Monday, 23 February 2015

Asia company insights - Bluescope and Prada

Did you see what the Australian steel and related building materials company Bluescope said earlier today?:

Harsh words indeed on dumping and overcapacity...but let's face it close to the reality we have all been observing about China: there is still much reform/consolidation requirement in the secondary industries.  Unfortunately - and despite the weaker Aussie dollar - this is why Bluescope's shares have lagged:

It would be easy to come to a similar conclusion regarding the consumer side after the comments of Prada too: 
But why are Prada shares pointing up today?  Well in the choice of the inevitable growth of Chinese consumer (including) luxury demand versus the uncertainty of cut-back timings in the manufacturing space, there is only one winner. The rise and rise of the Chinese consumer remains the most compelling investment theme in the country and on its related stock markets (like Hong Kong where Prada is traded).  

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