Yield support does not appear a realistic prospect following...

Yield support does not appear a realistic prospect following downgrade...

"In our research note of 11 Apr 05 we downgraded forecasts as we saw scope for further margin compression in a slowing domestic coatings market given continued cost increases (both raw materials and wage). Yesterday’s earnings update indicated that 2H05 margins appear likely to decline considerably further than we had expected, and despite the scale of our downgrades we see FY06 earnings risk as negative should coatings markets remain subdued in CY05. We also consider the 30cps dividend is unlikely to be sustained, thus purchasing WYL shares on a yield criteria is likely to be a risky strategy.

On our revised forecasts there still appears to be scope for a further derating thus we maintain the Sell recommendation"

Foresight capital report!

HOPE ANY OF THIS IS OF ASSISTANCE

Regards
INSIDER