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Delong weak outlook
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01101749
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18-Oct-2007 03:43
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DJ MARKET TALK: Delong Off 7.1% On Profit Warning; S$2.89 Support 0251 GMT [Dow Jones] Delong (B1N.SG) down 7.1% at 3-week low of S$3.14 after China-based steel coil maker says it expects lower 3Q07 net profit due to higher raw material costs. Local brokerage analyst says profit warning not a surprise as "the key problem is the raw material price and freight cost, which is still going up." But expects 4Q07 results to improve as steel prices have recovered over past weeks. Adds firm's plans to develop iron ore projects with Chinese mining firms, to acquire other steel makers may not happen in near term; "I don't think they have a lot of money to invest in local mines because they have already given the money to the Australians," referring to recent move to acquire 13.1% stake in Cape Lambert Iron Ore (CFE.AU). Support at S$2.89 (halfway mark between this week's highest intraday peak of S$3.76, Aug. 17 low of S$2.02). (FKH) Contact us in Singapore. 65 64154 140; MarketTalk@dowjones.com (END) Dow Jones Newswires October 16, 2007 22:51 ET (02:51 GMT) Copyright (c) 2007 Dow Jones & Company, Inc. ------------------------------------------------ looks like it's headed lower after CD to 2.89 |
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