Sell sell... Stop operation 1 month still need to pay million dollar electricity (whether u consume or not) labour cost and other overhead put a side 1st.. Loan interest & repayment? No goods deliver to customer no need compensate?
Peanuts, I am fully agree with your views. We are here to share our views and help our members here to make a informed investors. Based on current prevailing aluminium price range, the operational profit should be around RM28mil or lesser before taking into consideration of losses from fixed operating costs and expenditures. (By referring to aluminium price range and historical quarterly report ended March 31, 2013). It will definitely jeopardise the cash-flow of the company and additional capital outlay on new plant expansion. Bear in mind, the complete resume of production will take longer than 1 month to fully operational mode. The urgency of the situation has force BOD to pass resolution to have share buy-back scheme which will further depressing the company ability to pay dividend. We expect the company to raise more funds via loans or right issue to meet its cash-flow requirements for plant expansion.
Global aluminium price drop due to supply glut. China's export to global market keep increasing.
North Asia country import aluminium from China factory may save in transportation cost as well. They seems more competitive than Pmetal even though Pmetal choose Bintulu to cut transportation cost.
no suay just nice like last year factory shut for 9 mths due to power disruption than big bull all the way even if alu price up now also no point cos mkt very bearish good news during bear mkt is no news ppl also dont buy
Don't be too emotional when came to stocks investments. We should harness our emotions. When we are holding good stocks don't be panic because whatever goes down it will eventually go up again and so and so . Don't blindly believe all those noises and predictions of strangers .If we cannot predict the mood swings of our wife or husband tomorrow , how can we predict the share market going .
The massive changes of Aluminium Industry from Supply Shortage to Supply Glut recently has alert us to adapt a more cautions approach. It is a hard fact that the industry landscape has shifted from suppliers driven to buyers driven market. This can be examined by looking at aluminium prices decreasing sharply and cash premium dropping for more than 50%. The stock analysts that covered Press Metal Berhad had also shifted their stand from Buy Call to Hold, I believe with the drop in profit or losses from coming quarterly report, it will prompt stock analyst to make a cut or sale call. Just before they make the sale call, they will slowly unload the shares, this can be traced from the price chart showing the downtrend even before the fire accidents.
Pmetal is a company that can protect itself against competitors because the company has strong sustainable competitive advantage and make high quality aluminium to build its own customers .
If before China abolished tax, I am agreed. But with price war intensify, all will suffer with zero margin or at losses as you can't stop production as resuming operation will incur moreset-up cost. Time will tell ...
In an interview before the release of the updated list last Friday, Press Metal chief executive officer (CEO) Datuk Paul Koon Poh Keong revealed that the Islamic community was keen on the stock, which fell off the syariah-compliant list following the SC’s biannual review in December 2013.
“We do hear when we engage with some of the funds that they are interested in us but they can only invest in syariah-compliant companies,” he said, adding that the company had thus expanded efforts to be syariah-compliant
Including or excluding from syariah complaint list or not its doesn't matter as long as the company can protect itself against competitors and has strong sustainable competitive advantage and make high quality aluminium that is more than enough . 0ne day the time will proof and tell... Actually nothing much to be worry about the small fire which happen to the company . Remember whatever goes down it will eventually go up again . The important things is to make a share buy back first before the company buy its share back .
For me i will buy on company that practise share buy-back because they is giving out signals that its SHARE price will going to soar in the near future and also to make the SHARE price become more attractive and valuable .
Is common for coy to have share buy back mandate and needs share holder approval every year. Coy may not necessarily buy back after approval. Share buy back will only temp support the price, ultimately it is still depends on the fundamental and performance of the coy
Pmetal still maintain good profit margin for price 1700. China operation cost is at 1700 but not pmetal. Pmetal is lower than what u expected. Hahaha..
Hopefully more buyback from paul koon. Still weak sentiment due to next report.if no price still can drop below 2.50...at least paul buyback from 2.60 to 3.00.
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....
telusdansuci
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