LPE bounce off historical supportLPE a novel Queensland based discount energy provider with consistent revenue growth has proven to have strong support historically at 2.3c. The stock has over the past few sessions been strongly absorbed in this range and now appears to be nearing a break point. The growing revenues and approach to the spec dream of being cash flow positive signal to me that this should be to the upside. Looking for an initial target of 2.8c with scope to improve should the sector gain interest. Often the ASX XEC market softens around October and investors turn to utilities as a safe haven to prevent losses in the highly speculative mining sector. This could add significant drive to the price action as the stock remains tightly traded.
