LTMAY Bullish Trading IdeaDisclaimer, these ideas are for my records of what I see in the market after taking a trade. It will help me document the reason of why I took the trade so I can have a track record. And as such, this is not a financial advice.
I've been checking this stock since last year 2023. During the year, the company was in a strong bearish trend until it made a change of character (CHoCH).
In which, bottom monthly demand zone was already mitigated, leaving only an unmitigated demand zone that price will most likely reach again to mitigate.
Changing to the daily timeframe, it is possible to adjust the demand zones to gain more accuracy of the mitigated zones. Additionally, it is possible to see that the stock is building liquidity to be taken just above the unmitigated demand zone.
Additionally, the company's Q1 2024 report shows that the company is recuperating from the 2022 bankruptcy, and now they are growing and expanded two more airplanes to cover the flight demand, see summary done with ChatGPT 4.0 at the end. The Q1 2024 summary can be downloaded from the company's site.
Taking in consideration that the all time high of the company was around $32.68, and taking in consideration of the Q1 results, plus the price action analysis, I'll be investing in the company at the highlighted demand area and hold the stock to until we reach $32.68 again. This will be a long-term investment on my end and given the potential rewards, I feel that this is to be taken in consideration.
=== START OF SUMMARY FOR THE Q1 2024 RESULTS ===
- Profit:
- Operating Income: They made $441 million from their operations, a big increase of 56.8% from last year.
- Net Income: Their total profit was $259 million, which is up 84.1% from last year.
- EBITDA: Earnings before interest, taxes, depreciation, and amortization were $774 million, up 38.8% from last year.
Highlights
- Passengers:
- They flew 20.2 million passengers, which is 19.4% more than last year.
- International Flights: Passenger numbers increased by 32.5%.
- Domestic Flights in Chile, Colombia, Ecuador, Peru: Passenger numbers increased by 26.0%.
- Domestic Flights in Brazil: Passenger numbers increased by 9.1%.
- Capacity Growth: They increased their overall flight capacity by 17.5%.
- International Flights: Capacity increased by 25.2%.
- Domestic Flights in Chile, Colombia, Ecuador, Peru: Capacity increased by 21.9%.
- Domestic Flights in Brazil: Capacity increased by 4.7%.
- Profit Margin: They had an operating profit margin of 13.9%.
- Cash Generation: They generated $137 million in cash, ending the quarter with $3.0 billion in total available cash.
Financial Position
- Total Assets: They own assets worth $14.9 billion.
- Total Debts: They owe $14.3 billion.
- Total Equity: The remaining value after debts is $588 million.
- Debt Details:
- Their total debt is $7.1 billion.
- After accounting for their cash, their net debt is $5.2 billion.
- Leverage: Their leverage ratio, which measures debt relative to earnings, is 1.9x.
Operational Achievements
- Fleet Expansion: They added 1 Boeing 787-9 and 2 Airbus A321Neo planes, bringing their total fleet to 336 aircraft.
- Fuel Hedging: They have hedged (protected against price changes) 32% of their estimated fuel consumption for the second quarter of 2024.
Future Expectations for 2024
- Revenue: They expect to earn between $12.8 and $13.1 billion this year.
- Earnings: They expect their adjusted earnings (EBITDAR) to be between $2.75 and $3.05 billion, higher than their previous estimate.
- Capacity Growth:
- Overall, they plan to increase flight capacity by 14% to 16%.
- For domestic flights in Brazil, growth will be 8% to 10%.
- For domestic flights in Spanish-speaking countries, growth will be 14% to 16%.
- For international flights, growth will be 18% to 20%.
Additional Information
- Credit Rating Upgrades: Credit rating agencies have upgraded their ratings due to improved financial health.
- Dividends: They will pay out $175 million in dividends to shareholders, which is 30% of their net income from last year.
- New York Stock Exchange: They are planning to relist their shares on the NYSE.
Management Commentary
- The first quarter was very strong, setting new records thanks to high demand and cost-saving measures.
- They continue to expand their network and maintain a strong market position.
- They are focusing on using digital tools and artificial intelligence to improve customer service and operational efficiency.
LTM trade ideas
LTMAYLargest airline in Latin America, worth keeping an eye. I think it can be bought lower and expect it to reach $1 or more within 1-2 years. No position, only for educational purposes.
Soon airports opening in ChileEven though LTM is under 11th chapter review, the soon end of covid lockdown and the airport reopening will send the stock price up to $2500
$LTM LATAM Airlines Group breakout Potential
Possible breakout form descending channel imminent
RSI is in strong uptrend
MACD reversing and Histogram ticking higher
Company profile
LATAM Airlines Group SA is holding company, which engages in the provision of passenger air transportation and cargo services. The Air Transportation segment corresponds to the route network for air transport. The Multiplus Coalition and Loyalty Program segment offers a coalition system, interrelated among its members, along with being a government entity with a separately business and not directly related to air transport. The company was founded in 1929 and is headquartered in Las Condes, Chile.
LTM: $2.25 Price Target: High Risks = High ReturnsFirst off, please don't take anything I say seriously or as financial advice. As always, this is on an opinion based basis. That being said, here are a few of my insights. Currently, LTM has reached a spike after its bankruptcy protection filing. For people to say that LTM (which is at a dire financial position), will receive another spike is like listening to Johnny Cash's Ring of Fire , while on fire. It is a high risk pick, but I still think it is worth it. Realistically, I think a price target of $2.25 is imminent for a quick profit turnover. This is especially true if support continues.
LTM Filed for Bankruptcy ProtectionHello,
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South American Giant Latam Airlines Files for Bankruptcy Protection
Latam Airlines Group (NYSE: LTM) has filed for Chapter 11 protection in New York as South America's largest carrier tries to work through a drop in demand caused by the COVID-19 pandemic.
Latam is based in Chile but has affiliates in Brazil, Paraguay, and Argentina. The airline said it has received $900 million in debtor-in-possession financing, funds that allow it to sustain operations while in bankruptcy, from existing shareholders the Cuetos and Amaro families, as well as from Qatar Airways.
Airlines around the globe have been hard hit by the pandemic, and Latin American airlines in particular have suffered due to bans on international travel. Latam earlier this month announced plans to cut more than 1,800 jobs, and the airline has reduced its total schedule by about 95%. Latam is the second major South American airline to fly into bankruptcy in May, following Colombia's Avianca Holdings.
"Latam entered the COVID-19 pandemic as a healthy and profitable airline group, yet exceptional circumstances have led to a collapse in global demand and has not only brought aviation to a virtual standstill, but it has also changed the industry for the foreseeable future," CEO Roberto Alvo said in a statement. "We have implemented a series of difficult measures to mitigate the impact of this unprecedented industry disruption, but ultimately this path represents the best option to lay the right foundation for the future of our airline group."
The filing creates additional uncertainty for a number of U.S.-based companies as well. Delta Air Lines (NYSE: DAL) is a Latam shareholder, investing nearly $2 billion in the airline just last year. Delta is likely to see that equity stake wiped out but will need to maneuver carefully to try to retain a key partner in the region.
Airlines can also use bankruptcy to cancel plane leases and trim their order books. Although Latam has not yet disclosed its future fleet plans, the airline had more than 300 aircraft prior to the pandemic and has more than two dozen new planes on order from Boeing and Airbus.
CONTRIBUTOR
Lou Whiteman The Motley Fool
PUBLISHED
MAY 26, 2020 9:15AM EDT
So the question remains, will LTM make a comeback or come to nothing? I let you decide.
Good Luck
Cheers!
LATAM airlines looks like a good buy. What do you guys think?Will go long NYSE:LTM today, does anyone agree with me?
LTM long: multiple bull flags in upwards trend.NYSE:LTM
Looking to enter long trade at 10.16 with a limit at 10.70 (resistance line) and a stop at 9.89 for a 2:1 risk:reward. Potential 2nd entry on 17Jul at top of first bearish candle (10.29) with stop at base of 16Jul candle.
LATAM Airlines Group.Chilean Stocks.
Pure Technical Projection.
Huge C&H:
Cup: From March 19 2013 (the day before the big spike) to 30 Jan. 2018.
Handle: From Feb. 1 2018 to Sept. 11 2018. Right in the 61.8% retrace from the lower to the highest point of the cup.
In the reversal one small iH&S completed and one big iH&S in process to close the Head and than possibly retest 6650 to paint the right shoulder.
MACD and RSI have converge against price before the reversal.
In case this is right, this stock will offer several opportunities. Other targets are beyond the presented frame.
Support at 6000 must be respected to make this valid.
