Golar Story

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GMLP -- USA Stock  

USD 3.42  0.01  0.29%

Golar LNG Invested Capital Average is very stable at the moment as compared to the past year. Golar LNG reported last year Invested Capital Average of 3.01 Billion. As of 30th of November 2020, Market Capitalization is likely to grow to about 873.8 M, while Dividend Yield is likely to drop 0.16. The rationale for this perspective is to give insiders our take on Golar future value. We will focus on the reasons why it could be a game-changer for Golar LNG insiders.
Published over a month ago
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Estimating Golar LNG (NASDAQ:GMLP) price for December 2020.
The company has a beta of 0.9727. Let's try to break down what Golar's beta means in this case. Golar LNG returns are very sensitive to returns on the market. As the market goes up or down, Golar LNG is expected to follow. The beta indicator helps investors understand whether Golar LNG moves in the same direction as the rest of the market, and how volatile (i.e., risky) it is compared to the market (i.e., selected benchmark). In other words, if Golar deviates very little from the market, it does not add much risk to the portfolio, but it also doesn't increase the expected returns.
There are currently many different techniques concerning forecasting the market as a whole as well as predicting future values of individual securities such as Golar LNG Partners. Regardless of method or technology, to accurately forecast the stock market is more a matter of luck rather than a particular technique. Nevertheless, trying to predict the stock market accurately is still an essential part of the overall investment decision process. Using different forecasting techniques and comparing the results might improve your chances of accuracy even though unexpected events may often change the market sentiment and impact your forecasting results.

Predictive Modules for Golar LNG

Sophisticated investors, who have witnessed many market ups and downs, frequently view the market will even out over time. This tendency of Golar LNG's stock price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy. Please use the tools below to analyze the current value of Golar LNG in the context of predictive analytics.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as Golar LNG. Your research has to be compared to or analyzed against Golar LNG's peers to derive any actionable benefits. When done correctly, Golar LNG's competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy towards taking a position in Golar LNG Partners.

How important is Golar LNG's Liquidity

Golar LNG financial leverage refers to using borrowed capital as a funding source to finance Golar LNG Partners ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Golar LNG financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Golar LNG's total debt and its cash.

How Golar utilizes its cash?

To perform a cash flow analysis of Golar LNG, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Golar LNG is receiving and how much cash it distributes out in a given period. The Golar LNG cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities. Golar LNG Net Cash Flow from Operations is very stable at the moment as compared to the past year. Golar LNG reported last year Net Cash Flow from Operations of 175.61 Million

A Deeper Perspective

Golar LNG Partners currently demonstrates below-verage downside deviation. It has Information Ratio of 0.02 and Jensen Alpha of 0.06. However, we do advice investors to further question Golar LNG Partners expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk.

Returns Breakdown

Return on Assets0.003079
Return on Equity0.009237
Return Capital0.0555
Return on Sales0.55

Golar LNG has a small chance to finish above $2.83 in 2 months

Recent skewness is at 0.75. As of the 30th of November, Golar LNG retains the Market Risk Adjusted Performance of 0.1567, risk adjusted performance of 0.065, and Downside Deviation of 2.86. Golar LNG technical analysis makes it possible for you to employ historical prices and volume momentum with the intention to determine a pattern that calculates the direction of the firm's future prices. Simply put, you can use this information to find out if the firm will indeed mirror its model of historical price patterns, or the prices will eventually revert. We were able to interpolate data for nineteen technical drivers for Golar LNG Partners, which can be compared to its competitors. Please check out Golar LNG Partners downside deviation, jensen alpha, as well as the relationship between the Jensen Alpha and downside variance to decide if Golar LNG is priced fairly, providing market reflects its last-minute price of 2.77 per share. Please also validate Golar LNG Partners total risk alpha, which is currently at (0.06) to confirm the company can sustain itself at a future point.

Our Conclusion on Golar LNG

Although some companies within the oil & gas midstream industry are still a little expensive, even after the recent corrections, Golar LNG may offer a potential longer-term growth to insiders. With a somewhat neutral outlook on your 30 days horizon, it may be better to hold off any trading activity and neither buy new shares of Golar nor drop your existing holdings in the Stock. It seems the expected volatility has not yet been fully factored into the current price. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Golar LNG.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Raphi Shpitalnik do not own shares of Golar LNG Partners. Please refer to our Terms of Use for any information regarding our disclosure principles.

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