Johnson Matthey LON:JMAT Platinum at $2,000 in 2011

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Johnson Matthey LON:JMAT said in its 2011 review of Platinum 'With positive supply-demand fundamentals and continuing global economic growth, platinum could trade as high as US$2,000 in the period,' .

'If interest rates in key markets remain low, speculative investment interest should also support platinum's price.

'Although external shocks such as oil price rises or negative sentiment surrounding sovereign debt could once again prove to be a drag on the price, strong physical buying in China is likely to give support during price dips, meaning platinum is unlikely to fall below US$1,750,' it forecast.

Demand for platinum in autocatalysts had already risen 43 per cent to 3.13 million ounces last year as the global automotive sector bounced back from a poor 2009, said Johnson Matthey.

THE price of platinum is set to reach US$2,000 an ounce within six months as global economic recovery lifts demand for vehicles, industrials group Johnson Matthey forecast in a study published on Monday.

The precious metal is used to make catalytic converters, as well as in the manufacture of jewellery.

Johnson Matthey Plc is a global specialty chemicals company operating in three divisions: Environmental Technologies, Precious Metal Products and Fine Chemicals.

Environmental Technologies is a supplier of catalysts and related technologies for applications, such as pollution control, cleaner fuel, hydrocarbons and the hydrogen economy.

It includes emission control technologies, process technologies and Johnson Matthey fuel cells. Precious Metal Products' activities comprise the marketing, distribution, refining and recycling of platinum group metals (pgms), fabrication of products using precious metals and related materials, pgm and base metal catalysts and pgm chemicals, and the refining of gold and silver.

Fine Chemicals is a supplier of active pharmaceutical ingredients, fine chemicals and other speciality chemical products and services to chemical and pharmaceutical industry customers. On November 1, 2010, it acquired Intercat, Inc. and its subsidiaries.

Valuation Ratios


Company Industry Sector S&P 500
P/E Ratio ( TTM ) 22.46 36.40 25.02 17.29
P/E High - Last 5 Yrs. 219.01 100.57 93.83 96.84
P/E Low - Last 5 Yrs. 0.32 41.66 25.88 12.54

Beta 1.38 0.92 1.22 1.27

Price to Sales ( TTM ) 0.49 28.92 2.36 2.23
Price to Book (MRQ) 3.34 2.93 2.73 3.28
Price to Tangible Book (MRQ) 6.59 3.25 2.85 5.56
Price to Cash Flow ( TTM ) 12.60 14.69 21.82 10.22
Price to Free Cash Flow ( TTM ) 104.82 94.33 25.81 63.70

% Owned Institutions - - - -

Dividends


Company Industry Sector S&P 500
Dividend Yield 2.02 0.95 1.04 1.81
Dividend Yield - 5 Year Avg. 2.27 1.57 1.44 2.47
Dividend 5 Year Growth Rate 7.08 -0.48 16.53 -3.82

Payout Ratio( TTM ) 44.09 20.74 16.27 32.28

Growth Rates


Company Industry Sector S&P 500
Sales (MRQ) vs Qtr. 1 Yr. Ago 27.56 2,963.56 36.04 7.76
Sales ( TTM ) vs TTM 1 Yr. Ago 24.84 48.01 21.60 9.56
Sales - 5 Yr. Growth Rate 11.12 21.61 13.59 7.54

EPS (MRQ) vs Qtr. 1 Yr. Ago 31.89 1,437.64 76.92 44.91
EPS ( TTM ) vs TTM 1 Yr. Ago 23.27 - - -
EPS - 5 Yr. Growth Rate 6.63 7.66 24.61 5.05

Capital Spending - 5 Yr. Growth Rate 6.70 21.90 15.60 3.53

Financial Strength


Company Industry Sector S&P 500
Quick Ratio (MRQ) 0.97 1.69 0.81 0.69
Current Ratio (MRQ) 1.62 3.15 1.22 1.02
LT Debt to Equity (MRQ) 42.96 30.76 15.00 151.16
Total Debt to Equity (MRQ) 54.09 31.88 31.46 198.11
Interest Coverage ( TTM ) - 8.55 0.18 17.31

Shayne Heffernan

Shayne Heffernan oversees the management of funds for institutions and high net worth individuals.

Shayne Heffernan holds a Ph.D. in Economics and brings with him over 25 years of trading experience in Asia and hands on experience in Venture Capital, he has been involved in several start ups that have seen market capitalization over $500m and 1 that reach a peak market cap of $15b. He has managed and overseen start ups in Mining, Shipping, Technology and Financial Services.

www.livetradingnews.com

For More Information Contact

Chutinush Taksinapinunt (ANISTA)

Business Development Director

Heffernan Capital Management

Info@Heffcap.com

 



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Commodities

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