Coastal : Trading around RM1.15 level at the moment.

Yesterday, I spent some time to read on Coastal Contract's AR2017.

http://www.coastalcontracts.com/

Coastal is a well-managed company ... and was a good company, placed by Forbes under RM1bil club. With cash in hands plus good order book, it used to be a darling of KLSE. Well ... it surged to peaked around RM5 in mid-2014. As we all know ... KLCI hit new high in mid-2014 and oil-prices was at high USD100 plus.

Then ... the crude-oil price dived below critical neckline USD80 ... all the O&G counters tumbled (one needs to learn to GET OUT before all crashed) ... and I have to yell-warn all my trading-members to exit O&G ... we were trading many O&G counters ... including Coastal (I took Coastal-wa).

Back to what I read about Coastal yesterday ... Kenanga given a target-price around RM1.45 with an outperform call. Well, Coastal shown with EPS minus 9cents in Q2 and minus RM1.85 in recent Q3 report. By the way, I took a glance at its quarters for all these years ... NEVER in negative mode. The current TWO consecutive negative-EPS is worrying.

Then, I read another good analysis done by KCChong and placed a high intrinsic value of RM4.24 back in 2015. Well, the sector are too bearish and the earning plunged ... so as the stock-price. Being a trader, I have no knowledge to give such a good thorough analysis on a company.

All I do is read few critical ratios and columns in Annual Report ... such as cash-flow (the lifeline of biz ... was reading that from a book), the current ratio ... the biz-model ...and think on what-gives. Then, I will check on the chart ... charts tell many stories ... up or down trend.

As the whole O&G still struggling to stay afloat, I will not put my money into Coastal ... expecting a U-turn. Though crude-oil price trading around USD70 now, recovered so well from USD30 for past year, it does not translate to PROFIT for many O&G companies ... including Coastal.

The only positive thing shown is Coastal at current RM1.12 is trading way below its NTA or NAV valuations.

https://www.reuters.com/finance/stocks/companyProfile/CTAL.KL

Description : Coastal Contracts Bhd. is a marine company. The Company's segments include Shipbuilding and Shiprepair, and Vessel Chartering. It provides marine products and services to the shipping, oil and gas and commodities industries. Its business units include Shipbuilding Division, and Oil & Gas Division. The Shipbuilding Division specializes in fabrication and sale of offshore support vessels, and marine transportation vessels. Its Oil & Gas Division focuses on the development, ownership and chartering of strategic offshore assets for oil and gas upstream sector. Its services include build, charter, repair, maintain and trade of marine vessels ranging from tug boats, oil barges, dumb barges and landing crafts to offshore supporting vessels and others. Its combined yard space of over 100 acres is equipped with engineering facilities offering vessel and offshore structure fabrication, and repair and maintenance services. It has operations in Malaysia, Indonesia and Singapore, among others.

We can check on others website written about Coastal.

No of shares : 531.6 million (x stock-price will give us the market cap)

PER : 83.90 (VERY high PER due to shrinking EPS)

DY : 1.79% (certainly not for investors looking for dividends)

Then, I went to Bursa to check on announcements : Samarang fund bought into her ... now more than 5.7% holding. Insiders also buying too. That is another positive news.

Well  ... for INVESTING (buy-hold), I will not get involved.

Note : Learning to analyse and put criteria for investing, preparing for cheap-sales to come.

Well ... will put Coastal in my shopping-list and we shall see how it goes.

TEH