Ford Equity Research upgrades L&L ENERGY from HOLD to BUY.04/25/2014?
BUY Upgrade 4/25/14
We project that LLEN will outperform the market over the next 6 to 12 months. This projection is based on our analysis of three key factors that influence common stock performance: earnings strength, relative valuation, and recent price movement.
EPS decreased from $0.81 to an estimated $0.54 over the past 5 quarters indicating a declining growth rate. Analyst forecasts have recently been raised.
L & L Energy is engaged in coal operations in Yunnan and Guizhou provinces in the southern part of the People’s Republic of China. As of Apr 30 2013, the company had the right to extract coal from five mines in Yunnan and Guizhou provinces: the DaPuAn mine and the SuTsong mine in Yunnan Province, and the WeiShe mine, the LaShu mine and the LuoZhou mine in Guizhou Province. In addition to coal mining, the company engages in coal wholesale and distribution via three subsidiaries: Kunming Biaoyu Industrial Boiler Co., Ltd., Yunnan L&L Tai Fung Coal Co., Ltd and DaXing L & L Coal Co., Ltd. The company also has coal washing operations, which involve crushing coal and washing out ash and soluble sulfur compounds.
LLEN Price Performance Ford Valuation Bands Valuation bands based on the highest and lowest P/E ratio in the past five years applied to the trailing 12 month operating earnings. Price (US$).....
Charts show valuation between $2.40 and 3.50...
Expected earnings per share - 75c (down from 0.81)
Annual Revenues - 190 MM (down from 199 MM)
Book value per share $ 5.70
