Stock Name: CNA
Company Name: CNA GROUP LTD.
DMG & Partners Research in an Aug 22 research report says: "CNA's 2Q11 net profit was in line at $0.4 million, down 81.3% y-o-y, mainly attributable to the absence of contribution from its associate Standard Water Ltd (SWL), which was sold in 3Q10.
"We note signs of CNA turning around - 2Q11 revenue has grown 11.7% y-o-y, 15.7% q-o-q and a $0.8 million profit from 2Q11's operations (+95.5% q-o-q) versus a loss of $0.6 million last year. An update on its Middle East (ME) receivables - CNA has initiated arbitration proceedings for the $43.4 million receivables outstanding on the Dubai racecourse project.
"However, in the absence of a strong near-term catalyst, investors will probably take a while before revisiting this stock. Target price of 14 cents, based on 11.9x FY11 earnings (its 6-year historical average). MAINTAIN SELL."
Company Name: CNA GROUP LTD.
| Research House: DMG | Price Call: SELL | Target Price: 0.14 |
DMG & Partners Research in an Aug 22 research report says: "CNA's 2Q11 net profit was in line at $0.4 million, down 81.3% y-o-y, mainly attributable to the absence of contribution from its associate Standard Water Ltd (SWL), which was sold in 3Q10.
"We note signs of CNA turning around - 2Q11 revenue has grown 11.7% y-o-y, 15.7% q-o-q and a $0.8 million profit from 2Q11's operations (+95.5% q-o-q) versus a loss of $0.6 million last year. An update on its Middle East (ME) receivables - CNA has initiated arbitration proceedings for the $43.4 million receivables outstanding on the Dubai racecourse project.
"However, in the absence of a strong near-term catalyst, investors will probably take a while before revisiting this stock. Target price of 14 cents, based on 11.9x FY11 earnings (its 6-year historical average). MAINTAIN SELL."
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