Wednesday, May 30, 2007

Value Group - more downside expected

The company announced yesterday its full-year HEPS is likely to fall between 60% to 80% compared to the previous year. This is worse than its earlier update, which indicates its HEPS is likely to fall between 40% and 60%.

We therefore expect the share price to fall further. Traders may short at R2.60 - R2.70 and take profit at R2.30.

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