Stadium Group Share Discussion Threads

[aleman] 09/1/2007 22:34

I would not worry. There can always be news that you do not know about and it can hit any share so you must invest on the information that is available. It is more likely however that some investors see the shares descending slowly over the past year and see a rise to the top of the channel as a chance to sell. The fact of the matter is that RNSs have suggested there are improvements in the pipeline following a difficult period and we have observed that costs are not as difficult now as they were a few months ago. The obvious thing to me is that SDM stands out as a yield share that has not been rerated in recent months. I hold a few others and the rest on my monitor have mostly gone up 10-30%. ACL and TTG which have a little overlap with SDM have gone up significantly more than that. Even with a flat outlook the slowly rising yield could see a 50% rise in the shares. If Asian sales continue to motor and margins increase as hoped, the shares could easily double and not look expensive with a 3% yield.

[atkijo] 09/1/2007 19:11

Aleman, I also topped up this morning, only for the price to fall this afternoon! Typical.

That aside, the co. looks good to me. The divi is c6% and looks reasonably well covered based on the last results. They said then that they had already been able to push through price rises which would benefit the second half, and new contracts were already won that will provide growth into 2007. And as you say, recent commodity price falls should also benefit.

All this apparent known good news, and volume of buys easily outnumber that of sells during the day and the price falls. Such are the vagaries of the market. Unless of course the market is getting a hint of something that we don't know about.

[aleman] 09/1/2007 12:05

Bought some more of these today. The weak downtrend channel looks set to contend with the generous yield around the time of the the results in 6 weeks or so. Recent movements in the price of oil and copper have been favourable to add to attempts to move to higher margin contracts. I think the balance of probabilities is that February will bring good news.

[aleman] 29/12/2006 08:25

China A-shares close sharply higher, key index up 130 pct for 2006 - UPDATE
AFX


SHANGHAI (XFN-ASIA) - A-shares in Shanghai and Shenzhen closed sharply higher on window-dressing activity and a rising yuan with heavyweight banks, property developers and airlines snapped up in the last trading day of 2006, dealers said.

The benchmark Shanghai Composite Index, which covers both A- and B-shares listed on the Shanghai Stock Exchange, closed up 107.88 points, or 4.20 pct, at 2,675.47, a fresh all-time high, after moving between 2,585.42 and 2,698.90.

The key index surged 130 pct for the year, and was up 14.16 pct for the week, its biggest weekly gain in over 11 years. Turnover rose to 59.09 bln yuan from 50.52 bln in the previous session.

'The market was driven sharply higher by institutional window-dressing, with almost all heavyweight stocks in demand,' said Wang Mingzhi, an analyst at GF Securities.

Analysts said the bullish trend will continue for the beginning of 2007, but there could be some corrections in the medium term.

'At the beginning of 2007, I believe the market will maintain its strong momentum on the back of adundant liquidity and a strong yuan,' said Cao Yan, an analyst at Soochow Securities.

'But investors should also stay a bit more cautious because the overall price-to-earnings ratio is getting relatively high,' Cao said.

Banks continued to see strong buying interest with Bank of China (SHA 601988; HK 3988) surging its 10 pct daily limit to 5.43 yuan. It has jumped over 35 pct for the week.

Industrial and Commercial Bank of China (ICBC) (SHA 601398; HK 1398) rose 0.35 yuan or 5.98 pct to 6.20. It has gained over 33 pct for the week.

Shanghai Pudong Development Bank (SHA 600000), in which Citigroup hopes to increase its stake to 19.9 pct, jumped 1.14 yuan or 5.65 pct to 21.31.

Shenzhen Development Bank Co Ltd (SZA 000001), in which Texas Pacific unit Newbridge Capital has a 17.88 pct stake, added 0.45 yuan or 3.21 pct to 14.47.

China Merchants Bank Co Ltd (SHA 600036) rose 0.79 yuan or 5.07 pct to 16.36 and Huaxia Bank Co Ltd (SHA 600015) climbed 0.22 yuan or 3.07 pct to 7.39.

China Minsheng Banking Corp Ltd (SHA 600016), in which International Finance Corp holds a 1.08 pct stake, added 0.39 yuan or 3.98 pct to 10.20.

Real estate developers and airlines were buoyed by a strong yuan. The central bank has set the yuan central parity rate at a record of 7.8087 to the dollar, a new high.

Shanghai Lujiazui Finance & Trade Zone Development Co Ltd (SHA 600663; SHB 900932; ADR SLUJY) climbed its 10 pct daily limit to 13.88 yuan.

Shanghai Jinqiao Export Processing Zone Development Co Ltd (SHA 600639; SHB 900911) rose 0.68 yuan or 6.12 pct to 11.80. Shanghai Wai Gaoqiao Free Trade Zone Development Co Ltd (SHA 600648; SHB 900912) added 0.37 or 5.81 pct to 6.74.

Air China Ltd (SHA 601111; HK 0753) surged its 10 pct daily limit to 5.15 yuan.

China Southern Airlines Co Ltd (SHA 600029; HK 1055; ADR ZNH), the country's largest carrier by fleet size, also gained 10 pct to 4.09 yuan.

Regional carrier Shanghai Airlines Co Ltd (SHA 600591) added 0.28 yuan or 8.54 pct to 3.56 after reporting a gain of 42 mln yuan from the sale of a backup engine worth 6 mln usd to Wells Fargo Bank Northwest National Association.

Dazhong Transportation (Group) Co Ltd (SHA 600611; SHB 900903) rose 0.36 yuan or 5.22 pct to 7.25 after its board approved a proposal to buy 60 mln new shares to be issued by Everbright Securities for 158.4 mln yuan.

Shanghai Brilliance Group Co Ltd's (SHA 600631) trading was suspended after reports that its parent firm's chairman is under investigation.

The Shanghai A-share Index soared 114.04 points or 4.22 pct to 2,815.13 on turnover of 58.75 bln yuan and the Shenzhen A-share Index was up 11.67 points or 2.09 pct at 569.58 on turnover of 25.34 bln yuan.

The FTSE/Xinhua China A 50 Index was up 374.19 points at 9,207.45. The FTSE/Xinhua China A 200 Index gained 200.85 points to 6,133.67 and the FTSE/Xinhua China A 600 Index was up 138.97 points at 5,037.34.

(1 usd = 7.82 yuan)

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[aleman] 28/12/2006 11:59

China 2007 GDP growth to be about 10 pct - statistics bureau
AFX


BEIJING (XFN-ASIA) - China's economic growth next year will be around 10 pct, Yao Jingyuan, chief economist at the National Bureau of Statistics, said.

Yao said that GDP growth for all of 2006 is expected to reach 10.5 pct.

Speaking to reporters, Yao also said that a key objective for economic planners for the new year is to ensure that fast growth does not become overheating.

[aleman] 15/12/2006 16:28

Bernanke calls for renminbi revaluation
By Krishna Guha in Beijing

Published: December 15 2006 06:06 | Last updated: December 15 2006 09:11

Ben Bernanke, chairman of US Federal Reserve, stepped into a political minefield on Friday when he released remarks branding China's undervalued currency an "effective subsidy" for its exporters which was distorting patterns of production and trade.

[underhill] 28/11/2006 15:30

I see they were lower at the start of the year.

[aleman] 28/11/2006 09:53

Can they go lower? Yield now 6.1%, forecast to rise to 6.25% next year.

[aleman] 15/9/2006 12:17

Just realised the shares went ex-dividend to the tune of 1.15p Wednesday.

[aleman] 07/9/2006 00:27

Seems to be a new broker forecast in the market. Consensus has dropped from 7.47 then 7.8p to 6.51 then 6.53p. Dividend has gone from 3.6 then 3.75p to 3.62 then 3.77p.

[nbaxter] 06/9/2006 13:35

A small mention in the Guardian : including a tie-up with SSL for a personal electronic product !!

[vikcom] 04/9/2006 19:02

aleman

I assume you are holding for the longterm. not a bad share for income, but growth is limited. there is not going to be much acted here for the next six months.

[aleman] 04/9/2006 13:45

What change in debt? The rise in overdraft was offset by a decrease in creditors. That doesn't make much difference to the company except there will be an interest cost. Compounding with an increase in debtors is not good for cashflow, however. Payments in China are slow at the best of times and they could actually get worse as interest rates there rise. Paying off creditors but not getting payments off debtors will hit the overdraft. Increasing sales there was always going to have a cashflow effect. I'm not sure I like the way the company linked the rising overdraft to the dividend and pension payments - they will be there again next time, but they need to make sure the rise in debtors isn't. Somehow it seems a little misleading. Perhaps there have been some cases of late or no payment on those last deliveries into the telecoms sector. I'm sure nobody rushes payments if you're never going to order any more, and that would be a little embarrassing. On the bright side, the company says it expects cashflow to be positive in H2, and longer term debt has actually decreased. It is certainly something to keep an eye on, but could be expected to a degree. The director buying in the Spring, the albeit slight dividend increase, and the recent small acquisition reinforce the suggestion it is only a short term issue.

[vikcom] 04/9/2006 13:01

bit of an overreaction. increase in debt is disappointing.

[aleman] 04/9/2006 10:10

The 11% drop in the share pice is disappointing although the volume is very low so far. At least a few small buys have appeared. Stockmarket activity in this company is remarkably quiet.

[aleman] 04/9/2006 08:19

Interesting results, much as indicated by the company. Underlying eps down 14% maybe slightly weaker than expected, but there was a recovery expected which seems to be confirmed by the emphasis on new contracts for H2 and 2007. The rapid growth in Asia sales last year has disappeared - maybe the telecoms orders were lower margin stuff to fill the new factory and they are concentrating on higher margin stuff now. Seems to be strong growth to "others" - I wonder where that is. Australia? It is worth noting that 6% total turnover growth comes after the 8% reduction from automotive and telecoms. Telecoms is nearly non-existent now so that cannot be repeated. Automotive would have to get worse and similarly almost be wiped out for the total turnover trend to remain the same, so it seems likely to get stronger in future, which is what is being forecast. Also, margins will presumably improve once the changing mix becomes established and development and tooling settles a bit. They seem to be achieving price rises after input costs rose sharply. The small dividend increase will likely be matched in H2, being 3.6 or 3.7p in total depending on how things go. That should yield at least 5.7% given the slight drop at the start. It will be interesting to see what analysts make of the order book in their forecasts.

[aleman] 31/8/2006 17:00

Remarkably, still only one small trade with an acquisition yesterday and one day to buy ahead of results.

[aleman] 18/8/2006 12:21

Notice of results should be along soon, possibly Monday. They tend to be about two weeks ahead of time.

[aleman] 09/8/2006 14:48

A nice tick up after a quiet spell. Interesting in that it takes us past a minor resistance point about a month ahead of results. That could well mean it fills the gap to 71p in the run up - that is, if it doesn't go back to sleep again. Historic yield 5.3% on 3.5p forecast to rise to 5.45% on 3.6p - an upgrade in the past couple of weeks. The continuing boom in China seems to be having an influence.

[aleman] 26/7/2006 16:24

China gradually to increase flexibility of yuan exchange rate - Wen - UPDATE
AFX


SHANGHAI (XFN-ASIA) - China will gradually increase the flexibility of the yuan exchange rate and improve its forming mechanism, the official Xinhua news agency reported, citing Premier Wen Jiabao.

He also said the government needs to take steps to prevent the economy from overheating.

'We must take effective measures to solve existing contradictions and problems to prevent the economy, which is already growing a bit too fast, from overheating,' Wen was quoted as saying.

China's economy expanded by 10.9 pct to 9.14 trln yuan in the first half of 2006, building on the double-digit growth of the first quarter.

The current economic situation is generally good and growth has been stable and fast, he said, adding there are several prominent concerns including overly-rapid growth in fixed-asset investment, excess credit, a worsening trade imbalance, excessive consumption of resources and increasing environmental pressures.

He called for full implementation of the central government's economic policies by strengthening and improving macro controls.

He noted that efforts to tune the economy need to be more forward-looking, relevant, complex and efficient.

Wen said one of the key tasks now is to firmly curb excessive growth in fixed-asset investment, focusing on controlling land use, credit and market access.

The authorities must take appropriate steps to control credit growth, as well as absorb liquidity in the banking system.

The authorities should step up moves to clear land which has been used illegally and comprehensively clean up new projects and tighten the assessment of project plans.

He also urged greater efforts to be made in reducing energy consumption and enhancing environment protection.

The government should actively expand consumption.

The authorities should continue to strengthen controls over the property market and are determined to curb excessive price increases in certain cities, Wen said.

He made the comments when outlining economic policies for the second half of the year at a State Council meeting today, according to Xinhua.



(1 usd = 8.00 yuan)

[aleman] 18/7/2006 10:26

China interest rates, currency seen rising in H2 - Goldman Sachs
AFX


BEIJING (XFN-ASIA) - China's lending and deposit rates, as well as the value of the yuan, are likely to increase in the second half, a Goldman Sachs economist said in a research note.

'We expect interest rates will be raised, likely by 27 basis points,' said Hong Liang, China Economist with Goldman Sachs (Asia).

The central bank's decision in April to raise only the lending rate appeared to have created more problems than it resolved.

'It not only has given banks more incentives to lend, but also left inflation expectations ill-anchored,' Liang said.

Liang also said the yuan will appreciate faster in the second half, and expects its daily trading band to widen from its current 0.3 pct to around 1.0 pct.

'Following a weaker US dollar, the yuan has depreciated on trade-weighted terms since late last year, adding further fuel to export strength and diluting the impact of monetary tightening,' Liang said in the note.

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