abang_misai When it break support line, people will run because they thought it will eventually go to zero. Bad news keep coming. However, people often forget any company will have to have a value.
Some predicted it drops below Rm3.00. When it’s too bad to be true, it’s time to enter. For this reason, misai bought 50k@3.63 yesterday. 01/05/2019 6:34 PM
This stock if close shop also worth 5.16/share. Future value is between 5.9-6.1. Why is it so low and everyone selling? who is selling? Dont understand.
Korean is selling?.... Heavy buying last few days but price didn't up, distribution going on, LC slowly release their shares to open market until 23 July 2019 to comply with the public shareholding spread requirement.?
Quite tempting to buy for the 17cents of dividend, but worry that now all been trapped with loss tickets and after dividend may trigger another heavy sell down, price may go lower further, because near term doesn't look good.
Last few days open high and close low but at last call always got some one push up the price higher, also higher buy rate but price not moving up. This is the same scenario before quarter result was out, price at RM4 range for more than a week with high buy rate, and someone keep release tickets, when result out, the price plunged.
But still is supply and demand that have an effect on their average selling price, if China still don't want to buy from US or economy slow down, the Asia market will become over supply and lower ASP will hit LC's profit margin. If next 1 or 2 quarter earning result are so so, PE will shoot up, market will adjust the share price according to the PE.
At current market situation, i don't see any support to push price higher in near term. Now people buy because of thinking price have drop down very low and the dividend look good, but price will continue drop if coming financial report doesn't look good.
I also very tempted to buy at this price with dividend next week, but the risk is after dividend short term traders may sell their share or if market mover decide to come in to push lower and will trigger another round of selling & cut loss action.
May be better wait after Ex date adjustment and see how it go....
I dont think lotte overall performance in other country affect this lotte price. It just a bad decision to invest long term here. More than a year holding with less and less hope.
PETALING JAYA: Lotte Chemical Titan Holding Bhd’s joint venture in the United States is expected to increase group earnings beginning next year after the operations of its two plants stabilise. The projects – a one-million-tonne per annum ethane cracker plant and a 0.7-million-tonne per annum mono ethylene glycol (MEG) facility – will add 0.64 tonnes or an additional 18% to Lotte Chemical’s total capacity based on the apportionment of its equity stake.
Maybank IB Research has raised the company’s financial year 2020 (FY20)-FY21 earnings forecast by 8.6% and 19.3%, respectively, on the back of higher expected contributions from the two projects.
“Previously, we assumed a contribution of RM40mil in FY20 and RM80mil in FY21. Based on our latest forecast, it was too modest.
Contribution from the projects to Lotte Chemical are forecast to be RM162mil in FY20 and RM289mil in FY21.
The research house has also upgraded Lotte Chemical from a “hold” to “buy” with a target price of RM4.70, as the share price has de-rated and is now exhibiting deep value.
Market already hit by over supply as a result of trade tension, LC profit margin will not recover in 2019. If go for dividend, in another 2 quarters the PE ratio will shoot up to above 30, price will drop further.
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....
bone
968 posts
Posted by bone > 2019-05-02 16:13 | Report Abuse
wow, how those can tahan? When they think is low buy already, then it break lower again