SGM -9.7%: Fell sharply today on a weak quarterly update saying that soft market conditions were persisting with cost pressures also impacting margins. They went on to say scrap metal markets are in a ‘bit of disarray’ with high costs of scrap not being reflected at the other end, putting pressure on margins. They guided to 1H earnings before interest & tax (EBIT) of $65-75m, they’ll need a miracle in the 2H to meet current consensus for the full year of $360m in EBIT.
MM thinks SGM is looking ‘interesting’ ~$11.50
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