“TheContrarian > Mr Sslee is asking why funds buy Inari via private placement rather than making a hostile takeover of Insas.”

“Sslee > And the best part if able to take over Insas then you still have whatever inside insas including the 1 bilion cash hoard.”

In a nutshell, PP is internal funding inside Inari which can add Inari value whereas buying Insas from the open market could be a ‘futile hostile’ exercise…two different exercises with two different outcomes.
For example, both Inari and Insas are a piece of empty land (Insas own a small portion of Inari); PP is $ spend to build a tall building to add value whereas bidding/spending on the other piece of land could be a ‘futile hostile’ exercise with no value added…

“Sslee > I do not understand why people spend billion just to hold 330,000,000 inari share when they can use the same billion to become controlling shareholder of Insas and hence become controlling shareholder of Inari.”

Since after some time, no opinion forthcoming (only @TheContrarian opinion before finish typing) , my take:
‘- PP subscription at max of 10% discount from 5 days VWAP, chances of gain logically.
‘- PP $ added to paid up capital, unlike buying from the open market.
‘- if buying from the open market, the price will fluctuate; just like throwing $ into a bottomless hole..

There are pros and cons of PP, hope it will answer Sslee's question. Other opinions are welcome. Happy Trading.

“3iii> Value investing is about buying a stock at a sufficient discount to intrinsic value.”

Totally agreed; and there are many other factors to consider such as EPS, ROI, business risk, etc.

How I see below data:
52 Weeks Range > 0.805 - 1.35
At RM1, the down side is very limited.

52 Weeks Price Volatility (%) > 35.78%
Quite active, downtrend, but cyclically can reach the highest again during the next RPS if it happens.

T4Q P/E | EY > 6.79 | 14.72%
Comparatively among the best with others listed stocks.

DY | Payout % > 2.39% | 16.24%
Slightly below FD return, good CAGR over 10 years as shown in one of my articles. Cannot compare with MFCB, my other calc comparison.

T4Q NAPS | P/NAPS > 3.41 | 0.29
These are the only data perceived as ‘value trap’ at present price.

T4Q NP Margin | ROE > 53.42% | 4.31%
Good NP Margin, but ROE is not attractive; still better than FD rate.

Hi @TheContrarian, what do you mean “They think they are buying a dollar for a quarter.”? Better saying “a Ringgit for 3 Ringgit and 41sen”!!

“3i> Insas
Current Assets 1989 m
Total Liabilities 531 m
________________________

CA - TL = 1458 m

Market Cap = 663 m (@share price of RM 1)

Net-Net value 1458m - Market Cap 663 m = 795m

Therefore, you can take this company private, settle all the liabilities and still pocket RM 795 m cash.”

Never thought can calc Net-Net value this way? Impressive?
Since Market Cap is a ‘moving target’, how sure can ‘sapu’ all at RM1?
Only the cash portion in CA sure if..(not suggesting anything), how much ‘others’ CA can turn into cash easily? The ‘if’ makes share investing interesting. I will keep my zero cost holding, not worrying it will fall below RM1, happy Trading and TradeAtYourOwnRisk

IB write up on Insas-WC, as it is still in $...hope the mother Insas will be covered in the next write up.
https://klse.i3investor.com/web/blog/detail/PublicInvest/2024-04-09-story-h-184548980-Technical_Buy_INSAS_WC_3379WC

I thought jks for 'just kiddings'; never thought of the missing 'a'. No comment as never know any investment can bear fruits in the future...

“what will value investors decide to buy?”

Ordinary value investors will buy Stock A as it is higher than Bank FD interest.
A diversified value investor (me) will buy Stock B as the stock will give a higher return than most of my other passive income.
A gambler value investor will buy Stock C. I will NOT commit even 5% of my wealth. MFCB calculated over 20% CAGR of 10 years, is an exception as the growth is over a very long period; would not be a suspected “con Stock”..

"Sslee > Insas is definately not a con stock. Insas is just a value trap waiting for something or somone to unlock the value."

How do we define a "con stock" and a "trapped stock"?
In a nutshell, buying high and staying low for a long period could be considered a "con stock" or a "trapped stock"...
Insas RI of RPS every 5 years, is it a "con" act? I have made a gain close to 60sen/right selling the rights, to me, definitely not a "con stock" act. It is up to individual action.
What if for those who chase up to RM1.30 during recent meteoric rise and drop back to around a Ringgit? They will feel conned and trapped..Just my opinion.

Not only the birds, don't forget the bees also:

https://youtu.be/LzB23JO33cE?feature=shared

"Insas NTA RM3.57 but no one willing to buy at RM1.08? What is the reason? Why is Insas shunned?"

Very good questions. The answers/conditions could be how Insas went up from around 90sen to RM1.30 recently, an increase of roughly 45%.
My "blow water (吹水)" thinking:
'- rumors of takeover news or the lack of corporate activities can have an effect on share prices?
'- financial changes from the norm? If every quarter has the same performance, no IB will notice to write a good report.
'- what is the quality of assets in the NTA? Return of investment (ROI) will be a good indicator, how is Insas cash getting a good ROI?
The question mark (?) is due to uncertainty as there is no right or wrong, as it is just an uncertified opinion…

Believed is one thing, getting to par value of NTA RM3.57 will make one happy. Some more at zero cost after taking selling profit into consideration. Trapped or not is no more important; as one famous Forumer boasted, lock in safe and throw away the key. Haha

“TheContrarian > 5 minutes ago
I always wonder why people didn't sell off Insas at RM1.30+ in January.”

There is no if for shares investing; example why I invest 50% in MFCB around a Ringgit and 50% in Insas around 50sen few year ago? Reason: Insas half the value of MFCB. As price doesn't matter, it is the unknown “if” I have invested more in MFCB or Insas; the fortune could be reversed in a few years time?
Now, my MFCB (still holding with 1 to 1 BI) is getting more than twice the return compared with Insas as per my recent calc…(Sorry, telling the gain only. My ICPS investment another story; making 100% one day paper gain, losing back the next day without opportunity to sell)

"TheContrarian > 4 minutes ago |
Only 260 shareholders escaped."

And ready to be "re-trapped" if price falls below 1 Ringgit?? Next escape opportunity could be after 3rd RI RPS?? Caution, past trend not necessary future movements pattern... Happy Trading and TradeAtYourOwnRisk

“TheContrarian > 1 hour ago
Imagine 26,000 shareholders trying to get out of Insas trap, no wonder Insas cannot break out.”

To be exact, the 26,000 shareholders could have escape “the trap” a few times since the year 2016. I have had “escape the trap” during the 2nd RI RPS and still holding 20% with average cost below 60sen. In retrospect, I did not reinvest the Dividend earned; and got trapped elsewhere…

Article updated to include MFCB as a comparison with the title "Insas vs MFCB: Both having a good Meteoric Rise this 1Q2024" after MFCB showing a 'breakout' recently...

Hi, Mr KW Lim, I find your article very thorough, except not touching so much on past performance (CAGR over 10 year period and almost twice dividend payout per year). Also not forgetting, the power generation from the 260MW Don Sahong Hydropower (DSH) is by Run-of-river hydroelectricity (ROR) technology is very much different from having a dam which is more capital intensive, less reliable due to single point vs multipoint for ROR, not so efficient in energy distribution as ROR in this case going to be at 5 different locations and a single dam needs a larger storage area.

MFCB is having a good meteoric rise this year. Few days ago, I did a calc for Insas' CAGR, also checked on MFCB over a 10 year period. The results are much better than Insas. Will find time to post the results, maybe over the coming weekend. Meanwhile, maybe you can also do a calc based on your assumption, different from my assumption of dividend reinvestment.
Happy Trading and TradeAtYourOwnRisk.

“Jack888
Next resistance 5.40 ...???
19 minutes ago”

Yes, MFCB is having a good meteoric rise this year. Few days ago, I did a calc for Insas' CAGR, also checked on MFCB over a 10 year period. The results are much better than Insas. Will find time to post the results, maybe over the coming weekend.
Happy Trading and TradeAtYourOwnRisk.

@erickonsim, good observation, gearing ratio of 0.64 divided by 0.585 equals around 1.09, roughly convert will get 10% profit. Conversion will take roughly 10 days, and can take profit if mother price remains 0.64 then. Those who waited for the 3 year moratorium to be able to convert, this is the rewards..For info, I do not own this RCPS, only interested in any form of PS comparing with company warrants, and would like to comment on any mismatch of prices during any conversion. Tq

“speakup >
you guys still in Insas? OMG! 😱”

Why not, considering the CAGR of more than 10% and 2 to 4 fold of capital increase over a 10 years period. Only caution, past performance NOT necessary future trend.
The update yesterday just to analyze am I right to hold my investment for so many years against another investor of getting 4 fold capital gain.
Another point, my initial investment of around RM0.50 will be roughly equivalent to a 5% dividend of declared 2.5% per share, i.e. low price will get more shares as dividends are based on quantity of shares. Sorry for the long-winded as I would like to give a clearer picture. Tq

Good Morning, ytd updated my article with the following topic during the day off:
“Update today date: 28 March 2024, on below topic:
"Insas: Comparison of Dividend vs NAPS 30/6/2014 RM 1.728 to 30/6/2023 RM3.375 a CAGR of 7.72%.
Question: What is the return for Insas Principal plus Dividend for the last 10 years vs NAPS 30/6/2014 RM 1.728 to 30/6/2023 RM3.375 a CAGR of 7.72%?”

The results of my calc are:
Scenario 1: At initial cost of RM6k over 50sen price, the CAGR calculated to be 12.2992%.

Scenario 2: At initial cost of RM6k over 60sen price, the CAGR calculated to be 10.1342%.

The capital increase for both scenarios are quite satisfactory, at least more than 2 fold increase based on this year's max price of above RM1.30.
Happy Trading and TradeAtYourOwnRisk.

“Income >
In 2023, the annual sales value.. approximately 224.7 billion..

Uncle is saying Msia sells all the petroleum products and we don’t use any of them??? Fake news la.”

It is annual sales, not annual export. So it is up to the individual to digest the info.
Also, there are pros and cons of solar power generation; up to individuals to do their own read up..
Happy Trading and TradeAtYourOwnRisk for the coming week.

I think more to this statement in the same article: "Such heavy control tends to leave little freedom for investors to have any say in the goings-on of a chaebol, thus making them unpalatable investments." and recently, "could start with a corporate exercise to jolt their shares from slumber, attract some interest and allow some of the tired, trapped investors to exit after what seems like a lifetime." Interesting, is it??

Can't they set it at 60 sen? Yes, can. Then the NTA will come down drastically with RPS and Insas-WC fully converted using RPS face value of MYR1 together with 1 WC; balance of 40 sen will be returned. What is the point of this RPS exercise?

The conversion details extracted below:
"The difference between the exercise price of the Warrants (or the adjusted exercise price of the Warrants in accordance with the terms and provisions of the Deed Poll, as the case may be) and the issue price of the Rights RPS shall be repaid by the Company within 1 month from the date the Warrant holder exercising his Warrant".

One paragraph at the Star article:
“While it may make some sense to buy such stocks, a “cheap” stock can also mean a value trap, meaning it is merely masquerading as a compelling buy.”

Is Insas “masquerading”?? Can it become another topic? Insas can be cash rich, so is all the bank, as all the cash is tied to depositors and ‘paper money’ in the form of bank guarantee??

Although I am a long term Insas investor, I always keep an open mind and look the other ways..Happy Trading

“So 2 times RI raise funding ard RM 260 million .. no wonder so Rich .. Another RI fund raising exercise by 2026 ke …

No worries still can issue RI many times looking at the present NOSH …”

There is some misconception of RPS vs Insas Company WC vs Call Warrant (CW).
Abbreviation R in RPS stands for Redeemable which means upon maturity, Insas needs to pay the holders the face value. Instead of taking $ from the coffer, new RPS issued to pay for the redemption; no addition of capital.
For Company Insas-WC, there is no Redeemable but Convertible whereas Call Warrant Cx, example Insas-CA,CB,CC cannot be converted as NOT issued by the Company’s. Market maker only for Call Warrant so that CW issuer will reduce the risk for any fluctuation of counter prices..chances the issuer losing money is minimized as they freely ‘play’ the market..
This is my own understanding of this topic, any critique is welcome.

Thanks to a contributor at i3 forum, who highlighted a good read as in the link below, able to give me a new insight of ‘value trap’ and partly answering my article questions…

https://www.thestar.com.my/business/business-news/2024/01/29/beware-the-value-trap

Happy Trading in the coming weeks.

"Posted by Income >
I urge you to do this. Wake up 5 AM. People dread at waking up early. But this saves you 3 hours before your day starts.."

Good advice as early birds get the worm. Only problem is everybody gets 24 hours a day; 3 hours head start but most likely needs to sleep 3 hours early. Some of us could be better at working late hours? Just go with the flow.. It is always good to go to bed with a tired mind and wake up fresh the next day naturally. When we get older, a good night's sleep is a real bonus, forget about making more $ and bonuses. Tq

“Posted by Integrity. Intelligent. Industrious. 3iii (iiinvestsmart)

BLee: Please also ask "if majority holders control 51% of a company, how to break out of the value trap?” Tq
06/03/2024 8:39 AM
>>>...and at the appropriate time, the company was taken private for a song.”

Agreed. I have had invested in Brem before taken private; making a small loss excluding dividend and bonus. It might just be a myth that taking private is good??

Another subject; why Insas doing RPS every five years?
My take: Interest for RPS lower than borrow $ from financial institutions and RPS/Warrants could be an instrument for protecting any take-over at a very low cost?? Any good discussion is welcome.
Happy Trading and TradeAtYourOwnRisk

Please also ask "if majority holders control 51% of a company, how to break out of value trap? Tq

"the turtle that doesn't exercise at all, lives over 200 years."

Another reason? If you keep your head inside the shell, most likely can live longer.. hear nothing, see nothing and speak nothing will keep us from trouble??
The problem; like the turtle, will slowly climb to the top and be left behind. Life is interesting, just do things at our own speed.. have a nice week ahead. Good night.

Yes, @TheContrarian, noticed on some undervalued stocks, switched 80% Insas holding last RI, bought TNB around 8.3 and sold above 11 recently..waiting to re-invest later.

@TheContrarian, also my wishful thinking Insas will be value priced to at least near NTA...then can take whole family for a free Europe holiday. Dream on. Happy Trading and TradeAtYourOwnRisk

“Posted by Sslee >
Nothing to argue whether Insas is a value trap…”

Yes, agreed. Very good discussion, and achieved the intention of my write-up; i.e. bringing out a balanced view of Insas investment. I will let the profit (dividend+capital gain if any) run, as if sold, nothing to get my interest in Insas forum..tq

"TheContrarian
Even a person who holds zero cost portion selling 100,000 shares of Insas at 1.10 makes a gain of RM110,000."

Correct ³, in addition getting 2.5sen dividend over the zero cost portion; how can it be "value trap"?
Let's compare latest Quarter report:
Basic earnings/(loss) per share (Subunit)
Q23Dec of 3.61 vs Q22Dec 7.20 and Cumulative QPE23 of 6.59 vs QPE22 9.71; is 2.5% dividend justifiable as value trap?

Therefore, another question in addition of questions raised earlier,

Is the last quarter with decreasing EPS over quarters (Q) and Cumulative Quarters PE (CQPE), yet giving same dividend considered a value trap? or

(Questions raised earlier)
Is the share price below NTA for a long period considered a value trap? or

Is the NTA moving up over the years at a greater rate than the share price considered a value trap? or

Is the share price moving up at a greater rate than NTA, can it be considered no longer a value trap? or
Edited: lately (NTA of increment of 3.57-3.56=0.01 vs price up by over 30sen from this YE Quarter reporting) moved out from 'value trap'??

My Conclusion: At different timing and reporting, there are many factors to consider such as NTA, EPS, ROI, etc to conclude is it a 'value trap' or not; that's make share investing interesting.
Happy Trading and TradeAtYourOwnRisk

“calvintaneng
INSAS OK LAH

TRAP IS GOOD LIKE BEAR GO CAVE HIBERNATE
LATER COME OUT STRONG STRONG HOR…”


Hi Uncle calvintaneng, welcome to my blog, but please promote Palm Oil somewhere else, as you are like honey to the bee's, and attracting the mouse to your Palm Oil promotion…no offense intended. Tq
Note: I am very much interested in Southern Johore properties investment; might learn something from you. I almost moved my base to near JB second link, near Tuas, Pekan Nanas, Pasir Gudang or Mount Austin/Ulu Tiram area before the C19 strike..

“leno
correct lor
do not get TRAP…”


Ya lor, the gist of the article is Sslee and BLee already un-trap (not blowing horn), only the zero cost portion trapped and let the profit run..kambenggg 60.000, Insas cantek. Happy Trading and TradeAtYourOwnRisk

Many thanks for all the healthy comments and stay ‘prosperous and healthy onwards…

I believe Cash is King, Insas main business is Cash generating Cash (Stock broking/investment and leasing), only the turn around is not fast enough. Investment in FD gives around 3% per annum, around 6% with EPF and around 7% with REIT..if Insas to give dividend higher than 2.5%, the Cash return needs to be higher, in my humble opinion.

“leno
correct lor do not get TRAP like ah tong or LENO…or keep 1 share, so that when INSAS reach RM 60 RINGGIT all insas shareholders can laugh at u mar ....”

I have traded during the last RPS RI, selling Offer Rights, 80% of mother shares close to a Ringgit and balance becomes zero cost. (Will find time to dig out the traded record for sharing). Hopefully, will only be trapped until close to NTA; will consider ‘untrap’..
Happy Trading and TradeAtYourOwnRisk

“Income
Posted by TheContrarian > Feb 9, 2024 5:12 PM | Report Abuse

Why Insas closed red?

….
Because Insas = Into Saving Account Swiftly.
No hoping and hoping.
See Rm, take Rm first.
That’s why Insas is Red.”


Red before dragon (龙Lóng) year will follow with red red packets from Insas in 2024..Wishes All A Happy Healthy Wealthy 龙 Lóng Year 2024.

“Musang King
… What if Fintec Shares never go back to above RM3.30 a share at all thus rendering Fintec ICPS all useless. Do you think so like me, BLee?”

@Musang King, not really useless as 0.783B buying bids at 0.005 available if willing to sell. Last few days, close to 0.3B just did the selling. As those invested during ICPS RI, there are many opportunities to sell, then.
Please refer to latest Profile for Securities of PLC, Link: https://www.klsescreener.com/v2/announcements/view/3283247 , and after Consolidation if happen, will be revised. At that particular time, paying 8 sen will get 1 ICPS and 5/4 Warrant C. We never know what the current price is, then. The 5/4 Warrant C is the sweetener, and could have been sold with definite gain.
Upon maturity, this 8 sen will be used as calculation for the auto convert. Therefore the question of 8 sen x 30 equal Rm2.40 or RM2.40 x 11/8 equal RM3.30 for auto conversion is irrelevant for whatever present buying price currently..definitely not useless. As I always mentioned, TradeAtYourOwnRisk, is the calculated risk we take at that particular point of time; like buying at 0.005, after Consolidation if it happens, will be 0.15. Price/value will be inversely proportional with the Consolidation value..I am still learning, wonder what will happen to this 8 sen or RM2.40 or RM3.30 upon conversion with cash/auto conversion and/or any other method?? Time will tell.

"surewin111
Please consolidate 30 : 1 l love it. Hehe"

Each person has they's own choice, like I love to drive a Kancil and you love to drive a Ferrari..haha

"5354_
Maybe consolidation is good for those who bought much higher price. People like BL Lee who buy at 0.5 sen can sell at 1 sen to make 100% cannot have such chance after consolidation."

@5354, buying at 0.5 sen is not that easy (jump queue over 1 billion shares) and selling at 1 sen has to queue behind many million shares, so far not successful. I prefer holding 30 time's more shares; therefore I disagree with the Consolidation.

"5354_
Why disagree? You long term shareholder?"

I am not a long term shareholder, and will sell at every opportunity as shown with the recent spike of AGES-PA, selling some at 1 sen and not a successful queue at 1.5 sen. We never know what the direction of shares and needs to hold for how long, that makes share investing interesting…still learning, remain TradeAtYourOwnRisk

“Musang King
This ICPS issue is a very tricky and ambigious scenerio for the future . After Consolidation, if ICPS holders are still holding them till expiry date, they need to top up RM0.90 to get a unit of Fintec share after surrendering one unit of ICPS worth RM2.40. (RM0.08 x 30) That's very expensive”


@Musang King, I prefer to use maturity for ICPS rather than expiry, as like FD maturity, you get interest $ (some ICPS entitle for Dividend) plus principle $ upon maturity. Warrants expiry will NOT get anything in return as usually given free (only reversal in accounting shown in the consolidation proposal report). ICPS auto convert and do not need to add any $. Each ICPS pre-payment after Consolidation is already equal to RM2.40. ICPS during Right Issue already “deposited” $, in my case getting 0.005 for a pre-paid of 0.08 and upon Consolidation getting RM2.40 (actual paying 0.005 x 30 equal 0.15). The only question is how much is the worth of 1 Fintec price upon maturity?? I am still learning what is the best method of getting better return from ICPS investment; time will tell.
Happy Trading and TradeAtYourOwnRisk

I also disagreed with the Consolidation..Fintec-PA also needs to go through EGM deed poll for ICPS Consolidation approval, much easier for rejecting this Consolidation (not very sure)..

咸鱼翻身?? (Literally meaning Salted Fish Flip Over - Change of Fortune)
Link: https://www.klsescreener.com/v2/announcements/view/6335533
Net Profit arising from the disposal of quoted securities by FINTEC Group
(The disposal of the quoted securities as announced were made within the period from 20 December 2023 to 31 January 2024) - 1,532,687.79
Most penny stocks invested by Fintec show signs of reversal??
Happy Trading and TradeAtYourOwnRisk

"Musang King
After Consolidation Announcement, the reaction from Fintec shareholders are 83% against and 17% support based on the Numbers of Shares traded between 0.005 and 0.01 sen today"

@Musang King, if you ignore before 9:37, there is only 3 trades at 0.005 including the last trade. This can be observed as the 'panic selling taper off..let see what will happen when the next QR out by end of the month. The profit most likely better then the previous.. TradeAtYourOwnRisk

@Musang King, very good observation. I have just posted my Humble Opinion and method to collect "toilet paper" at 0.005; so far quite successful. You needs to open minimum 2 screen to see the bids; cancel the order if the seller cancel the sell order.. so far quite successful. You also must observe how many sellers and the volume. The link: https://klse.i3investor.com/web/blog/detail/BLee_Fintec_Group/2024-02-02-story-h-189346541-Fintec_Consolidation_Pros_and_Cons
Happy Trading and TradeAtYourOwnRisk

"Sslee
If only Insas pay better dividend then most likely Market will value Insas as Bank FD.
A 10 sen dividend with FD rate of 3% will be value as RM 0.1/0.03 = RM 3.33"

@Sslee, we can't really compare FD rate with Stock Dividend; let say we put 1k for a year at 3% interest as FD, we will get 1.03k after 1 year whereas an investment of 1k (let says ex-Dividend still price unchanged) will get adjusted price of 0.97k plus 0.03k..shareholding fund will be reduced by 3sen per share.

"Below data extracted from Insas AR2023:-
Return on Equity (%) 5.2
Return on Total Assets (%) 4.0"

Can Insas afford to give out more than half of Return on Equity or Return on Total Assets? The bottom line is a Billion $ company must make 0.03 Billion $ to compare with FD rate of 3%, IMHO.

Yahoo Finance gave a very good report on Insas shareholding (free float around 47%, the remainder tightly held by majority shareholders), could be the reason why prices are slow in moving up higher??

Just for sharing, no buy or sell or hold recommendation, TradeAtYourOwnRisk.
For Info, I am last in Stock Pick Competition 2023, my sharing might be useless. Haha

"TheContrarian
@MrSslee, must know to get out before the crash. It's like a cycle. Exit at the peak buy back at the bottom."

@TheContrarian, if we know when is the crashing peak and when is rock bottom, we will be filthy rich.
During the 90's crash, I managed to sell more than half of my holdings (enuf to pay 50% of 2 condo) and haven't put in any fresh funds since then..
Insas is one of my holdings that I am not able to liquidate. I have traded Insas (and Insas-OR once almost getting double LU) a few times and believed what I am holding now at zero cost.
I have written an article on Insas back in 2019 and I think it is still valid now. Link: https://klse.i3investor.com/web/blog/detail/BLee2/2019-05-29-story-h1477507324-Top_20_Profit_Margin_for_BSKL_as_at_Reporting_28052019
Happy trading and TradeAtYourOwnRisk

"nikicheong
Always funny how Bumi Armada has a high beta (influenced by oil price fluctuations) when in reality, the business operations and profitability is not impacted by the day to day oil price swings."

@nikicheong, partly agreed not to read so much on the direction of OnG price in the short term; but if OnG price stays high at longer terms above average production cost will have a good impact on all upstream and downstream counters, IMHO (in my humble opinion).
Points to ponder for FPSO operators:
- Most owners of FPSO built the facilities to 'lease' at daily rates 'inclusive' of full functioning of the facilities.
- Not all OnG fields require FPSO, only feasible for deep water and marginal fields.
- High risk for high return compared to a field with a Central Production Complex (CPC or CPP) with its own Satellites Platform (SP). The daily rates have to cater for this risk.
- Chances of reUse in other locations is not very feasible as each field has its own landing pressure and hydrocarbon composition and aging of equipment.
- Operation regulation. Example ESG, COP etc confirmation like Carbon Capture, Heat Recovery, Waste Water Treatment and Zero Flaring, etc
Just a few points to ponder for TradeAtYourOwnRisk..

"TheContrarian > 15 minutes ago |
Insas is the case study of a value trap."

@TheContrarian, very good observation. Bottom line, value trap or not, there is still $ to be make provided how low to buy back and how high to sell... Selling 50% is a good strategy at this point of time, selling 90% is good if it drop back below a Ringgit. TradeAtYourOwnRisk