Liberty Latin America | LILA | Long at $6.37Liberty Latin America NASDAQ:LILA is a leading telecommunications company operating in over 20 countries across Latin America and the Caribbean under the consumer brands Flow, Liberty Communications, Más Móvil, BTC and Liberty Costa Rica. Insiders have been loading up shares after the recent drop post earnings, which got my attention. The company is expected to be profitable starting in 2025, but its stock has taken a tremendous hit over the past few years. On paper, the future looks bright for this large telecommunications company and it is trading at good value compared to peers and industry.
From a technical analysis perspective, my selected historical simple moving average lines are connecting with the price (which often means a future breakout). The recent dip, based on the financials and insider buying, may be a hidden opportunity for a future run up and the stock consolidates. However, as always, stay cautious. Thus, at $6.37, NASDAQ:LILA is in a personal buy zone.
Target #1 = $7.00
Target #2 = $8.00
Target #3 = $9.00
Target #4 = $10.00
LILA
LILA long [Target: $20]1) Given the current market dynamics, now may be a great time to buy "value" stocks. For example, I also really like $MO (roughly 8% dividend yield right now and a beautiful ascending triangle reversal pattern on the weekly chart).
2) I like Elon Musk but the company is grossly over-valued, and his $1.5 billion investment in bitcoin has a bubble like sentiment. Not that this provides any direct information about LILA's stock price, but my intuition is that it signals that the shift from growth to value in near.
3) The stocks with the highest daily volumes right now are meme stocks and penny stocks that have negative EPS and are in horrible financial situations.
4) The S&P500 growth stocks have significantly out-performed the S&P500 value stocks, but I believe this trend will start to shift in the near future.
5) Recent 13F filings show that value minded investors also find LILA an attractive buy right now.
**Not stock advice, do your own research**
LILA nearby breakout area, major resistanceLILA is another stock with positions recently added on to by investment group Dodge & Cox. The stock has been trending down since it's initial high, and prices are once again finding an area where they are to either continue on higher, or go down further. The stock has had some slight increase in volume recently, but prices are still below the major resistance area. The price is also nearby to the 200 MA, so there is the chance for them to pass through and use it as a support area to continue further up. This is a descending triangle, so the energy of the prices should react positively to the geometry of what's going on. A trade can be taken with a 2:1 R/R where the prices can move a full 2R from the last decent green bar before encountering some more resistance at the psychological $22.00 level where prices previously consolidated.