"Further order cancellation & margin pressure in 2009
The outlook for the shipping building industry continues to deteriorate, in our view.
Management presented a notably downbeat 2009 outlook highlighting the risk of
further delivery delays and order cancellations. Management also guided that
margins for the shipbuilding & shipping divisions will continue to come under
pressure and that planed expansion of the ship yards has been scaled back.
Trading at 1.5x P/B we maintain our underperform rating and PO of S$0.45/share"
The outlook for the shipping building industry continues to deteriorate, in our view.
Management presented a notably downbeat 2009 outlook highlighting the risk of
further delivery delays and order cancellations. Management also guided that
margins for the shipbuilding & shipping divisions will continue to come under
pressure and that planed expansion of the ship yards has been scaled back.
Trading at 1.5x P/B we maintain our underperform rating and PO of S$0.45/share"
I extract the above statement from ML report dated 23Feb. Obviously the FA is getting from bad to worst , has the current price factor in the poor outlook going forward ? I am not sure also .
But looking at the chart , the key support at 0.765 . This level if breakdown might spell trouble , which could bring it down to around 0.665 . Stay Short ... ....
No comments:
Post a Comment