Alumina (ASX:AWC) shares are cheap according to this top performing fund manager

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The Alumina Limited (ASX:AWC) share price has drifted lower since the start of August despite the aluminium miner recently reporting a doubling of first half profits.

Writing in its August 2018 monthly update, the top performing Yarra Emerging Leaders Fund said it increased its position in Alumina shares based on a positive view of the commodity and Alumina’s high-quality assets.

The fund sees earnings, cash flow and capital management upside for Alumina versus consensus expectations, saying the aluminium market remains very tight, and with the approaching Chinese winter closures again having the potential to be even more restrictive.

The Yarra Emerging Leaders Fund believes Alumina shares are undervalued at 10.8 times forward earnings when considering the strategic appeal of its assets.

Alumina Limited shares don’t look cheap, but these 3 shares do…

Combining countless hours of research with over 30 years of hands-on stock market investing experience, The Capital Club’s founder Bruce Jackson has just published his definitive list of 3 Cheap and Good ASX Stocks for 2018.

Alumina Limited was not one of them, but the list does include one tiny gold mining stock, and the company one top fund manager calls the cheapest stock in the ASX 100.

Find out why these 3 Cheap and Good Stocks could be better buys than Alumina Limited. But you better hurry… these stocks may not stay cheap for long.

See the 3 stocks

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Contributors to this article may own shares in some of the companies mentioned in this article. The Capital Club has a thorough disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
Bruce Jackson has 30 years of hands on investing experience. He is passionate about stock market investing, running his own portfolio and SMSF. His focus is on small cap growth stocks. You can contact Bruce at brucej@thecapitalclub.com.au