PMD Stock: A Risky Investment

Outlook: Psychemedics Corporation is assigned short-term Ba3 & long-term B1 estimated rating.
AUC Score : What is AUC Score?
Short-Term Revised :
Dominant Strategy : Speculative Trend
Time series to forecast n: for 3 Month
Methodology : Multi-Task Learning (ML)
Hypothesis Testing : Multiple Regression
Surveillance : Major exchange and OTC

Summary

Psychemedics Corporation prediction model is evaluated with Multi-Task Learning (ML) and Multiple Regression^1,2,3,4 and it is concluded that the PMD stock is predictable in the short/long term. Multi-task learning (MTL) is a machine learning (ML) method in which multiple related tasks are learned simultaneously. This can be done by sharing features and weights between the tasks. MTL has been shown to improve the performance of each task, compared to learning each task independently. According to price forecasts for 3 Month period, the dominant strategy among neural network is: Speculative Trend

Key Points

Can machine learning predict?
Is it better to buy and sell or hold?
Understanding Buy, Sell, and Hold Ratings

PMD Target Price Prediction Modeling Methodology

We consider Psychemedics Corporation Decision Process with Multi-Task Learning (ML) where A is the set of discrete actions of PMD stock holders, F is the set of discrete states, P : S × F × S → R is the transition probability distribution, R : S × F → R is the reaction function, and γ ∈ [0, 1] is a move factor for expectation.^1,2,3,4

F(Multiple Regression)^5,6,7=

\begin{matrix} p_{a 1} & p_{a 2} & \dots & p_{1 n} \\ ⋮ \\ p_{j 1} & p_{j 2} & \dots & p_{j n} \\ ⋮ \\ p_{k 1} & p_{k 2} & \dots & p_{k n} \\ ⋮ \\ p_{n 1} & p_{n 2} & \dots & p_{n n} \end{matrix}

X R(Multi-Task Learning (ML)) X S(n):→ 3 Month

\vec{R} = (r_{1}, r_{2}, r_{3})

n:Time series to forecast

p:Price signals of PMD stock

j:Nash equilibria (Neural Network)

k:Dominated move

a:Best response for target price

Multi-Task Learning (ML)

Multi-task learning (MTL) is a machine learning (ML) method in which multiple related tasks are learned simultaneously. This can be done by sharing features and weights between the tasks. MTL has been shown to improve the performance of each task, compared to learning each task independently.

Multiple Regression

Multiple regression is a statistical method that analyzes the relationship between a dependent variable and multiple independent variables. The dependent variable is the variable that is being predicted, and the independent variables are the variables that are used to predict the dependent variable. Multiple regression is a more complex statistical method than simple linear regression, which only analyzes the relationship between a dependent variable and one independent variable. Multiple regression can be used to analyze more complex relationships between variables, and it can also be used to control for confounding variables. A confounding variable is a variable that is correlated with both the dependent variable and one or more of the independent variables. Confounding variables can distort the relationship between the dependent variable and the independent variables. Multiple regression can be used to control for confounding variables by including them in the model.

For further technical information as per how our model work we invite you to visit the article below:

How do AC Investment Research machine learning (predictive) algorithms actually work?

PMD Stock Forecast (Buy or Sell) for 3 Month

Sample Set: Neural Network
Stock/Index: PMD Psychemedics Corporation
Time series to forecast: 3 Month

According to price forecasts for 3 Month period, the dominant strategy among neural network is: Speculative Trend

X axis: *Likelihood% (The higher the percentage value, the more likely the event will occur.)

Y axis: *Potential Impact% (The higher the percentage value, the more likely the price will deviate.)

Z axis (Grey to Black): *Technical Analysis%

IFRS Reconciliation Adjustments for Psychemedics Corporation

There is a rebuttable presumption that unless inflation risk is contractually specified, it is not separately identifiable and reliably measurable and hence cannot be designated as a risk component of a financial instrument. However, in limited cases, it is possible to identify a risk component for inflation risk that is separately identifiable and reliably measurable because of the particular circumstances of the inflation environment and the relevant debt market
If the group of items does have offsetting risk positions (for example, a group of sales and expenses denominated in a foreign currency hedged together for foreign currency risk) then an entity shall present the hedging gains or losses in a separate line item in the statement of profit or loss and other comprehensive income. Consider, for example, a hedge of the foreign currency risk of a net position of foreign currency sales of FC100 and foreign currency expenses of FC80 using a forward exchange contract for FC20. The gain or loss on the forward exchange contract that is reclassified from the cash flow hedge reserve to profit or loss (when the net position affects profit or loss) shall be presented in a separate line item from the hedged sales and expenses. Moreover, if the sales occur in an earlier period than the expenses, the sales revenue is still measured at the spot exchange rate in accordance with IAS 21. The related hedging gain or loss is presented in a separate line item, so that profit or loss reflects the effect of hedging the net position, with a corresponding adjustment to the cash flow hedge reserve. When the hedged expenses affect profit or loss in a later period, the hedging gain or loss previously recognised in the cash flow hedge reserve on the sales is reclassified to profit or loss and presented as a separate line item from those that include the hedged expenses, which are measured at the spot exchange rate in accordance with IAS 21.
An entity has not retained control of a transferred asset if the transferee has the practical ability to sell the transferred asset. An entity has retained control of a transferred asset if the transferee does not have the practical ability to sell the transferred asset. A transferee has the practical ability to sell the transferred asset if it is traded in an active market because the transferee could repurchase the transferred asset in the market if it needs to return the asset to the entity. For example, a transferee may have the practical ability to sell a transferred asset if the transferred asset is subject to an option that allows the entity to repurchase it, but the transferee can readily obtain the transferred asset in the market if the option is exercised. A transferee does not have the practical ability to sell the transferred asset if the entity retains such an option and the transferee cannot readily obtain the transferred asset in the market if the entity exercises its option
When measuring hedge ineffectiveness, an entity shall consider the time value of money. Consequently, the entity determines the value of the hedged item on a present value basis and therefore the change in the value of the hedged item also includes the effect of the time value of money.

*International Financial Reporting Standards (IFRS) adjustment process involves reviewing the company's financial statements and identifying any differences between the company's current accounting practices and the requirements of the IFRS. If there are any such differences, neural network makes adjustments to financial statements to bring them into compliance with the IFRS.

Conclusions

Psychemedics Corporation is assigned short-term Ba3 & long-term B1 estimated rating. Psychemedics Corporation prediction model is evaluated with Multi-Task Learning (ML) and Multiple Regression^1,2,3,4 and it is concluded that the PMD stock is predictable in the short/long term. According to price forecasts for 3 Month period, the dominant strategy among neural network is: Speculative Trend

PMD Psychemedics Corporation Financial Analysis*

Rating	Short-Term	Long-Term Senior
Outlook*	Ba3	B1
Income Statement	Baa2	Caa2
Balance Sheet	B1	Ba2
Leverage Ratios	C	C
Cash Flow	Baa2	Baa2
Rates of Return and Profitability	Ba3	Baa2

*Financial analysis is the process of evaluating a company's financial performance and position by neural network. It involves reviewing the company's financial statements, including the balance sheet, income statement, and cash flow statement, as well as other financial reports and documents.
How does neural network examine financial reports and understand financial state of the company?

Prediction Confidence Score

Trust metric by Neural Network: 83 out of 100 with 854 signals.

References

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Wan M, Wang D, Goldman M, Taddy M, Rao J, et al. 2017. Modeling consumer preferences and price sensitiv- ities from large-scale grocery shopping transaction logs. In Proceedings of the 26th International Conference on the World Wide Web, pp. 1103–12. New York: ACM

Frequently Asked Questions

Q: What is the prediction methodology for PMD stock?
A: PMD stock prediction methodology: We evaluate the prediction models Multi-Task Learning (ML) and Multiple Regression
Q: Is PMD stock a buy or sell?
A: The dominant strategy among neural network is to Speculative Trend PMD Stock.
Q: Is Psychemedics Corporation stock a good investment?
A: The consensus rating for Psychemedics Corporation is Speculative Trend and is assigned short-term Ba3 & long-term B1 estimated rating.
Q: What is the consensus rating of PMD stock?
A: The consensus rating for PMD is Speculative Trend.
Q: What is the prediction period for PMD stock?
A: The prediction period for PMD is 3 Month