging Companies Limited:

The MRQ is -24.4%. Using its assets, the company is very inefficient in making profit. -2
The TTM is -21.1%. Using its assets, the company is very inefficient in making profit. -2

Trends

Current period		Compared to		+/-
MRQ	-24.4%	TTM	-21.1%	-3.3%
TTM	-21.1%	YOY	-4.7%	-16.4%
TTM	-21.1%	5Y	-5.8%	-15.3%
5Y	-5.8%	10Y	-5.8%	0.0%

Compared to industry (Asset Management)

Period	Company	Industry (mean)	+/-
MRQ	-24.4%	0.5%	-24.9%
TTM	-21.1%	0.3%	-21.4%
YOY	-4.7%	4.4%	-9.1%
5Y	-5.8%	1.6%	-7.4%
10Y	-5.8%	2.4%	-8.2%

Shows how efficient 8IP Emerging Companies Limited is using its assets to generate profit.

For a farm, a tractor is considered an asset. The tractor helps ploughing the land making it possible to plant and harvest crops. But the tractor might be old and needing maintenance all the time reducing its efficiency. Return on assets indicates how effectively the farm is using the tractor (and other assets that help the core business) to plough the land.

How to use return on assets

Higher is better.
Above 5% is considered healthy but always compare 8IP Emerging Companies Limited to the Asset Management industry mean.
Can be very different between industries.
Can be used to compare companies.

Why do investors use return on assets in their analysis

Shows the investor how effectively 8IP Emerging Companies Limited is using its resources to generate profit. If the return on assets (-24.4%) from 8IP Emerging Companies Limited are higher than the Asset Management mean (0.5%) that means 8IP Emerging Companies Limited is using its resources better than their competitors. If not, that means their competitors are more efficient in using their resources to generate profit.

An investor should always look at:

What is the current return on assets?
The current most recent quarter (MRQ) Return on Assets of 8IP Emerging Companies Limited is -24.4%. This means the company generated $-0.24 for each $1 in assets.
How does it compare to the industry?
The mean MRQ Return on Assets of the Asset Management industry is 0.5%.
What is the trend?
The trend is important because it shows you how 8IP Emerging Companies Limited is performing over time. The most recent quarter might be important if 8IP Emerging Companies Limited released a new product or service. And you can use MRQ to see if they performed better vs last year. You can find all the trends for 8IP Emerging Companies Limited up to 10 years back (depending if the company existed 10 years ago) when you exit this learning section.

Things to be aware of

Only compare with other companies in the same industry.
If a company has many assets changing over time, it’s better to calculate the average assets instead of the total assets.

How to calculate return on assets

Return on assets = net income / total assets * 100%

Real example 8IP Emerging Companies Limited

You need the following data to determine return on assets (ROA):

Income statement
Balance sheet

Net income MRQ (income statement) from 8IP Emerging Companies Limited = -235
Total assets MRQ (balance sheet) from 8IP Emerging Companies Limited = 962
-235 / 962 = -0.24 or -24.4%

ROA is an important ratio as it will tell you how effectively 8IP Emerging Companies Limited is using its resources to generate profits. Example:

Bob and Kristin both sell ice cream in the summer. They both have an ice cream truck. The truck Bob owes cost him $20.000 and the truck Kristin owes cost her $1500. Over the summer, Bob earned $2000 and Kristin earned $200. To calculate the return on assets:

Bob: $2000 / $20.000 * 100% = 10%
Kristin: $200 / $1500 * 100% = 13.3%

This tells you Bob’s company is more valuable but Kristin's company is more efficient. Be aware that total assets can change over time. A transportation business will buy and sell trucks or planes all the time. Before using return on assets as a guideline, you have to know what the exact assets are. For a company that has many assets changing over time, it’s better to calculate the average assets instead of the total assets.

1.1.3. Return on Equity

Shows how efficient 8IP Emerging Companies Limited is using its investors money to generate profit.

Above 15%-20% is considered healthy but always compare 8IP Emerging Companies Limited to the Asset Management industry mean.
-27.9% Return on Equity means 8IP Emerging Companies Limited generated $-0.28 for each $1 the owners (shareholders) invested.

Let's take a look of the Return on Equity trends of 8IP Emerging Companies Limited:

The MRQ is -27.9%. Using its investors money, the company is very inefficient in making profit. -2
The TTM is -22.9%. Using its investors money, the company is very inefficient in making profit. -2

Trends

Current period		Compared to		+/-
MRQ	-27.9%	TTM	-22.9%	-5.0%
TTM	-22.9%	YOY	-4.9%	-18.0%
TTM	-22.9%	5Y	-6.2%	-16.7%
5Y	-6.2%	10Y	-6.2%	0.0%

Compared to industry (Asset Management)

Period	Company	Industry (mean)	+/-
MRQ	-27.9%	1.3%	-29.2%
TTM	-22.9%	1.0%	-23.9%
YOY	-4.9%	7.5%	-12.4%
5Y	-6.2%	2.7%	-8.9%
10Y	-6.2%	3.7%	-9.9%

Shows how efficient 8IP Emerging Companies Limited is using its investors money to generate profit.

A publicly traded company (any company that issues shares to the public) is owned by its shareholders. Return on equity calculates the amount of profit for every $1 the shareholders invested.

How to use return on equity

Higher is better.
Above 15%-20% is considered healthy but always compare 8IP Emerging Companies Limited to the Asset Management industry mean.
Can be very different between industries.
Can be used to compare companies.

Why do investors use return on equity in their analysis

To find out the owners/management's attitude toward their company. You typically want the owners/management to invest in the company and focus on generating profit. If not enough profit is generated (compared to the Asset Management industry mean), the company might not be investing their money efficiently.

The three steps every investor should look at:

What is the current return on equity?
The current most recent quarter (MRQ) Return on Equity of 8IP Emerging Companies Limited is -27.9%. This means 8IP Emerging Companies Limited generated $-0.28 for each $1 the owners (shareholders) invested.
How does it compare to the industry?
The mean MRQ Return on Equity of the Asset Management industry is 1.3%.
What is the trend?
The trend is important because it shows you how 8IP Emerging Companies Limited is performing over time. The most recent quarter might be important if 8IP Emerging Companies Limited released a new product or service. And you can use MRQ to see if they performed better vs last year. You can find all the trends for 8IP Emerging Companies Limited up to 10 years back (depending if 8IP Emerging Companies Limited existed 10 years ago) when you exit this learning section.

Things to be aware of

Only compare with other companies in the same industry.
Does not include intangible assets (non physical assets like licences, computer software, etc.).
Stockholders equity and shareholders equity refer to the same thing.
Liabilities should not be more than three times return on equity.

How to calculate return on equity

Return on equity = net profit / shareholders equity * 100%

Real example of 8IP Emerging Companies Limited

You need the following data to determine ROE:

Income statement
Balance sheet
Net profit MRQ (income statement) 8IP Emerging Companies Limited = -235
Shareholders equity (balance sheet) MRQ 8IP Emerging Companies Limited = 842
-235 / 842 = -0.28 or -27.9%

A negative shareholder equity is a warning sign. It means the company has more liabilities than assets. It might also mean that the owners did not invest enough money or they are taking money out of the business.

1.2. Operating Efficiency of 8IP Emerging Companies Limited.

1.2. Operating Efficiency

1.2.1. Operating Margin

Measures how efficient 8IP Emerging Companies Limited is operating .

Measures how much profit 8IP Emerging Companies Limited makes for each $1 of sales after paying variable costs (production costs, wages, etc) but before taxes.
Above 15% is considered healthy but always compare 8IP Emerging Companies Limited to the Asset Management industry mean.
An Operating Margin of 0.0% means the company generated $0.00 for each $1 in revenue (before taxes).

Let's take a look of the Operating Margin trends of 8IP Emerging Companies Limited:

The MRQ is 0.0%. The data is not here.

Trends

Current period		Compared to		+/-
MRQ	-	TTM	-	0.0%
TTM	-	YOY	-	0.0%
TTM	-	5Y	-	0.0%
5Y	-	10Y	-	0.0%

Compared to industry (Asset Management)

Period	Company	Industry (mean)	+/-
MRQ	-	46.5%	-46.5%
TTM	-	37.9%	-37.9%
YOY	-	62.2%	-62.2%
5Y	-	44.1%	-44.1%
10Y	-	42.8%	-42.8%

Measures how efficient 8IP Emerging Companies Limited is operating .

The more effecient a company creates products or provides services, the more profit it generates.

How to use operating margin

Higher is better
Above 15% is considered healthy but always compare 8IP Emerging Companies Limited to the Asset Management industry mean.
Can be very different between industries
Can be used to compare companies

Why do investors use operating margin in their analysis

To determine how much profit 8IP Emerging Companies Limited is making from it’s core business.

The three steps every investor should look at:

What is the current net profit margin?
The current most recent quarter (MRQ) Operating Margin of 8IP Emerging Companies Limited is 0.0%. This means that 8IP Emerging Companies Limited earned $0.00 for each $1 in revenue in the most recent quarter.
How does it compare to the industry?
The mean MRQ Operating Margin of the Asset Management industry is 46.5%.
What is the trend?
The trend is important because it shows you how 8IP Emerging Companies Limited is performing over time. The most recent quarter might be important if 8IP Emerging Companies Limited released a new product or service. And you can use MRQ to see if they performed better vs last year. You can find all the trends for 8IP Emerging Companies Limited up to 10 years back (depending if the company existed 10 years ago) when you exit this learning section.

Things to be aware of

Only compare with other companies in the same industry
Can be calculated in different ways

How to calculate operating margin

Operating margin = operating earnings / total revenue

Real example of 8IP Emerging Companies Limited

You need the following data to determine operating margin:

Income statement
Operating earnings MRQ 8IP Emerging Companies Limited = -251
Total revenue MRQ 8IP Emerging Companies Limited =
$-251 / $ = 0.00 or 0.0%

Operating margin is used to calculate how much profit a company makes after variable costs of production but before paying interest and taxes. Some variable costs examples are wages, raw materials, packaging, and transaction fees. The amount of variable costs is different for each company and industry. In general, a higher operating margin is better as this implicates that a company is running efficiently.

For investors, a higher operating margin is a good sign. Although you should always look at operating margin in the long term. If operating margin is fluctuating over the years this might be a sign that things are not running efficiently enough. It’s a way to check how much profit a company is making from its core business.

Operation earnings can be calculated in multiple ways:

Operation earnings = EBIT - non operating income + non operating expense
Operation earnings = Gross profit - operating expense - depreciation and amortisation
Operation earnings = Total revenue - COGS (costs of goods sold) - indirect costs

1.2.2. Operating Ratio

Measures how efficient 8IP Emerging Companies Limited is keeping operating costs low.

Below 1 is considered healthy (always compare to Asset Management industry mean).
An Operation Ratio of 0.00 means that the operating costs are $0.00 for each $1 in net sales.

Let's take a look of the Operating Ratio trends of 8IP Emerging Companies Limited:

The MRQ is 0.000. The data is not here.

Trends

Current period		Compared to		+/-
MRQ	-	TTM	-0.264	+0.264
TTM	-0.264	YOY	3.457	-3.722
TTM	-0.264	5Y	1.628	-1.892
5Y	1.628	10Y	1.628	0.000

Compared to industry (Asset Management)

Period	Company	Industry (mean)	+/-
MRQ	-	0.330	-0.330
TTM	-0.264	0.301	-0.565
YOY	3.457	0.240	+3.217
5Y	1.628	0.398	+1.230
10Y	1.628	0.474	+1.154

Measures how efficient 8IP Emerging Companies Limited is keeping operating costs low.

If the operating ratio is below 1 that means the company is making money. The lower the operating ratio, the more efficient the company.

How to use operating ratio

Lower is better.
Below 1 is considered healthy but always compare 8IP Emerging Companies Limited to the Asset Management industry mean.
Can be very different between industries.
Can be used to compare companies.

Why do investors use operating ratio in their analysis

Shows if costs of creating products and or services is increasing or decreasing. The lower the operating ratio, the more efficient the company is creating products and services.

The three steps every investor should look at:

What is the current Operatin ratio?
The current most recent quarter (MRQ) Operating Ratio of 8IP Emerging Companies Limited is 0.0%. This means that 8IP Emerging Companies Limited earned $0.00 for each $1 in net sales in the most recent quarter.
How does it compare to the industry?
The mean MRQ Operating Ratio of the Asset Management industry is 0.33.
What is the trend?
The trend is important because it shows you how 8IP Emerging Companies Limited is performing over time. The most recent quarter might be important if 8IP Emerging Companies Limited released a new product or service. And you can use MRQ to see if they performed better vs last year. You can find all the trends for 8IP Emerging Companies Limited up to 10 years back (depending if the company existed 10 years ago) when you exit this learning section.

Things to be aware of

Only compare with other companies in the same industry.
You need COGS to calculate operating ratio which is not always shown in the income statement.
Does not consider debt.

How to calculate operating ratio

Operating ratio = Operating expenses + COGS \ Net sales

Real life example 8IP Emerging Companies Limited

You need the following data to determine operating ratio:

Income statement

COGS is not always specified on the income statement. If so you can use the following calculation:

(cost of revenue + total operating expenses) \ total revenue
(105 +) \ = 0.00

The operating ratio measures the efficiency of a company at keeping low costs while generating profits from sales. It compares the total operating expenses to the net amount of sales. The total operating expenses exists of:

COGS (materials, labour, rent of facility, repairs)
Operating expenses (legal fees, marketing, wages, rent, maintenance/repairs)

Operating expenses are all the costs the company makes that are not directly tied to the production of the service or product. Where COGS are costs that are directly tied to the production of a product or service.

Do note that COGS is not always available in the income statement. Some companies include COGS in the operating expenses while others list COGS separately. To make it even more confusing, COGS is also known as “costs of sales” and costs of sales is the same as costs of revenue.

The operating ratio tells you how efficient the company is creating its products or services while keeping prices low. In this case, a lower ratio is better. Higher or rising operating ratios might tell you that costs are rising while sales are not improving or staying the same.

1.3. Liquidity of 8IP Emerging Companies Limited.

1.3. Liquidity

1.3.1. Current Ratio

Measures if 8IP Emerging Companies Limited is able to pay off Short-term Debt.

Above 1.5 is considered healthy (always compare to Asset Management industry mean).
A Current Ratio of 7.99 means the company has $7.99 in assets for each $1 in short-term debts.

Let's take a look of the Current Ratio trends of 8IP Emerging Companies Limited:

The MRQ is 7.994. The company is very able to pay all its short-term debts. +2
The TTM is 9.756. The company is very able to pay all its short-term debts. +2

Trends

Current period		Compared to		+/-
MRQ	7.994	TTM	9.756	-1.762
TTM	9.756	YOY	24.317	-14.561
TTM	9.756	5Y	51.194	-41.438
5Y	51.194	10Y	51.194	0.000

Compared to industry (Asset Management)

Period	Company	Industry (mean)	+/-
MRQ	7.994	3.636	+4.358
TTM	9.756	3.720	+6.036
YOY	24.317	3.313	+21.004
5Y	51.194	5.187	+46.007
10Y	51.194	5.500	+45.694

Measures if 8IP Emerging Companies Limited is able to pay off Short-term Debt.

How to use current ratio

Higher is better
Above 1.5 is considered healthy (always compare to Asset Management industry mean).
Can be very different between industries
Can be used to compare companies

Why do investors use current ratio in their analysis

Shows if the company can pay of short term debts if needed. A company that can't pay off it's short term debts might get in trouble if they have to pay off their short term debts for whatever reason. For example, markets can change due to global events like covid-19 or the war in Ukraine versus Russia. Because debts are always taken based on future income, it might become troublesome for 8IP Emerging Companies Limited if something happens in the market that will cause sales to plummet.

The three steps every investor should look at:

What is the current current Ratio?
The current most recent quarter (MRQ) Current Ratio of 8IP Emerging Companies Limited is 7.99. This means 8IP Emerging Companies Limited has $7.99 in assets for each $1 in short-term debts.
How does it compare to the industry?
The mean MRQ Current Ratio of the Asset Management industry is 3.64.
What is the trend?
The trend is important because it shows you how 8IP Emerging Companies Limited is performing over time. The most recent quarter might be important if 8IP Emerging Companies Limited released a new product or service. And you can use MRQ to see if they performed better vs last year. You can find all the trends for 8IP Emerging Companies Limited up to 10 years back (depending if the company existed 10 years ago) when you exit this learning section.

Things to be aware of

Only compare with other companies in the same industry.
Might be deluded.
Not all assets can always be quickly sold.
Can be manipulated by increasing or decreasing the assets and/or liabilities.

How to calculate current ratio

Current ratio = current assets \ current liabilities

Real life example 8IP Emerging Companies Limited

You need the following data to determine operating ratio:

Balance sheet
Current ratio = current assets \ current liabilities
962 \ 120) = 7.99

The current ratio measures if 8IP Emerging Companies Limited is able to pay short-term debts (obligations). Short term in this context means all debt obligations that are about to expire within one year. The current ratio incorporates current liabilities and current assets. Current assets are all the assets a company has that are expected to be consumed or sold within standard business operations. You can find the current assets in the balance sheet. They consist of:

Inventory
Accounts receivable
Marketable securities
Prepaid expenses
Cash
Cash equivalents
liquid assets

The current liabilities are short term obligations that are due within one year. These consist of:

Short term debts
Dividends
Income taxes
Short-term debts
Accounts payable
Interest payments

The result shows an investor if 8IP Emerging Companies Limited is able to pay all its short-term debts if they were due all at once. When the result of the above formula is below 1, then 8IP Emerging Companies Limited does not have enough capital after selling all its assets to pay all short-term debts. If the ratio drops far below 1 that might indicate 8IP Emerging Companies Limited is or will be in financial trouble anytime soon.

Although this gives an investor some clues, the current ratio may also be deluded. Because owning assets does not mean the company can easily sell them. Also, Accounts receivable may be quite old (they will probably never pay) which deludes the current ratio. As with all ratios, you should only compare them between the same industries and companies.

1.3.2. Quick Ratio

Measures if 8IP Emerging Companies Limited is able to pay off Short-term Debt but only using the most liquid assets.

Above 1 is considered healthy but always compare 8IP Emerging Companies Limited to the Asset Management industry mean.
A Quick Ratio of 14.99 means the company can pay off $14.99 for each $1 in debt (using most liquid assets).

Let's take a look of the Quick Ratio trends of 8IP Emerging Companies Limited:

The MRQ is 14.992. The company is very able to pay all its short-term debts with the most liquid assets. +2
The TTM is 12.016. The company is very able to pay all its short-term debts with the most liquid assets. +2

Trends

Current period		Compared to		+/-
MRQ	14.992	TTM	12.016	+2.976
TTM	12.016	YOY	24.290	-12.274
TTM	12.016	5Y	35.267	-23.251
5Y	35.267	10Y	35.267	0.000

Compared to industry (Asset Management)

Period	Company	Industry (mean)	+/-
MRQ	14.992	3.523	+11.469
TTM	12.016	3.656	+8.360
YOY	24.290	3.153	+21.137
5Y	35.267	5.051	+30.216
10Y	35.267	4.756	+30.511

Measures if 8IP Emerging Companies Limited is able to pay off Short-term Debt but only using the most liquid assets.

How to use quick ratio

Higher is better.
Above 1 is considered healthy but always compare 8IP Emerging Companies Limited to the Asset Management industry mean.
Can be very different between industries.
Can be used to compare companies.

Why do investors use quick ratio in their analysis

Shows how fast 8IP Emerging Companies Limited can pay off its short term debts. This shows if 8IP Emerging Companies Limited can survive emergencies due to market changes or other reasons.

The three steps every investor should look at:

What is the current Quick Ratio?
The current most recent quarter (MRQ) quickRatio of 8IP Emerging Companies Limited is 14.99. This means that 8IP Emerging Companies Limited can pay off $14.99 for each $1 in debt (using most liquid assets).
How does it compare to the industry?
The mean MRQ Quick Ratio of the Asset Management industry is 3.52.
What is the trend?
The trend is important because it shows you how 8IP Emerging Companies Limited is performing over time. The most recent quarter might be important if 8IP Emerging Companies Limited released a new product or service. And you can use MRQ to see if they performed better vs last year. You can find all the trends for 8IP Emerging Companies Limited up to 10 years back (depending if the company existed 10 years ago) when you exit this learning section.

Things to be aware of

Only compare with other companies in the same industry.
Incorporates only most liquid assets.

How to calculate quick ratio

Quick ratio = cash and equivalents + marketable securities + accounts receivable / current liabilities

Real life example 8IP Emerging Companies Limited

You need the following data to determine operating ratio:

Balance sheet
Quick ratio = cash and short-term investments + short-term investments + netReceivables / total current liabilities
MRQ quick ratio 8IP Emerging Companies Limited: (961 + 842 +1) / 120 = 14.99

The quick ratio measures the same thing as the current ratio, only it uses the most liquid assets a company has. Meaning, the assets that can be sold for cash the easiest and fastest.

As the quick ratio only incorporates the most liquid assets, you should also check the current ratio which also includes less liquid assets. But they may be harder to sell.

1.4. Solvency of 8IP Emerging Companies Limited.

1.3. Liquidity

1.4.1. Debt to Asset Ratio

Measures how much % of 8IP Emerging Companies Limited assets are financed with debt.

Below 1 (100%) is considered healthy but always compare 8IP Emerging Companies Limited to Asset Management industry mean.
A Debt to Asset Ratio of 0.13 means that 8IP Emerging Companies Limited assets are financed with 12.5% credit (debt) and the remaining percentage (100% - 12.5%) is financed by its owners/shareholders.

Let's take a look of the Debt to Asset Ratio trends of 8IP Emerging Companies Limited:

The MRQ is 0.125. The company is very able to pay all its debts by selling its assets. +2
The TTM is 0.077. The company is very able to pay all its debts by selling its assets. +2

Trends

Current period		Compared to		+/-
MRQ	0.125	TTM	0.077	+0.048
TTM	0.077	YOY	0.032	+0.045
TTM	0.077	5Y	0.046	+0.031
5Y	0.046	10Y	0.046	0.000

Compared to industry (Asset Management)

Period	Company	Industry (mean)	+/-
MRQ	0.125	0.200	-0.075
TTM	0.077	0.201	-0.124
YOY	0.032	0.190	-0.158
5Y	0.046	0.205	-0.159
10Y	0.046	0.206	-0.160

Measures how much % of 8IP Emerging Companies Limited assets are financed with debt.

When there are more debts than assets, that means creditors have a larger stake 8IP Emerging Companies Limited than its shareholders.

How to use debt to asset ratio

Lower is better.
below 1 (100%) is considered healthy but always compare 8IP Emerging Companies Limited to Asset Management industry mean.
Can be very different between industries.
Can be used to compare companies.

Why do investors use the debt to asset ratio in their analysis

It shows how much debt the company used to finance its assets. If a company is almost entirely financed with debt that means the company might get into serious trouble when emergencies arise like a raise in interest.

The three steps every investor should look at:

What is the current debt to asset ratio?
The current most recent quarter (MRQ) Debt to Asset Ratio of 8IP Emerging Companies Limited is 0.13. This means means that 8IP Emerging Companies Limited is financed with 12.5% credit and the remaining percentage is financed by it's owners (shareholders).
How does it compare to the industry?
The mean MRQ Current Ratio of the Asset Management industry is 363.6%.
What is the trend?
The trend is important because it shows you how 8IP Emerging Companies Limited is performing over time. The most recent quarter might be important if 8IP Emerging Companies Limited released a new product or service. And you can use MRQ to see if they performed better vs last year. You can find all the trends for 8IP Emerging Companies Limited up to 10 years back (depending if the company existed 10 years ago) when you exit this learning section.

Things to be aware of

Only compare with other companies in the same industry
Some companies can have higher debt to assets ratio's (for example, banks).
Debt to asset ratio should improve over the years.
If the debt to asset ratio is above 1, look at the industry mean and find out why 8IP Emerging Companies Limited has so much debt.

How to calculate debt to asset ratio

Debt to asset ratio = total debt \ total assets

Real life example 8IP Emerging Companies Limited

You need the following data to determine debt to asset ratio:

Balance sheet
Debt to asset ratio = total debt \ total assets
120 \ 962 = 12.5% or 0.13.

The debt to total assets ratio shows if the company is owned by creditors or shareholders. Or in other words, the total debt in relation to the total amount of assets. It shows how much debt the company used to finance its assets.

1.4.2. Debt to Equity Ratio

Measures if 8IP Emerging Companies Limited is able to pay off its debts by using shareholders equity.

Below 2 is considered healthy but always compare 8IP Emerging Companies Limited to the Asset Management industry mean.
A Debt to Equity ratio of 14.3% means that company has $0.14 debt for each $1 in shareholders equity.

Let's take a look of the Debt to Equity Ratio trends of 8IP Emerging Companies Limited:

The MRQ is 0.143. The company is very able to pay all its debts with equity. +2
The TTM is 0.085. The company is very able to pay all its debts with equity. +2

Trends

Current period		Compared to		+/-
MRQ	0.143	TTM	0.085	+0.058
TTM	0.085	YOY	0.033	+0.052
TTM	0.085	5Y	0.050	+0.036
5Y	0.050	10Y	0.050	0.000

Compared to industry (Asset Management)

Period	Company	Industry (mean)	+/-
MRQ	0.143	0.236	-0.093
TTM	0.085	0.236	-0.151
YOY	0.033	0.227	-0.194
5Y	0.050	0.258	-0.208
10Y	0.050	0.273	-0.223

Measures if 8IP Emerging Companies Limited is able to pay off its debts by using shareholders equity.

How to use debt to equity ratio

Lower is better.
Below 2 is considered healthy (always use industry average).
Can be very different between industries.
Can be used to compare companies.

Why do investors use the debt to shareholders equity ratio in their analysis

It shows how much debt the company uses to finance their operations. Shareholders equity is whats left over when you subtract total liabilities from total assets. It's another way to meassure how much of 8IP Emerging Companies Limited is financed with debt or own resources.

The three steps every investor should look at:

What is the current debt to equity ratio?
The current most recent quarter (MRQ) quickRatio of 8IP Emerging Companies Limited is 0.14. This means that 8IP Emerging Companies Limited can pay off $0.14 for each $1 in debt.
How does it compare to the industry?
The mean MRQ Quick Ratio of the Asset Management industry is 0.24.
What is the trend?
The trend is important because it shows you how 8IP Emerging Companies Limited is performing over time. The most recent quarter might be important if 8IP Emerging Companies Limited released a new product or service. And you can use MRQ to see if they performed better vs last year. You can find all the trends for 8IP Emerging Companies Limited up to 10 years back (depending if the company existed 10 years ago) when you exit this learning section.

Things to be aware of

Only compare with other companies in the same industry.
Not all debt is equally risky (for example, short term risk is less risky).

How to calculate debt to equity ratio

Debt to equity ratio = total debt \ shareholders equity.

Real life example 8IP Emerging Companies Limited

You need the following data to determine equity ratio:

Balance sheet
Debt to equity ratio = total debt \ shareholders equity
120 \ 842 = 0.14 or 14.3%

Debt to equity measures the total debt versus the total shareholders equity. While the total debts to total assets ratio uses total assets, the debt to equity ratio looks at the total equity of shareholders. Where equity of shareholders are:

Common shares.
Preferred shares.
Retained earnings.

You can find the shareholders' equity in the balance sheet. A ratio between 0,5 and 1,5 is preferred. If the ratio is above 1.5, that would indicate creditors have significantly more stake (debt) in the company than the shareholders. In other words, the company is using a lot of debt to finance their operations.

Not all debt is equally risky. Meaning you can adjust the ratio by including or excluding certain amounts of debt. Short term debts are less risky because they have to be paid back within one year anyway. It’s much easier to plan one year ahead versus five or ten years.

2. Market Valuation of 8IP Emerging Companies Limited

2. Earnings Per Share

2.1. Price to Earnings Ratio

Measures how much money you pay for each share for every $1 in earnings 8IP Emerging Companies Limited generates.

Above 15 is considered overpriced but always compare 8IP Emerging Companies Limited to the Asset Management industry mean.
A PE ratio of -0.16 means the investor is paying $-0.16 for every $1 in earnings.

Let's take a look of the Price to Earnings Ratio trends of 8IP Emerging Companies Limited:

The EOD is -0.158. Company is losing money. -2
The MRQ is -0.158. Company is losing money. -2
The TTM is -0.095. Company is losing money. -2

Trends

Current period		Compared to		+/-
EOD	-0.158	MRQ	-0.158	0.000
MRQ	-0.158	TTM	-0.095	-0.064
TTM	-0.095	YOY	2.219	-2.313
TTM	-0.095	5Y	-48.803	+48.709
5Y	-48.803	10Y	-48.803	0.000

Compared to industry (Asset Management)

Period	Company	Industry (mean)	+/-
EOD	-0.158	4.058	-4.216
MRQ	-0.158	4.432	-4.590
TTM	-0.095	2.527	-2.622
YOY	2.219	7.934	-5.715
5Y	-48.803	7.729	-56.532
10Y	-48.803	10.650	-59.453

Measures how much money you pay for each share for every $1 in earnings 8IP Emerging Companies Limited generates.

Indicates if the company’s shares are under or overvalued.

How to use PE ratio

Above 15 is considered overpriced but is hard to determine. Always compare 8IP Emerging Companies Limited to the Asset Management industry mean.
Can be very different between industries.
Can be used to compare companies.

Why do investors use PE ratio in their analysis

The PE ratio tells investors the current sentiment in the market for that company. As with every stock, the stock price never shows the real valuation of a company but rather how the market thinks how much the stock is worth.

In other words, the current stock price also incorporates any future earnings or business opportunities in the future. The best example is the stock market crash in 2000. The PE ratio for any internet based company was going through the roof. Only based on the general assumption the internet and all associated businesses would thrive in the future. But this was based on nothing. A business still needs a good product or service to be able to survive. Instead, every investor bought any stock which did something related to the internet. Result: huge market crash.

Many investors were willing to pay premium prices and that was causing the PE ratio to rise. A high PE ratio is a warning sign that investors might be overvaluing a stock based on future earnings.

The three steps every investor should look at:

What is the current PE Ratio?
The current most recent quarter (MRQ) PE Ratio of 8IP Emerging Companies Limited is -0.16. This means the investor is paying $-0.16 for every $1 in earnings.
How does it compare to the industry?
The mean MRQ Quick Ratio of the Asset Management industry is 4.43.
What is the trend?
The trend is important because it shows you how 8IP Emerging Companies Limited is performing over time. The most recent quarter might be important if 8IP Emerging Companies Limited released a new product or service. And you can use MRQ to see if they performed better vs last year. You can find all the trends for 8IP Emerging Companies Limited up to 10 years back (depending if the company existed 10 years ago) when you exit this learning section.

Things to be aware of

Only compare with other companies in the same industry.
Some industries might have very high or very low PE ratios in general.
PE ratios can be high for several years, it does not mean a sudden collapse is imminent.
Earnings growth is not included in the PE ratio.

How to calculate PE ratio

PE ratio = market value per share \ earnings per share

Real life example 8IP Emerging Companies Limited

You need the following data to determine the PE ratio:

Balance sheet
Income statement

The PE ratio is a very commonly used ratio to determine the value of a company by comparing the current stock price relative to its earnings per share (EPS). Before we can calculate the PE ratio we need to know the EPS. EPS is calculated as follows:

EPS = (net profit - preferred dividends) \ end of period outstanding shares*
Net profit = revenue - expenses
-235 \ 1,127 = EPS
PE ratio MRQ = -0.16

* The net profit minus preferred dividends can be found in the incomestatement as netIncomeApplicableToCommonShares.

The PE value helps investors to determine if the current stock price is under or overvalued. It also projects future growth.

In general, a higher PE ratio means that investors predict higher future growth. If the PE ratio is too high, then investors expect way too much future growth the company can never fulfil. This is most likely to happen in faster moving companies like tech companies or automobile companies like Tesla. These are hot and booming markets where investors expect much future growth driven by new technology (electric cars). When looking at the current MRQ (most recent quarter) PE ratio of Tesla ( jan. 2021) it's about 247 while the average in the industry is only 6. That might be a clue that Tesla is trading for way too high prices compared to their current assets and is more based on future growth.

2.2. Price Earnings to Growth Ratio

Measures the predicted future growth of 8IP Emerging Companies Limited.

Lower is better.
A PEG ratio of 1 means the market price of the stock and the expected future earnings are on par.

Let's take a look of the Price Earnings to Growth Ratio trends of 8IP Emerging Companies Limited:

The MRQ is -0.117. Very Bad. -2
The TTM is -0.057. Very Bad. -2

Trends

Current period		Compared to		+/-
MRQ	-0.117	TTM	-0.057	-0.060
TTM	-0.057	YOY	0.689	-0.747
TTM	-0.057	5Y	-9.520	+9.463
5Y	-9.520	10Y	-9.520	0.000

Compared to industry (Asset Management)

Period	Company	Industry (mean)	+/-
MRQ	-0.117	11.250	-11.367
TTM	-0.057	12.813	-12.870
YOY	0.689	7.209	-6.520
5Y	-9.520	50.446	-59.966
10Y	-9.520	78.450	-87.970

PEG Ratio	Meaning
0.5	You can buy the stock cheap based on future growth
1	You pay a fair price based on future growth
2	The stock is overpriced based on future growth

2. Book Value per Share

2.3. Price to Book Ratio

Measures if the stock price of 8IP Emerging Companies Limited is to cheap or to expensive compared to its book value.

At or below 1 is considered healthy (always compare to Asset Management industry mean).
A PB ratio of 0.04 means the investor is paying $0.04 for each $1 in book value.

Let's take a look of the Price to Book Ratio trends of 8IP Emerging Companies Limited:

The EOD is 0.044. Very good. +2
The MRQ is 0.044. Very good. +2
The TTM is 0.027. Very good. +2

Trends

Current period		Compared to		+/-
EOD	0.044	MRQ	0.044	0.000
MRQ	0.044	TTM	0.027	+0.017
TTM	0.027	YOY	0.160	-0.133
TTM	0.027	5Y	0.101	-0.074
5Y	0.101	10Y	0.101	0.000

Compared to industry (Asset Management)

Period	Company	Industry (mean)	+/-
EOD	0.044	0.925	-0.881
MRQ	0.044	0.958	-0.914
TTM	0.027	0.958	-0.931
YOY	0.160	1.056	-0.896
5Y	0.101	1.060	-0.959
10Y	0.101	1.169	-1.068

2. Total Gains per Share

3. Holders & Insider Transactions

Let's take a look at which institutions, funds and insiders are holding shares of 8IP Emerging Companies Limited.

4. Summary

4.1. Key Performance Indicators

The key performance indicators of 8IP Emerging Companies Limited compared to the Most Recent Quarter (MRQ).

	End of day	+/-	Most Recent Quarter	Trailing 12 Months	+/-	Year-Over-Year	+/-	5 Year	+/-	10 Year	+/-
Book Value Change Per Share	-	-	-0.205	-4.193	+1945%	-68.303	+33210%	0.050	-512%	0.050	-512%
Book Value Growth	-	-	0.767	0.759	+1%	0.545	+41%	0.811	-5%	0.811	-5%
Book Value Per Share	-	-	0.747	5.009	-85%	21.613	-97%	123.512	-99%	123.512	-99%
Book Value Per Share Growth	-	-	0.785	0.619	+27%	0.545	+44%	0.776	+1%	0.776	+1%
Current Ratio	-	-	7.994	9.756	-18%	24.317	-67%	51.194	-84%	51.194	-84%
Debt To Asset Ratio	-	-	0.125	0.077	+62%	0.032	+294%	0.046	+173%	0.046	+173%
Debt To Equity Ratio	-	-	0.143	0.085	+68%	0.033	+331%	0.050	+188%	0.050	+188%
Dividend Per Share	-	-	-	16.755	-100%	50.264	-100%	14.468	-100%	14.468	-100%
Eps	-	-	-0.209	-0.497	+138%	-1.605	+669%	-2.862	+1273%	-2.862	+1273%
Eps Growth	-	-	1.348	-0.067	+105%	1.709	-21%	10.859	-88%	10.859	-88%
Free Cash Flow Per Share	-	-	-0.009	5.724	-100%	17.055	-100%	9.844	-100%	9.844	-100%
Free Cash Flow Per Share Growth	-	-	-0.068	0.313	-122%	0.881	-108%	1.968	-103%	1.968	-103%
Free Cash Flow To Equity Per Share	-	-	-0.631	11.004	-106%	34.109	-102%	19.600	-103%	19.600	-103%
Free Cash Flow To Equity Per Share Growth	-	-	0.641	0.542	+18%	0.881	-27%	2.017	-68%	2.017	-68%
Gross Profit Margin	-	-	1.000	1.000	0%	1.000	0%	0.999	+0%	0.999	+0%
Intrinsic Value_10Y_max	-	-	702.659	-	-	-	-	-	-	-	-
Intrinsic Value_10Y_min	-	-	-1422.496	-	-	-	-	-	-	-	-
Intrinsic Value_1Y_max	-	-	66.544	-	-	-	-	-	-	-	-
Intrinsic Value_1Y_min	-	-	-5.239	-	-	-	-	-	-	-	-
Intrinsic Value_3Y_max	-	-	202.885	-	-	-	-	-	-	-	-
Intrinsic Value_3Y_min	-	-	-134.757	-	-	-	-	-	-	-	-
Intrinsic Value_5Y_max	-	-	342.781	-	-	-	-	-	-	-	-
Intrinsic Value_5Y_min	-	-	-393.720	-	-	-	-	-	-	-	-
Net Profit Margin	-	-	-	-1.232	0%	-6.881	0%	-1.401	0%	-1.401	0%
Operating Margin	-	-	-	-	0%	-	0%	-	0%	-	0%
Operating Ratio	-	-	-	-0.264	0%	3.457	-100%	1.628	-100%	1.628	-100%
Pb Ratio	0.044	0%	0.044	0.027	+65%	0.160	-72%	0.101	-56%	0.101	-56%
Pe Ratio	-0.158	0%	-0.158	-0.095	-40%	2.219	-107%	-48.803	+30740%	-48.803	+30740%
Peg Ratio	-	-	-0.117	-0.057	-51%	0.689	-117%	-9.520	+8011%	-9.520	+8011%
Price Per Share	0.033	0%	0.033	0.029	+13%	3.116	-99%	22.305	-100%	22.305	-100%
Price To Total Gains Ratio	-0.161	0%	-0.161	-0.054	-66%	0.042	-479%	10.245	-102%	10.245	-102%
Profit Growth	-	-	1.363	0.662	+106%	1.297	+5%	1.290	+6%	1.290	+6%
Quick Ratio	-	-	14.992	12.016	+25%	24.290	-38%	35.267	-57%	35.267	-57%
Return On Assets	-	-	-0.244	-0.211	-14%	-0.047	-81%	-0.058	-76%	-0.058	-76%
Return On Equity	-	-	-0.279	-0.229	-18%	-0.049	-82%	-0.062	-78%	-0.062	-78%
Revenue Growth	-	-	2.000	-0.712	+136%	1.339	+49%	0.932	+115%	0.932	+115%
Total Gains Per Share	-	-	-0.205	12.561	-102%	-18.038	+8697%	14.517	-101%	14.517	-101%
Total Gains Per Share Growth	-	-	1.983	1.022	+94%	-7.077	+457%	28.069	-93%	28.069	-93%
Usd Book Value	-	-	560108.752	906513.607	-38%	2317575.211	-76%	13317854.005	-96%	13317854.005	-96%
Usd Book Value Change Per Share	-	-	-0.136	-2.790	+1945%	-45.442	+33210%	0.033	-512%	0.033	-512%
Usd Book Value Per Share	-	-	0.497	3.332	-85%	14.379	-97%	82.172	-99%	82.172	-99%
Usd Dividend Per Share	-	-	-	11.147	-100%	33.441	-100%	9.625	-100%	9.625	-100%
Usd Eps	-	-	-0.139	-0.331	+138%	-1.068	+669%	-1.904	+1273%	-1.904	+1273%
Usd Free Cash Flow	-	-	-6473.369	639687.946	-101%	1828729.404	-100%	1060757.214	-101%	1060757.214	-101%
Usd Free Cash Flow Per Share	-	-	-0.006	3.808	-100%	11.346	-100%	6.549	-100%	6.549	-100%
Usd Free Cash Flow To Equity Per Share	-	-	-0.420	7.321	-106%	22.693	-102%	13.040	-103%	13.040	-103%
Usd Price Per Share	0.022	0%	0.022	0.020	+13%	2.073	-99%	14.839	-100%	14.839	-100%
Usd Profit	-	-	-156378.765	-168373.625	+8%	-103233.104	-34%	-212802.026	+36%	-212802.026	+36%
Usd Revenue	-	-	-	-20681.904	0%	15002.681	-100%	-100857.528	0%	-100857.528	0%
Usd Total Gains Per Share	-	-	-0.136	8.357	-102%	-12.001	+8697%	9.658	-101%	9.658	-101%
	EOD	+0 -0	MRQ	TTM	+16 -21	YOY	+16 -23	5Y	+10 -29	10Y	+10 -29

4.2. Fundamental Score

Let's check the fundamental score of 8IP Emerging Companies Limited based on Penke's default stock scanner.

Penke's Stock Scanner

Indicator	Condition		Value
Price to Earnings Ratio (EOD)	Between	0-15	-0.158
Price to Book Ratio (EOD)	Between	0-1	0.044
Net Profit Margin (MRQ)	Greater than	0	0.000
Operating Margin (MRQ)	Greater than	0	0.000
Quick Ratio (MRQ)	Greater than	1	14.992
Current Ratio (MRQ)	Greater than	1	7.994
Debt to Asset Ratio (MRQ)	Less than	1	0.125
Debt to Equity Ratio (MRQ)	Less than	1	0.143
Return on Equity (MRQ)	Greater than	0.15	-0.279
Return on Assets (MRQ)	Greater than	0.05	-0.244
Total			5/10 (50.0%)

Create your own Stock Scanner

Investing is personal. The best investors buy stocks based on their own analysis. Create your personal Stock Scanner with the key performance indicators that are important to you.
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4.3. Technical Score

Let's check the technical score of 8IP Emerging Companies Limited based on Penke's default Symbol scanner.

Penke's Symbol Scanner

Indicator	Condition		Value
Open	Greater than	Close	0.033
Total			0/1 (0.0%)

Create your own Symbol Scanner

Trading is personal. The best traders buy and sell based on their own technical analysis. Create your personal Symbol Scanner with the technical indicators that are important to you.
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Latest Balance Sheet

Balance Sheet of 2021-06-30. Currency in AUD. All numbers in thousands.

Summary

Total Assets	962
Total Liabilities	120
Total Stockholder Equity	842

	As reported
Total Liabilities	120
Total Stockholder Equity	+ 842
Total Assets	= 962

Assets

Total Assets	962
Total Current Assets	962
Long-term Assets	962

Total Current Assets

Total Current Assets (as reported)	962
Cash And Cash Equivalents	119
Short-term Investments	842
Net Receivables	1
Total Current Assets (calculated)	962
+/-	0

Long-term Assets

Long-term Assets (as reported)	0
Long Term Investments	842
Long-term Assets (calculated)	842
+/-	842

Liabilities & Shareholders' Equity

Total Current Liabilities	120
Long-term Liabilities	-
Total Stockholder Equity	842

Total Current Liabilities

Total Current Liabilities (as reported)	120
Total Current Liabilities (calculated)	0
+/-	120

Long-term Liabilities

Long-term Liabilities (as reported)	0
Long-term Liabilities (calculated)	0
+/-	0

Total Stockholder Equity

Total Stockholder Equity (as reported)	842
Common Stock	7,203
Retained Earnings	-6,361
Total Stockholder Equity (calculated)	842
+/-	0

Other

Cash and Short Term Investments	961
Common Stock Shares Outstanding	1,127
Liabilities and Stockholders Equity	962
Net Debt	-119

Balance Sheet

Currency in AUD. All numbers in thousands.

Trend

2021-06-30

2020-12-31

2020-09-30

2020-06-30

2020-03-31

2019-12-31

2019-06-30

2019-03-31

2018-12-31

2018-06-30

2018-03-31

2017-12-31

2017-06-30

2017-03-31

2016-12-31

> Total Assets

0
0
46,119
50,409
0
45,805
37,333
0
35,285
4,227
0
2,284
0
1,152
962

962

1,152

2,284

4,227

35,285

37,333

45,805

50,409

46,119

> Total Current Assets

0
0
44,602
48,953
0
44,179
35,958
0
35,285
4,227
0
2,284
0
1,152
962

962

1,152

2,284

4,227

35,285

35,958

44,179

48,953

44,602

Cash And Cash Equivalents

0
0
7,057
661
0
6,965
15,231
0
22,241
2,216
0
831
0
295
119

119

295

831

2,216

22,241

15,231

6,965

661

7,057

Short-term Investments

0
0
1,500
0
0
2,000
0
0
1,440
0
0
1,000
0
0
842

842

1,000

1,440

2,000

1,500

Net Receivables

0
0
553
50
0
411
725
0
52
6
0
4
0
3
1

725

411

553

Other Current Assets

0
0
35,492
45
0
13
78
0
28
17
0
36
0
12
0

35,492

> Long-term Assets

0
0
1,517
0
0
0
0
0
0
0
0
0
0
0
0

1,517

Long Term Investments

0
0
0
0
0
0
0
0
12,876
0
0
1,413
0
0
842

842

1,413

12,876

Other Assets

0
0
44,602
1,456
0
45,805
1,374
0
35,285
0
0
2,284
0
0
962

962

2,284

35,285

1,374

45,805

1,456

44,602

> Total Liabilities

0
0
3,208
4,423
0
3,114
842
0
112
75
0
136
0
54
120

120

136

112

842

3,114

4,423

3,208

> Total Current Liabilities

0
0
819
865
0
290
419
0
112
75
0
136
0
54
120

120

136

112

419

290

865

819

Short-term Debt

0
0
1,500
0
0
2,000
0
0
1,440
0
0
1,000
0
0
0

1,000

1,440

2,000

1,500

Accounts payable

0
0
0
0
0
0
0
0
40
0
0
3
0
0
0

Other Current Liabilities

0
0
770
0
0
0
0
0
0
0
0
0
0
0
0

770

> Long-term Liabilities

0
0
2,389
0
0
0
0
0
0
0
0
0
0
0
0

2,389

> Total Stockholder Equity

0
0
42,911
45,986
0
42,691
36,491
0
35,174
4,151
0
2,148
0
1,098
842

842

1,098

2,148

4,151

35,174

36,491

42,691

45,986

42,911

Common Stock

0
0
40,310
40,310
0
40,310
40,310
0
40,310
9,956
0
7,905
0
7,224
7,203

7,203

7,224

7,905

9,956

40,310

Retained Earnings Total Equity

Accumulated Other Comprehensive Income

0
0
5,934
0
0
10,260
0
0
0
0
0
0
0
0
0

10,260

5,934

Capital Surplus

Treasury Stock

Other Stockholders Equity

Balance Sheet

Currency in AUD. All numbers in thousands.

	2021-06-30	2020-06-30	2019-06-30	2018-06-30	2017-06-30	2016-06-30
Accounts Payable	-	3	40	49	49	-
Accumulated Other Comprehensive Income	-	-	-	10,260	5,934	-
Cash	119	831	22,241	6,965	7,057	740
Cash And Short Term Investments	961	1,831	23,681	8,965	8,557	37,548
Common Stock	7,203	7,905	40,310	40,310	40,310	32,368
Common Stock Shares Outstanding	143	143	143	143	131	-
Common Stock Total Equity	-	7,905	40,310	40,310	40,310	-
Liabilities And Stockholders Equity	962	2,284	35,285	45,805	46,119	-
Long Term Investments	842	1,413	12,876	36,204	36,856	-
Net Debt	-119	-831	-22,241	-6,965	-7,057	-
Net Invested Capital	-	-	-	-	42,911	-
Net Receivables	1	4	52	411	553	187
Net Working Capital	-	-	-	-	43,783	-
Non Current Assets Total	-	-	-	-	1,517	-
Non Current Liabilities Other	-	-	-	-	0	-
Non Current Liabilities Total	-	-	-	-	2,389	-
Non Currrent Assets Other	-	-	-	-	-36,856	-
Other Assets	962	2,284	35,285	45,805	1,517	664
Other Current Assets	-	36	28	13	35,492	18
Other Current Liab	-	-	-	-	770	-
Retained Earnings	-6,361	-5,757	-5,136	-7,878	-3,333	3,115
Short Term Debt	-	1,000	1,440	2,000	1,500	-
Short Term Investments	842	1,000	1,440	2,000	1,500	-
Total Assets	962	2,284	35,285	45,805	46,119	38,417
Total Current Assets	962	2,284	35,285	44,179	44,602	37,753
Total Current Liabilities	120	136	112	290	819	1,260
Total Liab	120	136	112	3,114	3,208	2,935
Total Stockholder Equity	842	2,148	35,174	42,691	42,911	35,482

	2021-06-30	2020-12-31	2020-09-30	2020-06-30	2020-03-31	2019-12-31	2019-06-30	2019-03-31	2018-12-31	2018-06-30	2018-03-31	2017-12-31	2017-06-30	2017-03-31	2016-12-31
Accounts Payable	-	-	-	3	-	-	40	-	-	-	-	-	-	-	-
Accumulated Other Comprehensive Income	-	-	-	-	-	-	-	-	-	10,260	-	-	5,934	-	-
Cash	119	295	-	831	-	2,216	22,241	-	15,231	6,965	-	661	7,057	-	-
Cash And Short Term Investments	961	1,137	-	1,831	-	3,910	23,681	-	35,155	8,965	-	48,859	8,557	-	-
Common Stock	7,203	7,224	-	7,905	-	9,956	40,310	-	40,310	40,310	-	40,310	40,310	-	-
Common Stock Shares Outstanding	1,127	1,153	143	143	143	143	143	143	143	143	143	143	131	131	131
Common Stock Total Equity	-	-	-	7,905	-	-	40,310	-	-	40,310	-	-	40,310	-	-
Liabilities And Stockholders Equity	962	-	-	2,284	-	-	35,285	-	-	45,805	-	-	46,119	-	-
Long Term Investments	842	-	-	1,413	-	-	12,876	-	-	-	-	-	-	-	-
Net Debt	-119	-	-	-831	-	-	-22,241	-	-	-6,965	-	-	-7,057	-	-
Net Receivables	1	3	-	4	-	6	52	-	725	411	-	50	553	-	-
Non Current Assets Total	-	-	-	-	-	-	-	-	-	-	-	-	1,517	-	-
Non Current Liabilities Total	-	-	-	-	-	-	-	-	-	-	-	-	2,389	-	-
Non Currrent Assets Other	-	-	-	-	-	-	-	-	-	-	-	-	-36,856	-	-
Other Assets	962	-	-	2,284	-	-	35,285	-	1,374	45,805	-	1,456	44,602	-	-
Other Current Assets	-	12	-	36	-	17	28	-	78	13	-	45	35,492	-	-
Other Current Liab	-	-	-	-	-	-	-	-	-	-	-	-	770	-	-
Retained Earnings	-6,361	-6,126	-	-5,757	-	-5,805	-5,136	-	-3,819	-7,878	-	5,676	-3,333	-	-
Short Term Debt	-	-	-	1,000	-	-	1,440	-	-	2,000	-	-	1,500	-	-
Short Term Investments	842	-	-	1,000	-	-	1,440	-	-	2,000	-	-	1,500	-	-
Total Assets	962	1,152	-	2,284	-	4,227	35,285	-	37,333	45,805	-	50,409	46,119	-	-
Total Current Assets	962	1,152	-	2,284	-	4,227	35,285	-	35,958	44,179	-	48,953	44,602	-	-
Total Current Liabilities	120	54	-	136	-	75	112	-	419	290	-	865	819	-	-
Total Liab	120	54	-	136	-	75	112	-	842	3,114	-	4,423	3,208	-	-
Total Stockholder Equity	842	1,098	-	2,148	-	4,151	35,174	-	36,491	42,691	-	45,986	42,911	-	-

Cash Flow

Currency in AUD. All numbers in thousands.

	2021-06-30	2020-06-30	2019-06-30	2018-06-30	2017-06-30
Begin Period Cash Flow	831	22,241	6,965	7,057	740
Capital Expenditures	0	0	0	0	0
Change In Cash	-712	-21,410	15,275	-92	6,317
Change In Working Capital	59	10,906	17,011	1,653	-1,147
Dividends Paid	820	32,405	1,788	1,231	410
End Period Cash Flow	119	831	22,241	6,965	7,057
Free Cash Flow	-10	10,995	17,121	1,139	-1,213
Investments	-	-	-	-	0
Net Income	-604	-621	-5,672	1,011	-103
Other Cashflows From Financing Activities	-820	10,995	-57	1,139	-1,213
Other Non Cash Items	604	621	5,672	-1,011	-1,110
Sale Purchase Of Stock	-23	-	-	-	-6
Total Cash From Financing Activities	-702	-32,405	-1,846	-1,231	7,530
Total Cash From Operating Activities	-10	10,995	17,121	1,139	-1,213

	2021-06-30	2020-12-31	2020-09-30	2020-06-30	2020-03-31	2019-12-31	2019-06-30	2019-03-31	2018-12-31	2018-06-30	2018-03-31	2017-12-31	2017-06-30	2017-03-31	2016-12-31
Begin Period Cash Flow	-	208	5,560	5,560	5,560	5,560	1,741	1,741	1,741	1,764	1,764	1,764	185	185	185
Capital Expenditures	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0
Change In Cash	-712	-536	-5,352	-5,352	-5,352	-5,352	3,819	3,819	3,819	-23	-23	-23	1,579	1,579	1,579
Change In Working Capital	59	212	-	10,906	-	10,534	17,011	-	8,878	-	-	-	-	-	-
Dividends Paid	-	-	8,101	8,101	8,101	8,101	447	447	447	308	308	308	103	103	103
End Period Cash Flow	-	-	208	208	208	208	5,560	5,560	5,560	1,741	1,741	1,741	1,764	1,764	1,764
Free Cash Flow	-	-	2,749	2,749	2,749	2,749	4,280	4,280	4,280	285	285	285	-303	-303	-303
Net Income	-	-	-155	-155	-155	-155	-1,418	-1,418	-1,418	253	253	253	-26	-26	-26
Other Cashflows From Financing Activities	-820	-822	10,850	10,850	10,850	10,850	4,727	4,727	4,727	592	592	592	-2,186	-2,186	-2,186
Other Non Cash Items	-	-	155	155	155	155	1,418	1,418	1,418	-253	-253	-253	-277	-277	-277
Sale Purchase Of Stock	118	141	-	-	-	-	-	-	-	-	-	-	-2	-2	-2
Total Cash From Financing Activities	-702	-681	2,749	2,749	2,749	2,749	4,280	4,280	4,280	285	285	285	-303	-303	-303
Total Cash From Operating Activities	-10	146	-	10,995	-	10,329	17,121	-	9,458	1,139	-	-	-303	-303	-303

Income Statement

Currency in AUD. All numbers in thousands.

	2021-06-30	2020-06-30	2019-06-30	2018-06-30	2017-06-30	2016-06-30
Cost Of Revenue	197	186	596	1,078	1,175	1,065
Ebit	-	-	-	-	-465	-
Ebitda	-	-552	-6,554	1,403	-240	-
Gross Profit	-313	61	-6,030	1,828	-869	4,491
Income Before Tax	-604	-552	-6,554	1,403	-240	4,427
Income Tax Expense	-	68	-882	392	-137	-
Interest Expense	0	0	0	0	0	0
Interest Income	0	33	134	32	275	-
Net Income	-604	-621	-5,672	1,011	-103	3,115
Net Income Applicable To Common Shares	-604	-621	-5,672	1,011	-103	3,115
Net Income From Continuing Ops	-604	-621	-5,672	1,011	-103	-
Net Interest Income	0	33	134	32	275	-
Operating Income	-614	-562	-6,554	1,403	-465	4,276
Selling And Marketing Expenses	-	-	-	7	-	-
Selling General Administrative	65	102	151	90	90	186
Tax Provision	0	68	-882	392	-137	1,313
Total Operating Expenses	-	-	-	-	195	-
Total Other Income Expense Net	-	-	-	-	-225	-
Total Revenue	-343	90	-5,630	2,326	306	5,556

	2021-06-30	2020-12-31	2020-09-30	2020-06-30	2020-03-31	2019-12-31	2019-06-30	2019-03-31	2018-12-31	2018-06-30	2018-03-31	2017-12-31	2017-06-30	2017-03-31	2016-12-31
Cost Of Revenue	105	92	-	49	-	184	269	-	333	336	-	742	294	294	294
Ebitda	-	-	-138	-138	-138	-138	-1,639	-1,639	-1,639	351	351	351	-60	-60	-60
Gross Profit	-105	-208	-	388	-	-375	822	-	-6,859	-3,866	-	5,694	-217	-217	-217
Income Before Tax	-251	-353	-138	-138	-138	-138	-1,639	-1,639	-1,639	351	351	351	-60	-60	-60
Income Tax Expense	-	-	17	17	17	17	-221	-221	-221	98	98	98	-34	-34	-34
Net Income	-235	-369	-155	-155	-155	-155	-1,418	-1,418	-1,418	253	253	253	-26	-26	-26
Net Income Applicable To Common Shares	-235	-369	-	48	-	-669	-702	-	-4,970	-2,884	-	3,895	-	-	-
Operating Income	-251	-363	-	107	-	-669	502	-	-7,056	-4,127	-	5,530	-116	-116	-116
Selling And Marketing Expenses	-	-	-	-	-	-	-	-	-	2	2	2	-	-	-
Selling General Administrative	130	147	26	26	26	26	38	38	38	23	23	23	23	23	23
Tax Provision	-16	16	-	68	-	-	1,205	-	-2,087	-1,243	-	1,635	-	-	-
Total Operating Expenses	-	-	-	-	-	-	-	-	-	-	-	-	49	49	49
Total Other Income Expense Net	-	-	-	-	-	-	-	-	-	-	-	-	-56	-56	-56
Total Revenue	-	-116	23	23	23	23	-1,408	-1,408	-1,408	581	581	581	77	77	77

Latest Income Statement (annual, 2021-06-30)

Gross Profit (+$)
totalRevenue	-343
Cost of Revenue	-197
Gross Profit	-313	-540

Operating Income (+$)
Gross Profit	-313
Operating Expense	--
Operating Income	-614	-313

Operating Expense (+$)
Research Development	-
Selling General Administrative	65
Selling And Marketing Expenses	-
Operating Expense	-	65

Net Interest Income (+$)
Interest Income	0
Interest Expense	-0
Other Finance Cost	-0
Net Interest Income	0

Pretax Income (+$)
Operating Income	-614
Net Interest Income	0
Other Non-Operating Income Expenses	-
Income Before Tax (EBT)	-604	-614 EBIT - interestExpense = 0 -604 -604
Interest Expense	0
Earnings Before Interest and Taxes (EBIT)	-	-604
Earnings Before Interest and Taxes (EBITDA)	-

After tax Income (+$)
Income Before Tax	-604
Tax Provision	-0
Net Income From Continuing Ops	-604	-604
Net Income	-604
Net Income Applicable To Common Shares	-604

Non-recurring Events
Discontinued Operations	-
Extraordinary Items	-
Effect of Accounting Charges	-
Other Items	-
Non Recurring	-
Other Operating Expenses	-
Total Other Income/Expenses Net	-	0

Technicals of 8IP Emerging Companies Limited

1. Trend Indicators

1.1 Moving Averages

Shows the moving average of the selected period.

Moving averages are lagging trend indicators.
There are many types of moving averages.
Moving averages are also used within other indicators.

Directionalities and relatives.

Moving Average	Amount of candles	Trend	Price +/-	vs. MA 50	vs. MA 100	vs. MA 200

Explanation: https://www.youtube.com/watch?v=xwW8h0lrQ-I

Shows the moving average of the selected period.

There are four types of indicators:

Trend indicators
Momentum indicators
Volatility indicators
Volume indicators

There are various kinds of moving averages:

Simple moving average (SMA);
Exponential moving average (EMA);
Smoothed moving average (SMMA);
Linear weighted moving average (LWMA).

The moving average looks at a certain period of time and it calculates the price average. The various types of averages are using various formulas. Don’t worry, you don’t have to memorize any formula. All moving averages are calculated automatically by basically every charting software you use. But it’s good to know how moving averages are actually calculated.

Simple moving average

SMA is calculated by summing up the price closures of the selected period. The price is then divided by the selected period. For example, when using the 21 day moving average you sum up all the closing prices for each day and divide that by 21. The result is a line on the chart representing the average. Because it’s an average in the selected timeframe, the trend is always lagging. An moving average looks like this on the chart:

Source: Tradingview.com

In this case, the blue line represents a 21 day moving average. Because the average is based on results from the past, the indicator will always lag behind. For example, when price would suddenly go up, the moving average won't immediately follow.

All other moving averages discussed below look the same on the chart. The only difference is that the line will move in different directions based on the maths behind the used indicators and the amount of days used to determine the average.

Exponential moving average

The EMA gives more weight to the latest closing prices by giving them more value in the equation. EMA is calculated by adding a certain percentage to the latest closing prices:

EMA = (CLOSE (i) * P) + (EMA (i - 1) * (1 - P))

Where:

CLOSE (i) = current period close price.
EMA (i - 1) = value of the Moving Average of a preceding period.
P = the percentage of using the price value.

Smoothed moving average

A smoothed moving average is an exponential moving average with a long lookback period. Older prices are reduced in weight but are never left out in the calculation. Unlike SMA and EMA where prices are removed when they are beyond the selected period. SMMA is a combination of the SMA and EMA. The main advantage is that it smooths out fluctuations in price.

Linear weighted moving average

The LWMA gives the latest price the highest weight and then lineary scales down with each price before that. The result is that the LWMA reacts quicker to changes in price than the SMA or EMA. The formula:

LWMA = ((Pn∗W1)+(Pn−1∗W2)+(Pn−2∗W3)...) / ∑W

Where:

P = Price for the period.
n = The most recent period, n-1 is the prior period, and n-2 is two periods prior.
W = The assigned weight to each period, with the highest weight going first and then descending linearly based on the number of periods being used.

Moving averages are widely used by many traders. Which moving average you need depends on your trading strategy. Common practise is using a combination of multiple periods. For example, the EMA21, EMA50, EMA100 and EMA200. How does that look on a chart:

Source: Tradingview.com

The lowest (purple) line on the chart represents the EMA200 then following up the EMA100, EMA50 and EMA21.

You can use moving averages to determine a trend. The 200 moving average is mostly used as a baseline for determining the current trend:

When the 200 moving average is moving up it is considered a bullish trend.
When the 200 moving average is down it is considered a bearish trend.
When moving averages are flatlined, there is no clear trend so you should look for market structure, consolidation or trend reversals. Depending on how you want to trade.

This is not set in stone. Most trading strategies use multiple moving averages each with different settings. While one strategy might use the EMA20, the other uses the SMA21. There can be hundreds of different variations. Moving averages can also be used as support and resistance. More often than not, prices will bounce on moving averages.

8IP Emerging Companies Limited Daily Moving Averages Chart

1.2 Moving Average Convergence/Divergence (MACD)

Shows the momentum of the selected period based on two moving averages.

MACD is a lagging momentum indicator.
Uses two moving averages.
Can show buy or sell signals based on momentum.
Can show overbought. and oversold. levels.

Let's take a look of the Moving Average Convergence/Divergence (MACD) of 8IP Emerging Companies Limited:

8IP Emerging Companies Limited Daily Moving Average Convergence/Divergence (MACD) Chart

1.3 Directional Movement Index (DMI)

The DMI is a collection of 3 indicators: +DI (Plus Direction Indicator), -DI (Minus Direction Indicator) and ADX (Average Directional Index).

The ADX helps you determine the strength of a trend. Let's take a look of the ADX of 8IP Emerging Companies Limited:

The ADX is .

8IP Emerging Companies Limited Daily Directional Movement Index (DMI) Chart

1.4 Parabolic SAR

Shows the current trend and potential entry and exit signals.

Parabolic SAR (stop and reverse) is a lagging trend indicator.
Shows the current trend.
Shows potential entry signals.
Shows potential exit signals.
Can be used to place trailing stoplosses..

The Parabolic SAR is lower than the price. The current trend is up. +2

8IP Emerging Companies Limited Daily Parabolic SAR Chart

2. Momentum Indicators

2.1 Relative Strength Index (RSI)

Measures the speed and change of price movements.

Leading momentum indicator, meaning the signals are instant.
Ranges between 0 and 100.
Above 70 is considered overbought.
Below 30 is considered oversold.
Above or below 50 can also be used to determine price trend or support and resistance.
RSI divergence looks at a deviation between RSI and price movement. Penketrading automatically calculates RSI divergences.
Can be used in many different ways

The RSI is below 50. -1
The RSI is below 30 and oversold. +2

Measures the speed and change of price movements.

There are four types of indicators:

Trend indicators
Momentum indicators
Volatility indicators
Volume indicators

The RSI measures the magnitude of recent price changes to determine if the asset is overbought or oversold.

Overbought (RSI above 70) means that the trading price is above its intrinsic value. This might indicate a sell or short signal.
Oversold (RSI below 30) means that the trading price is below its intrinsic value. This might indicate a buy or long signal.
RSI levels above or below 50 can also be used to determine a trend.
RSI divergence looks at a deviation between RSI and price movement.
Can be used in many different ways.

Original usage

Keep in mind that almost every indicator can be used in different ways. Even beyond the orginal settings. The relative strength index was developed by J. Welles Wilder. Wilder recommended a smoothing period of 14 days. That means a 14 day moving average (read more about this setting below). Another quote from the wikipedia page:

Wilders also considers the RSI 50 line as both support and resistance. I recommend to always read the original settings first before using an indicator. Many traders and websites are using their own version of the indicator which might be confusing.

How you can use RSI (Divergence)

First and foremost, there is no real right or wrong usage of the RSI indicator. You can use it in any way you want. Wilder recommends using a 14 day average but you can make it 50 or 100 if you like. Just keep in mind that using an indicator is just part of a larger trading plan. In other words, it’s not recommended to do any trading or investing based on a single indicator like the RSI.

The RSI is measured on a scale between 0 and 100. From 30 till 0 is considered oversold. and from 70 -100 is overbought. The RSI is a leading indicator, meaning the signals are instant.

I like to use the RSI as a trend\momentum indicator and not as an overbought or oversold indicator. I use the middle (50) as the baseline. When prices go above RSI 50 the trend is bullish and can indicate long positions. When below 50 it is considered bearish and can indicate short positions. Other traders use the 70 and 30 levels as overbought/oversold depending on the used strategy. The RSI indicator looks like this:

Source: Tradingview.com

The general concensus is that an RSI above 70 indicates that the security is overbought. In other words, the price this security is trading for is to high and should come down. So if RSI hits 70 or above this might indicate a sell signal or taking a short position (expecting the price will go down). Although RSI above 70 indicates the security is trading above it's fair value, that does not mean the price will go down.

Use tradingview to add indicators

I highly recommend using tradingview to add indicators to a chart. It has all the indicators you can think off and can add them for free (up to three indicators) to any chart you want. You can see that the levels 30 and 70 are marked with a dotted line. If you want you can remove these lines or give it another colour using Tradingview. You can also adjust the moving average used. You can also find RSI indicators made by the community that include other settings like RSI divergences.

Tradingview

Use Tradingview to (back)test your strategies and add hundreds of indicators created by the community.

View tool on Tradingview.com

RSI divergence

RSI is not only used to determine momentum but can also spot reversals or continuations of the trend. A reversal means that the trend is going in the opposite direction. From bullish to bearish or from bearish to bullish. These reversals can be spotted by looking at the price and the direction of the RSI. When the price is going up but the RSI is going down that means there is a divergence. This is also the case when RSI goes up but price is going down.

There are four types of divergences:

Regular bullish divergence
Regular bearish divergence
Hidden bullish divergence
Hidden bearish divergence

Regular bullish divergence

With a regular bullish divergence, the price is making lower highs but the oscillator (in this case the RSI) is making higher lows. A regular bullish divergence might indicate the end of the current trend. You’ll see regular bullish divergences mostly at the end of a downtrend. But that does not mean that every regular bullish divergence is a trend reversal.

Price is making lower highs
RSI is making higher lows
Indicating bullish reversal (price might go up)

Source: Tradingview.com

Regular bearish divergence

With a regular bearish divergence the price is making higher highs but the oscillator (in this case the RSI) is making lower highs. This might indicate the end of an uptrend.

Price is making higher highs
RSI is making lower highs
Indicating bearish reversal

Source: Tradingview.com

Hidden bullish divergence

With a hidden bullish divergence, the price is making a higher low while the RSI is making a lower low. This might indicate bullish trend continuation.

Price is making higher lows
RSI is making lower lows
Indicating bullish continuation

Source: Tradingview.com

As you have noticed, you can have multiple divergences in a row.

Hidden bearish divergence

With a hidden bearish divergence, price is making lower highs but RSI is making higher highs. This might indicate bearish trend continuation.

Price is making lower highs
RSI making higher highs
Indicating bearish continuation

Source: Tradingview.com

You can find many cheatsheets of RSI divergences online. Search for "RSI divergence overview" and you'll find a lot of examples. You can print these to learn the various types of divergences.