Datuk Leow is a substantial shareholder of A-Rank Berhad after acquiring 27.74% stake in April 2016. Lbalum will have a sustaining supply of raw material with better pricing.
The correlation between aluminium price and Lbalum's earning : In Dec 2015 eps 1.15 cents ~ Al price range of 0.650 to 0.700 usd/ lb Mac 2015 eps 2.10 cents ~ Al price range of 0.650 to 0.730 usd/ lb Jun 2015 eps 2.36 cents ~ Al price range of 0.650 to 0.760 usd/ lb During that period, USD is high. Presently, USD is dropping.
Pmetal's proposal of share split will increase the number of shares in the market. This increases the liquidity of a stock; there are more buyers and sellers. Some companies by refusing to split the stock and keeping the price high, they reduce trading volume. Berkshire Hathaway is a notable example of this.
At 3.95, 1000 units of pmetal = 6529 units of lb at 0.605. At 4.16 selling price, earning is 0.21(1000 units) but lb at 0.650 earning is 0.29 (6529 units)
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....
Alex Chan
3,915 posts
Posted by Alex Chan > 2016-07-04 10:56 | Report Abuse
Up and away. Flavor of the month Aluminum stocks