HUAAN

Won't talk too much about this, except to say that it's actually an interesting counter in a pretty good sector, in the right country. At the right price at the right time, it would be a good long-term buy. For those who bought it recently thinking it would give direct exposure to the Chinese steel sector (from the earlier announced acquisition of a stake in a Chinese steel company), note that this new investment has apparently been deferred. Reasons given were:

1. Caution in view of US downturn.

2. Unfavourable time to go to banks for financing for a deal like this.

Note that the deal has been deferred, not terminated, so it could still happen ... later. As for now, the link to the Chinese steel sector will still be an indirect one, ie. through its metallurgical coke product. Also good to note, the Chinese themselves are being cautious despite their still white-hot economy and construction sector. Hmmm .....

/ichithekiller