After Jingweihan sold at RM3.20, pmetal straight down thereafter. I think bankers start to trap retailers in CL before expired, then Pmetal only continue moving. Hahax~
Commodities all down due to profit taking, aluminium just follow. No worry. Aluminium recent hike is back by demand. When they realize that, they will chasing back.
look at myr rate now, if usd/myr go higher, we will see even higher profits next qtr, which should offset the decrease in aluminium price. not to mention, sales are secured on the futures market, which pmetal have already secured before the price drop.
this qtr will see even higher profits (as the aluminium price uptrend) happened in this qtr, plus news of another dividend announcement in july.
i think 4.00 tp is not feasible for this year, but 3.60 - 3.70 definitely possible.
even as aluminium price have trended downwards the past week, the share price did not follow, meaning there's no selling pressure (big funds holding for dividend). once aluminium price rebounds, you will see them do mass purchase especially this week/next week - 18th is the ex -date. based on recent trend, price will prob shoot up to 3.25 then to 3.30 (it already touched 3.20)
At the current price, anything below 3.10 is an attractive price to get in. in the next few days, you will see the stock price jump nearing the ex-date, before trending downwards again. if you check against the aluminium price, pmetal price still holding firm, and once the aluminium price rebound, expect pmetal to reach 3.30. then it depends on their quarterly report next (expected to be even better than this quarter) and for it to reach 3.50.
Aluminium 1543 is very strong support line. The price is going up now. Trend towards 1750 in mid term. Don't wait till 1750 only buy. Below 3.14 can buy.
although the price wont jump like moniekj state, here's some proof of even more positive performance. http://www.westmetall.de/en/markdaten.php?action=show_table&field=LME_Al_cash based on al prices for jan-mar (the average can be seen to be around 1450-1550) but just on the basis of april/may data (al price is trending 1520 - 1650* the rebound is there).
on this basis alone expected earnings for nxt quarter is set to increase by 5-10%, how much this translates to share price we are not sure. but referring to the recent revision in target prices, we can expect 3.50 and above.
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....
Investo
1,975 posts
Posted by Investo > 2016-05-09 07:38 | Report Abuse
Buy or bye? Gone up aready.