The price of Wilhelmina International (WHLM) stock has advanced above 12 USD and after this, the price of this stock has sharply dropped and the current price stands around 4.7 USD. The market is neutral on Wilhelmina International Inc (WHLM) stock currently and the first strong “BUY” signal would be if the price jumps again above 6 USD. Wilhelmina International, Inc. primarily engages in the fashion model management business.
It specializes in the representation and management of models, entertainers, artists, athletes, and other talent to various clients, including retailers, designers, advertising agencies, print and electronic media and catalog companies. Wilhelmina International reported revenues of 14.6 million USD and a net loss of 2.7 million USD for the three months ended March 31, 2020, compared to revenues of 20.1 million and a net loss of 0.1 million USD for the three months ended March 31, 2019. Reflecting on the efficiency of the workforce at the company, Wilhelmina International Inc managed to generate an average of -41,982 USD per employee.
According to the management of the company, the decrease in revenues was primarily due to canceled bookings resulting from COVID-19 and this will probably not have a big impact on future operations. Despite the recent appreciation of the stock, I can’t recommend it as a buy – cash burn raising concerns, the company is still not profitable and I think that they will have problems with liquidity in the future.
When we take a look at the chart above, we can see that the price Wilhelmina International Inc. advanced into the green zone at the beginning of this week. On this chart, I marked resistance and support levels. The support level is 4 USD, 6 USD and 8 USD represent the resistance levels. If the price jumps again above 6 USD it would be a “BUY” signal and we have the open way to 7 USD. Rising above 8 USD supports the continuation of the bullish trend overview efficiently for the upcoming period. If the price falls, every price in a range from 4 USD – 4.30 USD could be a very good opportunity for short- term traders who trade with a “stop-loss” and “take profit” orders
Conclusion: Wilhelmina International (WHLM) A Worthy Invesment?
In my opinion, this is a very risky stock I would not recommend investing in this stock (only as short term trader with “stop loss” and “take profit” orders). As for the technical picture, this stock remains in the neutral phase but if the price advances above 6 USD next targets could be located around 7 and 8 USD. It is important to say that coronavirus (COVID-19) pandemic had a material impact on revenues and profit of this company but according to the management of WHLM this will probably not have a big impact on future operations.
