SGX – Aspect Huntley rates the stock as Downgrade to Sell from Reduce

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Less than two weeks ago the stock was downgraded to Reduce, this is now taken one step further to Sell.

Aspect Huntley points out a slower than expected start-up at Jinfing reduces its FY07 earnings forecast by just over a quarter to 18cps. As a result of this the researcher’s valuation drops 20 cents to $4.05.

But that’s not the whole story with the researcher explaining the downgrade to Sell also reflects recent strong share price appreciation. It is, the report states explicitly, not a comment on the quality of the company.

The researcher believes near term production and exploration/development upside remains one of the key attractions of this stock.

Current Price is $6.80. Target price not assessed.

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