Again talking of asset sales and senior management changes.With this news hitting the media the price will explode.

Their aluminium business doesn't fit the portfolio and they will get rid this year. The move had been blocked up until now but stands a decent chance of getting clearance within weeks. This will help ease the debt situation considerably and should enhance their return to profitability in the first half of 04. Steel prices also up 20% in the first few months (more for the specialised steels in their portfolio) and forex on raw materials and Europe sales are all going in the right direction. Should hit 50 pence and keep climbing. Varin is one shrewd cookie.

reorganization needs to be pushed more.
alu-business maybe no core, but still earning.....

I have a proposal to Varin!: Split up Corus! or just shut down al UK mills. We make more profit with Hoogovens alon.

A major Chicago fund (14.2%) and the Russian (13.6% with more buys today at 36.75) are both looking to buy big in coming weeks and I suspect the temporary weakness in the price will see them jump in at anywhere around 37.5. This can only drive the price back up to a resistance of around 42.0. The stock looks cheapened by the current spat between Usmanov and the Board but in reality this a temparary storm in a teacup. The FY results will be even better than current projections if the April YTD slab and hot rolled coil volumes and ++ pricing variances are anything to go by. Evan at analyst estimates the value should be considerably higher and will inevitably readjust.

Events will unfold when both largest stakeholders get to a joint holding of 30% -then Usmanov may move to acquire the Chicago fund outright and either declare a launched take-over (value could be in the 70-80 pence range) or force the position on board representation, that is also good news to remove the present distraction and uncertainty and should herald a return close to the 50p target.

This company has a sound strategy and leadership now in place, it is back in the black and further improving its earnings potential via restucturing and better portfolio decisions. The stock is massively undervalued at anything less than 47-49 pence even if you throw in an adjustment for the current rift with Usmanov. I personally hope Varin will succeed in getting the company fairly valued and in making progress organically but if he fails a take-over will be inevitable at this price and that will be a share price bonanza on any current valuation formulaes. It looks win-win to me. Any other views?

There has been talk about the Chinese authorities wanting to cool China's growth, and I suspect that has knocked the price today.

Volume went crazy when price touched 36 pence...this must be the floor. We'll hopefully see strong upward progress now. Several large private buys (500,000 +) in 36-36.5p range today. Is our Russian friend filling his boots?

Shares have taken an absolute pasting today on the back of weak UK manufacturing data for 1st quarter...price seems out of proportion given positive company news on volume and price hikes. Demand in China still set to outstrip gloabal supply and potential iron ore shortages now seem less of an issue given a new fixed price supply deal with Brazil.

Shares lost over 5% in today's trading on very low volumes. Trade seems to be taking a very myopic short term view on these. Now look very cheap so I'm holding for the rebound. Any other views?

interest rate rises usually hit corus,esp.UK division, bad even by such a small amount.By the end of next week they should have recovered.

joehargan1,

A major Chicago fund (14.2%)??? Do you meen Brandes Investment Partners?
If not, who?

Yes, exactly roell33...didn't mean to be mysterious but couldn't remember the investment house. Starting to hurt is a bit of an understatement oneill...to think I nearly sold off the lot at 46p. Will be wide open to a takeover if it hangs around at this level - look at the NAV alone.

Looking at the level 2 order book and the trading in the last week. It still looks as though the sellers are still very strong. The buyers still do not have control.

Buyers back in this am 4.2m / .5m

Patients!!
On the mainland, Hoogovens makes more profit then the losses of BS on the Island. This is whispered on several dutch chat rooms. Comes from Hoogovens sources. Just wait for fundamental news from Corus.

It still looks as though the sellers are in quite strong this am. It will be interesting to see when they decide to step aside.

Ok who bagged 3.7m + 1.3m????

Also another 2 large buy trades. whats the crack? anyone....

Looking at the order book at the of the sessions. It seems that the sellers still have the upper hand in this stock.

More pain today? Again looking at the order book for Corus, it seems as though the sellers are still here in big numbers. They seem to be taking a position very early.
When will this share turn

Corus much more tham most - this stock has now lost 40% in the space of 4 weeks...just when Corus returned to operating profit and issued a trading announcment ahead of market expectations. I am beyond pain.

Anyone heard of any rumours of corus splitting up ie,UK going back to British Steel?I've heard a few recently.

I heard something in the Nl press on this but sounds like media speculation...can't imagine it happening given the commercial performance...now selling off their alumimium interests would be much more interesting and feasible one would think

Don't usually write on message boards, but enjoy reading them. Thought this may be of interest to those who haven't seen it.

Tuesday May 25, 03:37 PM

Corus Group Plc
CS.L

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Breaking Financial News


Kumba signs 5-yr supply contract with CORUS

JOHANNESBURG, May 25 (Reuters) - South Africa's biggest iron ore producer Kumba Resources has signed a contract with Anglo-Dutch steel group Corus for a five-year supply of Sishen iron ore, the group said on Tuesday.

Kumba, which also has interests in base metals, heavy minerals and coal, is majority owned by mining giant Anglo American Plc .

It said the contract was the first to include an option to purchase new iron ore products from Kumba's Sishen mine expansion project.

The expansion will take Sishen's current output of 27 million tonnes a year to 28 million tonnes by the end of 2004, with a further increase to 38 million tonnes by 2007, Kumba said.

The final feasibility study for the project would be completed in August 2004 and was expected to be approved for implementation the following month.

Is there any one who still belives in Corus?
Tell me why.

Hit disproportionately by oil price shock, interest rates and general negative sentiment these last few weeks - due for a pretty big bounce so long as the volumes get back up to around 50mm levels. Undervalued, needs to break through 34 pence then should get back to 37-38 pence.

6% up today and now standing at 34p again. Still looks cheap. Needs to maintain steady momentum next week in early trading and if so expect a recovery. The problem with this stock is the short term heavy trades that can
mask its real value. I still believe this is a solid recovery stock for 2004.

Now standing at 39 pence. Whew, glad I kept the faith!

If the aluminium deal goes through we should see much more upward movement. Looking at the TA, if it can sustain at this level then breakthrough the next resistance should not take place until 44 - 45 pence. I really believe that this share will be in a different league by year end. It's like the perfect sunny day after the perfect storm - all the macros moving in the right direction and more good news anticipated. This is still a company with problems but highly sensitive to good news in high volume trading. Still looks a decent buy.

I'm fed up rattling on to myself about Corus. The recovery is well underway. At 40.5 in closing today. No resistance until 45 pence if it sustains. This is without news on the alu business but a bid of $1Bn could be very close leaving them free of this millstone and with financing to manage the restructuring to a close. CS is in the best shape it's been in in years but nobody's listening...I'll get my coat..

Corus US ended way higher today. Opening tomorrow 41.25 - 41.75 ??

Joe, sorry, I'm listening, am in as well (from 34.25). For me I see this as a long term investment which could make a seriously nice amount of money, agree that CS. is in the best shape it's ever been in a long while.

Keep the faith Seymour - hold long and you will be rewarded... a lot of people come in and out of this stock given the volumes but the long term trajectory is what's important - I genuinely believe could see your investment doubling in 12 months if things fall into place as there is now every chance they will. The recovery is well and truly underway and the market is waking up to the inherent value in this company.

Still kicking myself for not hanging on to them when I was long @ 4.25 at 400p/p back in Mar 03, 4.25 / 37.75 x 400 = 13,400 :o((((

Buying at 4.25 was a brave call...I jumped back into the water at 16p and even then heart in mouth time for several months. That would have been 935% at today's close which is quite impressive but I can totally understand selling out earlier.

Dongkuk Steel Bids for Stake in Corus's U.K. Steel Slab Plant
June 30 (Bloomberg) -- Dongkuk Steel Mill Co., South Korea's third-largest maker of the metal, is bidding for a stake in Corus Group Plc's Teesside steel plant in England to secure supplies of slab, the raw material used in steel plates.

Dongkuk submitted a non-binding letter of intent late last month to buy the mill in northern England, spokesman Kim Eung Sung said. Corus Chief Executive Philippe Varin last week said the company wants to sell as much as 80 percent of the mill and is in talks with potential buyers.

Dongkuk didn't give details on its bid for the plant, which employs 2,000 people and produces 3.4 million metric tons of steel slabs a year. The Seoul-based steelmaker is accelerating efforts to secure raw materials as rising demand from China boosts prices and delivery delays from long-term suppliers strain supplies.

``This is positive news because Dongkuk will be able to secure supplies at lower costs,'' said Park Chang Suk, an analyst at LG Investment Trust Management Co. in Seoul. Buying a stake in the Teesside mill would help Dongkuk Steel cut its raw material costs by as much as 7 percent a year, Park estimates.

Dongkuk has been buying about 2.6 million tons of steel slabs from Japan, Brazil and Australia each year, with 65 percent of imports based on long-term contracts. The company earlier this month agreed to buy 600,000 tons of slabs for at least a year from China's Jiangsu Shagang Group Co.

Rising Prices

Steel prices have risen partly because of higher demand in China, where the economy expanded 9.1 percent last year. Prices of slabs imported by China rose 34 percent to $445 a ton in the first four months of this year, according to Metal Bulletin's data.

Dongkuk raised prices of its steel plates used in ships and construction five times this year to pass on higher raw material costs. It raised prices of steel plates used in ships 70 percent to 715,000 won ($621) this year and the price of steel plates used in construction and machinery 66 percent to 715,000 won.

Sumitomo Metal Industries Ltd., Japan's third-largest steelmaker, on Monday denied a U.K. newspaper report that it offered to buy a majority stake in Corus's Teesside mill. The Observer reported that Sumitomo and Brazil's Cia. Siderurgica Nacional SA, Latin America's second-biggest steelmaker, are front- runners to buy a majority stake in the plant.



To contact the reporter on this story:
Meeyoung Song in Seoul at msong2@bloomberg.net.

To contact the editor responsible for this story:
Peter Langan at plangan@bloomberg.net.

Last Updated: June 30, 2004 03:47 EDT

Sumitomo's denial is BS and I dont mean British Steel. Their management team are very actively considering Teesside as an entry route into the market for slab in Europe. They are quite well advanced. The good news for CS is that a buyer seems very likely to break soon. If not Sumitomo then another non European with cash to expand.The upswing in slab prices will secure a better price and it leaves CS with just the aluminium business to divest. They will emerge somewhat smaller but still with scale as a profitable highly specialised steelmaker with a portfolio skewed to high margin, high demand and less price sensitive steels. Keep buying...I have a close knowledge of this strong new exec team and they are closing in on news that will see the market applaud very loudly.

Does somebody know a good discussion site about Corus?

don't you like our little thread then Skorpija - sob, sob....

Alu deal getting close according to my sources.

hee joehargan, i appreciate your postings off-course, but i would like to see other peoples opinions too.... (i myself am dutch and check out dutch forums, but i am more interested what is going on with you in UK!)

Thanks Skorpija - up 3 pence to 41.75 today. Happy days are here again. Announcement imminent and the traders have a scent of it I beleive. still value - hang on in there - we need to break 44 pence then 50p is available - a deal is on I hear. DYOR but be confident there's more upside here.

Market Report: Corus of approval puts steel maker in demand
By Michael Jivkov
16 July 2004


Corus has been busy doing the rounds of the City this week and word has it the various meetings the steel maker has had with brokers and institutional investors have been very bullish. As talk to this effect spread through the Square Mile yesterday, traders rushed to get their hands on the stock and managed to push it 3p better to 41.75p. Corus is enjoying something of a renaissance at present and according to those who have met the group this is set to continue.

Cazenove is believed to be among those who spoke to the group's management and quickly raised their forecasts considerably.
The heavyweight broker is said to have raised its earnings forecast on Corus for this year by as much as 23 per cent and urged its best clients to buy into the stock.
This is despite a jump of more than 30 per cent in the steel maker's share price since May. There was a similar move by UBS early this week as the Swiss broker highlighted Corus as a major beneficiary from the strength in global steel prices.

Nearly 100% up since we were in the doldrums at 26p in June and I still see a bit more value with a FTSE 100 re-entry imminent. Congratulations if you kept the faith and went long on this stock - a bumpy ride but worth it in the end. The day traders must have been cleaning up on this stock given some of the intraday volatility in June -August.

yep just come out @ 51p bought just over a year ago @ 18p.
very very nice - still have the rights bought @26p too.

shouldhave sold the lot going south now

Agreed - clearly it's now a sell - well done Transco, 51p was a great decision.

Thanks Joe - currently looking at morrisons - bit late I know &
ITV what about you?

Yeah well done transco. I remember I was in these @ 8.75. silly me sold out in early teens.

thanks azhar - If hadnt been on holiday I would have been very tempted
but I have missed out so many times by selling too early.

These could fall back to 46-47 from a charting point of view at which point I'd go seriously long. I'm still in. Can't continue to rise unabated, there'll always be dips and retracements. If you can get them right you'll make money, but I'd rather sit tight as they are still in an uptrend (imho!).

Corus Group plc 2004 Interim Results

Highlights

Substantial improvement in financial performance

Group operating profit improved by 204m to 147m, with the rate of
progress accelerating sharply in the second quarter.

Approximately 100m (c.50%) of the improvement was attributable to the
Group's 'Restoring Success' programme, which is progressing well and to
plan.

Competitive EBITDA margin gap estimated to have narrowed from 6% to
4.5%.

Balance sheet gearing at 43%. Bond launched to extend debt maturity
profile.

Two new board appointments.

might explain the fall:-

Anglo-Dutch steel maker Corus eased back by 0.5p to 49.5p after bear raider Evil Knievil revealed that he had dumped his entire stake at 49p on his legendary EvilCast. Evil bought in at 10p and has been a major bull but warned that he sees no bid coming from Russia and that UK overheads are still far too high

Evil almost always gets it correct.

96m just dumped @ 50p !!! 48,000,000 would that be that Ruski?

Wow and another!!!

Who's playing with the trades? (100m)

must be a miss print

These were buys I think - wrongly attributed.

@ 50p ???

what sort of target price has this share got?

According to my calculations the we are in unknown waters here.
The skys the limit if China's economy keeps growing at a pace.
Making Steel is a different ball game now.

could they reach the dizzy height of 160p as they were in 2000 ?

Why not - as I say different ball game these days.
forget past performance the old management have all but gone.
Its like a brand new business IMHO.

Well you only have to look at the results, its amazeing really, some may say it took to long but look at all the stick they were getting and all the bad publicity 53p now, and theres going to be ups and downs but i think it will just rise and rise, and that 160 is not unrealistic imho in the mid to long term.

I'd like to see 160 pence really I would but take notice of Evil's comments - sure there is a much healthier outlook but the alu. business needs to find a buyer (at a realistic price) and the restructuring in the UK will be far from easy to accomplish in reality. As a long time proponent of CS and an admirer of Varin I'd love it to happen but I think it will take some doing. Let's not be too greedy.

what sort of target price does it have for christmas. cheers windys

Does anybody know a good time to sell these shares of corus.cheers plumbob

Well, or you should do it now (while it is hitting the upper line of the bandwith) or you should wait and see if it will go over this line and go to a higher bandwith (toward 55p)

Good luck