Our updated thoughts on ALU

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Question asked 11/06/2021

Our updated thoughts on ALU

James ,

Still enjoying the insight on the market and our subscription has been a good investment for our smsf. We are holders of ASX:ALU and in view of recent events what would be your general advice re holding our selling. Also we have been stuck with ASX:LVT for a long time and we would be thankful for some general advice re sell or stick ( I suppose it's only a loss when you sell )

Thanks again Gavin

Hi James and team,

Thanks for your good work! Altium has been downgraded to Underperform by RBC Capital, is that because it jumped so much in price? Would it be fair to expect it may go sideways from here for a while or drop back?

Thanks, Kim

Answer

Hi Guys,

We wrote about ALU in our morning note on Thursday 10^th June, we believe a deal will ultimately be struck for ALU above $40 making it good risk / reward around $35. That report & rationale can be found here. We are holding ALU believing there is more to play out with this transaction

The saying goes that “a picture tells a thousand tales” and in this case LVT looks / feels all too hard. Fundamentally and technically we so no compelling reason to buy LVT, hence we would be reluctant to hold.

chart

Livetiles Ltd (LVT)

LAST UPDATED 11/06/2021 11:54

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