Look at the chart......
https://tradingeconomics.com/commodity/steel
the collapse in steel prices in China corresponded with the collapse of steel share prices in Malaysia.
The chart shows strong steel prices throughout 2017....steel companies in Malaysia making good profits....all steel companies become low PE stocks.
Value investors and their intrinsic valuations based on historical profits all jump in.....all die until no eye see now.
The folly of intrinsic values based on blind blind historical results....but without business sense.
Business sense.....business sense needs to keep up to date with developments.
- Aliance Steel, Kuantan started their trial runs in March.....you don't want another Megasteel / Perwaja to compete with your beloved Masteel , do you?
- almost a certainty , this year profits less than last year.
-steel user, Astino also got to do impairment on their inventories in latest resuts to 31 Jan 2018.
- building materials companies, not just steel companies , also cannot do well in current environment.
..........
you think too late to cut loss?
I don't know about you..but I surely not buying.......and if nobody wants to buy, you think can cut loss or not?
Created by qqq3 | Sep 25, 2019
Created by qqq3 | Sep 23, 2019
Created by qqq3 | Sep 18, 2019
by Papaya Juice > Mar 26, 2018 04:37 PM | Report Abuse
There's a glut of steel supply globally!
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that wasn't the song when steel stocks are promoted by sifus ...back then the song is closing of steel plants in China.
2018-03-26 16:55
Steel counters.....can cut loss or not?
hahaha..this Qn coming from a professed trader maybe misunderstood to mean you are waiting for investors to cut loss..
Not sure if the fact the all the steel cntrs rebounded from their lows today, may imply there is a now temporary bottom and chance for a further recovery...
2018-03-26 19:33
qqq3
https://tradingeconomics.com/commodity/steel
2018-03-26 16:17