LDO Long-Term and Short-Term Trading Opportunity 1expect LDO to increase in value to around 7.25+- Euro in 1 month+-, expect LDO to increase in value to around 11.50+- in a year or so
I have opened a position at 6.19(got in early today), position size is 5000 shares.
I have set up 2 take profits, one at 7.00-7.25+- for 3000 shares, the other one is a short-term investing goal of around 11.50+- per share take profit.
Stop Loss is around 4.00+- (will be adjusted accordingly, this is just a rough stop loss).
The company share value is very undervalued, and it is showing that earnings are returning or that the state of the company is becoming a bit more stabler than when the coronavirus crash occurred, the share price is somewhat recovering, so its not just cheap in my eyes, it also looks like the company itself is recovering somewhat, I expect next earnings release to be positive or even if it is a negative surprise, to be in the positive at least, I expect the company to re-introduce dividends soon, don't know how soon, but lets say max a year, when this happens share price should surge upward...
Don't know much about fundamentals but what I do know is that the debt situation is still under control for this company, debt to equity still does not look that much worse than before the coronavirus situation, this company is also somewhat funded and backed by the government and I believe it is dealing in products and services that will stay in demand in the next 10 years etc.
I don't see order & security slacking in the future, I expect it to increase in demand&usage, both individual organizations, and governments will require it more on both domestic fronts (police etc.) and international fronts (military)
Naturally, with more people, more demand, less supply, there will be more chaos, and then one would think the demand for order and security(defense) will increase.
The technicals point out for me that if the price continues to go down from here, it might go to the low 5's, but in the longer-term it seems very likely to recover to 7/8 at least.|
I am actually allocating around 50% of the amount I want to allocate in case a correction next year pushes the share price even lower so that I can look at other opportunities without needing to close this position.
