ST Engrg: aerospace arm, ST Aerospace forms a 50/50 aircraft engine leasing joint venture with Japan's Marubeni Corp. The JV will be known as Total Engine Asset Mgt, or TEAM, and will have an initial leasing portfolio comprising CFM56-3, CFM56-5B and CFM56-7B engines to power narrow-body aircraft such as the Airbus A320 and Boeing 737. The JV will invest ~US$100m in assets within the first 2 years and an equity injection of up to US$40m. It is expected to commence operations in 2H11...
The JV will leverage ST Aerospace’s expertise in total engine support, including engine technical mgt and engine Maintenance-By-the-Hour, and broadens its range of aftermkt services, alongside Marubeni’s experience in financing and marketing knowledge.
Street has mix of Buy, Sell and Hold calls with recent TP ranging btwn $2.66 – 4.00
While stock indicators are in oversold territory, the recent breakdown from the $3 support level (now turned resistance) suggests the long term trend may have turned negative. Share price is now hovering around a Fibo support at $2.85, and a break below that could see the stock test the next Fibo support at $2.65.
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