Recommendation: Speculative Buy
| Entry Date | Symbol | Recommendation | Entry Price (USD) | Target 1 (USD) | Target 2 (USD) | Holding Duration | Potential Upside |
|---|---|---|---|---|---|---|---|
| 15 Oct, 24 | PLL | Speculative Buy | USD 13.35 | USD 14.55 | USD 15.62 | 1 day | 17.0% |
Data Powered by EOD Historical Data (“EODHD”).
Piedmont Lithium Inc., a development stage company, engages in the exploration and development of resource projects in the United States. The company primarily holds a 100% interest in the Carolina Lithium Project that include an area of approximately 3,706 acres located within the Carolina Tin-Spodumene Belt situated to the northwest of Charlotte, North Carolina in the United States. It also owns a real property of approximately 5 acres in Bessemer City, North Carolina; and 61-acre property in Kings Mountain, North Carolina. The company was founded in 2016 and is headquartered in Belmont, North Carolina.
Higher Liquidity: Current Ratio of 2.33x in Q2 FY24 vs Industry Median of 2.17x
Lower Balance Sheet Risk: Asset-Equity of 1.13x in Q2 FY24 vs Industry Median of 1.66x
Negative Profitability: Net Income of USD -13.33 mn in Q2 FY24
Lower Cash Balance: Cash & Equivalents of USD 59.0 mn in Q2 FY24 vs USD 88.7 mn in Q2 FY23
Project Development Delays, Resource Estimation, Dependence on Key Projects, Partnership and Joint Venture Risks, Market Access and Logistics, etc.
| Entry Price | Support* | Target 1 | Target 2 |
|---|---|---|---|
| 13.35 | 11.61 | 14.55 | 15.62 |
Data Source: REFINITIV, Analysis: StockNextt
*Support can be considered as an indicative stop-loss, and if prices move below that level on closing basis individuals may evaluate exiting the position depending on their risk appetite, previous holdings, and other factors considered. The support and resistance levels may need to be re-evaluated within 4-6 weeks’ time frame depending on the stock price movements from the date of recommendation on the stock.
On the daily chart, PLL is exhibiting strong bullish momentum, trading above key horizontal support levels and a rising trend line. Increasing volume at these levels, coupled with a Relative Strength Index (RSI) of 63.98, suggests healthy upward potential. The price is also above the 21-period and 50-period Simple Moving Averages (SMA), which may act as additional support. Key support levels are USD 11.61 and USD 12.42 , while resistance is at USD 14.55 and USD 15.62, indicating a favourable outlook for continued gains.
As per the above-mentioned technical indicators analysis, Piedmont Lithium Inc (NYSE: PLL) is looking technically well-placed on the chart, and a ‘Speculative Buy’ recommendation has been given on the stock at USD 13.35 as of 14 October 2024.
Data Powered by EOD Historical Data (“EODHD”).
Sector: Basic Materials Industry: Other Industrial Metals & Mining
| Company | Change (USD) | Price (USD) | Trailing PE (x) | Forward PE (x) | Price Sales TTM (x) | Price to Book Value (x) | Enterprise Value to Revenue (x) | Enterprise Value to EBITDA (x) |
|---|---|---|---|---|---|---|---|---|
| PLL Piedmont Lithium Ltd ADR |
0.11 1.20% | 9.27 | - | 6.28 | 6.17 | 0.74 | 4.40 | -9.5339 |
| BHP BHP Group Limited |
-0.205 0.41% | 49.20 | 13.32 | 11.30 | 3.15 | 3.88 | 3.35 | 6.30 |
| BHPLF BHP Group Limited |
-0.14 0.57% | 24.61 | 13.29 | 11.21 | 3.18 | 3.85 | 3.35 | 6.30 |
| RTNTF Rio Tinto Group |
-1.51 2.01% | 73.49 | 17.11 | 11.85 | 2.81 | 2.79 | 2.88 | 7.27 |
| RTPPF Rio Tinto Group |
- -% | 60.40 | 14.16 | 9.87 | 2.26 | 2.29 | 2.35 | 5.93 |
Data Powered by EOD Historical Data (“EODHD”).
Related Risks: This report may be looked at from high-risk perspective and recommendations are provided are for a short to medium duration. Recommendations provided in this report are solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc
Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is October 11, 2024. The reference data in this report has been partly sourced from REFINITIV.
Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.
Target: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Target 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Target 2 may act as the crucial resistance level for the stock.
Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.
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