Side ways

Mind translating the summary of the news

This counter can go either way. But my gut feeling is it will continue going up due to investor confidence in its main investor i.e MOF 51.4%, William Tan 33.6% and Datuk Seri Syed Zainal 1% , so free float remaining is only 14% to be spread amongst other institutionals as well as small fish like us. Total share issued was 100 mil at rm0.20 each. So it your guess.......

Wintoni like half dead fish

Sure bo

If will trend higher but just be cautious

Greed is good.

Trending back up to rm1.80 level

Better be safe than sorry. There is always another calmer day to play.

Oil price continues to drop .... Not good for Sumatec

Xxxx, with higher acquisition cost and possibly lower oil price, the margin will be squeezed and the forecasted profit may not become a reality. That is my only concern now.

Somehow I think Borneo Energy belongs to HS and Sumatec is paying premium price to acquire its stake. HS will have already make tones of money via this deal and let Sumatec be burden with high acquisition cost. Just my personal opinion.

With the RI at rm0.40, will the exercise price of the WA and WB will also adjusted accordingly?

Published: Thursday August 28, 2014 MYT 6:49:00 PM
Updated: Thursday August 28, 2014 MYT 6:52:19 PM
Sumatec may not meet FY14 earnings forecast of RM69m

KUALA LUMPUR: Oil and gas services related Sumatec Resources Bhd posted a strong set of earnings for the first half ended June 30, 2014 but cautioned it might not achieve its net profit of RM69mil.

Sumatec said on Thursday due to the technical requirements to install artificial lift pumps on a number of wells, there has been a delay in bringing some of the wells on to production.

"Barring unforeseen circumstances, the board anticipates that the net profit of the group for the financial year ending Dec 31, 2014 may fall short of the forecasted net profit of RM69mil," it said.

Sumatec said to address the situation, the management would deploy all available resources to complete the remaining works under the workover programme, install artificial pumps and conduct production enhancement on each well, and adding more wells into the workover programme.

It posted net profit of RM6.70mil in the second quarter ended June 30, 2014 compared with net loss of RM3.94mil a year ago boosted by the upstream oil and gas (O&G) activities.

It said on Thursday its revenue was RM13.75mil compared with nil a year ago. Profit before tax was RM11.25mil compared with a loss of RM4.01mil.

"The increase in revenue and profit before tax in this quarter was attributed to the income from the upstream O&G activities," it said.

Sumatec said for the first half, it reported earnings of RM11.17mil compared with net loss of R9.16mil in the previous corresponding period. It recorded revenue of RM27.49mil versus nil a year ago.

It said when compared to the first quarter ended March 31, 2014, the group's turnover in Q2 comprising of revenue from the upstream O&G activities showed a marginal increase.

"Profit before taxation however increased by RM2.39mil in line with lower overheads and direct operating costs," it said.

Hi laughdieme, I wonder which night club will be able to make rm1 bil profit by 2018? This is just the beginning of better things to come.

So 2 consecutive qtrs of net profit ..... Can apply to exit PN17 .... CD hold to his words

1st qtr was turnover rm13.74 mil and net profit of rm4.85 mil ....

Sumatec 2nd quarter result - Turnover rm13.75 mil and net profit of rm6.7 mil

The current restriction on buying imposed by broking houses is a dampener for this counter to jump. The broking houses are getting a bit worried with the high volume and high volatility of this counter despite the good news. The market need to absorb the heavy volume of delivery comes next Monday and Tuesday. If the counter doesn't move higher then, a lot of our fellow Sumatarians (especially those new comer) will have to lick some wounds. I really hope it will move higher on Monday or Tuesday to help absorp this volume. Good luck team.

Many broking house placing buying restriction on Sumatec and PDZ due to its volatility.

Looking at the way things are going, RM0.70 by this Friday may just be a reality ......

Always buy the warrant for better returns during an uptrend market. But advisable to convert back to Mother to enjoy the benefit of the Mother on dividend, Right Issue entitlement etc.... Look at WA (higher ex price of rm0.32 but longer expiry of 2021) and WB (lower ex price of rm0.175 but expires in 2018)....both currently trading at a premium

It is currently trending at the same pricing with WB and around 6 sen below Mother. Better to convert all your Mother to WA so as to enjoy another 10 % extra gain with the same value of investment (you can buy more WA using the same money). This WA expires in 2021, this giving sufficient time to benefit from the CD plan of achieving RM1 bil profit by 2018. Do take note that the exercise price is higher at rm0.32 vs RM17.5 (for WB) but think of the longer expiry date. Just another investment though.

I have converted all my WB and Mother to WA since May / June 2014 to enjoy the longer expiry date plus more steady price as this WA has only 118 mil shares

My current strategy .... Buy to hold using available cash (of which I have been buying for the past 9 months) and to allocate some extra cash for contra trade purpose (target is 4 to 5 sen every T+3). So far, Lady Luck is with me plus strong support from fellow Sumatarians. The mother and her daughters are getting more expensive by the day.

Just contra some WA at 505 (t+4) and now trying to buy back at 50 and 505. Been doing this for the past few weeks and making some good money as long as uptrend intact. My already paid holdings intact

Not sure about 60 but 58 is a more possibility. Tomorrow will touch 60

If TSHS really has intention to increase his stake to 32% as rumoured! then this may be the best week to accumulate from open market prior to release of qtrly reporting else will be more expensive for such a huge block.

They have until end of this month to release the 2nd qtr reporting......

Not sure about the possibility of price hike due to following:
- property division will experience lower profit as mostly recognised in Zetapark already. The other new projects will not be as profitable and at early stage.

- Pipe business is a new venture and high capital commitment. No confirmed business as yet. Going forward, property developement has slowed in Malaysia due to the cooling measures by govt.

- renewable energy has not been contributing positively since day one. Doubt it will show strong profit in the very near term.

Based on the above, what basis to accord higher valuation for this counter. I do need some convincing before putting in my money. There are still a lot of better counters out there.

Milestone for Sumatec :
- 2nd qtr reporting
- uplifting from PN17
- Right Issues to buy Borneo Energy
- 3rd qtr reporting

The above will be sufficient to sustain Sumatec's valuation and upward movement till Dec 2014 with target of RM1.00

Only the two warrants are below rm0.50 now....but most likely will not be the case comes tomorrow ...... Last chance to buy WA and WB tomorrow. I have loaded enough WA for the time being. WA has less volume (100 mil plus) as compared to WB (500 mil plus) but exercise price much higher.....but compensated by longer expiry date till 2021 (WB is 2018). Grab some tomorrow

Sumatec still holding well at overnight level despite the huge volume in the new counter. Maybe some new money from this new counter will flow into Sumatec later

Once the morning euphoria on the new friend is over, then focus will be back on Sumatec....

Wong, how come I did not see this piece if news?

Good morning everyone. Let's have another fun day today. Good luck and sit tight

Reach will be a good benchmark for Sumatec

Need to break 55 today and stay above

I started buying mother at rm0.27 and WB at rm0.20 ...... And continue buying whenever I liquidate from the other counters ..... Now holding mostly WA and WB. As of yesterday, I am still buying and building up my war chest. I know very well that the value will double even as at today's closing. I believed many of us share the same ride experience

Gap up .... My prediction

Many of us have bought it many months ago and has since witnessed facts materialising resulting in the slow surge in price. With still many good announcement and events pending, there is still a long way to go. Just sit back and enjoy the ride.

Suggest that you only believe what is reported in the Bursa website else just treat it as plain rumours.

Rumours

Mohd Nasir, welcome on board. Anything below RM0.50 is a good buy. You won't regret it. Just be patience and don't listen to rumours. Hold on to it .....

Managed to snap another 300 lots of WA at rm0.41 ......

Dear Afata, assuming mother reaches rm4.00, then the WA should be trading at RM3.65 to RM3.70 level as exerciser since is RM0.32 ....my guess only.

For those who wants longer maturity date of its warrant, do look at WA but exercise price is much higher and now is out-of-money. But it will expire on March 2021, sufficient time to benefit from TSHS's global plan due to materialised by 2018.....Rm1 bil profit company ....

At this point in time, no comment yet. Overall market is cautious but Sumatec may be shielded by upcoming announcements (on PP, on PN17, on new oil fields, on new shareholder entry, etc). As long as you are positive on the Mother, the % gain from warrant will be much better yielding a higher quantum of ROI

Maybe the new Norwegian fund Norges with RM800 mil war chest is also getting a share in Sumatec as they also like O&G counters

When market is hot, better to buy warrant as for a lower exposure, your % return is very much better than Mother.