Nearly-bankrupt FerroChina appoints financial advisors
FerroChina has appointed Ernst & Young Solutions LLP as its financial adviser to its restructuring.
The steel-maker said yesterday it was unable to pay RMB 706 mln in working capital and loans due to the economic crisis. It has also temporarily stopped its manufacturing activities and suspended its shares from trading.
Analysts surveyed by Reuters have on average a HOLD call on the stock with a price target of RMB 4.06, compared to its last traded price of S$0.55.
~ Jin San’s take ~
Analysts have predictably downgraded FerroChina’s stock. OCBC Investment Research has suspended coverage on FerroChina and DBS-Vickers has a SELL call at a price target of S$0.545.
There is little investors can do – they cannot sell their stocks as trading has been suspended. They can only hope that management’s talks with lenders and potential investors turn out well.
As always, please see your licensed financial advisor before making any investment decisions.
ArchivesThe steel-maker said yesterday it was unable to pay RMB 706 mln in working capital and loans due to the economic crisis. It has also temporarily stopped its manufacturing activities and suspended its shares from trading.
Analysts surveyed by Reuters have on average a HOLD call on the stock with a price target of RMB 4.06, compared to its last traded price of S$0.55.
~ Jin San’s take ~
Analysts have predictably downgraded FerroChina’s stock. OCBC Investment Research has suspended coverage on FerroChina and DBS-Vickers has a SELL call at a price target of S$0.545.
There is little investors can do – they cannot sell their stocks as trading has been suspended. They can only hope that management’s talks with lenders and potential investors turn out well.
As always, please see your licensed financial advisor before making any investment decisions.
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