Volume Moving the Tape For Prospect Resources Limited (PSC.AX)

Shares of Prospect Resources Limited (PSC.AX) have seen the needle move -8.82% or -0.003 in the most recent session. The ASX listed company saw a recent bid of 0.031 on 768045 volume.

Making smart choices when picking stocks is typically a top priority for successful investors. For new investors with little market knowledge, this can be challenging. Figuring out how to start building the stock portfolio may take a lot of time and effort. When the individual investor decides that they want to manage their own portfolio and make their own trades, the journey has just begun. Many individuals will be tempted to pursue stock trading plans based on advice from friends, colleagues, or family members. Even though certain plans may work for someone else, there is no guarantee that success will transfer to others. Investors often need to do their own research in order to obtain as much knowledge as possible before diving in to the markets.

Now let’s take a look at how the fundamentals are stacking up for Prospect Resources Limited (PSC.AX). Fundamental analysis takes into consideration market, industry and stock conditions to help determine if the shares are correctly valued. Prospect Resources Limited currently has a yearly EPS of -0.01. 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.

Turning to Return on Assets or ROA, Prospect Resources Limited (PSC.AX) has a current ROA of -129.86. 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.

Another key indicator that can help investors determine if a stock might be a quality investment is the Return on Equity or ROE. Prospect Resources Limited (PSC.AX) currently has Return on Equity of -132.87. 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. Prospect Resources Limited (PSC.AX) has a current ROIC of -132.87. 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.

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