At Melewar Company level, its 71.51% controlling share holdings in Mycron Steel Berhad has witnessed a sharp increase in market price and volume recently. Whilst we cannot be certain that the aforementioned is the cause of MIG’s rise in share price and volume, it does offer a possible connection.
Just waiting for this to happen :p It can go up 20%++ in a day. Just wait for the pressure cooker to continue building up and wash out the would-be sellers.
Industry players are wacthing closely, as genuinely domestic orders from sept - Dec 2016 starting to flow in since 'Anti dumping Tax' imposed from Sept16 ; expecting during qtr ending Dec16 revenues are from a blending of postponing pre-order and restocking activities.
However, if sales gradually push up starting from the Qtr of Jan-March 2016, will be more encoraging to Steel sector .In another word, genuinely domestic demand will lift up furthur the steel price.
If that happen, STEEL will be in real hot again back by the solid demand at home front . I'm expecting the ' Next Big Wave ' to be somewhere after March- April 2016 . It might come earlier if the international price going up too drastically.
The Group’s power associate has subsequent to the close of the current financial year concluded an agreement to dispose the existing power operation, and the Group would be expecting some settlement of book receivables by the associate in the near term.The Group’s power associate is also expected to resolve the divestiture of the power development rights under SIPCO 2 that will uplift security pledges in the near term. (See Note 30 to the financial statements). All these should augur well for the Group.
Myron has been retreat from $1.20 - 1.10 (-10cts) ;The Mother retreat as much as $0.660 - 0.525 (-13.5cts)What the heck !!! Should fire the Whole Engineering division .
The already weak outlook of the domestic economy has been knocked down a few notches due to anticipated policy changes of the new US administration from its recently concluded 58th presidential election. Anticipated impact from policy changes affecting yields and a stronger USD, coupled with the negative global spotlight on myriad of domestic issues, knocked the already weak Ringgit to unprecedented low levels- which does not bode well for the country. Foreign capital flight aside, the badly shrunken Ringgit further pushes up costs, erode wealth, increases debt service obligations of the nation’s foreign debts, and increases its sovereign credit risk. Specific to the Group’s steel businesses, the ramifications of the above-mentioned are generally negative. Besides the weak Ringgit which increases the landed cost of imported raw materials, Hot Rolled Coil prices in USD also saw sharp increases by more than 15% in the early 2nd quarter following the sharp increase in coking-coal prices by more than 70% over the current quarter. Even-though the Group’s steel businesses’ financial performance is not directly correlated with steel prices, such sharp movement in prices may affect demand and erode margins in the near-term. The acceleration of cost pushed inflation translates to higher production and operation cost which in the near-term may also erode margins. On the positive side, the wide industrial applications of the Group’s flat steel products provide a relatively stable demand base –as the ‘end consumer’ output may benefit from the weaker Ringgit in export markets. On-going and planned mega infrastructural and construction projects in the country will also continue to provide a strong support for local steel demand. The Engineering segment’s negative contribution to the Group will likely persist for the remaining financial year, as the engineering subsidiary gives focus on completing its contractual work obligation within the revised cost budget which contributed to the onerous contract’s significant loss provisions to-date. In conclusion, the Group’s prospect outlook for the remaining of the current financial year is generally negative principally due to the Engineering segment’s negative contribution. The engineering subsidiary is engaging the client to seek variation claims, and any positive resolution arising from the aforementioned may improve the prospect of the Group for the remaining financial year.
Posted by PlsGiveBonus > Nov 28, 2016 08:46 PM | Report Abuse
Tomorrow gap down 20%...
Whoa! You have just highlighted what I also wanted to share!
Already warn all those who keep Flat steel will fall flat on their faces later. Now Company has explained very clearly. Mycron's good result is also one off. Same for CscSteel.
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....
Good_Trader
159 posts
Posted by Good_Trader > 2016-11-14 16:48 | Report Abuse
angry .. get mad