LBAlum much better than Alcom. Intrinsic Value RM1.50+ -. But last QR borrowing gone up bit. The rest not much a concern. Generally price shall double from current level.
wow..everyone here is comparing lba with alcom..but they were two different situation. lba n arank are two stock in my stock pick 2017 (but late to enter). but alcom is in my real trade. so, i've been following these three stock closely.
i chose lba n arank at that time simply because of their lower PE, n continuous improvement of their QR. it goes up gradually. but with no major corporate exercise, it doesn't seem to boom rapidly.
for alcom, huge dividend and capital reduction were my first glimpse to the stock. just right after it produce good qr. but at that point of time, after a one day shot the stock mourn. looks like no one get attracted. it shot up again only when officially declare dividend.
so, personally said..lba or arank will continue gradually up, depend on qr and alum price, but won't shot up like alcom.
besides of TA n FA, u still need to consider this. emotion.
Hi zoomsboom i disagree with your opinion reason Alcom had a shoot up mainly due to fat dividen but no sustainable story . International brand transfer money back HQ that all ... Both have continously steady profit annually for past 10 years record and consistent dividen payout. However macro economic have changed ... Lbalum will benefit from it ...USA only secondary process material be able import , need of high way structural for Sabah, Sarawak ... China no more scarp allow import to the mainland (Need Secondary as well ) ... , many obselte metal refinery was closed due to pollution issues result in real shoratge of aluminium and steel ... Hope you are ground man and look into sustainability if not wroung full capacity order 2019 and expansion new plant to cater for new orders ... should have extra ordinary dividen
Short of catalyst. E.g. EPS above 3 or 600% EPS growth like Alcom I wonder how many actually spotted that Alcom's last year same quarter was making a loss and turn around this quarter profit of 5 mil gives a wonderful 600% Y.O.Y growth.
LBA on the other hand has been doing 5mil profit for past 5 quarters. But nobody gives a shit. Mr. Market is very wonderful one. Do all the funny funny stuff.
Hence my hence my assessment ALCOM upside reward not much if compared to LBA. Imagine it reports an EPS 5 next quarter? Babammmmm...Drive PE up to 12. With a abit of help of punters and contrarian. Drive the volume and momentum. Short term PE becomes 15. Everybody that collect at PE 10 can laugh to the bank lo. Handsome 50~60% return.
If EPS stays 3sen like past 5 quarters. Then, nothing happens lo. But if ALCOM reports an EPS 2 next quarter. See the the price free fall or not.
Alcom,Masteel , Choo Bee , Lion Inds, etc ...had astonishing, stunning last quarter result one of the common major factor due to sharp rise for most base metal material. Last one to report Lbalum another 15 more days , south east asia biggest refinery metal plant ... What your guess .
Next factor of sustainability many obselete metal refinery plant at China was force to close down due to air environmental pollution . Deep shoratge worldwide mid end quality metal product local company masteel , choo bee etc ,,, will benefit from it .. Forward business prospect for Lbalum till 2019 is sustainable base on their last accounting , i am more keen their latest book order demand.
Cash rich company Alcom, Choo bee etc... will give high dividen back HQ , share holders etc... Business that need expansion new machinery to cope the extra order which need bank facilities need solid data to justify ... In short i love laggard and sustainable growth company ....i be holding AYS, VS industrial , Lbalum, Choo Bee , Atta-la for big returns ... Stock that i have already forgo and forget Sendai , Dnex , Jaks ... Good Luck to all happy forthcoming Hari Raya...
That not true le kevin008. ARANK's EPS 14 at PE 8. Comparatively, ARANK's fundamental is more attractive. But LBA allows you to buy more share with smaller capital.
Arank's small cap company in business like PMetal. PMetal trading at PE18. But with strong fundamental to support such PE considering strong growth and earning prospect from tax savings, increased aluminium price and increased to 760000 tonne capacity.
darlington, i don't say that alcom just shoot up because of the dividend..of course there's much more than just the dividend. china's curb on al, al price, and many more..
but i've witness how tongher and alcom shot up..whether you realize it or not, mr market is responding that way.
choobee and masteel, and other al stocks is also produced better qr, but none reacts same like alcom and tongher. so your guess?
Yipman, wait what? Sailang Tp1.10? I just pour some money in this counter. Then only start to read report and make comparison.
I think all PE18 above ind-prod counter are quite priced in liao. Upside reward not much.
I think better stick to low PE. For big time investors, invest in wonderful company with fair price. For small time retailers, invest in fair company with wonderful price.
Fair value for lbalum is 1.08 and have yet missed my projection, If result is stunning sky is the limit. Reason for all metail related company continual bullish run , i doubt able to stop short term ... Main factor first 20 percent plant that obselete process and harm environmental was force close down and demolish by China government these March 2017 . Those who had failed and yet passed the audit 30 percent be shut down and demolished next month. Emphasis once again today by China News imagine another 30% shut down ...what happen to supply ??? FY2017 happy metallic :)
That y thanks to alcom flying...lbalum also follow...but the most hated is Stock Alliance called 2.44pm saying will fly to 0.89. thus their dump member all jump in for quick buck. Now all exit out again for few hundred bucks .....
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....
Yipman
391 posts
Posted by Yipman > 2017-06-06 12:49 | Report Abuse
Why sell? Good profit earning, high demand and QR release this month. LBALUM will shine like Alcom.
alconrecrntly