STX PO   

STX Pan Ocean

Sorry, newbie here. Forgive my ignorance. Volume very low today. Anyone knows why?

 

Macquarie maintains Outperform on STX Pan Ocean but cuts 12-month target price to KRW2,800 from KRW3,700; "larger-than-expected chartering costs will likely to result in a smaller-than-expected operating margin" in 2Q08 results, says analyst Mok Young-Chung. 1Q's weak Baltic Dry Index to be reflected in 2Q earnings as well, amid global slowdown, he says; but house thinks upturn in BDI is likely on strong iron ore flows in 4Q after further decline in 3Q.

 

In contrast to other brokers, CIMB says iron ore price agreement between Chinese steel mills and Australian miners may lead to lower, not higher, freight rates, as it could lead Chinese iron ore traders to reduce stockpiles. Says, "if iron ore spot prices rise to reflect this new settlement, the traders may use the opportunity to dispose of their stocks profitably; this will, in turn, pressure dry bulk freight rates." Adds agreement, which involved big price hike, may also dampen China demand for iron ore as smaller mills come under pressure, limit production. Broker maintains Underweight stance on Asian dry bulk sector, maintains Trading Sell call on STX Pan Ocean with unchanged $2.32 target price.

 

The conclusion of iron ore talks may lead to a rally in dry bulk shipping rates, says Goldman Sachs. Broker notes announcement that Rio Tinto has settled prices with China's largest steel maker Baosteel, says "the settlement could lead to incremental demand for iron ore from Australia at a time when capacity is very tight, which may initially support freight rates over the next few weeks." But broker cautions effect may only be short-term, advises investors to sell into any resulting strength in dry bulk companies'' shares due to concerns of oversupply of ships next year. Says investors will increasingly focus on downside risks next year, "as the sector de-rates longer-term, we note that new highs will likely be lower than previous highs and new lows will likely be lower than previous lows." Maintains STX Pan Ocean at Neutral, $2.50 target price.

 

STX Pan Ocean  heads higher as investors hope Rio Tinto's iron ore settlement with China's Baosteel will underpin dry bulk shipping rates. "Some people have been saying that the conclusion of the China iron ore talks would boost dry bulk volumes, so that may be helping the shares," says analyst at foreign house. Stock weak recently on worries lead shipping market indicator, Baltic Dry Index (BDI), was coming off top; share hit nearly 3-month low of $2.56 June 16. Oversold on technical indicators, but low traded volumes suggests upside may be capped by continued worries that BDI set for seasonal weakness over summer months.

 

06-22-2008 14:56 STX Eyes W50 Tril. in Sales by 2012

Kang Duk-soo, chairman of STX Group, presents revised sales targets for key affiliates at a workshop held in Oak Valley Resort, Gangwon Province, last weekend. / Courtesy of STX Group By Kim Yoo-chul Staff Reporter STX Group has revised its sales target upwards to 50 trillion won and operating profits to 5 trillion won in 2012 through diversification of its business portfolios at the group’s key enterprises. But group Chairman Kang Duk-soo painted a negative outlook for the global shipping industry in the second half, citing rising raw material prices. ``It is expected that the group will post sales of at least 25 trillion won this year ― well above its earlier target of 20 trillion won by 2010 ― and now I am presenting a new but achievable goal,’’ Kang told some 170 executives at a two-day workshop over the weekend in Wonju, Gangwon Province. ``I see the global economy slumping in the latter half, and urge all the group’s affiliates to find concrete measures to tackle such uncertainties,’’ Kang said. In order to achieve the revised target, the group is planning to split its business units into four sectors ― shipbuilding and machinery, shipping and trade, plant and construction, and energy ― as a pre-emptive strategy. STX Shipbuilding, the group’s flagship, has set a sales target of 24 trillion won by 2010 by strengthening its shipping portfolio capitalizing on the Chinese, European and South Korean markets. Last week, the world’s sixth-biggest shipbuilder offered to buy a bigger stake in Norwegian shipbuilder Aker Yards ― a virtual sign it wants full control of Europe’s biggest ship maker. The deal, worth up to $110 million, could raise STX’s stake to 47.15 percent and trigger a buyout of minority shareholders. The bid comes a week after the French government bought the Norwegian company’s shipyard in France from STX ― a move to keep its part of the hobbled European shipbuilding industry from falling under control of the STX Group. ``In China, we should boost our shipping capacity, however, in Europe, the high-end shipping business is creating a bigger opportunity for us,’’ Kang said. Aker Yards’ profitable cruise ship business is one of the few niches of the global shipping industry currently not dominated by Asian yards. Orders for cruise liners reach over $13 billion annually, accounting for more than 12 percent of the global shipbuilding market, according to industry estimates. STX Pan Ocean hopes become the world’s fifth-biggest in the industry with 14 trillion won in sales in four years time. ``We will diversify our portfolio to LNG, VLCC, PCTC and even container ships to escape from high dependence on dry the bulk segment,’’ Kang said, adding he has an interest in the logistics business. Its plant and construction unit is aiming to for 9 trillion won in sales of industrial plants and large-scaled housing complex projects abroad. In energy, the group is aiming for sales of 2 trillion won with a greater focus on the renewable energy sector such as solar cells. yckim@koreatimes.co.kr

 

Thanks guys..! but wondering the halt will be a good news or wat..hmm..lets see today in action later..:)

 

lifting of trading halt

19 jun 08 - 0900h

 

Hi Kira

you need to take up the counter. if not they will force sell it . Cos the contra still going on T+3....

 

Question here..

I have bought STX PO yesterday but understand that this has been halted. What happened to my contra if it goes halt more than a week huh??

Anyone has any ideas when it will re-open?

Thanks,

 

 

BDI U turned (upwards). Looks positive. But China side limiting iron import and economy is slowing down.. so risk is there....

i think avoid better. look for more stable stocks ba for now... but i think their year end dividend would be good.

 

could be a mirage over the other side. careful is the word. see more reports first loh, no hurry. cash is queen leow.

 

Korea side STX PO up 11% today to 2240won, S'pore side got catch up to do.

 

Units of STX Group including STX Engine and STX Corp said on Wed they were considering bidding for Daewoo Shipbuilding & Marine Engineering Co, but denied talk of new rights issuances.

"Talk of new share issuances is not true," said STX Corp and STX Engine in separate filings to the Korea Exchange.

"We are considering bidding for Daewoo E&C but details have not yet been determined."
 
Korea Development Bank said last month it and other banks want to sell their 50.4% stake in the world's 3rd largest shipbuilder Daewoo without a sale adviser after ending talks with Goldman Sachs.

 

market talk that the group may bid for Daewoo Shipbuilding & Marine Engineering Co.

 

Anybody know why it is halt?

 

It's important to read up on SGX announcements.

UOB-KayHian cuts STX Pan Ocean 2H08 target price to $3.70 from $4.00 and FY09 target price to $2.50 from $3.00, maintains Hold rating. Broker says although dry bulk shippers'' shares may recover in 2H08 in line with the seasonally better trend for dry bulk shipping rates, they are unlikely to reach previous highs "as investors are increasing mindful of being caught holding dry bulk stocks vis-à-vis a potential downturn from 2009 onwards." Broker warns large dry bulk ship orderbook does not bode well for future supply/demand balance, tips market to face oversupply of ships in 2009-2010, expects ship rate lead indicator Baltic Dry Index to peak at average of 9,000 in 2008.

 

ooooo going up a lot, altho i dun really know y

 

at this bearish markets, most investors, esp the small timers are phycologicall already tuned to the common parrot cry "coy raising fund is not a good sign, as it related to writting off". hope it is not loh, ak view only.

 

More downside expected, STX is issuing more new shares to raise funds.