UMH Properties Inc. 6.375% Series D Cumulative Redeemable Preferred Stock Liquidation Preference \$25 per share Research Report

## Summary

Stock market also called as equity market is the aggregation of the sellers and buyers. It is concerned with the domain where the shares of various public listed companies are traded. For predicting the growth of economy, stock market acts as an index. Due to the nonlinear nature, the prediction of the stock market becomes a difficult task. But the application of various machine learning techniques has been becoming a powerful source for the prediction. We evaluate UMH Properties Inc. 6.375% Series D Cumulative Redeemable Preferred Stock Liquidation Preference \$25 per share prediction models with Transductive Learning (ML) and Paired T-Test1,2,3,4 and conclude that the UMH^D stock is predictable in the short/long term. According to price forecasts for (n+4 weeks) period: The dominant strategy among neural network is to Hold UMH^D stock.

## Key Points

1. What statistical methods are used to analyze data?
2. Can machine learning predict?
3. What is the use of Markov decision process?

## UMH^D Target Price Prediction Modeling Methodology

We consider UMH Properties Inc. 6.375% Series D Cumulative Redeemable Preferred Stock Liquidation Preference \$25 per share Stock Decision Process with Transductive Learning (ML) where A is the set of discrete actions of UMH^D stock holders, F is the set of discrete states, P : S × F × S → R is the transition probability distribution, R : S × F → R is the reaction function, and γ ∈ [0, 1] is a move factor for expectation.1,2,3,4

F(Paired T-Test)5,6,7= $\begin{array}{cccc}{p}_{a1}& {p}_{a2}& \dots & {p}_{1n}\\ & ⋮\\ {p}_{j1}& {p}_{j2}& \dots & {p}_{jn}\\ & ⋮\\ {p}_{k1}& {p}_{k2}& \dots & {p}_{kn}\\ & ⋮\\ {p}_{n1}& {p}_{n2}& \dots & {p}_{nn}\end{array}$ X R(Transductive Learning (ML)) X S(n):→ (n+4 weeks) $\begin{array}{l}\int {r}^{s}\mathrm{rs}\end{array}$

n:Time series to forecast

p:Price signals of UMH^D stock

j:Nash equilibria (Neural Network)

k:Dominated move

a:Best response for target price

For further technical information as per how our model work we invite you to visit the article below:

How do AC Investment Research machine learning (predictive) algorithms actually work?

## UMH^D Stock Forecast (Buy or Sell) for (n+4 weeks)

Sample Set: Neural Network
Stock/Index: UMH^D UMH Properties Inc. 6.375% Series D Cumulative Redeemable Preferred Stock Liquidation Preference \$25 per share
Time series to forecast n: 23 Nov 2022 for (n+4 weeks)

According to price forecasts for (n+4 weeks) period: The dominant strategy among neural network is to Hold UMH^D stock.

X axis: *Likelihood% (The higher the percentage value, the more likely the event will occur.)

Y axis: *Potential Impact% (The higher the percentage value, the more likely the price will deviate.)

Z axis (Yellow to Green): *Technical Analysis%

## Adjusted IFRS* Prediction Methods for UMH Properties Inc. 6.375% Series D Cumulative Redeemable Preferred Stock Liquidation Preference \$25 per share

1. If a call option right retained by an entity prevents a transferred asset from being derecognised and the entity measures the transferred asset at fair value, the asset continues to be measured at its fair value. The associated liability is measured at (i) the option exercise price less the time value of the option if the option is in or at the money, or (ii) the fair value of the transferred asset less the time value of the option if the option is out of the money. The adjustment to the measurement of the associated liability ensures that the net carrying amount of the asset and the associated liability is the fair value of the call option right. For example, if the fair value of the underlying asset is CU80, the option exercise price is CU95 and the time value of the option is CU5, the carrying amount of the associated liability is CU75 (CU80 – CU5) and the carrying amount of the transferred asset is CU80 (ie its fair value)
2. In accordance with paragraph 4.1.3(a), principal is the fair value of the financial asset at initial recognition. However that principal amount may change over the life of the financial asset (for example, if there are repayments of principal).
3. Subject to the conditions in paragraphs 4.1.5 and 4.2.2, this Standard allows an entity to designate a financial asset, a financial liability, or a group of financial instruments (financial assets, financial liabilities or both) as at fair value through profit or loss provided that doing so results in more relevant information.
4. When designating risk components as hedged items, an entity considers whether the risk components are explicitly specified in a contract (contractually specified risk components) or whether they are implicit in the fair value or the cash flows of an item of which they are a part (noncontractually specified risk components). Non-contractually specified risk components can relate to items that are not a contract (for example, forecast transactions) or contracts that do not explicitly specify the component (for example, a firm commitment that includes only one single price instead of a pricing formula that references different underlyings)

*International Financial Reporting Standards (IFRS) are a set of accounting rules for the financial statements of public companies that are intended to make them consistent, transparent, and easily comparable around the world.

## Conclusions

UMH Properties Inc. 6.375% Series D Cumulative Redeemable Preferred Stock Liquidation Preference \$25 per share assigned short-term B2 & long-term B1 forecasted stock rating. We evaluate the prediction models Transductive Learning (ML) with Paired T-Test1,2,3,4 and conclude that the UMH^D stock is predictable in the short/long term. According to price forecasts for (n+4 weeks) period: The dominant strategy among neural network is to Hold UMH^D stock.

### Financial State Forecast for UMH^D UMH Properties Inc. 6.375% Series D Cumulative Redeemable Preferred Stock Liquidation Preference \$25 per share Stock Options & Futures

Rating Short-Term Long-Term Senior
Outlook*B2B1
Operational Risk 3136
Market Risk9055
Technical Analysis5083
Fundamental Analysis3471
Risk Unsystematic7459

### Prediction Confidence Score

Trust metric by Neural Network: 76 out of 100 with 733 signals.

## References

1. V. Konda and J. Tsitsiklis. Actor-Critic algorithms. In Proceedings of Advances in Neural Information Processing Systems 12, pages 1008–1014, 2000
2. E. Collins. Using Markov decision processes to optimize a nonlinear functional of the final distribution, with manufacturing applications. In Stochastic Modelling in Innovative Manufacturing, pages 30–45. Springer, 1997
3. R. Sutton and A. Barto. Introduction to reinforcement learning. MIT Press, 1998
4. Imbens G, Wooldridge J. 2009. Recent developments in the econometrics of program evaluation. J. Econ. Lit. 47:5–86
5. Athey S, Bayati M, Imbens G, Zhaonan Q. 2019. Ensemble methods for causal effects in panel data settings. NBER Work. Pap. 25675
6. Canova, F. B. E. Hansen (1995), "Are seasonal patterns constant over time? A test for seasonal stability," Journal of Business and Economic Statistics, 13, 237–252.
7. Bastani H, Bayati M. 2015. Online decision-making with high-dimensional covariates. Work. Pap., Univ. Penn./ Stanford Grad. School Bus., Philadelphia/Stanford, CA
Frequently Asked QuestionsQ: What is the prediction methodology for UMH^D stock?
A: UMH^D stock prediction methodology: We evaluate the prediction models Transductive Learning (ML) and Paired T-Test
Q: Is UMH^D stock a buy or sell?
A: The dominant strategy among neural network is to Hold UMH^D Stock.
Q: Is UMH Properties Inc. 6.375% Series D Cumulative Redeemable Preferred Stock Liquidation Preference \$25 per share stock a good investment?
A: The consensus rating for UMH Properties Inc. 6.375% Series D Cumulative Redeemable Preferred Stock Liquidation Preference \$25 per share is Hold and assigned short-term B2 & long-term B1 forecasted stock rating.
Q: What is the consensus rating of UMH^D stock?
A: The consensus rating for UMH^D is Hold.
Q: What is the prediction period for UMH^D stock?
A: The prediction period for UMH^D is (n+4 weeks)