Bootom is in for LG Display. Undervalued and looks Bullish
LG Display is the leading manufacturer of displays for companies like Apple, Seagate, Texas Instruments etc...
-In our era of tech companies having an eps of 30+, it's refreshing to see one in the low single digits, truly good value.
-Expansion in a new factory in Vietnam
-LG Display beat earnings expectations by 7%, will continue to beat expectations with holiday season strong shipping volume.
LPL
[LPL] Insane Value, Medium Risk, Local + Global Breakout!It's freaking LG man, this company is fundamentally very strong, they were just making capital investments in their restructuring from LCD to OLED so profits dried up. Similar like TSLA last summer.
There's some risk the new OLED business won't work out too well but the brand here is super strong, product is good quality and I'm confident they can figure it out.
This is a sleeper long term EV/Future Tech play, demand for OLED will go crazy this decade.
Indicators not very helpful for this kinda play.
LG Display / LPL - Undervalued gemP/E of around 5 and dividend yield at 2%, $8.21b Mcap and revenue of $25.7b. Total cash $3.13b or 4.4 bucks per stock, 15% dividend payout, P/B 0.56. Great, modern product in high demand. Read that few times, double-checked it and decided it is a great addition to the portfolio.
Now, the recent news, it was supposed to take-over Samsung's deal for construction of OLED screens for new iPhones, however it fell short and couldn't quite deliver the amount of screens necessary which made AAPL reconsider this deal, bad news - yes, however it never really jumped significantly when the first news of the collaboration came out, so really not much of the hope was priced it. Secondly, it posted first Q loss since 2016...and back then the prices fell to historic supports I think we will see again.
In other news they expect increase in demand and stabilization in material costs so the outlook is bright and their OLED is something market looks forward to massively adopt in their homes, therefore I will be patient and look to enter when this slide reaches critical supports. Keep in mind the fundamentals from the first paragraph and it will all makes sense.
To be continued...
Long LPL on Bullish Price ActionIt's been a while since I've published an idea, but that hasn't worried me. I'm not in the game of trading just to trade. I'm in the game of making as much money as possible. If a move isn't attractive to me, I won't bother making it just for the sake of trading. Most of my recent research has been in foreign markets such as Russia, South Korea, and Vietnam, and a blog post will be up soon about that. In the mean time, let's look at LPL.
LPL's price action is golden, after lower high and higher lows, LPL's chart came into a consolidating triangle pattern and has since broken out on the weekly charts in a bullish manner. I took a position in LPL right when the price action broke the triangle, and risked 1% of my capital. I put my stop below the other end of the triangle which would signal a reversal in the price action and an incorrect thesis on my part.
Trading at 7 times earnings, and 11% discount to book value, LPL has the fundamentals to run, and being in South Korea, an economy that has bullish indicators, I like this play.
As always, shoot holes in this if you want.
All the best,
RC