Sound Global: announced Friday that it won 18 urban-rural wastewater treatment projects in Changsha County, Hunan, representing its first set of projects in rural China. Nomura says this is in line with SGL’s stated goal to tap into this growth area and is a positive move for the co. Notes share price has fallen by 12-13% ytd, due to recent mgt departures. Views selling overdone, as operations remain sound...
Recommends accumulating at current levels as shares trading near lows reached in Jun 2010, when SGL shelved its HK IPO.
Technically, the key indicators have all hooked up from oversold levels, and suggest the stock could see a decent bounce over the near term. Risk reward for current entry appears favorable given resistance at $0.80 and support at $0.70 (strict cut-loss at $0.695).
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