Cosco: Sell: DMG & Partners Securities
Dec 05, 2008 The Business Times
COSCO Corporation (Cosco) announced that its 51 per cent owned subsidiary, Cosco Shipyard, has entered into a variation agreement for five units of its 57,000 dwt bulk carrier newbuilds.
This variation agreement includes cancellation of two vessels and deliveries rescheduling of the three remaining bulk carriers. The cancellation would be conditional upon an advance payment of up to 80 per cent of the total contract price (of the remaining three bulk carriers) received from the shipowner.
We are keeping our forecasts intact as we have previously factored in 20 per cent cancellation orders in our estimates. Our target price remains at $0.68. We believe Cosco's share price would be negatively affected due to concerns over further possible cancellations in the near term.
Maintain SELL.SELL
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment