Arank short term TP will be set at 1.35-1.40, mainly due to monthly capacity to be increased by 20-25% and also increasing Aluminium price, signifying higher profit margins. The biggest gem still lies with the Export Incentives which still has 8millions or so to cushion off tax and wields an edge off its peers. Since it is an uptrend stock, we would be happy to see Arank at 1.50/1.60 at the end of year, before the new production lines start off in big scale in 2018. We will then re-value this stock before considering to dispose off our holdings. In the mean time, we will top up during retracements unless new circumstances come up.
Arank potential is good especially with aluminium price on the uptrend and they're producers of aluminium ingots and billets for aluminium manufacturers...............don't forget their other sister company LB Aluminium too.
It's like a game of confidence and comfort, if we believe it will do better in the coming quarters, just hold, but if we are not comfortable with holding a stock and see the pricing falling, then take profit if available, or cut loss. Just my opinion.
Valuation for Arank is considered cheap. The aluminium price is s still bullish in the weekly and monthly trends. Daily trend is on consolidation at the moment. Not sure why arank dropped so much.
@kevin008, cant compare pmetal with Arank lo.... Pmetal doing Al business and also some aluminium extruding and etc. While Arank only doing Al extruding business for the local industries. While Pmetal recent results is boosted by its increased capacity from plant expansion, while Arank no expansion and all. The most improve quarter but not that exciting and all lar... my 50cent..
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chshzhd
1,908 posts
Posted by chshzhd > 2017-02-02 16:38 | Report Abuse
:)