Look, dont worry about the US tariffs. Just check see how much of steel does China export to US (from China's overall production). Then check and compare how much of Huaan's coke is being taken up by China's mills - and how many other less known markets like India for instance. If Huaan's export of metalurgical coke has increased, and its supply cost drops, in comparison to previous quarter, then logical will dictate. Of course, it can be asked why the price drops from 60plus sen to 30plus now. Which share doesnt do a free-fall? The more important thing to ask is if the funcamentals are intact. That means: 1) Has Huaan's exports increase 2) Has the demand for what Huaan is offering is increasing 3) Had the number of competitors remain constant, reduced or growing (and how many if they have just joined, are able to give a big challenge in terms of pricing) 4) Has the cost of producing/mining coke for Huaan increasing or reduced, and will it be reduced further with growing production lines 5) Is Huaan venturing into new markets and diversifying its stable?
If you know some of the answers to the above, it really doesnt take much sense to decide whether it is a share you should go long in or short. You dont have to lose sleep in the hope that someone pushes up the price because you know whether you buy or not will not affect the company's natural course
All steel related stocks are going up... now everyone finally understands Trump's tariffs on steel is not the main focus, but the USD60 billions on other China goods are the real motive.
Haha, did I not give very timely advice? I said its NTA is 32 sen(as at last quarter's report). This provides a good support price for the recent sell down.
Many donkey years ago, they've planned to purchase a stake in a steel mill to synergise their operations. I believe they are reviving the plan now! Good economy, good vibes... huat ahh...
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
dompeilee
11,888 posts
Posted by dompeilee > 2018-04-02 09:04 | Report Abuse
Stockmoneyklse 'joined' on Apr 1st...wonder who is the syndicate member who registered this fake account? lol