LUMN:Potetial Reversal For More UpsideAfter testing a strong support zone the price is pushing again higher.
The place where it is now is a bit tricky that is why I placed two possible scenario.
Targets on the chart.
Thank you and Good Luck
LUMN trade ideas
$LUMN Good 4h HBD at support (previous resistances)Needs to hold this support. Could move the stop up, but would be weary of a fake out personally.
Lumen Long AnalysisLumen (more commonly known as CenturyLink) appears to be a failing company sinking in debt. Down more than 70% from its ATH, it has been slow to adapt to a changing market, cut its dividend by more than 50%, and reported a staggering $5.3 billion net loss in 2019. These factors have driven investors away from LUMN, dropping the share price to its lowest point since 1992. Why would anyone buy into this company?
Dividend Sustainability
Although LUMN has cut its dividend from $0.54 to $0.25, it currently holds a yield of 8.7% annually. Dividend yields are usually at these high levels because investors feel that the sustainability of these payouts have significant risks. Lumen's dividend payout ratio for the last four quarters is a dangerous 84%, meaning that the amount that LUMN paid to its shareholders made up 84% of its net income this last quarter. However, net income is an inaccurate indicator of LUMN's ability to pay its dividends when compared to free cash flow, as net income is affected by non-cash expenses such as depreciation and amortization. LUMN's free-cash-flow dividend payout ratio for the last four quarters sits at a much more comfortable 39%. This suggests that LUMN is unlikely to cut its dividend any further. Furthermore, LUMN did not decrease its dividend because of its inability to pay. Rather, the cut was issued in order to free up money to pay off the debt it had leveraged in its acquisition of Level 3 Communications.
Level 3 Communications and Fiber Optic Internet
LUMN 's acquisition of Level 3 Communications in 2017 marked a fundamental shift in Lumen's business model. Not only was Level 3 the largest competitive local exchange carrier, but it was also the third-largest provider of fiber-optic internet access in the United States. Although revenue has been decreasing from standard broadband and landline services, I believe LUMN shows promise in continuing to increase its profitability. It has already begun showing positive data, increasing its operating cash flow by more than 70% from 2017-2019 and continuing to paying off its long-term debt. It also has a current P/E ratio of 9.72, far below the SPY 's ratio of 38.96.
Entry Point
Share Price recently broke out of resistance at $11.50 before breaking the pre-covid high, ultimately reaching a price of $16.60 before reversing back to the $11.50 range. Previous resistance at $11.50 could possibly provide LUMN with support. I believe that it is also worth mentioning that the 200-hour exponential moving average could provide additional support at that range. This suggests that the current price could be an optimal entry point. It is also possible that it could break through support at the $11.50 range where it would likely find support in the $9.75 range.
LUMN’s technical picture on Jan 29The mid- and short-term trend charts are presented. ___
Prompt: New traders should take some time and carefully read the post they will find on my profile entitled 'You can't beat the market'.
Disclaimer
The author 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.
$LUMN Impulse or squeeze?The way the fibs are lining up, I am tending to believe this is an impulse and not just an isolated short squeeze, but my Elliot wave theory understanding is limited at best. I found this stock through option flow, then looked at the chart and thought it looked impulsive, but am aware this is one of the meme stocks and perhaps technical analysis is flawed in the world of meme, I don't know. But the first wave 2.618 happens to line up almost to the tick with the top of wave 3, and the wave 4 has formed a shakeout pattern through the .618 retracement of wave 3. Technically all the rules of an Elliot impulse wave are in tact and for the low price of the options currently vs the projected targets, I had to take a punt on this one. Not financial advice, call your Mom for that, I know I will be calling her later.
one solid recovery play if it turns true Spotted these from the reddit DD madness,
Technical looks solid as well with a revessal in sight on the lower tf , coupled with high volume.
This may be the next good thing
DD
NOKIA and LUMEN yo-yo for the shake of hedge fundsIn the context of the war that broke out on Wall Street between small investors and hedge funds and in which the serious stocks of NOKIA and LUMEN
were unfortunately involved, took place the presented aggressive movement of entrapment of small investors with a -28.40% in Nokia and a -22.46% in LUMEN.
This move cancelled the crossovers of the great resistance of the 200weeks SMA of NOK which is at 5.06 and the 30months SMA of LUMEN which is at 12.83.
One would expect the institutes that organized this move in NOK and LUMN not to act vindictively, to at least respect the breakdown of these important resistances
and not to play with investor confidence in unwritten market rules and technical analysis. Stocks of serious companies with good fundamentals and excellent prospects
should not become yo-yo shattering investment confidence and turning Wall Street into a casino.
Disclaimer
The author 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.
LUMN - TRADE SETUP - BIG UPSIDE POTENTIALHere is my trade setup for LUMN. As for the upside potential, technically it should go way beyond the previous high but I am listing the target as the previous high instead. This gives us a price target of 320%. As far as SL goes, if we get stopped then losses will be -32%. This is an extremely long term trade and I am using it more as a low risk high reward trade for the future with a small amount of capital.
LUMN. If someone wants to bet, this is an extremely safe betYesterday LUMN with an explosive 28% rise decisively broke 30months SMA and closed at $14.59, changing its long-term trend to rising.
It should be stressed that the rise was not by a gap but by continuous purchases that led to a volume of 60 M when the average volume of the last 10 days was 6.4 M.
That is, the rise was not for unloading but for buying cheap shares, which indicates that it is extremely likely that the rise will continue.
The stock was, is and will continue for some time to be an investment opportunity because it is deeply undervalued.
Any price retreat must be seen as a huge opportunity to buy. Even after this 28% rise the stocks has 8.78% dividends yield.
Following are presented the mid- and short-term trend charts.
Disclaimer
The author 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.
LUMN Technical Analysis 🧙With 450,000 route miles of fiber, including over 35,000 route miles of subsea fiber connecting Europe, Asia, and Latin America, Lumen Technologies is one of the United States’ largest telecommunications carriers serving global enterprises. The merger further shifted the company’s operations toward businesses (now 75% of revenue) and away from its legacy consumer business. Lumen offers businesses a full menu of communications services, providing colocation and data center services, data transportation, and end-user phone and Internet service. On the consumer side, Lumen provides broadband and phone service across 37 states, where it has nearly 5 million broadband customers.
If you understand the idea,🎯 press a thumb up! 👍 Have a question? Don't be shy to ask! 🤓 Interested to study how to analyze charts, follow me!
Is it time for Value Stocks? Lumen Technologies case studyIn 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.
LUMN LongIn Monthly Down trend Wedge,
It is possible to form double bottom;
Daily Demand zone confirmation
Daily down trendline breakout
This is a longer term plan, target for 13 months.
Entry 9.8
Stop 8.5
Target1 15;
Target2 22; next monthly resistance
I am not a PRO trader. I need few months to practice trading strategies.
If you like this idea, please use SIM/Demo account to try it, until my trading plans get high winning rate.
Super Value $LUMN Fiber, Double Bottom (Support)Lumen Technologies $LUMN, formerly CenturyLink, is a telecommunications company that was founded in 1930 that investors ditched a few years ago because they thought that the firm only sold dial-up internet. Welcome to 2020 you old farts! Lumen is connected world-wide via it's growing fiber-optic network with fiber to the premises speeds up to 1000 MBPS. Though it's price has been cut by about two-thirds in the past five years, it's found support and formed a multi-bottom. More technical analysis reveals that there is RSI divergence, which indicates a trend reversal. Here's more good news: it has solid financial fundamental analysis. Since it's integration and transformation in Q1 2019, it's yielded a net income of over $300M each quarter, plus revenue growth this quarter. Likewise, it's book value (shareholder's equity) is a whopping $13.4B, which has consistently increased significantly each decade. In case you are skeptical, rest assured, for their price-to-book is a miniscule 0.82, a steep discount of what the company is actually worth. Also, Lumen has a crazy high dividend yield - over 11%. That's right! Buyers can get their money back in 10 years through dividends alone; and it's price-to-earnings is way below the market average, a meager 7.88. Similarly, it's debt-to-equity is manageably low, just 2.33. I bought today and plan to hold until new technology succeeds fiber-optic internet.
