Ray Sze: sell IRC (01029) on profit warning
Ray Sze, Director at Tianda Securities Limited, said IRC (01029) recorded loss for the six months ended 30 June 2012 as iron ore market weakened and the titanium project under a Chinese subsidiary was uncertain. The increase in production hasn't brought any favourable impact on sales of its iron ore. Sze thinks the market cap of HK$2.7 billion was not reasonable.
IRC's cash and cash equivalents plunged substantially from a year ago. Sze believes the stock price of IRB would break below HK$0.5 and may point lower to HK$0.3. (y)
(The author, an SFC licensed person who may provide advice of securities, does not hold the aforementioned shares. )
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