Is it time for Value Stocks? Lumen Technologies case study
מעודכן
In a market where most stock valuations have skyrocketed to Mars, Lumen Technologies is one of the bright exceptions,
being perhaps one of the safest investments available, for the investor to sleep soundly at night. LUMN has great fundamentals
and is a much underestimated VALUE STOCK, ready to change the declining trend of many years to rising.
In an article he wrote a year ago, Jeff Storey, CEO of Lumen Technologies (rebranded CenturyLink), stated: ‘During the last century,
telephone companies pioneered early networks by standing up poles and stringing phone wires across the nation. Today, the new
pioneers are tech companies like CenturyLink who are standing up networks and stretching fiber across the globe—and in the process,
making exciting technologies like 5G possible’.
Lumen Technologies is an international facilities-based communications company engaged primarily in providing a broad array
of integrated services to business and residential customers in over 60 countries. Lumen’s enterprise technology platform enables
companies to capitalize on emerging applications and power the 4th Industrial Revolution (4IR).
Lumen Technologies states that ‘Lumen is the fastest, most secure platform for next-gen business applications and data, integrating global
network infrastructure, cloud connectivity, edge computing, connected security, voice, collaboration and enterprise-class services into a seamless experience’.
Lumen is ranked No. 29 on Washington Technology's 2020 Top 100 list of federal government IT contractors.
From a fundamental analysis point of view, LUMN with capitalization 12.54B (11.43 /share), P/E 9.57, P/S 0.58, P/B 0.91, EV/EBITDA 5.27,
Div. Yield 8.85%, Intrinsic Value 16 $, Buffetts Limit 18$, can be considered as a cheap stock. The only negative element is Debt to equity ratio which is 2.41.
From a technical analysis point of view, LUMN’s monthly diagram shows that the stock is possibly in the process of trend changing. The three
preceding years, while the stock reaching its bottom the volume rose to historical levels, which means that shares changed hands from retail
to smart money. Also notice the break-up of the RSI declining trend line and the divergences that appeared.
Next follows LUMN’s daily diagram.
Notice that stock’s price is over 200d, 30d and 9d SMAs. Additionally, notice the consolidation and resistance zones and that the RSI is in high overbought zone,
so the correction of prices or a short period of consolidation is possible.
Next follows LUMN’s 30 minutes diagram.
Notice that stock’s price is over 200(30m), 30(30m) and 9(30m) SMAs. Also notice the up trending channel and that prices are in the middle of the channel and the
Bollinger Bands, while MACD and RSI are declining, indicating a possible pullback or more likely a consolidation in these levels, until reaching the channel’s lower trend line.
Conclusively, I think no investor should ignore LUMN, because it is very likely to be A SUCCESS TURN TREND STORY that may give big gains in 2021 (and next years) with MINIMUM INVESTMENT RISK.
Of course the stock is suitable not only for long term investors, but also for short and mid term traders as well.
Finally, I encourage you not to lean on my analysis but to make your own research for the company before investing in LUMN.
being perhaps one of the safest investments available, for the investor to sleep soundly at night. LUMN has great fundamentals
and is a much underestimated VALUE STOCK, ready to change the declining trend of many years to rising.
In an article he wrote a year ago, Jeff Storey, CEO of Lumen Technologies (rebranded CenturyLink), stated: ‘During the last century,
telephone companies pioneered early networks by standing up poles and stringing phone wires across the nation. Today, the new
pioneers are tech companies like CenturyLink who are standing up networks and stretching fiber across the globe—and in the process,
making exciting technologies like 5G possible’.
Lumen Technologies is an international facilities-based communications company engaged primarily in providing a broad array
of integrated services to business and residential customers in over 60 countries. Lumen’s enterprise technology platform enables
companies to capitalize on emerging applications and power the 4th Industrial Revolution (4IR).
Lumen Technologies states that ‘Lumen is the fastest, most secure platform for next-gen business applications and data, integrating global
network infrastructure, cloud connectivity, edge computing, connected security, voice, collaboration and enterprise-class services into a seamless experience’.
Lumen is ranked No. 29 on Washington Technology's 2020 Top 100 list of federal government IT contractors.
From a fundamental analysis point of view, LUMN with capitalization 12.54B (11.43 /share), P/E 9.57, P/S 0.58, P/B 0.91, EV/EBITDA 5.27,
Div. Yield 8.85%, Intrinsic Value 16 $, Buffetts Limit 18$, can be considered as a cheap stock. The only negative element is Debt to equity ratio which is 2.41.
From a technical analysis point of view, LUMN’s monthly diagram shows that the stock is possibly in the process of trend changing. The three
preceding years, while the stock reaching its bottom the volume rose to historical levels, which means that shares changed hands from retail
to smart money. Also notice the break-up of the RSI declining trend line and the divergences that appeared.
Next follows LUMN’s daily diagram.
Notice that stock’s price is over 200d, 30d and 9d SMAs. Additionally, notice the consolidation and resistance zones and that the RSI is in high overbought zone,
so the correction of prices or a short period of consolidation is possible.
Next follows LUMN’s 30 minutes diagram.
Notice that stock’s price is over 200(30m), 30(30m) and 9(30m) SMAs. Also notice the up trending channel and that prices are in the middle of the channel and the
Bollinger Bands, while MACD and RSI are declining, indicating a possible pullback or more likely a consolidation in these levels, until reaching the channel’s lower trend line.
Conclusively, I think no investor should ignore LUMN, because it is very likely to be A SUCCESS TURN TREND STORY that may give big gains in 2021 (and next years) with MINIMUM INVESTMENT RISK.
Of course the stock is suitable not only for long term investors, but also for short and mid term traders as well.
Finally, I encourage you not to lean on my analysis but to make your own research for the company before investing in LUMN.
הערה
DisclaimerThe writer of this text is not an investment advisor. The preceding content is intended to be used for informational and educational purposes only. It is not an advice or inducement for the purchase or sale of the products mentioned. Before making any investment based on your own personal circumstances, it is very important to do your own research and analysis and also take independent financial advice from a professional to verify any information provided here.
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