Sims Group

Sims Group (SGM)

Stock Code

SGM

Stock Exchange

ax

Sims Group Limited (SGM) is an international metals recycling company operating in two primary businesses: Sims Recycling Solutions and the Metal Recycling. The Sims Recycling Solutions involves the e-recycling of electronic consumer and electrical goods as well as the information technology while the Metal Recycling business of SGM is in charge of collecting, processing and marketing of both the ferrous and non-ferrous metals. SGM was listed on the Australian Stock Exchange on the 21st of October, 2005. Its average annual revenue reaches approximately $5 billion.

Sims on the Verge of Beating Market Expectations


High volumes of scrap metal and steel production in the US could help Sims Group Limited (ASX:MYR) exceed its projected sales revenue. Over the pass three months strong performance from the North American division has driven a turnaround for the recycling group. The company will release its third quarter results on May 6.

Sims' Expects Revenue to Rise by 23 Percent


Sims Group Limited (ASX:SGM) expects profits to rise by 23 percent, amounting to $6.2 billion. Scrap intake and shipments are also expected to rise by 8 and 9 percent to 10.5 million and 9.9 million tonnes. Over the nine months up to the end of March the projected sales revenue is $123 million, which is up by 74 percent from the previous year.

Caltex Australia (CTX): Winner of the Week 26


Caltex Australia (CTX), a company that operates in convenience stores and also involved in refining, purchase, marketing and distribution of petroleum products was the best performer in ASX100 adding 12.35 percent or $1.4 in its stock price closing the week at $13.19.

Best Performing Stocks for the Week 25 of 2008


FKP Property was the overall best performing stock taking in a 41.24 percent increase. It was a mixture of investment and asset management, financial services, energy and metal, and property companies who were among the best performing stocks for the week 25 of 2008 of the Australian sharemarket: Babcock & Brown (BNB), Allco Finance (AFG), Sims Group (SGM), FKP Property (FKP), Babcock & Brown Capital (BCM). These best performing stocks managed gains above 12.57 percent by the end of the trading week.

Sims Group (SGM) Update


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Sims Group (SGM) has a reiterated outperform recommendation with a 12 month price target of $43.12 from Australian stockmarket analysts from Macquarie Research.

Sims Group (SGM) Simmering Nicely

Energy Resources of Australia: The Best Performer for Week 3 of 2008


Energy Resources of Australia (ERA) was the overall best performing stock taking in a 13.9 percent increase of its share price. Among the best performing companies for the past week (week 3 of 2008) on the Australian sharemarket were a mixture of engineering, energy, industrial, mining and transportation: Sims Group (SGM), Energy Resources of Australia (ERA), Futuris Corp (FCL), Downer EDI (DOW), Toll Holdings (TOL). All the above best performing stocks for week 3 stocks managed more than 6 percent and less than 11 percent gain at the end of the trading week.

Australian Steel Sector Update


Australian investors can gain exposure to the steel sector in a number of ways, but a more direct play would be to invest in stocks whose earnings are leveraged to the steel cycle. Australian sharemarket analyst, Macquarie Research Equities (MRE), have provided a steel sector update with the three stocks that stand out. The three outstanding steel sector stocks are OneSteel (OST), Bluescope Steel (BSL) and Sims Group (SGM). The analyst remains bullish on the outlook for the steel sector, and have "Outperform" recommendations on two of three aforementioned stocks.

Sims Group (SGM) ASX100 Winner


Sims Group (SGM), the global metal recyling company was the best performimg company on the ASX100 index this week. (Winner of the week for week 37 of 2007). The company closed the week at $33.14, rising by $3.14 or 10.467 percent. Read a previous stock recommendation for the Sims Group.

Sims Group (SGM) Recommendation


Sims Group (SGM) has a reiterated Outperform recommendation and a 12 month share price target of $30 from Australian sharemarket analyst Macquarie Research Equities. On Monday, US steel giant Schnitzer Steel reported a 3Q07 result well ahead of market expectations. The better-than-expected result saw the market bid the stock higher, finishing up over 16% on the day. The analysts believe the Schnitzer result bodes well for the Aussie listed Sims Group (SGM). The key positive from the Schnitzer result was the increase in margins, indicating an improvement in the sourcing/selling price relationship. Like SGM, Schnitzer collects scrap and sells it into the global markets. A large proportion of the scrap is either sold into Asia or is influenced by the Asian pricing environment. Over the past few years the relationship between US scrap prices compared to Asian steel prices has been negative – until recently. The fall in US steel prices has put downward pressure on US scrap prices while Asian steel prices have stayed relatively strong. This has helped to expand margins for Schnitzer and it will also help SGM in its 4Q07 result. SGM will benefit from the current strong market environment, however, there are some currency implications that will take the shine off. The currency is up 11% for 4Q07 compared to 4Q06. This will impact the result somewhat but we remain confident that margin improvement will occur. MRE believe If you remain bullish on global bulk commodities then you should also be bullish on SGM. The fundamentals look good and MRE believe SGM will continue to diversify earnings. There is medium-term upside risk to earnings. Sims Group (SGM) was a loser of the week in March 2007.

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