LAS Stock Drops Sharply
Are you monitoring LAS stock and worried about its strong price decline? You will understand why LAS stock is plummeting and how to effectively respond to this volatile situation.
Overview of the Fertilizer Market and LAS's Position
Lam Thao Fertilizers and Chemicals JSC (LAS) was once one of the representative stock codes in the fertilizer industry. However, from early 2024 until now, LAS stock has dropped sharply by more than 35%, confusing many investors.
Why has a company with over 60 years of history fallen into a crisis of confidence on the stock market?
Main Reasons Why LAS Stock Drops Sharply
The deep cause comes from LAS's business operations in recent times. In the last two quarters, LAS recorded consecutive revenue declines, along with sharply increasing input costs due to rising imported raw material prices.
Recent Financial Picture of LAS
| Indicator | Q4/2023 | Q1/2024 |
|---|---|---|
| Net Revenue | 912 billion | 742 billion |
| After-tax Profit | 32 billion | 4 billion |
| Gross Profit Margin | 18.5% | 11.2% |
This is a sign that LAS's competitiveness and operational efficiency are clearly weakening. This partly explains why LAS stock drops sharply in recent times.
Shrinking Consumption Market, Increasingly Fierce Competition
Besides internal factors, the fertilizer market is experiencing reduced demand due to unfavorable weather and rising agricultural production costs. Additionally, LAS must compete with big names like DPM and DCM -- which have modern technology and wider distribution networks.
- Main products lack innovation
- Market share divided by strong brands
- Lack of brand repositioning strategy
Money Flow Withdrawing from Fertilizer Stocks
In the context of strong market adjustments and attractive savings interest rates returning, many investors are withdrawing capital from speculative stocks, including LAS.
Comparison of Capital Flow by Industry
| Industry | Cash Flow Fluctuation Q1/2024 |
|---|---|
| Fertilizer -- Chemicals | -12% |
| Banking | +9% |
| Real Estate | +4% |
| Energy | +7% |
This explains more clearly why LAS stock drops sharply despite expectations about general economic recovery.
Long-term Investor's Perspective: Should You Buy LAS Stock?
The question of whether to buy LAS stock is currently controversial. Some investors believe the price has created a technical bottom and may recover. But most experts still maintain a cautious view.
Quantitative Analysis and Current P/E
| Company | Latest 12M EPS | P/E |
|---|---|---|
| LAS | 560 | 21.4 |
| DPM | 3,200 | 9.8 |
| DCM | 2,850 | 10.6 |
Thus, LAS stock is being valued quite high compared to its earnings, indicating significant risk. Whether you should buy LAS stock needs to be based on each investor's risk appetite and personal strategy.
Action Strategy for Retail Investors
If you are holding LAS or wondering whether to buy LAS stock, here are some principles to help you make rational decisions:
- Don't chase when the price is still in a downtrend
- Only disburse when clear recovery patterns appear
- Prioritize monitoring institutional and foreign cash flow
Support Tools from Pocket Option
The Pocket Option platform provides real-time LAS stock chart data, technical analysis signals, and a free demo account to help you practice before investing in reality.
| Key Features | Benefits for Investors |
|---|---|
| Trend Signals | Identifying reasonable entry/exit points |
| Technical Analysis Charts | Easy identification of support and resistance zones |
| Demo Account Mode | Risk-free practice |
Conclusion
LAS stock drops sharply is the result of multiple internal and market factors acting simultaneously. However, investors can use this time to observe and prepare a clear strategy. Especially, if you know how to use tools like Pocket Option, you can practice trading scenarios and make more rational decisions in the future.