Critical Turning Point for FAST ENERGY HOLDINGS BERHAD (MUST READ)

The semiconductor cum oil bunkering player FAST had announced something extraordinary yesterday – one of the substantial shareholder of the company, Mr. Kuah Choon Ching had ceased to be substantial shareholder due to open market transaction.

Here’s an excerpt of Mr. Kuah’s background for your understanding:

Mr Kuah started his career in the United Kingdom upon graduating from the University of Sunderland. He worked in the a Group of Companies, which was involved in trading and distributing products within the downstream of Oil and Gas Industry. He resigned and founded CCK Petroleum Group in 2007, and is the Group Managing Director of CCK Group today. Under his leadership, the Group has seen significant growth and has expanded its operations to cover international marine oil bunkering, oil tanker carrier operation, marine lubricants and marine oil trading.

Due to his diverse experience, he was later appointed as an Executive Director of Dnonce Technology Berhad on 2 May 2018, and was subsequently promoted to Chief Executive Officer on 1 September 2018.

During his tenure in Dnonce Technology Berhad, he spearheaded corporate exercises such as fund raising, diversification and share buy-back exercises for the company.

Also, Mr. Kuah is the executive director for KANGER INTERNATIONAL BERHAD, which is potentially going through a RTO exercise with the well-known property developer Aset Kayamas.

If you remembered, FAST had issued shares to Mr. Kuah for the purchase of 35.0% stake in CCK Petroleum, which should be a strategic shareholding for both parties, so what had changed the ballgame?

We know that FAST is venturing into the oil bunkering business – which is expected to yield extremely good results given the current oil market and busy offshore activities for now. By right it should make no sense for Mr. Kuah to dispose his stakes, right?

But lets first have a look at FAST chart first.

For sharp-eyed investors, one would notice the share price was not impacted significantly by the disposal in the open market. Why is that so, and who are the buyers? Well, for one to absorb 15.30 million shares, one must have deep pocket and in order words, a change of strategic investor happened below our watch.

Now, the critical point for FAST is how quick they could bulk up their earnings in the oil bunkering segment – which as we told, it is expected to be really good based on the current outlook.

What’s more important to investor like us, is this is actually the best time for you to invest in the shares as the price were hampered by investors that do not understand what is going on.

20 cents is a bargain, and the share price could reflect to 30 cents anytime – a 50% ROI. But well, who am I to say? Do make your own studies before making any decisions!