Tuesday, December 8, 2015

ALUMEX - ROI - 19.43% in 6 to 12 months.



A SOLID LEADRSHIP IN STRENGTH, IN SUPPORT AND IN DEVELOPMENT. AT ALUMEX, THE YEAR UNDER REVIEW WAS ONE THAT SAW US GROW AND SECURE OUR POSITION AS THE UNDISPUTED MARKET LEADER THAT SURPASSES THE REST. AND AS WE CONTINUED TO DEVELOP ON OUR RANGE OF STRONG AND DURABLE ALUMINIUM PROFILES, WE STRENGTHENED OUR PRODUCTION PROCESS BY INVESTING IN A STATE OF THE ART POWER COATING PLANT THAT IS THE BEST IN ASIA. TOGETHER WITH A TEAM THAT IS GEARED TO SUCCEED AND A VISION THAT IS FOCUSED ON EXCELLENCE, WE WILL CONTINUE TO SOLIDIFY OUR LEADERSHIP IN THE HEARTS AND MINDS OF ALL OUR STAKEHOLDERS...... Alumex Annual report 2014/2015

Alumex Plc is relatively a new entrant into the CSE. The stock started trading on the 31st of March 2014, closing that day at 14.20. The lowest price during that period was 14, and hit a high of 19.70, on the 24th of July 2015. That is a return of 37.6% in 16 months. Thereafter the stock has moved within a range of 17.10 to 19.40. Presently it is trading between 17.40 and 17.70, in thin volumes. 

Alumex is the market leader in their field of Business. Under the leadership of Hayleys Plc, this will have an exciting growth story. Also being a player in the construction industry, they have many opportunities to grab.
Due to this potential advantage, this counter looks poised to give value to investors and traders alike. At the present low of 17.40, it has retraced a little over 11% from the peak of 19.70. This looks a more corrective trend in nature. Looking at the previous trend from a low of 14 to the high of 19.70, the stock had completed 152.5% of the uptrend that had taken place between July'14 and Nov'14. In a bullish trend it is very common to see for the price to move up between 138.2% and 161.8%. If Alumex could benefit from the growth in the Construction industry in 2016, and start growing their profits, we could see the price moving upto the said areas of 138.2% to 161.8%. Which is between 21 and 21.70. That is a return of over 16.63%. It is also important for the counter to hold the present low of 16.90. Trade Idea - Average down from 17.60 downwards. 1st exit at 18.90 for a short term target of 5% after cost within 3 months. 2nd Exit at 20 for a target of 11.10% within 6 months. 3rd Target at 21.50 for a target of 19.43% within 12 months.

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