Dear Investors/Traders,
SCOMIES (7045) IS A HIDDEN GEM OVERLOOKED AND FULL OF POTENTIAL. Why Is It So?
Answer:
These Are Our Findings
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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
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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
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SCOMI ENERGY SERVICES BHD |
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
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
TH
