Shares to Sell – Billabong (BBG)

Billabong International Limited (BBG) is a producer of surf wear and sports apparel, with a presence in over 60 countries. With a market capitalisation of almost $2 billion, it is listed in the top ASX 200.

BBG has posted a 4.5% drop in FY10 net profit to $146 million, with the result just ahead of analyst estimates of $146 million.

Revenue was flat, in constant currency terms, at $1.5 billion, as BBG saw a decline in sales at America and Australasia.

Sales were impacted by the lingering effects of the global financial crisis and a sharp deterioration in trading conditions in Australia during the final quarter.

BBG sounded a very cautious outlook, stating that it expects a tough Australian market to translate to a flat EBIT result in FY11.

BBG declared a final dividend of 18 cents, whilst its poor outlook saw its share price sink almost 10% today.

Based on this, BBG may be one of the shares to sell. To find out how to sell shares on the ASX, sign up for a free trial at Australian Stock Report.

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