L&L Energy (NASDAQ:LLEN)

Excerpt from the GeoTeam's® initial report on L & L Intl Holdings.

Tying It All Together

L&L's favorable revenue guidance along with industry trends have prompted the GeoTeam to follow the LLFH story. At a quick glance the the stock is selling at at P/E of just 5 times the fully taxed adjusted 2010 analyst EPS estimate of $0.39 (Analyst estimate is $0.47) Furthermore, this estimate is likely conservative for three reasons:

1. The estimate is based on revenue of $55.1 million which is below the company's recently stated guidance of $95 million.
   
2. The estimate is based on 22.49 million diluted shares outstanding. The company currently has 20.5 million diluted shares outstanding.
   
3. The estimate does not include the revenue contribution from its new coal washing endeavor.

It should be safe to assume that analyst EPS estimates will be substantially raised. A quick rudimentary analysis implies 2010 EPS potential of $0.74 fully taxed. The company should be reporting 2009 year end results shortly, which will shed further light on the future, at which time the The GeoTeam will create detailed potential valuation scenarios.

Its also interesting to note that currently L&L owns 60% of its recently acquired mines. The company has commented, in its SEC filings, that it would like to pursue a 100% ownership. Depending on how such a deal would be structured it could add another element of EPS upside.