LL Flooring Holdings, Inc. : Back to the USD 74 for a new impetus
By Arnaud Le Berre
Entry price | Target | Stop-loss | Potential |
---|---|---|---|
US$84.2 | US$82.6 | US$71.3 | -1.9% |
The company listed on the NYSE announced financial results for the first quarter of 2013 better than expected. Net sales increased by 22.5% to $230 million and net income increased by 92.5% to $16 million. The group raised full year outlook, that is to say the opening of 25 to 35 new store location. Besides, they expect an EPS in the range of $2.10 to $2.35.
Prices are up for several months. However, in the short term stock should come back on the USD 74 short term resistance. At this point, the 20-day moving average could give a new bullish impetus to the security.
Therefore, taking into account the strong fundamentals, it seems opportune to take a long position near the USD 74. The first target price will be fixed at USD 82.6. A stop loss will be set at 71.3.