L&L Energy Looks Primed to Run Higher

| About: L&L Energy, (LLEN)

L&L Energy (NASDAQ:LLEN), a stock I recommended as a "crouching tiger" on February 7th when it was trading at $6.00, has been consolidating for the past few weeks in the $9.50 to $10.00 range, and now looks primed to make a run into the mid-teens.

The stock has given several bullish technical signals in the past few sessions, and I expect it will soon overcome short-term selling pressure and move up to its intermediate range point and figure target price of $15.75.

At the end of his presentation on Tuesday at the Red Chip investor conference, the company's VP of U.S. operations indicated that he expects this coming quarter's results will exceed those of the prior quarter, when earnings per share quadrupled year-on-year. With an earnings growth rate well over 50 percent--perhaps over 100 percent for the coming year or two--and a PE of just 6, this is an extraordinarily under-priced stock.

Current Price: $9.57
52-Week Range: $0.55-$10.60
EPS: (NYSE:TTM) 1.49*
P/E: 6.4x
PEG: 0.12*
Price Objective: $15.75.

* Based on C.O.P. fully-diluted estimates.

The company has an aggressive strategy of making accretive acquisitions, and there is a real possibility that LLEN may itself become an acquisition target. I am looking for the price to close above $10.00 as an indication that the sellers have moved to the sidelines, and I plan to add to my position as the stock continues its run.

Disclosure: Long LLEN.