LVL ENERGY FUND PLCUpdated L V L ENERGY FUND PLC - LVEF.N0000 (CSE/Colombo Stock Exchange)
Strategy
Recovery from Earnings Recession.
- Strong recovery in earnings during Q4
- Q4 EPS LKR 0.54
- Forward 12M PE 2.17
- NAV LKR 9.60 (After adjusting close to LKR 1/share as currency loss (LKR appreciation/USD)
- 52 W high/low LKR 6.90/LKR 4.00
- 1/5 Rights Issue concluded last week (Issue Price LKR 4)
Technical Analysis (Chart Patterns)
* Currently LVEF is trading in Descending Wedge pattern, which is yet to break out.
* During 2020 upward cycle descending wedge break out happened after MA 9/20 cross on weekly basis. Currently WMA 9 is curving towards WMA 20, indicating potential upward break out.
Potential Pattern Targets
* Multi week descending wedge target LKR 7.30
* On previous cycle (started on June 2020) descending wedge break and WMA 9/20 cross produced a 90% upward move that lasted 525 days.
* During 2020 cycle Q4 EPS was LKR 0.17 cts & NAV LKR 7.58 vs current Q4 EPS of LKR 0.54 cts & NAV of LKR 9.60
Fundamentals & business outlook
* As company is an energy producer operating in Sri Lanka & Bangladesh, we can safely assume earnings will continue similar to Q4
* If LKR started to depreciate towards Q4 2024/25 FY (After permitting vehicle imports), LVEF will benefit from currency gains
Recovery from Earnings Recession.
- Strong recovery in earnings during Q4
- Q4 EPS LKR 0.54
- Forward 12M PE 2.17
- NAV LKR 9.60 (After adjusting close to LKR 1/share as currency loss (LKR appreciation/USD)
- 52 W high/low LKR 6.90/LKR 4.00
- 1/5 Rights Issue concluded last week (Issue Price LKR 4)
Technical Analysis (Chart Patterns)
* Currently LVEF is trading in Descending Wedge pattern, which is yet to break out.
* During 2020 upward cycle descending wedge break out happened after MA 9/20 cross on weekly basis. Currently WMA 9 is curving towards WMA 20, indicating potential upward break out.
Potential Pattern Targets
* Multi week descending wedge target LKR 7.30
* On previous cycle (started on June 2020) descending wedge break and WMA 9/20 cross produced a 90% upward move that lasted 525 days.
* During 2020 cycle Q4 EPS was LKR 0.17 cts & NAV LKR 7.58 vs current Q4 EPS of LKR 0.54 cts & NAV of LKR 9.60
Fundamentals & business outlook
* As company is an energy producer operating in Sri Lanka & Bangladesh, we can safely assume earnings will continue similar to Q4
* If LKR started to depreciate towards Q4 2024/25 FY (After permitting vehicle imports), LVEF will benefit from currency gains
Trade active
Reaching BO point with heavy volume.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.