ROC's openfile interview today is interesting in that they say that a decision will be made about China before the end of August and from the tone of the announcement and previous discussions with PSA management the decision will be to walk away. As the decision is to be made by the end of August it probably means that the jv partners will have to write-off all their China expenditeure in their accounts for the period ending 30June04 - for PSA this means they'll report a profit of about $3mil(on my figuring) for the six months compared to $16mil for the same period last year. We can probably expect them to do 'an SGW' and issue a profit warning with the release of their quarterly next week. I still have PSA at least matching their total year's profit compared to 2003 and as I'm a long term holder I won't be selling now but definitely wouldn't be buying at today's price as I would expect it to be lower after the profit warning.
PSA Price at posting:
0.0¢ Sentiment: LT Buy Disclosure: Held
