Jon Choivo, you are right. I notice that the 4Q the last few years generally in red, probably due to some adjustment. Not sure yet. Will study the financial statement these weekends.
MSC is now having 70,000 MT smelting capacity.. It will boost the profit of the company with bigger capacity it they maintain the smelting plant in Butterworth.
if they double their capacity, their profit i guess will so. Then mkt price will double as well. RM8 is really not dream, like I said KESM RM16 is no DREAM. Now near RM10!
“While the overall refined tin production is not likely to change much, profit margin, especially on the mining side, will see some expansion in the environment of higher tin prices,” he adds.
In June this year, MSC has proposed to acquire Metal Reclamation Industries Sdn Bhd (MRI) through its wholly-owned subsidiary MSmelt Sdn Bhd for RM50mil in cash.
Chua says: “Therefore, the company’s current year focus will be to complete the acquisition by fourth quarter of this year.”
“As a result we will not, in the near term, be actively seeking for new tin investments opportunities.”
Chua explains further that one of the current company’s priorities is to complete the MRI acquisition and then to adapt and convert the MRI plant for tin smelting and integrate it into the group’s international tin smelting operations.
The MRI plant, which is located in Pulau Indah, possesses the new generation smelting technology which is a more comprehensive and efficient smelting process as compared to MSC Group’s smelting facility in Butterworth.
For Rahman Hydraulic Tin , the exploration programme to expand the mine’s resource base is ongoing, says Chua adding that: “We hope to be able to complete the programme in the near term. These priorities should keep us busy at least for the next couple of years.”
Having said that, Chua adds the group will still continue to invest in its future, even at times when (tin) prices are low.
Besides ongoing exploration programmes to expand the group’s tin resources, MSC has also participated in the private placement of Alphamin Resources Corp in 2015 to increase its equity interest in the company to 5%.
Well, factor is more complicated than just comparing this happen, then sure tht happen next. Now mkt full of hot money's and also many institution money. First, logically ppl expect int hike in USA. Lead to strong dollar . Then naturally commodity will sell lower. But then next you need to assess each commodity own demand, supply. Next you need to consider those money now sitting on bonds, or USD pure, where they will want to go.if you have bonds coming to matured, and naturally you already know bond prices going to go even lower and lower due to the fed hike coming. Where will you go? Put back into bonds? Nope! Put in share mkt? Maybe! But safest are??? To me, and I believe most fund mgr will go into commodity. Scarce resources available will sent commodity price up when everyone chasing. Absolutely there! But precious metal like gold, silver might go lower as their function of safe haven reduce
Logically speaking. If I am China, I will say almost all mkt commodity first.let the Trump buy up all my commodity later at high prices! Hehe. Thats what China has been doing pass few yrs.
Spot one new stock so far. But price run a bit.... Now waiting fed hike to hopefully kutip a bit. Unicorn you are very good also. Hope to learn from you . Any comment or guidance for MSC? Thanks
If you type google search : "Idea : Malaysia Smelting Corp. Bhd. (5916) lowyat", this is the page I promote MSC 7 months ago. At that time I still a noob. Sold it at a loss due to impatience and now.. haha
No expert haha.. I still too young, not working yet. Studying. Just depends on my accounting degree knowledge to try cari makan in stock market haha.. Still. I admire your patience in KESM. Real salute!
Kesm will go towards 15,16. I have no doubts! Normal klse stock cash yielding around 10% already super good, when I spotted kesm, it is around 26% yielding! Thats crazy. Now I spotted msc, hopefully with its 30% cash yielding now it can go towards 10%, which should be around rm8 plus.
Paperplane, what you said about china going into commodity is true and I heard that Jack Ma is interested in Malaysia tin mill, but pls don't hammer me if he doesn't buy up MSC.
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....
Shellhouse
641 posts
Posted by Shellhouse > 2016-11-24 16:48 | Report Abuse
1 month 28% gain.