The bulk materials like coal, iron ore, alumina have faired a lot better than the base metals like nickel, copper, lead and zinc, so one might consider Alumina Ltd (AWC.ASX) a good buy because its going to benefit from a weaker AUD, but its been dragged down by other commodity stocks. China does not have bauxite to my knowledge, so given the opportunity for Chinese (govt) owned corporations to launch takeovers, this might be expected to be a compelling takeover target. I'm a little outdated, but if you check Google Finance, I think you will find Rio Tinto and Alcoa each own a good portion of this corporation. The question is whether it would be up for sale. Interestingly Alcoa is helping the Chinese government block the BHP Billiton takeover of Rio Tinto, so maybe they are is a 'kickback' in terms of giving the Chinese a stake in Alumina.
You are going to see a lot more Chinese investment in the Australian resources sector. Its been on the cards for a long time. This slack market provides the perfect conditions for a takeover. This is the time to start learning how to pick
mining stocks. Do you know the types of companies that the Chinese are going to buy? This stock is at technical support.
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Andrew Sheldon
www.sheldonthinks.com
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