Ferrochina   

Ferrochina

I am out at 1.60... Will be back to collect at 1.38...  All the best to those who hv vested

 

one interesting observation about the name of angmo companies... such as Reuters, Bloomberg, Wal-mart, Merrill Lynch, etc... do you know they are the family names of the founders of the companies? Even today, when those angmo start a new company they still like & proud of to use their family name. Makes me think of we asians whom often strongly oppose to the use of our family name for our company - always try to think of some exotic Greek names to impress. The more strange the merrier. Is our family name so inferior?

 

Since market sentiment now so good...wonder what's the opening and closing price for this on monday.

Guess open 1.66, Close 1.65 ?

vested 

 

Tim LeeMaster May 02, 2008 www.scmp.com

FerroChina, a Singapore-listed mainland coiled-steel maker, has attracted interest from Australia's BlueScope Steel and Russian firms including Evraz Group over selling an about 20 per cent stake with a current market value of US$167 million.

FerroChina executive director Norman Fong said last month that the company was looking for foreign investors to increase sales and access to raw materials.

FerroChina's shares have this year dropped 22.8 per cent to S$1.42 (HK$8.15). The company's market capitalisation is S$1.13 billion.

"There's been a lot of borrowing of their scrip and shorting the stock so they want to soak up the excess stock by putting in a new strategic investor," said CIMB-GK analyst Lawrence Lye. "They feel the stock has been too volatile and shouldn't be that way because they have sound fundamentals."

FerroChina's plans could change depending on the types of formal bids received.

FerroChina's plans could change depending on the types of formal bids received.

"The thing to recognise is you don't know what you'll end up with," said one source. "Some of the real acquisitive guys may come in with a huge bid and the whole company could get sold."

Foreign steel companies are eager to gain access to China's rapidly expanding steel sector, where production last year rose 15 per cent to 489.2 million tonnes.

Melbourne-based BlueScope Steel is Australia's largest steelmaker.

Beijing has banned foreign companies from taking majority stakes in state-owned steel mills but its view on investment into the non-state sector has not been formalised. Mainland private steel mills produce a third of the country's total crude steel output, according to China Iron and Steel Association.

"The feeling is that some of these companies are too small to worry about," said a source, citing discussions he had had with mainland regulators.

Evraz, partly owned by Russian tycoon Roman Abramovich, is awaiting Chinese government approval to buy a 10 per cent stake in Singapore-listed steel trader Delong Holdings. Evraz has the option to raise the stake to 51 per cent which, if exercised, will require it to buy out the remaining shareholders.

When the deal was announced in February, the S$3.95 per share price the company agreed to pay was at a 30 per cent premium to where the shares traded.

ArcelorMittal, the world's largest steelmaker, is also awaiting approval for its acquisition of Hong Kong-listed China Oriental Group (SEHK: 0581), which makes steel strips and billets. Such products are a middle stage in processing steel.

FerroChina sells steel used as window and door frames, scaffolding, highway signage and railings, and agricultural machinery.

 

indeed some interested parties, potential counter check this out -

http://www.scmp.com/portal/site/SCMP/menuitem.2af62ecb329d3d7733492d9253a0a0a0/?vgnextoid=963f357add4a9110VgnVCM100000360a0a0aRCRD&ss=Companies&s=Business

 

jason, agree with you. Good analogy...

 

Maybe it needs some broker firm / big news reporting company to feature the story as company officials can says watever vision or news but not creditable enough..

 

Eg in layman's term : if i ask someone to purchase 1 kind of health product and i have nothing justifiable certification like a certified doctor, nobody will buy from me or will definately think twice brfore taking my words... But if a doctor who request patients to take 5 kind of different meds... they will take it...

 

u hope this answer ur Q.... cheers

EastonBay      ( Date: 02-May-2008 12:43) Posted: CEO mentioned it at its AGM on 25 April and was reported the following day in the newspaper. He mentioned that there are several interested parties and they are in talk with 2 strategic partners. And that news was already one week old. Wonder why it takes Reuters news to move the counter?

 

CEO mentioned it at its AGM on 25 April and was reported the following day in the newspaper. He mentioned that there are several interested parties and they are in talk with 2 strategic partners. And that news was already one week old. Wonder why it takes Reuters news to move the counter?

 

would appreciate sincere advise/feedback rather than plain non-value added sarcasm, this does not bolster well for the good spirit of a forum.  Believe in broker or not is a personal choice and one must do all their ground work in any case and know the track record of the advices. 

In this case, this industry is undergoing consolidation in china and to enter the market, best is to buy into companies and ferrochina is a likely choice... so, this is not without basis.

lucky168      ( Date: 30-Apr-2008 19:42) Posted: surprised nowadays there are still people who believe in their brokers???

 

NOW just hope that the counter will be halt after lunch.... if that happens... will at least reach 1.75 in days to come....

 

Well... just hope that DOW JONES wun plunge more than 100 pts tonight thought the market expect some retraction but is factor in with consensus.. so let's see.....

 

 

Seems that the deal is more or less firm by the VOL of buy up... chiong ar....

 

 

Cheers to all vested....

viruz7667      ( Date: 02-May-2008 11:32) Posted: May 2, 2008, 10.45 am (Singapore time) FerroChina up on possible M&A deal Email this article Print article Feedback SINGAPORE - Steel-maker FerroChina rose as much as 4.9 per cent after Hong Kong's South China Morning Post reported that Australia and Russian firms are eyeing at least a 20 per cent stake in the China-based company. Shares of FerroChina, which makes galvanised steel, hit an intraday high of $1.49 (US$1.10) with over 4.8 million traded. The newspaper report, which did not name its source, said FerroChina has attracted interest from Australia's BlueScope Steel and Russian firms including Evraz Group, part-owned by Russian billionaire Roman Abramovich, to buy a 20 per cent stake in the Chinese company. But the unnamed source said FerroChina may receive a large offer and sell more than one-fifth of the firm. 'Some of the real acquisitive guys may come in with a huge bid and the whole company could get sold,' the newspaper quoted the unnamed source as saying. The report follows an announcement from FerroChina last month that it had hired Merrill Lynch as its strategic advisor. In March, FerroChina executive director Nelson Fong said that the company would consider long-term alliances or strategic investments by outside parties, but he said the owners would want to retain some control. -- REUTERS

 

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SINGAPORE - Steel-maker FerroChina rose as much as 4.9 per cent after Hong Kong's South China Morning Post reported that Australia and Russian firms are eyeing at least a 20 per cent stake in the China-based company.

Shares of FerroChina, which makes galvanised steel, hit an intraday high of $1.49 (US$1.10) with over 4.8 million traded.

The newspaper report, which did not name its source, said FerroChina has attracted interest from Australia's BlueScope Steel and Russian firms including Evraz Group, part-owned by Russian billionaire Roman Abramovich, to buy a 20 per cent stake in the Chinese company.

But the unnamed source said FerroChina may receive a large offer and sell more than one-fifth of the firm.

'Some of the real acquisitive guys may come in with a huge bid and the whole company could get sold,' the newspaper quoted the unnamed source as saying.

The report follows an announcement from FerroChina last month that it had hired Merrill Lynch as its strategic advisor.

In March, FerroChina executive director Nelson Fong said that the company would consider long-term alliances or strategic investments by outside parties, but he said the owners would want to retain some control. -- REUTERS

 

surprised nowadays there are still people who believe in their brokers???

 

My broker says there's rumour of takeover on this counter... anybody here the same ?

 

tomorrow will determine its trend, up or down i guess

after ex

 

FerroChina Limited (BUY/S$1.44/Target: S$2.12)

Please do your own research prior to making investment decision

 

JPmorgan issued downgrade on ferrochina, TP 1.25.

 

From earlier 1.16 rebound back to 1.6, then 1.42. 


Relook at the presentation, i think this one got some potential. The CEO intends to build it into something similar size of amittal steel . Very ambitious CEO, 1Q result very consistent and let's see how far he can go. 

Also, Merill lynch appointed as the strategic advisor, probably means that they will be bringing in some partnerships. Price appreciation? maybe.

 

China shares rebound; government moves to boost markets by cutting stamp tax

SHANGHAI, China - Chinese stocks rose Wednesday as investors, betting on further market-boosting measures from the government, snapped up bargains following recent losses.

On Wednesday evening, the government fulfilled investors' expectations, cutting a stamp tax on share transactions to 0.1 percent from the current 0.3 percent. The measure, which takes effect Thursday, was approved by the State Council, Finance Ministry and State Administration of Taxation, the official Xinhua News Agency reported.

~~ This news for sure will boost up all the china stock tomolo~~ you'll see man.. yeah~~

 

 

More buyers are chasing the shares during this uptrend...