Some news to share from KElive...... Suggested trading Sell!!

Your thoughts please...

"Ausgroup dipped 0.5¢ to close at $0.665 on a traded volume of 3.5m

shares last Friday. The stock failed to penetrate the downward sloping

resistance line suggesting that traders could be profit taking at current

levels. Both RSI and Stochastic Oscillator are losing momentum and

have started to reverse from the overbought levels. We expect the

stock to retrace to previous breakout point at $0.615; stop

$0.695.

Ausgroup's 2Q10 net profit fell 33% yoy to A$3.4m in tandem with

lower revenue of A$85.8m (

levels in its manufacturing, fabrication and construction segments. As

at end

The key challenge has been the impact of the strong AUD on the

group's Australian operations which has been further impacted by low

activity levels and strong competition from Asia. Activity levels in the

Western Australian mineral resources sector and the Singapore subsea

equipment sectors remain well below 2008 highs. However, Ausgroup's

balance sheet remains healthy with a low net gearing of 5.1%.

The stock is currently trading at consensus 16x FY10 and 9x FY11 P/Es.

Looking ahead, management expects earnings to remain weak due to

lower than expected activity levels in Australian fabrication operations,