InvestIdeas

Not vested

DJ MARKET TALK: Sateri Down; Forex, Natural Hazard Risks Eyed-BEA

1502 [Dow Jones] NEW LISTING: Sateri (1768.HK) is down 0.9% at HK$6.54, vs IPO price of HK$6.60, with the stock moving in tight range of HK$6.48-HK$6.66, after a lackluster response to its IPO, with HK's retail tranche only 64% subscribed.

BEA Securities says Sateri is exposed to the foreign exchange risk of the Brazilian Real vs USD.

"The Group has been using forward foreign exchange contracts to hedge against FX risks, which led to hedging gains and losses during the track record period."

Adds, its wood plantation assets are exposed to natural hazard risks like fire, flood, severe weather and unknown disease, which could hamper its earnings growth. Suggests that investors take quick profits.


Source: Dow Jones Newswire

Not vested. From Dr. Check, The Standard HK:-

Look at cellulose producer Sateri Holdings (1768).

Its 84,000 hectare plantation in Brazil provides a stable supply of eucalyptus wood, and its mill there churns out annually up to 465,000 tonnes of dissolving wood pulp.

Sateri's plant in Jiangxi is to increase output of viscose staple fibers to 160,000 tonnes by year's end, and a mill in Fujian starts up next year.

Wood pulp is turned into paper while staple fiber is used for yarn. As commodity prices rise so will prices of wood pulp and staple fiber.

The company went public in December with shares offered at HK$6.60 each. They hit a high of HK$8.23 last month but fell yesterday to HK$7.69 - attractive as Credit Suisse's targets HK$10.55, or 14 times 2011 expected earnings.

http://thestandard.com.hk/news_detail.a ... 10201&fc=2

-Not vested.

Definitely Oversold @ 4.07 and I am mulling over buying it... Any opinions guys??