SIMS to explore offshore

Australian scrap metal recycler, Sims Group, is discussing opportunities for overseas expansion. The company provided no details on discussions with prospects in Europe and North America. On 17 September 2007, it said that profit for the first quarter of 2007-08 was not likely to be above $60 million, a decline of 12 per cent. It expected strong metal prices to lift profit in the second quarter. Its share price fell by $A1.13 to $A32.01

SIMS has a good dividend yeild but is still overpriced at a PE of 16. I would not count of the earnings being lifted on supposed Metal price increases as they should have done much better this quarter with the curent prices. They are worth watching with a possible buy around $25.00

Good luck