2024-05-08 20:57:37 ET
Summary
- Elkem is experiencing volatility in its results due to the Chinese recovery taking longer than expected.
- The company's first quarter results showed improvement in EBITDA, but weak market conditions for the Silicones division.
- Elkem is reducing investment capital and focusing on profitability, while also securing long-term contracts and exiting non-core investments.
Dear readers/followers,
I've been looking at Elkem ( OTCPK:ELKEF ) for about a year at this point. I have a stake in the company, albeit a small one, which gives me skin in the game for the business here. The company, if you follow my articles, is in a bit of a slumpy recovery phase. This is due to the fact that the Chinese recovery is taking longer than expected, affecting the market dynamics, and while the long-term thesis is a positive "BUY", the company does have short-term problems. The last quarter I reviewed, which by the way was all the way back in December, saw the company's results as quite volatile.
I also made it very clear at that point, in my previous article which you can find here, that I do not see near-term improvement potential here. ...
Read the full article on Seeking Alpha
For further details see:
Elkem: That Reversal Is Elusive At Best, But I Say 'Buy'