We talked about steel stockist Asia Enterprise Holdings Q3 2011 results yesterday. This week The Edge profiled HG Metal, a steel stockist that got into a bit of an issue during the last financial crisis. [AEH Q3 Report here>>] This presents a good case study for steel stockist investors or interested investors to manage their expectations as to whether this is a business they want to be invested in. Some steel stockist list on the SGX includes Asia Enterprise Holdings, Lee Metal, Sin Ghee Huat, HG Metal, Natsteel.

• When the 2007 financial crisis hits, steel prices collapse from USD$1,200 to USD$500.
• HG Metal, gearing up for great growth have stocked up quite a big of inventory, and it killed them.
• There was internal strife and directors tried to oust other directors.
• Current CEO recently took over the management of the company. He owns companies that include Oriental Castle ...

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