Risk-to-Price Commentary: Rautaruukki Oyj Feb 11
- ID: 1711894
- February 2011
- Standard & Poors
On Feb. 3 Rautaruukki Corp., a major Finnish steel construction and engineering company, disappointed investors with its fourth-quarter report. Rautaruukki's shares dropped 4% the day after the company said that its fourth-quarter net loss of €30 million fell short of the consensus estimate of a €19 million profit (see chart 1). Share price and its volatility is one of the influential components of the Risk-to-Price (R2P) scoring model. R2P measures on a relative basis how well a given security compensates investors, through yield, for underlying market and credit risks. The first quartile contains the highest-scoring issues, which best compensate investors for underlying risks; the lowest scores rank in the fourth quartile. Having digested this disappointing earnings report and investors' negative...
Companies mentioned in this report are:
- Norsk Hydro ASA
- BHP Billiton Finance Ltd.
- ThyssenKrupp AG
- ThyssenKrupp Finance Nederland B.V.
- Arcelor S.A.
- Anglo American Capital PLC
- ArcelorMittal Finance
- Glencore Finance (Canada) Limited
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Research Type: Commentary
Criteria articles describe the thought process and methodology Standard & Poor's analysts use in determining ratings. These commentary pieces discuss both the quantitative (economic and financial) and qualitative (business analysis and caliber of management) aspects of the analysis, as well as legal issues. SHOW LESS READ MORE >