Highlights

THE INVESTMENT APPROACH OF CALVIN TAN

Author: calvintaneng   |   Latest post: Tue, 22 Oct 2019, 11:14 AM

 

SCOMI ENERGY (7045) THE HIDDEN GEM IN O&G BULL RUN, Calvin Tan Research

Author:   |    Publish date:


Dear Investors/Traders,

SCOMIES (7045) IS A HIDDEN GEM OVERLOOKED AND FULL OF POTENTIAL. Why Is It So?

Answer:

These Are Our Findings

  1. At 7.5 Sen with NTA 16 sen SCOMIES is selling at a 54% Discount to NTA which is more than 30% Margin of safety required by Ben Graham
  2.  

2. And SCOMIES Understates its Asset Value

See AR (2018)  Scomies owned properties

Scomi Master: Land Five storey Freehold shop office. Date of purchase 31.10.1999

11,755 sq ft building: Sdn Bhd Geran 46494, Lot 42410 Pekan Cempaka, Daerah Petaling, Negeri Selangor, Malaysia

Book Value: Rm170,000

SEE THIS 5 STOREY FREEHOLD SHOP IN PJ ONLY VALUED AT RM170K?

DON'T TELL ME A 5 STOREY SHOPHOUSE IN PRIME PETALING JAYA WORTH ONLY RM170K

 

3) IF YOU TAKE OUT RM72.7 MILLION LOSSES BY IMPAIRMENT THIS QUARTER SCOMIES IS ACTUALLY POSITIVE

 

Please see Latest Qtr report

LBT in the segment increased by RM53.8 million as compared to 3 months ended 30th June 2018. This was mainly due to lower gross profit, higher operating expenses and an impairment of RM33.1 million in respect of amount due from ultimate holding company, in accordance with MFRS9.

PBT in the segment improved by RM38.8 million as compared to Preceding period. Gross profit was higher in the current period while operating expenses also increased. The Preceding period included an impairment of RM39.6 million to an offshore support vessel.

With these Impairments out of the way Scomies has a clean slate of strong balance sheet & prospects

 

4) SCOMIES HAS 3 STRONG MARGIN OF SAFETY

A) ITS BORROWINGS ARE ALL BACKED BY ASSETS & IT HAS RM67 MILLIONS IN CASH

B) IT HAS SURPLUS CASH LEND TO SCOMI THE PARENT COMPANY

C) ITS LATEST JOB AWARDS FOR DRILLING SERVICES IN KUWAIT IS A NICE RM600 MILLIONS IN REVENUE

 

5) AS SAUDI OIL FIELDS HAVE BEEN BOMBED THEY ARE TURNING TO KUWAIT (JV) TO DRILL AND PUMP MORE OIL

ELSE WHERE THERE WILL BE AN INCREASING OF DRILLING ACTIVITIES AS A SAFEGUARD AS OIL CLUSTERS ARE NOW VULNERABLE. THIS WILL BE VERY GOOD FOR SCOMIES DRILLING OIL BUSINESS

See Job Award in Kuwait

OTHERS Award of Contracts to Scomi Oiltools Sdn Bhd (SOSB) by Kuwait Oil Company

SCOMI ENERGY SERVICES BHD

 

Type Announcement
Subject OTHERS
Description
Award of Contracts to Scomi Oiltools Sdn Bhd (SOSB) by Kuwait Oil Company

1. Introduction
The Company is pleased to announce that its wholly-owned subsidiary, Scomi Oiltools Sdn Bhd (SOSB), has entered into contracts  with Kuwait Oil Company, for the provision of mud products and mud engineering services for deep drilling dated 31 January 2019 and for the provision of mud products and mud engineering services for development drilling dated 4 February 2019  (the “Contracts”).  The Company received consent to announce the Contracts from KOC via their letter dated 21 March 2019 which was received by the Company on 22 March 2019.

 

2. The Contract Value
The total estimated value of the Contracts is US$150 million (equivalent to Ringgit Malaysia 610 million).

 

3. Duration of the Project
The Contracts are for a period of 5 years commencing from the date of the execution of the Contracts.

 

4. The effect on Net Assets of the Group
The Contracts will not have any material effect on the Company’s Net Assets for the financial year ending 31 March 2019. They are expected to contribute positively to the Company’s earnings over the period of the Contracts.

 

This announcement is dated on 25 March 2019.

They bombed Saudi but will they bomb Kuwait? Probably not. After President Bush delivered Kuwait from Sadam by Operation Desert Storm the Americans have vested interest in Kuwait. So better keep Kuwait safe.

 

SO there you are

Scomies has high margin of safety. Pared down and write off its impaiirments with clean slate of balance sheet. Secured Rm610 Millions drilling jobs that last 5 years. And great prospects in upstream business

Only thing is its being overlooked & neglected by the masses

But take a look at its shareholders (See Scomies 30 Top Holders)

Scomies top holders are EPF & AMANAH SAHAM BUMI Through Scomi and through IJM the Ultimate Holder

See one more

8. Meer Sadik Bin Habib Mohamed 42,783,996

At number 8 is Habib Boss with 42 million Scomi Energy shares

Who is Meer Sadik Bin Habib Mohamed

See

An Extraordinary Shine (HABIB JEWELS)

0

The world of fine jewellery is a niche market based on man’s eternal fascination with precious stones and works of art creatively contoured to enthrall the discerning. HABIB has been at the forefront of this industry evolving from the late 1950s, to become a signature Asian jeweler synonymous with innovative designs. The story of HABIB is a story of an enduring entrepreneurial spirit spawning from a small business to the established conglomerate. Taking over from his father, Dato’ Sri Meer Sadik Habib steered the company into a leading player within the industry in Asia. In a conversation with Top 10 of Malaysia, Dato’ Sri Meer spoke on his journey of executing a successful jewellery business based on the ingrained philosophy of gifting happiness to customers.

SO IS SCOMIES (7045) A HIDDEN GEM WAITING TO BE DISCOVERED

Calvin has a target price of 30 sen for Scomies (estimating twice that of Nta. This was what happened to our buy call on Carimin at 39 sen. Carimin crossed Rm1.00 recently)

 

BEST REGARDS

Calvin Tan

Jurong West, Singapore

 

Please buy or sell after doing your own due diligence

 

SEE THE HIDDEN GEM BELOW!

NOW ALL CAN SEE

 

Related imageTH

 

Share this

  williamchan82 likes this.
 
CITADEL buy 1st, publish later nicely done!
19/09/2019 12:40 PM
calvintaneng Posted by CITADEL > Sep 19, 2019 12:40 PM | Report Abuse

buy 1st, publish later nicely done!

Were you one of those fortunate enough to buy early also?

Remember this always

"THE FLOW OF INFORMATION PRECEDES THE FLOW OF WEALTH"

Be the 1st to know!!
19/09/2019 12:43 PM
7300 4>1 also cant quiet quiet to be oo7 ,get woken up,....oil also can train oso can ,apa lu mau lagi
19/09/2019 1:04 PM
calvintaneng Listen here!

If Bumi Armada & Sapura Energy heavy laden with TENS OF BILLIONS IN DEBT CAN MOVE UP WHY NOT LEAN AND MEAN SCOMI ENERGY?

THE BALANCE SHEET OF SCOMIES NOW IS AS HEALTHY AS PENERGY!!!

And there is a saying

"THE LAST SHALL BE FIRST!"

Hmmm?

MAYBE SCOMIES WILL OUTRUN THEM ALL FINALLY!!

WILL SCOMIES BEAT CARIMIN, NAIM, DAYANG & PENERGY TO BE THE TOP GAINERS DUE TO WORLD WIDE INCREASE OF DRILLING FOR OILS AFTER SAUDI KENA BOMBED?

See

https://oilprice.com/Energy/Crude-Oil/Global-Oil-Gas-Drilling-Set-To-Surge-In-2019.html
19/09/2019 1:14 PM
calvintaneng https://www.thornburg.com/insight-commentary/global-perspectives/drilling-into-oil-market-investing-after-the-attack-on-saudi-arabia/
19/09/2019 1:17 PM
tumbler Aiyoo , up 1.5 cents already then publish for you to unloading. You ah teruk.
19/09/2019 2:22 PM
calvintaneng Wait for 12 sen first target price

Then 16 sen next target

After all the good jobs turn into profits scomies will rise and rise to 30 sen just like carimin rose all the way to Rm1. 05

So anything below 10 sen just SAPU kaw kaw!!
19/09/2019 3:14 PM
calvintaneng What is the intrinsic value of scomies?

Quite easy if you follow Ben Graham rule

A discount of at least 30% from NET

Net
Tangible
Assets

THE NTA of scomies are prime shophouses, lands and others

A check with Alam Martin shows no real estate as NTA. Their nta consists of equipments on sea and under the sea

Imagine alam maritin vessels left in open sea for 5 long years since 2014?
Should have gone rusty by now

OK coming back to Scomies

Let's deduct 30% from 16 sen = 11.2 sen

So it is safe to buy scomies before it crosses 11 sen

To invest in value intelligently is of utmost important
19/09/2019 3:19 PM
williamchan82 thanks again calvin
19/09/2019 3:54 PM
calvintaneng SCOMIES OVER DEGRADE THEIR ASSET AND BOOK VALUE

IF YOU DON'T CHECK AND DOUBLE CHECK YOU WILL THINK NTA HAS DETERIORATED

ACTUALLY SCOMIES IS FULL OF HIDDEN VALUE LIKE SLEEPY BADAWI

THOUGH BADAWI WAS A SLEEPY PM HE DIDN'T STEAL MONEY

ALL THE HIDDEN JEWELS OF SCOMIES ARE STILL THERE

LET CALVIN UNEARTH THEM ONE BY ONE LATER

FOR NOW JUST BUY AS MUCH AS YOU CAN FIRST
19/09/2019 4:41 PM
calvintaneng winmal Share price traded too low.
19/09/2019 4:49 PM


calvintaneng Winmal is correct!

Precisely Scomi Energy share price is so undervalue and neglected that it caught my attention

1. Scomies has high net assets still listed at ancient book value
The 5 storey shophouses in Petaling Jaya has a book value of only Rm170k.

If revalued it should be Rm4 millions to Rm5 millions today.

2. It has Rm67 millions cash after considering it's borrowings were hedged by asset backing

3. It has Rm50 millions lent to Scomi

4. And it secured a fresh rm610 millions job from Kuwait

All these point to a very grossly overlooked and undervalue gem

How could Calvin miss?
19/09/2019 6:16 PM
19/09/2019 6:45 PM
calvintaneng VERY GOOD NEWS FOR SCOMIES

SAUDI NOT ENOUGH OIL MUST IMPORT FROM OTHERS

SCOMIES DRILLING OIL BUSINESS IN KUWAIT NOW IN DEMAND BY SAUDI

OIL TANKERS ARE ALL WAITING TO FILL UP BACK ORDERS

See

https://www.wsj.com/articles/to-keep-exports-flowing-saudi-arabia-looks-to-import-oil-11568885401
20/09/2019 1:03 AM
calvintaneng Good morning all

This hidden gem of a young strong bull has emerged!!

THE more you study its deep deep hidden value the more you want to buy more of its shares

Calvin is even selling other stocks and SWITCH TO SCOMI ENERGY KAW KAW!!!
20/09/2019 8:56 AM
calvintaneng GOOD NEWS FROM PETRONAS

Petronas posted RM121bil revenue, net profit at RM28.9bil for 1H


NET PROFIT UP 9%

https://www.nst.com.my/business/2019/09/522878/petronas-posted-rm121bil-revenue-net-profit-rm289bil-1h
20/09/2019 1:55 PM
calvintaneng SCOMIES GOT RM600 MILLIONS DRILLING OIL CONTRACT WITH KUWAIT

AND FURTHER GOOD NEWS

SEE

Oil Production In Joint Saudi-Kuwaiti Fields Could Restart “Relatively Quickly”

https://oilprice.com/Latest-Energy-News/World-News/Oil-Production-In-Joint-Saudi-Kuwaiti-Field-Could-Restart-Relatively-Quickly.html
21/09/2019 10:54 AM


 

391  338  517  771 

ActiveGainersLosers
Top 10 Active Counters
 NameLastChange 
 ARMADA 0.40-0.08 
 NETX 0.020.00 
 SAPNRG 0.26-0.005 
 IFCAMSC 0.435+0.05 
 MTAG 0.51-0.03 
 HSI-C7F 0.335+0.01 
 KNM 0.44-0.02 
 GPACKET-WB 0.320.00 
 JCY 0.205+0.015 
 ISTONE 0.235-0.02 

FEATURED POSTS

1. MQ Trader Workshop @ Kulai - Trading Strategy in Volatile Market MQ Trader Announcement!
Partners & Brokers