GWG Holdings Story

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Today we will concentrate on GWG Holdings. We will evaluate why recent GWG Holdings price moves suggest a bounce in October. GWG Holdings is currently traded for 9.99. The entity has historical hype elasticity of 0.1. The average price elasticity to hype of competition is about 0.05. The firm is forecasted to increase in value after the next press release, with the price going to jump to 10.09. The current volatility of headline impact on the company stock price is is way over 100 percent making price predictions on social media along less reliable. The price rise on the next news is estimated to be 1.0%, whereas the daily expected return is currently at 0.4%. Given the investment horizon of 30 days, the next forecasted announcement will be in about 3 days.
Published over three weeks ago
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Will GWG Holdings continue to grow in October?
GWG Holdings's average rating is Strong Buy from 1 analysts. We provide advice to complement the regular expert consensus on GWG Holdings. Our dynamic recommendation engine utilizes a multidimensional algorithm to analyze the company's potential to grow using all technical and fundamental data available now. About 91.0% of the company shares are held by company insiders. The book value of GWG Holdings was currently reported as 2.12. GWG Holdings last dividend was issued on the 6th of September 1970.

Use Technical Analysis to project GWG Holdings expected Price

GWG Holdings technical stock analysis exercises models and trading practices based on price and volume transformations, such as the moving averages, relative strength index, regressions, price and return correlations, business cycles, stock market cycles, or different charting patterns.
A focus of GWG Holdings technical analysis is to determine if market prices reflect all relevant information impacting that market. A technical analyst looks at the history of GWG Holdings trading pattern rather than external drivers such as economic, fundamental, or social events. It is believed that price action tends to repeat itself due to investors' collective, patterned behavior. Hence technical analysis focuses on identifiable price trends and conditions. More Info...

How GWG Holdings utilizes its cash?

To perform a cash flow analysis of GWG Holdings, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash GWG Holdings is receiving and how much cash it distributes out in a given period. The GWG Holdings cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities. GWG Holdings Net Cash Flow from Operations is most likely to decrease significantly in the upcoming years. The last year's value of Net Cash Flow from Operations was reported at (142.83 Million)

GWG Holdings exotic insider transaction detected

Legal trades by GWG Holdings insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
GWG Holdings insider trading alert for general transaction of common stock by Fine Daniel Phillip, the corporate stakeholder, on 18th of September 2020. This event was filed by Gwg Holdings Inc with SEC on 2020-09-18. Initial filing of beneficial ownership - SEC Form 3 [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

What is the case for GWG Holdings Investors

This firm reported the previous year's revenue of 109.13 M. Net Income was 68.17 M with profit before overhead, payroll, taxes, and interest of 92.28 M.

Deferred Revenue Breakdown

GWG Holdings Deferred Revenue is decreasing over the last several years with slightly volatile swings. Deferred Revenue is predicted to flatten to about 37.1 M. Deferred Revenue usually refers to a component of Total Liabilities representing the carrying amount of consideration received or receivable on potential earnings that were not recognized as revenue; including sales; license fees; and royalties; but excluding interest income. GWG Holdings Deferred Revenue is most likely to decrease significantly in the upcoming years. The last year's value of Deferred Revenue was reported at 37.3 Million
2010
2019
2020
201041.44 Million
201937.3 Million
202037.08 Million

Are GWG Holdings technical ratios showing a come-back?

GWG Holdings current semi deviation boosts over 4.02. GWG Holdings exhibits above-average semi-deviation for your current time horizon. We encourage investors to investigate GWG Holdings individually to make sure intended market timing strategies and available technical indicagtors are consistent with their estimates about GWG Holdings future systematic risk.

Our Final Take On GWG Holdings

While some firms within the insurance?life industry are still a little expensive, even after the recent corrections, GWG Holdings may offer a potential longer-term growth to stockholders. To sum up, as of the 19th of September 2020, our up-to-date 30 days 'Buy-vs-Sell' recommendation on the company is Sell. We believe GWG Holdings is overvalued with below average odds of financial turmoil for the next two years.

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 Ellen Johnson do not own shares of GWG Holdings. Please refer to our Terms of Use for any information regarding our disclosure principles.

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