Recommendation: Speculative Buy
| Entry Date | Symbol | Recommendation | Entry Price (CAD) | Target 1 (CAD) | Target 2 (CAD) | Holding Duration | Potential Upside |
|---|---|---|---|---|---|---|---|
| 19 Nov, 24 | LIFT | Speculative Buy | CAD 3.46 | CAD 3.84 | CAD 4.0 | 8 days | 15.6% |
Data Powered by EOD Historical Data (“EODHD”).
Li-FT Power Ltd., a mineral exploration company, engages in the acquisition, exploration, and development of lithium pegmatite projects in Canada. Its flagship property is the 100% owned Yellowknife Lithium Project located in Northwest Territories, Canada. Li-FT Power Ltd. was incorporated in 2021 and is headquartered in Vancouver, Canada.
Debt-Free Company
Increasing Asset Base: Total Assets of CAD 265.7 mn in Q3 FY24 vs CAD 249.0 mn in Q3 FY23
Negative Profitability: Net Margin of CAD -1.43 mn in Q3 FY24
Declining Cash Balance: Cash and Short Term Investments of CAD 2.3 mn in Q3 FY24 vs CAD 17.7 mn in Q3 FY23
Exploration Success Risk, Project Development Delays, Funding and Capital Requirements, Dependence on Key Projects, Operational Risks, etc.
| Entry Price | Support* | Target 1 | Target 2 |
|---|---|---|---|
| 3.46 | 3.0 | 3.84 | 4.0 |
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.
Price Action Analysis (On the Daily Chart)
On the daily chart, LIFT stock prices are sustaining above the falling trendline support level and continuously taking support from the trendline. The recent upside movement in the stock is backed by increasing volumes, further supporting a positive bias. The next resistance level is plotted around CAD 3.95, and the stock may test that level in the short term (2-4 weeks).
Technical Analysis (On the Daily Chart)
On the daily chart, the momentum oscillator RSI (14-Period) is showing a reading of ~57.32 levels, indicating positive momentum. Moreover, the weekly volumes also seem supportive of the upward movement. Further, the stock is trading above the 21-period SMA, which may act as a support level.
As per the above-mentioned price action and technical analysis, Li-FT Power Ltd. is looking technically well-placed on the chart, and a ‘Speculative Buy’ recommendation has been given on the stock. Investment decisions should be made depending on an individual’s appetite for upside potential, risks, and any previous holdings. This recommendation is purely based on technical analysis, and fundamental analysis has not been considered in this report. Below is the summary of our recommendation.
Data Powered by EOD Historical Data (“EODHD”).
Sector: Basic Materials Industry: Other Industrial Metals & Mining
| Company | Change (CAD) | Price (CAD) | Trailing PE (x) | Forward PE (x) | Price Sales TTM (x) | Price to Book Value (x) | Enterprise Value to EBITDA (x) | |
|---|---|---|---|---|---|---|---|---|
| LIFT Li-FT Power Ltd. |
-0.06 2.18% | 2.69 | 22.50 | - | - | 0.54 | -79.7878 | |
| SGML Sigma Lithium Resources Corp |
0.35 2.23% | 16.04 | 117.60 | 12.59 | 6.64 | 11.00 | 7.33 | 37.02 |
| AFM Alphamin Res |
- -% | 1.09 | 15.50 | 9.43 | 3.68 | 3.24 | 2.67 | 5.64 |
| SLI Standard Lithium Ltd |
0.03 1.51% | 2.02 | 3.62 | - | - | 1.61 | 2.70 | |
| ALDE Aldebaran Resources Inc |
0.37 21.14% | 2.12 | - | - | - | 2.67 | -16.8764 |
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 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.
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 November 18, 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.
Disclaimer :
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