The weakening of the US Dollar vis-a-vis Malaysian Ringgit and the recent increase inaluminium prices are expected to reduce our margins as they will reduce export revenue and increase production cost respectively. As an effort to safeguard our margins, we will increase our selling prices whenever necessary and at the same time improve efficiency and reduce operational costs.
Following the re-opening of economies after the global lockdown, we see positive trends in aluminium demand as different industries begin their recovery from the lows in the first half of this year. We observed improved demand from key end user industries such as the automotive sector and construction sector where manufacturers for these industries were holding low inventory.
In addition, China’s swift economic rebound led to increased aluminium demand and higher domestic aluminium prices on the Shanghai Futures Exchange (SHFE) as compared to London Metal Exchange (LME) price. China, which historically was a net exporter, has reversed its position to be a net importer of primary aluminium during this quarter. Inventory levels are also seen to be decreasing week on week which only demonstrates the tightness of aluminium supply within China currently
LBalum up 12% yesterday. Arank to follow? Both has same common shareholders. Arank has secure market by supplying aluminium billets to LB. Low PE at current price. Might follow LB uptrend next week.
Yesterday latest 40 richest Malaysia saw PMETAL owner landed in 3rd spot behind Robert Kwok and Hartalega Mr Kuan. Surprisingly dethrone Tan Sri Teh due to leap bound increase in commodities prices. Technology, healthcare (gloves) and commodities are among the best performance captains. Numbers never lie as price for aluminium had appreciate from low usd 1450 to current of 2100++, meaning that there is big surge in demand for it. Demand rise, ASP will follow. No businessman will sell thier products cheap knowing the cost of buying back kept increasing.
We all know Lbalum is not same lv with PMETAL, but I optimistic believe there big potential this ctn moving forward.
Now its race of 2 dark horses of this industry, lb and PA. I choose lb due to FA and smaller share issue. PA less attractive but has been equip with hot speculative turbo, let's see end of the day who win.
What's the issue with this counter? Reports great profits for Q3 2021 heading for record for the financial year and many small shareholders are exiting despite prospective low single digit PE. Past dividend record is abysmal, yes, but the company can afford to declare special dividend and a bonus issue this year to reward shareholders.
Pglobe without nothing to parade financially can limit up 2 days consecutively. Maybe most lb shareholders very KIASU. I'm not selling mine and if really drop will add more.
This is simply astonishing. Net profits for 3 quarters 28.53 mil or 11.49 sen per share,and even assuming zero for 4 Q, at 75 sen PE is only 6.5x fye 4/2021. Conservative management, yes, not generous with dividends, yes, but 2021 is the year to surprise. Opportunity to buy and hold for payoff later this year.
Oh oh new shareholders coming in and taking out the weak holders. There are believers in LB Alum's great numbers after all with 80 sen resistance broken with ease.
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....
Learner One
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Posted by Learner One > 2020-12-10 14:55 | Report Abuse
Almn price going up now.