Angang results MISS, NP -60% yoy, 12% below preliminary results announced in Jan 09 due to larger than expected Q4 inventory writedown. And my broker told me, I quote “Kitchen sinking 08 results to ease burden in 09. BUY .”
This is how the analysts turn bad news into good ones, head they win, tail you lose, gotta love that. They miss means they have a low base to grow from, they beat then it’s just great. So far in this quarter HK only sees about 6% earnings contraction, the Mildest one in a recession, HSCEI rallied 45% from recent low, higher PMI, lower power production contraction QoQ, 6% GDP growth in Q1, the picture couldn’t be better.
Then I recall JPM highlights yesterday, within headline US retail sales -1.1% were electronic retail sales -8% MoM, worst on record. They say inventory clearance gave a temporary boost to sales, creating a chain of "good looking" data that gave an illusion of recovery. Looks to them, the de-stocking, re-stocking stuff is not over yet.