I think ALUs SP just reflects whats going on in the broader market. Equities, globally and in Australia, are overpriced due largely to the policies of central banks of IMO.
Im finding it very hard to find quality stocks which are fairly priced ATM. With EPS growth largely flat across the market, high debt levels and no obvious catalysts for growth, the case for equities, generally, isnt strong. Because of this I have reduced my equity exposure significantly and increased cash. However, i still hold ALU and will continue to hold.
ALU has an excellent business model, no or little debt and generates a lot of cash and i think this will be true for years to come. Until i see evidence of a decline in ALUs story i'll continue to hold. Personally, i avoid focusing on daily price fluctuations. Its easy to get obsessed with the price becuase its the one thing we get constant data on. But this can distract you from whats important; ALUs business prospects. I wouldnt be buying at these levels, but am happy holding while the business case for ALU remains strong.
ALU Price at posting:
$7.35 Sentiment: Hold Disclosure: Held
