Wednesday, December 8, 2010

Straits Asia Resources

Straits Asia Resources: -0.4% at $2.54, extending the 7.3% decline over the last 2 days, after last week's run-up to the $2.80 52-wk high. Recent weakness triggered partly by concerns the Indonesia-based coal miner may again face delays in getting regulatory approval to work on a new area in its Sebuku mine…

DMG has a Neutral call with $2.49 target. Still expecting Northern Leases permits to come in by the end of 2010, but notes ramp-up in Sebuku production in FY11 likely to be delayed due to general weather problems.
UBS, which has a Buy call and $3.15 target, remains hopeful however; says Straits Asia should be a primary beneficiary of further strengthening in coal price in the near term as winter descends on the northern hemisphere…

Technicals looking weak, with RSI, Stochastics hooking down sharply from overbought levels, and MACD showing a negative cross. May test support at $2.40 in near term.

No comments:

Post a Comment