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Emaar ($4.5bn market cap) continues to.. DISAPPOINT! The construction company’s stock is down 74% during the past 12 months. Desperate shareholders were waiting for a positive surprise (it seems we’re getting a bunch of these everywhere!). SORRY shareholders: you wouldn’t get it from Emaar.
The company came out with a miserable Q2-09 loss of AED1.2bn. Although the loss incorporates a AED1.7bn write-down on John Laing Homes (Chapter 7 bankruptcy), the company’s mere AED442m earnings doesn’t cut it. Not only that, but also Samsung Engineering is said to be suing Emaar for USD4.1bn for work related to Burj Dubai (This lawsuit seems suspicious especially since Samsung Engineering’s contract was worth only $1bn). Another potential negative is that although the write-down may appear prudent, it could negatively affect Emaar’s piece of the pie in the prospective merged company.END