DiamondPeak Holdings Corp. (NASDAQ: DPHC) have jumped 10.77% since today opening bell. First, let’s talk about the stock movement. The company report on August 27, 2020 that SHAREHOLDER ALERT: WeissLaw LLP Investigates DiamondPeak Holdings Corp..Before peaking at $31.80 per share as its 52 week high, the Industrials giant hit all-time low of $9.50 per share in 03/19/20. As of now, DPHC trading high at $23.40 per share and has seemingly settled at around $23.20 per share, still up from its level of $9.85 at which it had traded for months.
DiamondPeak Holdings Corp. (DPHC) has been in rally mode, as indicated by the relationship between its 200-day and 20-day major moving averages. It has also trailed competitors and similar names by -2.04%.
Looking at Key Indicators
Naturally, a cursory survey of superficial price points from the chart don’t say a whole lot about where DPHC shares could be headed. That’s why we need to dig a little deeper and check out what some of the most important momentum indicators seem to be saying.
The relationship between changes in price and the underlying strength or weakness over periods can point out deeper factors in the pattern that can often generate insights for technical analysts through momentum factors. Two of our favorite oscillating indicators are the Relative Strength Index (RSI) and the Stochastic %k Oscillator. In each case, the scoring is on a scale somewhere between 0 and 100, and in case, the levels to watch are “70” and “30”, with the former representing an “overbought” state and the latter presenting an “oversold” state.
With that in mind, here is a look at DPHC shares from this perspective. The 20-day RSI reading for DPHC is currently 58.16, which indicates that is not particularly expensive or cheap, and not predisposed to a reactive price movement based on this measure. If we look at the 20-day Stochastic %k measure, we find it at 34.87, which represents another indication of a neutral outlook.
Assessing the Risk
We would also note that DPHC has posted average daily volatility over the past two weeks of 132.93%, or -48.77% more than it has scored on the same measure over the past hundred days.
The Fundamentals in Focus
As we now turn to the fundamental picture, we begin by analyzing it the way one might analyze a building: by starting with the foundation – the balance sheet. Without a strong foundation, the rest of the structure can’t stand.
For DPHC, cash levels are currently sitting at 0.86 million. That figure is balanced by 0.57 million in current liabilities. To further round out the picture, total assets are at 285.28 million and total liabilities sit at 280.28 million, granting a pretty thorough ground-up sense of the company and how it might withstand challenges ahead, should they appear.
In terms of recent free cash flow, DPHC, is currently reporting -0.49 million, which represents a quarterly net change of 0.86 million in cash flowing in the door.
That brings us to the real meat of the matter: the bottom line. , seated in 35.0 billion total diluted outstanding shares, adding up to earnings per share of 0.05.
In terms of the median P/E ratio, we arrive at 437.74.
However, estimates are only guesses about the future. Both business and investment trends are more important to take into consideration.