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INCO: Divestment Soon? Is Fundamental Priced-In?

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Algo Research Team

Company | Feb 10, 2024 | Views: 655

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Key Summary:

  • Divestment to MIND-ID, at what price?
  • Is the fundamental concern priced-in?
  • Stock is down -52% since 2023, rebound or not?

Nickel is one of the most underperforming global commodities recently. Over the past year, several factors have led to lower nickel price such as oversupply concern, monetary policy, waning global EV demand and lack of stimulus from China. As such, LME nickel price has decreased by -48% since beginning of 2023, adding negative outlook to nickel-related stocks such as INCO where its share price is down -52% over the same period.


Specific to INCO, aside from pushback on fundamental (nickel price), the share price is negatively affected by: 1). The stock was excluded from MSCI back in Nov-23 that has led to consistent outflows from foreign investors, 2). Divestment price overhang from VCL and SMM, as majority shareholders, to MIND-ID for 14% stake.

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