ALUA
📉 Aluar’s stock price movement is heavily dependent on the official US dollar exchange rate in Argentina, rising when the dollar strengthens and falling when it weakens.
⚙️ The company’s competitiveness may be negatively impacted by the recent liberalization of scrap metal exports, as it previously benefited from purchasing cheap domestic scrap.
❌ The speaker expresses a negative view on holding Aluar, considering it primarily a hedge against official dollar devaluation rather than a fundamentally attractive investment.
@marcosemmimfp:
“What happens with Aluar and Texar? They depend on the dollar, chicos. The movement of the stock, obviously it has movement due to earnings, whatever you want, but basically, it moves when the official dollar goes up, and it moves down when the official dollar goes down. That’s it, don’t look for more twists. Furthermore, I’d say it’s a sector that is very competitive. Now, scrap exportation has been opened up to them, and they used to buy it cheap because they were hunting in a fishbowl. So, it seems to me that it’s not a sector… it was never a sector where you’d say, ‘I make money here,’ except in moments where you had constant devaluations of the official exchange rate. It’s known in the market as a hedge against the dollar, those two stocks. I don’t like them, particularly I don’t like them. I would never have them in my portfolio, never ever, unless I see that the official dollar is going to fly, like the situation we are seeing today. Today it’s rising because it’s rising.”
Watch the exact part of the video where @marcosemmimfp talks about Aluar Aluminio Argentino here:
Watch the video on YouTube
Read more articles analyzing Aluar Aluminio Argentino (ALUA) at the provided link. ALUA stock.
