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Awilco LNG ASA (OB:ALNG), an energy company based in Norway, received a lot of attention from a substantial price movement on the OB over the last few months, increasing to NOK5 at one point, and dropping to the lows of NOK3.92. This high level of volatility gives investors the opportunity to enter into the stock, and potentially buy at an artificially low price. A question to answer is whether Awilco LNG’s current trading price of NOK4.02 reflective of the actual value of the small-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at Awilco LNG’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change. View our latest analysis for Awilco LNG
What’s the opportunity in Awilco LNG?
Great news for investors – Awilco LNG is still trading at a fairly cheap price. My valuation model shows that the intrinsic value for the stock is NOK10.04, which is above what the market is valuing the company at the moment. This indicates a potential opportunity to buy low. What’s more interesting is that, Awilco LNG’s share price is quite stable, which could mean two things: firstly, it may take the share price a while to move to its intrinsic value, and secondly, there may be less chances to buy low in the future once it reaches that value. This is because the stock is less volatile than the wider market given its low beta.
What does the future of Awilco LNG look like?
Future outlook is an important aspect when you’re looking at buying a stock, especially if you are an investor looking for growth in your portfolio. Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company’s future expectations. In the upcoming year, Awilco LNG’s earnings are expected to increase by 77.10%, indicating a highly optimistic future ahead. This should lead to more robust cash flows, feeding into a higher share value.
What this means for you:
Are you a shareholder? Since ALNG is currently undervalued, it may be a great time to increase your holdings in the stock. With an optimistic outlook on the horizon, it seems like this growth has not yet been fully factored into the share price. However, there are also other factors such as financial health to consider, which could explain the current undervaluation.
Are you a potential investor? If you’ve been keeping an eye on ALNG for a while, now might be the time to enter the stock. Its prosperous future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy ALNG. But before you make any investment decisions, consider other factors such as the strength of its balance sheet, in order to make a well-informed buy.