Houston Story

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HWCC -- USA Stock  

USD 5.28  0.03  0.57%

Today's article will go over Houston Wire. We will evaluate why we are still confident in anticipation of a recovery. Houston Wire Cable is currently traded for 3.68. The entity has historical hype elasticity of 0.12. The average price elasticity to hype of competition is about -0.3. The firm is forecasted to increase in value after the next headline, with the price going to jump to 3.8. The current volatility of media hype impact on the company stock price is is way over 100 percent making price predictions on social media along less reliable. The price jump on the next news is forecasted to be 3.26%, whereas the daily expected return is currently at 0.59%. The volatility of related hype on Houston Wire is about 631.58% with expected price after next announcement by competition of 3.38 Given the investment horizon of 30 days the next forecasted press release will be in about 4 days.
Published over a month ago
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Chances of Houston Wire (NASDAQ:HWCC) to slip in April.
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Houston Wire has an asset utilization ratio of 190.33 percent. This suggests that the company is making $1.9 for each dollar of assets. An increasing asset utilization means that Houston Wire Cable is more efficient with each dollar of assets it utilizes for everyday operations.
The successful prediction of Houston Wire stock price could yield a significant profit to investors. But is it possible? The efficient-market hypothesis suggests that all published stock prices of traded companies, such as Houston Wire Cable, already reflect all publicly available information. This academic statement is a fundamental principle of many financial and investing theories used today. However, the typical investor usually disagrees with a 'textbook' version of this hypothesis and continually tries to find mispriced stocks to increase returns. We use internally-developed statistical techniques to arrive at the intrinsic value of Houston Wire based on Houston Wire hews, social hype, general headline patterns, and widely used predictive technical indicators.
We also calculate exposure to Houston Wire's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Houston Wire's related companies.

Use Technical Analysis to project Houston expected Price

Houston Wire 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 Houston Wire technical analysis is to determine if market prices reflect all relevant information impacting that market. A technical analyst looks at the history of Houston Wire 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 Houston utilizes its cash?

To perform a cash flow analysis of Houston Wire, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Houston Wire is receiving and how much cash it distributes out in a given period. The Houston Wire cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.
Houston Wire Net Cash Flow from Operations is projected to increase significantly based on the last few years of reporting. The past year's Net Cash Flow from Operations was at 36.88 Million

Disposition of 10577 shares by James Pokluda of Houston Wire subject to Rule 16b-3

Legal trades by Houston Wire 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:
Houston insider trading alert for disposition of performance share units by James Pokluda, PRESIDENT & CEO, on 6th of April 2021. This event was filed by Houston Wire Cable Co with SEC on 2021-04-06. Statement of changes in beneficial ownership - SEC Form 4 [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.

Is Houston Wire valued fairly by the market?

Houston Wire Cable reported the previous year's revenue of 302.84 M. Net Loss for the year was (3.01 M) with profit before overhead, payroll, taxes, and interest of 79.92 M.

Cost of Revenue Breakdown

Houston Wire Cost of Revenue is decreasing over the years with slightly volatile fluctuation. Ongoing Cost of Revenue is projected to grow to about 235.6 M this year. Cost of Revenue usually refers to the aggregate cost of goods produced and sold and services rendered during the reporting period. Houston Wire Cost of Revenue is projected to decrease significantly based on the last few years of reporting. The past year's Cost of Revenue was at 232.53 Million
2014304.07 Million
2015242.22 Million
2016208.69 Million
2017245.03 Million
2018271.65 Million
2019258.36 Million
2020232.53 Million
2021235.57 Million

Houston may start a relapse in April

Current Sortino Ratio is up to 0.09. Price may slip again. Houston Wire Cable shows above-average downside volatility for the selected time horizon. We advise investors to inspect Houston Wire Cable further and ensure that all market timing and asset allocation strategies are consistent with the estimation of Houston Wire future alpha. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Houston Wire's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Houston Wire's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Our Final Perspective on Houston Wire

Whereas some firms under the industrial distribution industry are still a bit expensive, Houston Wire may offer a potential longer-term growth to investors. To conclude, as of the 18th of March 2021, we believe that at this point, Houston Wire is unstable with below average odds of distress within the next 2 years. From a slightly different point of view, the entity appears to be overvalued. Our concluding 30 days buy-hold-sell advice on the company is Strong Sell.

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 Vlad Skutelnik do not own shares of Houston Wire Cable. Please refer to our Terms of Use for any information regarding our disclosure principles.

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