CIMB's man, William Tng, is a seasoned analyst. His views on AEM have been sharp and he has been proven right. AEM may be the best of the best coverage in his career.
Stock is in bullish zone, with this year's expected earnings at 67 c per share, according to CIMB's recent report. AEM $6.00 = PE of 9X only.
Cheap for a world class company that supplies to Intel.!
Bunch of short-sellers probably at work today and the last few days. If AEM doesn't miss earnings target, this stock is going to zoom even higher than previous high of $7.60.
AEM has continued to move up from the $6.00 support level! Best buying op was when it hit $5.50 when investor anxieties erupted over US-China trade war.
Emotionally it may have been hard to buy. But take courage from an objective point -- prior to the turbulence, several long-only institutional and family funds bought 4 million AEM shares at $6.10 a share from Orion Phoenix on 2 March 2018.
Assume these are long-term investors. Assume the stated transaction price is genuine (ie, no rebate under the table as may happen with some dubious counters).
Then, assume that at $6.10, these investors saw the potential for AEM to reach ..., say, $9 or $10 in ...., say, 1 or 2 years time. Great return!
On that basis, U can decide if $6.40 now is worth the risk.
