Panic selling yesterday . Next week , Monday should rebound ? Press Metal always boleh dan tetap boleh . Susah susah dahulu , senang senang kemudian , ya .
Not worry at all as this tariff will only hurt end users . Planes , cars and products that need steel and al will be expensive in futures. Yesterday panic selling was so overreacted. As if America no longer use or need steel and aluminium in futures.
Demand for aluminium in United States is around 6 million metric tons per year. They only produce around less than 2 million metric tons per year. So how this tariff affect press metal ? It will only boost the demand for Al produce in united states temporary. But it won't go long as their demand or consumption is more than they can produce.
This counter was oversold on friday. The news is not so bad because the U.S market has very little effect on Pmetal export of alumuniun. On monday the share should easily bounce back to at least 5.70
Exactly ! Unless they found something to substitute aluminium in electric cars , planes and ships. The world demands is still there regardless of how trump imposed the tariff.
eps '15 - 10.48, eps '16 - 13.22, eps '17 - 16.13 there is a 20%++ yoy increase in eps, at this rate eps '18 would prob hit 19.00. but dps remains low because the bulk of the money is being reinvested into the business in the form of m&a (carbon anode) and business takeovers (al rod maker). total pbt for '17 is at 819m but div payout has only been at 230m. this means that pmab is cash-rich atm, this means further investment into value-added product makers (al packaging & foil, al sheets & plates). due to pmab focus over last few years in upstream market (producing ingots, billets and now rods) there are so many opportunities for business expansion (especially with their cash rich situation now). *notice how acquisition of LUA is straight cash deal - no debt undertaken.
on another note, lme price has not crash (tariff or not) this means regardless pmab revenue will still remain strong as demand is holding up. selldown is to spook retail investors (maybe some US-based hedge funds). there is practically no reason to selldown a week before dividend payout.
Kesm is a good buy. Its outlook is very good after the recent AMG. The stock price is likely to surge after the next QR announcement in one week. CIMB's top pick
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....
Unfair
532 posts
Posted by Unfair > 2018-03-03 01:54 | Report Abuse
Why PE 35 cheap? Goreng to include in CI why so special ctr?
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