L& L&F Loading... : Bullish and Bearish Analyst Opinions

Secondary batteries are one of the five rotation candidates. Samsung SDI and L&F reported good earnings, but their charts are currently messy. The speaker says if short-term moving averages such as the 5-day, 10-day, and 20-day lines turn cleanly bullish, the sector becomes tradeable; if price breaks down instead, investors should avoid it. For now it is a candidate within the rotation market.

With semiconductors resting in July, money is rotating into other sectors. Tesla's 6% surge and positive FSD regulatory news are driving a rotation into battery supply chain stocks, which look relatively cheap. L&F is up 7% in strong flow, benefiting from the rotation from over-concentrated semiconductor positions into big tech including Tesla and its supply chain.

Despite the sell-off, the secondary battery sector is still attractive and set to enter a full growth phase from next year. The leading stocks in today's rally—Samsung SDI, EcoPro, and L&F—acted as the sector's driving force, and buying these leaders is not a bad strategy.

Korean LFP cathode material makers face a severe supply shortage relative to surging US ESS demand. By 2028, US demand is forecast at 178,000 tons while L&F and POSCO Future M have a combined planned capacity of only 125,000 tons, a 30% shortfall. This supply-demand imbalance will intensify competition for materials, drive up prices, and boost profitability for the producers. Artificial graphite anode supply through POSCO Future M's Vietnam operation is also insufficient relative to demand, further supporting material firms.