Coastal Contracts Bhd is a Malaysia-based investment holding company. The Company, through its subsidiaries, operates in two segments: vessels manufacturing and repairing services, which include fabrication and sale of marine transportation vessels and provision of ship repairs and maintenance services, and vessels chartering and equipment hire, which include the provision of vessels transportation and equipment hiring services. Its subsidiaries are Bonafile Shipbuilders & Repairs Sdn. Bhd., Coastal Transport (Sandakan) Sdn. Bhd., Coastway Transport Sdn. Bhd., Seri Modalwan Sdn. Bhd., Pleasant Engineering Sdn. Bhd., Coastal Marine Pte. Ltd., Coastal Marine Pte. Ltd., Coastal Offshore (Labuan) Pte. Ltd., Asiapride Sdn. Bhd.Thaumas Marine Ltd and Ace Capital Pte. Ltd.
johnny cashCoastal Contracts (COCO MK) ------------------------------dated 25/6 Technical BUY with +12.5% potential return Last price : RM4.96 Target Price : RM5.18, RM5.58 Support : RM4.66 Stop-loss: RM4.65 BUY with a target price of RM5.58 with stop loss at below RM4.65. COCO’s share price has consolidated within the downward price channel in the past 11 weeks before yesterday’s strong gain signaled the end of the current correction following a breakout above the price channel. We view the breakout as genuine because a higher trading volume was recorded yesterday. A positive closing above the "cloud", 10-day and 21-day SMA lines should signify upward continuation hereafter. Positive readings from both MACD and Stochastic suggest an improving momentum and could drive the share price higher. Moving forward, we peg our short- to medium-term target at RM5.58, which is equivalent to the 1.38x Fibonacci extension level.
Overweighthuge volume transacted just now, hopefully some good show today.
Overweightthe Coastal outlook on second half 2014 will be anticipated as series of expansion and contract awards would contribute a better earning prospect, the new G&O segment expected to driven company toward more steady and lucrative income base business.
Coastal target rm5 billion market capitalization in medium term, and continue own and operate more offshore assets include jack-ip gas compression service unit - JUGCSU (1.24 billion contract ) jack-up drilling rig (two contract and looking one more) and mobile offshore production unit - MOPU, also scaling up its shipbuilding value chain (1.2 billiion contract).
OverweightCOASTAL is our mid-cap pick. We favour COASTAL as it is currently a laggard in terms of valuations versus its small-to-mid-cap peers. It is currently trading at CY15 PER of 11.3x vis-a-vis YINSON that is trading at CY15 PER of 19.3x, and UZMA which is trading at CY15 PER of 13.3x. We believe the company is in the midst of a cyclical shipbuilding uptrend as evidenced by the significant RM1.2-1.3b order book. It has successfully landed a jack-up rig compression contract in Mexico and is currently searching work for their maiden jack up rig. A successful takeup will change the company's business model to asset ownership (from trading previously) which are rerating catalysts for the company.
OverweightHuge volume queueing there act nothing, what are we waiting?
OverweightBuy coastal warrant, good discount and mother toward more up trend
soccerking82Conversion price : RM3.18 + Current WA price : 1.95 = RM RM 5.13
Lower than Mother price RM 5.15 !!!!
Time to accumulate more warrant as the expiry date is Year 2016
Overweightthis is what i meant the warrant very tempting and trading at discount price, the target for mother toward Rm6 very soon and warrant should be best to accumulate more...good luck!
soccerking82Once mother hit RM6, son fair value at least RM3..