Broker: CSFBRating: Downgrades to UNDERPERFORM Price: Cuts to...

Broker: CSFB
Rating: Downgrades to UNDERPERFORM
Price: Cuts to $1.06 from $2.00

Comment: 'We are struggling to reconcile the embedded value in SGW's unique monopoly position globally in tantalum, with a lack of market power, weak earnings and stretched balance sheet. Poor earnings quality, lack of cashflow and a stretched balance sheet overwhelm our strategic market position argument currently. SGW's balance sheet currently does not allow it to exercise market power, making it a price taker, locking in declining returns possibly until at least 2009. Poor quality, constrained earnings and no net cash generation leave the downside wide open."