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Article: Therein's the rub: a few slips can start a real slide.
- Article from:
- Australasian Business Intelligence
- Article date:
- April 13, 2008
CopyrightCOPYRIGHT 2008 News provided by Comtex. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Byline: Gabriella Hold
Apr 13, 2008 (The Australian Financial Review - ABIX via COMTEX) -- The drop in Australian share prices has resulted in appealing valuations. However, there is a danger of downgrades in May 2008 when companies disclose revisions to the profit forecasts. Chris Pidcock, of Goldman Sachs JB Were, views earnings downgrades as a real risk and the recent recovery in share prices as a bear market rally. He cites Crown, Origin Energy and Nufarm as among the at-risk stocks. UBS's David Cassidy does not think too much emphasis need be placed on potential downgrades. Profit upgrades have been issued by a few firms, including Adtrans and Webjet.
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