View of The Day - 2600 Chalco

Currently the market just went through (or is still going through) a correction. One of the companies I mentioned a few times in 2009 has just gone to a point that is worth our attention again. Chalco (2600: HK) was closed at HKD7.40 last Friday. It has gone below any of the moving averages. Whether it has created a crack I am not sure and do not quite care about. What I do feel good is such sharp fall in price is in contrast to the general trend of the Chinese market. Yes, I am convinced that China is a Bull not an old Bear. It's a new born Bull. A new born Bull is not easily spotted. China is still an emerging economy but a super-big one. It will not be a superpower that leads the world but it will be a leading economy.

And China has a rich government. A generous one. With such a simple premise, I believe industrials are what we should bet on in 2010. Chalco is one of them. Now the price is, for me, quite low. Should start accumulating it at this level.

Courtesy: ET Net