The stock market by no means is having a stellar september at the time that i'm making this video the market is down close to 10. Since the start of the month, i think it's safe to say that the insane rally which started in march is now taking a bit of a breather. Fortunately, for us, some stocks are still running like an absolute madman and posting new highs, like it's their job. It's time that i give you a quick update on one of my favorite stocks, workhorse.

What is going on moon gang, i hope you're having an amazing day. My name is matt and in this video i will be discussing some of the recent workhorse insider selling. That is causing a little bit of unease among some investors. I will also be sharing my personal opinion on the future of this company by letting you know what i'm looking for in both the short and long term before we dive into it.

If you enjoy this type of stock market related content, i would truly appreciate it if you could drop a like, because it really helps with getting this video in front of other people. And if you want to join the moon gang subscribe to the channel and don't forget to turn on your notifications, so you don't miss any of my updates on workhorse, tesla, neo or hylion. I would love to know your thoughts on workhorse and comment below with that out of the way, let's get started alrighty then i know that no one likes a video that drags on so i'll make this as quick and concise as possible. Let's start with the insider trading as an investor, it's not the best sign when people who work for the company you're investing in are selling their shares.

It doesn't really send the best signal. That is true, but the story is a little bit different with workhorse. Before i get into the details of why the recent workhorse insider stock sales shouldn't bother you in the slightest, let me show you where you can find this information. The first website is finviz.

If you type in the stock, ticker and then scroll to the bottom of the page, you can see the recent insider sales. For example, on september 17th the ceo and president duane hughes sold 50 000 shares of workhorse and as another free option you can use the nasdaq website. I prefer this one because it's a bit more detailed once again, you start by typing in the ticker name, and then you have access to the number of insider trades, the number of insider shares traded and then a breakdown based on the insider. Besides the date, the transaction type, the total shares traded and the price at which they were traded, you can click on the insider's name to see what they've specifically been doing.

That page looks like this. Workhorse investors were a bit concerned when they realized that the ceo of the company sold 50 000 shares on september 17th. It doesn't really send the best message that the leader of the company is lowering his equity, but that's not the full story and you can see the specific sec filing by clicking this button. I know there's a lot going on on the screen right now and it's confusing because it relates to the government and in truth it's pretty boring, but the main takeaway is this line right here.

The sales reported on this form 4 were effective pursuant to a rule. 10B-5 trading plan this rule allows company insiders to set up a pre-determined plan to sell company stock in accord with insider trading laws. The price amount and sales date must be specified in advanced and determined by a formula or metrics, both the seller and the broker making the sales must not have any access to any material, non-public information. So, to put this in more simple terms, the ceo of workhorse decided to sell these shares many months ago.

It has absolutely nothing to do with the current state of the company and it has specifically nothing to do with the company winning or losing the usps contract. For all we know, the ceo, mr hughes, is just like us and could have bills to pay. I honestly wouldn't let this concern you in the slightest. In fact, i bet he wishes.

He kept all those shares because he sold them at 25 and the stock is now trading above 30.. So now that you know you shouldn't be worried about workhorse insiders selling shares of the company, because it was part of a predetermined plan made many months ago. Let me explain why i'm bullish on workhorse in both the short and long time frame. I recently stumbled across this article.

Long-Term investors should avoid workhorse stock amid red flags and honestly i thought it was satire. The author's first point is no impressive deals lately and brings up hitachi. I discussed this more extensively in my previous video, but this strategic agreement is a big deal. Hitachi is a massive japanese conglomerate and they don't mess around if they partner with someone.

It's because something massive is going on in the background and they're helping that company get elevated to the next level of business. The author had some pretty absurd comments on this entire deal. He said it's clear to me that under this deal, hitachi is providing many services to workhorse, while workhorse is not providing any product or service to hitachi. Since, as the well-known saying goes, there's no such thing as a free lunch.

I'm sure that workhorse is paying hitachi forward services um, no sherlock! That's how business works. Hitachi is assisting workhorse with many aspects of their business, so they can spend more time focusing on creating the best electric delivery vans. I don't know why it would be such a big deal if they're paying them for that service. Anyway, let's move on to the next point in this article ups is unlikely to come through for workhorse.

Workhorse is one of three bidders on the shortlist to provide thousands of new vehicles to the postal service in exchange for several billion dollars. This contract has definitely been a hot topic and the most common number thrown out there is 6.3 billion, but i've recently seen new estimates that go all the way up to 8 billion dollars. These other two bidders which have been carrying out government contracts for many years, can easily produce thousands of vehicles for the postal service and can also service them. By contrast, workhorse has said that its factory may not be able to make the vehicles cheaply enough to meet the usps criteria.

This particular point has already been debunked multiple times in workhorses, most recent earnings announcement. They explained how they can make the electric vans for usps with a decent profit margin. I know nothing is guaranteed, but workhorse creates a high quality product and they're expanding rapidly, which makes me think that they're well positioned to win this contract, or at least a large portion of it. And as a quick side note, if workhorse does win the usps contract, i'm expecting its stock to run to insane levels.

Not only would this be a massive bump for the company's revenue, but the short interest is currently just below 22. This means that all these bears would be forced out of their position, which would push the stock even higher. The author's final point in this article is that he believes there are problems with workhorses drones. According to barons, at least some of workhorses drones are facing problems, and this has made the author completely lose confidence in the company's drones, and my rebuttal to that is who cares? In 2019 workhorse had a revenue of 377 thousand dollars.

I know that's pretty small, but in the year 2020 analysts are expecting them to have a revenue of 21 million dollars and in 2021 they're expecting a revenue of 142 million, which in other words, means that they're expecting massive growth. This growth is almost entirely related to the company's delivery vans and not their drones. Their drones are a very small portion of their business and even though they might not be perfect, i'm sure they will be able to improve them in the future. But for now i would prefer that workhorse focuses on their vans, which is exactly what they're doing in both the short and long time frame.

The electric truck maker lordstown motors will be a big benefit to workhorse. Workhorse owns 10 percent of lordstown, which is expected to be publicly traded by the end of 2020.. There is a lot of hype around lordstown because it already has more than one billion dollars worth of pre-orders, which will obviously be a benefit to workhorse because of its equity ownership, and on top of that it has a royalty deal for the first 200. 000 trucks sold now that you know why i'm bullish on workhorse, in both the immediate and far off future.

Let's take a more technical look at its chart: workhorse trades under the ticker wkhs and since the start of june, the stock is up a truly jaw. Dropping one thousand one hundred percent and since the start of september it is up still a noteworthy sixty-six percent in terms of technical support. The first area of demand would come at the high from july, just below 23 dollars and below. That would be the high from august just below 20 and then below.

That would be the low from september just below 17. But if i'm being honest, i wouldn't be surprised if the stock never trades at this bottom level again, since the chart is extremely close to its all-time high. It's difficult to call out areas of technical resistance, because the chart hasn't developed in this region. But with that being said, i can tell you what my personal targets are in the short term, if workhorse wins the usps contract, i'm expecting its stock to easily sail past 40 dollars and if there's a short squeeze that might even go past 50..

I personally invested into workhorse when it first broke above the blue trendline, so i'm sure i'll be tempted to sell at these levels, but if possible, i would love to hold my shares of workhorse for years to come if you're interested in investing in workhorse. But you don't own any shares, i would never recommend buying at all-time highs. You should be patient and buy as close to support as possible, so you can minimize your risk. This will allow you to stay calm during volatile times.

Overall. I think that workhorse is a great investment for both the short and long time frame. Before the end of this year. We will know the winner of the usps contract and i would argue that workhorse is a very strong contender and if it wins this contract or even a portion of it, it could prompt a short squeeze which would run the stock even higher.

And on top of that, lord sound motor is scheduled to go public before 2021, which will be a massive benefit for workhorse. And when you consider more of a distant future, workhorse is led by a group of extremely competent people who have well positioned the company. In an industry that is set to explode over the coming years, but with all that being said, these are just my personal thoughts and i'm not a financial advisor. So please do your own research, but i would love to know your thoughts and opinions on the company in a comment below and also feel free to post any suggestions or recommendations for what i should cover next, thanks for watching to this point in the video, i Truly appreciate your support.

If you're looking for a group of people who talk about this type of stuff on a daily basis, i would recommend smd trading, there's a link in the description below and if you found value in this video. Let me know by hitting the like button, if you want to join the moon game subscribe to the channel and don't forget to turn on your notification thanks again and until next time best of luck in the markets, you.