OSK research: Overweight steel counters

With steel counters back on the spotlight, we made a fundamental review and found
ourselves looking at a much improved environment of:
(i) Rising steel prices and expectation of expanding margins, particularly for
iron making,
(ii) Demand set to surge after the Chinese New Year celebration, driven by real
demand and improved buying sentiment on positive price trends,
(iii) New yearly benchmark prices for iron ore and coking coal likely to increase
by 20% to 30%, which will support ASP,
(iv) Implementation of stimulus packages worldwide have just begun to spur
long steel requirements,
(v) Huge untapped semi finished steel market in SEA region, and
(vi) Generally still undemanding valuations,
These factors prompt us to maintain our OVERWEIGHT stance on the steel sector
with fair values raised across the board. We have BUY calls on Lion Industries,
Southern Steel and Masteel, a Trading BUY on Perwaja, but a NEUTRAL call for
Kinsteel and a SELL on Ann Joo.

Pls read the attachment, Kinstel TP@1.300..


Attached File(s)
 k3.pdf ( 117.62k ) Number of downloads: 60

 Bursa_prices.PDF ( 329.14k ) Number of downloads: 85
Agree Agree the one i read also said at least 1.20 or 1.30.
I already earned by trading this share 3 times this week.
Now still can buy and hold arr~ if you have bullets

This post has been edited by CSB: Jan 21 2010, 09:01 AM

but this 2 days all the steel counters kaput...not even 1 is green....if dow today red again , going to cut loss nextweek lo

is it Emetall is one of the steel counter?

last week EPF bought alot of kinsteel stock...lets follow the big bro to goreng this stock..TP is rm1.30...

Kindly post at respective steel company topic for further discussion, thanks.