• STATS will release its 2Q2011 results on 29 July 2011 and will be hosting a conference call with analysts and investors together with the results release to discuss the company’s results release as well as provide the business outlook for 3Q ending Sept’2011.
• This would be the second time (the first was last quarter during the release of 1Q2011’s results on 21 Apr’2011) that the company is hosting a results conference call as well as providing the investment community with an outlook after having ceased it in 3Q2007, the quarter after the close of Temasek’s failed privatization attempt on the company.
• While notable with management attempting to regain investor and analysts’ following, we note that the stock has declined from mid- Apr’2011 when the stock was around the 75 cents level to 65.5 cents currently.
• We had turned negative on the stock since Oct’10 on the back of the deteriorating industry fundamentals and outlook and believe that with its key customers and competitors recently reporting weaker than expected results and warning on tougher times ahead, the stock will likely continue to remain stuck in its well-entrenched downtrend channel established since Oct’10.
• We maintain SELL.
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