Price of aluminum dropping. Demand decreasing. Worst of all, for Lbalum, no impact on bottom line even though price increased last quarter. news from out of china
price dropped below 0.77 with only 2,000,000 shares transacted...no sweat...it's panic retailer offloading NOT syndicate....wait...it will come good...
LBALUM is an undervalue stock. P/E ratio is only 8.62 and NTA is 1.060. This share presently is traded at a discounted price, still has a lot of potential to grow. Most of the shares in KLCI are already overvalued. PMETAL is an overvalue stock. P/E ratio is very high 55.40 and NTA is 3.290. That's why LBALUM cannot be compared to PMETAL.
In 2002, the chairman of LBALUM stated that despite the global economic slowdown an political uncertainties subsequent to the September 11 tragedy in New York, the financial report of this company is successful with record profit as well as completion of expansion projects.
Another plus point about this company is the cash has increased from 20 million in 2010 to about 35 million in 2014, so this company is making money and is cash rich. It has a debt to total capital ratio of only 20.50% meaning this company's debt is not very high and in fact is decreasing. So, the fundamental of this company is very good.
According to Warren Buffet, we should invest in an undervalue stock. When you buy a stock, you are actually looking at the potential of the business. Presently, the usage of aluminium has expanded tremendously. Eg. the latest model of MYVI AXIA and PROTON IRIZ 's engines are made of aluminium. So, you can imagine LBALUM extrusion plant business should be growing very well. Even the latest Iphone 6 is made of aluminium casing....
right all producers badly affect pmetal, alcom etc because aluminum price drops 2050 to1950 last 5 weeks. metal prices quite voliatile bec china n many countries slow down productions.wonder if lbal hedged forward their aluminum usage? if so profit should be marginally small if prices goes either way. lbalu co. dont not have good investors relationship with significant fund mgrs or not concern abt.it mkt price. stock below it valuation by abt 17%.
Dnt worry...alu price still stable...and lb is not alu producer so nothing to do with much price of raw alu up or dwn...it more to profit make in producing the alu material they make...like ceiling tee, instrusion and etc...more to building material...nw construction market slow dwn...so what u think abt such demand in the market....? And alu price will still quite stable...gd for alu producer...why ? Is not abt china or india demand...it abt the aviation industry recent revamp after mh 370 case...if u dig deeper...nw demand for new plane has gone up and more and more airline is changing their ailing fleets out of new regulation by atsb after mh case. Also nw plane allow airline to survive in current airline bisnes where new plane burn less fuel plus carry more passengers. U can dwnload fr aviation ind journalreadily
Readily available in the internet or other media. Also car industry has revolutionised with using of alu body or engine for better fuel efficiency...go green ...hence why price of alu will be stable in coming mths...but on lb i dnt knw as lb is a user of alu not producer...
What i can say...in order for lb to up is nothing to do with the p&l anymore, price of alu or fundamental or chart...it just matter of time whether it can attract enough investor/ shark to come and goreng with impending news or rumour release in the market like the coming expansion plan. The stage is set...see got audience or not...we have to wait...nwaday if u observe is how synidcate make money fr klse...release rumour...goreng tht counter thab cabut let it freefall...and let investor like u and me pay for their profit...as if nobody lose who pay their profit?
LBALUM's shareholder is entitled to get 2 cents dividend. The ex-date should be in this month. Though it is not much, why don't wait to get what you deserved. Another request is go to OPCOM counter and observe how the shareholder sell their shares. They basically don't sell cheap and can wait to fetch a higher price.
Let's practice this way of trading in this counter.
New IPO: Building management systems (BMS), solar thermal systems and energy-saving services provider, Solar District Cooling Bhd aims to list on the Ace Market!
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....
pisangkuat
1,060 posts
Posted by pisangkuat > 2014-09-26 10:39 | Report Abuse
Ya..and tmr collapse again...blame again lor...cycle continue