AEM share price in perfect storm

LIFETIME MEMBERSHIP What a perfect storm for AEM share price. Investors must put on their seat belts and braced for a roller-coaster ride. Year-to-date, AEM share price tumbled 18.9% to reach the current $4.25. The collapse of AEM share price occurred right before the release of FY2021 financial result. Is this a sign of things to come for AEM share price?

Apparently, the cocktail of headwinds – the unfolding Ukraine-Russia conflict and looming interest rate hikes – had knocked the wind out of AEM’ sail. To rub salt into injury, the USD counter had received poor reception, effectively dashing hopes of a NASDAQ listing. The resulting outcome is a crisis of confidence for AEM share price.

AEM share price

For the past two weeks, data extracted from SGX portal showed that AEM had been on the top ten net sell institutional list. The week of 7 Feb 2022 saw the counter topping the list, with $22 million worth of shares being net sold by the big boys. It seems that big boys are fleeing the counter. This could explain the downward trend of AEM share price in recent weeks.

To be honest, it is hard to imagine Non-Executive Chairman Loke Wai San pulling another rabbit out of the hat. In August 2021, the management released a set of poor 1HFY2021 result at late night (10:48PM). Usually when a listed company announces its financial result at late night, it can only mean one thing – disappointing financial result. That night, many investors could not sleep well. Consequently, the next day, AEM shocked the market by announcing the entry of Temasek. This time round, let’s hope that the financial result will not be released late at night.

Apart from the FY2021 financial result, all eyes will be on the sales guidance, if any. On 11 January 2022, AEM share price hit $5.22 following the announcement of a sales guidance for FY2022, which amounted to $670 million to $720 million. This is a significant jump from the FY2021 revenue, which is expected to be between $525 million to $550 million. However, AEM share price went into a tailspin as the management warned “margin compression in view of higher supply chain costs and an increase in R&D spend”.

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Note that this is an opinion article and not meant to be a financial advice. Please do your due diligence or engage financial advisors before investing in the stock market. I am vested in this counter, so my views on AEM share price may be biased.

AEM share price faces turbulence in short-term

In this blog, I have always cautioned that this counter is not for the faint-hearted. On its day, AEM share price can [This is a premium article. The rest of the content is blocked and can be accessible by SG Wealth Builder Members only. To read the full content, please sign up as member.]

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Updated: February 21, 2022 — 1:26 pm

2 Comments

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  1. Thanks, Gerald, for the updates. With the financial report out last Friday, it should be standing much well as the results are better than expected.

  2. Hi Leo,

    Yup. Just hope that the raging commodity prices would not cause costs for raw materials to escalate till margin compression went haywire. With the unfolding Russia war, commodity prices gonna hit the roof!!

    Regards,
    Gerald
    https://sgwealthbuilder.com

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