Just 24 hours after MM flagged our interest towards AWC into weakness the stock plunged -6.8% on large volume after their US joint venture partner Alcoa reported higher costs and lower prices, not a good combination which feeds in contracting margins! Alumina’s MD presented an upbeat earnings outlook but the market might need some proof before re-embracing this particular resource play.
- We like the risk/reward towards AWC back around the $1.50 area, now only 6% lower.
MM will consider buying AWC into further weakness
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