LNN Forecast


Bullish Case: LNN's infrastructure segment shows strong growth, particularly in the Road Zipper System. A large multi-year Middle East project supports revenue. Positive return trends and historical gains over 17 years indicate potential for mid/long-term appreciation.


Bearish Case: Persistent cost pressures and supply chain issues weigh on margins. High relative implied volatility suggests significant downside risk. Recent flat price action and reduced guidance signal uncertainty, dampening investor sentiment.


Potential Outcomes:

1. 35% chance of infrastructure projects driving upside (new contracts).

2. 40% chance of cost pressures limiting growth (inflation, supply chain).

3. 25% chance of neutral stability (current trends).


Trading Oracle: Initiate long put debit spread expiring Dec 2024 targeting OTM strikes ($105). Leverage higher Helium AI implied volatility than market, managing risk with high reward:risk ratio. Bearish sentiment from cost pressures and market instability implies positive edge.


July 20, 2024


Lindsay Forecast

LNN      Lindsay











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