Top up some...an excellent earnings growth company.
A potential blue chip in the making!

Sinmah announced the sale of 2 parcels of land (4.52 acres) for RM27.2mil yesterday.
http://m.malaysiastock.biz/Company-Announcement.aspx?id=1123899

Note - By unlocking these 2 assets, Sinmah Group intends to utilise up to RM14.50mil of the proceeds to pare down its bank borrowings of RM31.07mil as at 31/12/18.

Going forward, this will greatly enhance their cash flow and allow them to focus on their foray into the healthcare business.
This is going to be an exciting year for Sinmah!

Reverse back to 4.00 :)))

This could be one of SMCAP's hospital construction project in the making. https://m.malaysiakini.com/news/464944

I am particularly drawn to their diversification into the healthcare sector which is a recession proof business targeting the lucrative M40 & B40 groups.

In line with their visionary plan, I am putting my money where my mouth is. Added some to my portfolio today

Definitely a set of very consistent & progressive results...keep up with the excellent work Kenneth :)

https://www.thestar.com.my/business/business-news/2019/02/19/hibiscus-posts-rm50mil-profit-in-q2/

Oil gave a good gain on the week, particularly Brent which closed steadfastly at US$66.33 as I write.

Some months ago, ahead of the Nigerian elections terrorist activiy happened only days before the contest and right now threats to oil installations in the country are being taken seriously.

Combine that with Opec + cutbacks led by Saudi with Russia stepping up to the plate and of course robust Chinese demand and crude is back in favour. Not forgetting the Iran sanction's waiver & the IMO’s 2020 Marine Fuel Rule's deadline that are approaching fast.

The demand for Brent and its similar blends has taken the differential to over 10 bucks which is probably enough for the time being unless Nigeria melts down.

Come Monday, Brent would be very impatient to race towards US$70 and beyond. Who knows, Hibby might hit limit up :-)))

***Deepest sympathy to the last batches of IDSS shorties who will be licking their wounds over this auspicious weekend :-(

Special mention too on that particular nuisance "D....M." that kept posting his negative articles repetitively knowing very well they are out of sync with the current oil uptrend.

Hibby's TP = 2.888. Cheers!!!

USD67 on the way up...

TRUMP MEANT BUSINESS THIS TIME ROUND... :)

JANUARY 29, 2019 / 5:10 AM / UPDATED AN HOUR AGO
U.S. sanctions Venezuelan state oil firm, escalating pressure on Maduro
Matt Spetalnick, Brian Ellsworth
WASHINGTON/CARACAS (Reuters) - The Trump administration on Monday imposed sweeping sanctions on Venezuelan state-owned oil firm PDVSA, aimed at severely curbing the OPEC member’s crude exports to the United States and at pressuring socialist President Nicolas Maduro to step down.

Crude Oil Forecast: Prices May Continue Climb on GDP Growth Recovery Bets;
Jan 26, 2019 7:00 am +08:00; by Rich Dvorak, Junior Analyst;

Talking Points:
1) Crude oil price outlook for next week is bullish in anticipation of progress in US-China trade talks;
2) Dovish Fed, Venezuela turmoil, OPEC cut talk could send oil higher;
3) US Government re-opening could encourage a rebound in economic growth;

This was the catalyst that traders were waiting for to push the price higher...go, go, go...

The United States, the top importer of Venezuelan crude, is seeking to ensure that the OPEC member’s oil revenue goes to opposition leader Juan Guaido, who swore himself in as interim president, and to cut off money from President Nicolas Maduro, a top U.S. official said on Thursday.

“The breakdown in diplomatic relations was interpreted as upping the possibility of a U.S. sanction on Venezuelan oil that would likely force U.S. refiners to seek alternative supplies at higher prices, hence the WTI gains,” Jim Ritterbusch, president of Ritterbusch and Associates, said in a note.

Venezuelan oil is predominantly heavy crude, which requires extensive refining. It is frequently blended with lighter crudes to give refiners higher-value products.

With Iran already crippled by U.S. sanctions, a drop in Venezuelan exports could squeeze global supply further.

Geneva-based Petro-Logistics said on its website that Iranian crude and condensate exports in December “fell steeply” from November to less than 1 million barrels per day (bpd) due to U.S. sanctions - lower than some other estimates.

Crude oil prices inches up on hopes fiscal stimulus by China, Japan to stem economic slowdown; By Reuters, Jan 23, 2019 15:41:25 IST

Chinese finance ministry officials on Wednesday said the government would step up fiscal spending this year to support its economy, which last year registered its lowest growth rate since 1990.

The Bank of Japan said on Wednesday it would keep its ultra-easy monetary settings which have been running since 2013.

Brent above USD61...laggard Hibby's wakeup call :-)

"The Chinese are throwing everything they can" at their economy, said John Kilduff, founding partner at hedge fund Again Capital LLC.

“That’s the big key to oil markets, especially when you have OPEC and Russia starting to rein in production."

Saudi Arabia’s energy minister said he was sure inventories will start to “return to normal averages and this will increase confidence” in the market.

More on oil - here's what to watch from OPEC+ coming up
Tue 15 Jan 2019 01:23:24 GMT Author: Eamonn Sheridan;

A note for the diary on oil, with OPEC and allies planning a meeting in March
1) on March 17 and 18 (the first day is just to drink Guinness, obviously)
2) that will be a meeting of the Joint Ministerial monitoring Committee to review the implementation of OPEC production cuts
Followed by a meeting OPEC Minsiters in Vienna on April 17 and 18
central discussion will surround deciding to extend cuts (scheduled to expire in northern summer)
--
Note: OPEC+ (OPEC plus some other producers) have agreed to reduce supply by 1.2 million barrels a day in H1 of 2019

Note also there will be meetings in February (7 & 8 and then on Feb 18 & 19) to discuss co-operation frameworks between OPEC and non-OPEC

IDSS Speculators switched from short to long positions.

"Oil market sentiment went from extreme bearishness to extreme bullishness in less than a month.

Speculative short positions over the past two months that took the Brent crude price down to a 16-month low at $50 per barrel amid bearish momentum, and neglected bullish sentiments, proved a huge disconnection from the physical market fundamentals.

Market sentiments have changed lately, with banks and hedge funds trading oil futures and options while removing new bets from falling oil prices, changing back into rising oil price bets. Consequently, speculators have cut back their previous short positions in Brent futures and extended their long positions." arabnews.com

Oil prices expected to reach $70 per barrel in 2019: UAE energy minister; 12-01-2019 Argaam
https://www.argaam.com/en/article/articledetail/id/589318

With the US delegation on its way back to Washington, China's Foreign Ministry hinted that the talks had been a success and said it would soon release a statement on the outcome.

The Editor-in-Chief of China's Global Times said that "though arduous" the trade talks were productive and that both sides were waiting for the US delegation to arrive back in Washington before delivering official statements on the outlook for a deal.

Tweet by "Hu Xijin 胡锡进; @HuXijin_GT
China-US trade talks have ended. Based on what I know, the situation is quite positive. The two sides are still in consultation on the wording of the message, so the two versions can be coordinated.
4:07 PM - Jan 9, 2019"

2019 Oil Market Outlook: OPEC Will Cause Prices To End Up Higher Than Forecast; Jan. 9, 2019 12:13 AM
Summary
1) Oil prices had an interesting 2018. This was especially true starting in early October, when prices began to fall.

2) Goldman Sachs and others are anticipating weak oil prices in 2019. However, I think that OPEC is unhappy from the events of 2018.

3) I actually anticipate a stronger 2019 than predicted, with prices getting into the $70 range for Brent by year end.

Chinese government intervened in the oil market!!!
Beijing is worried that the Unipec losses may lead to some form of rout contagion, however good luck to anyone finding out just what has China's top power echolon freaked out.

DAILY FX; Dec 27, 2018 4:00 am +08:00;
by David Song, Currency Analyst

OIL TALKING POINTS
Crude oil prices pare the decline from earlier this week as Kazakhstan’s Minister of Energy, Kanat Bozumbayev, anticipates the Organization of the Petroleum Exporting Countries (OPEC) and its allies to ‘stabilize the situation with energetic measures in January-February-March,’ and the failed attempt to test the June 2017-low ($42.05) may generate a larger rebound ahead of 2019 as the Relative Strength Index (RSI) bounces back from oversold territory.

OIL PRICES RISK LARGER REBOUND AS RSI RECOVERS FROM OVERSOLD TERRITORY
The weakness following OPEC’s 175th meeting finally appears to be abating as a growing number of producers show a greater willingness to curb supply, and the group may continue to talk up crude prices as Russia Minister of Energy, Alexander Novak¸ endorses a price range of $55-65bbl.

At the same time, the growth in non-OPEC supply appears to have stalled as updates from the U.S. Energy Information Administration (EIA) show production holding steady at 10,600K in the week ending December 14, and signs of slowing output may foster a near-term correction in crude especially as the International Energy Agency (IEA) warns that the economic slowdown in Venezuela paired with the sanctions on Iran may lead to unintended consequences that would exacerbate the drop in global output.

The Arab Weekly
OPEC ministers say oil prices to rebalance in 2019; Monday 24/12/2018;

But president of OPEC and UAE Energy Minister Suhail al-Mazrouei said that the surplus in the oil market was small compared to 2017 and expected it to vanish in one or two months.

"Based on available figures, we have around 26 million barrels of surplus ... compared to 340 million barrels in early 2017," Mazrouei told a press conference in Kuwait City.

"I think that we can easily do with this surplus and reach market rebalance in one or two months... in the first quarter of next year," he said.

https://thearabweekly.com/opec-ministers-say-oil-prices-rebalance-2019

Interesting development cos the Russian Energy Minister has never made any comment till now...

This year end market volatility was exaggerated by immensely thin liquidity conditions, risk sentiment, and holiday market participation.

“The current oil prices will force OPEC to increase compliance with the production cut deals, supporting Brent prices,” said Wang Xiao, head of crude research at Guotai Junan futures.

Fret not...Hibiscs supporters are busily collecting now!

FEEL GOOD FACTOR IN RESTORING CONFIDENCE - The management's swift response in clarifying the confusing report by TA Securities on DneX.

Based on an av pr of USD67/barrel, the 274,000 barrels that were sold in Nov has already yielded some RM75mil in revenue for 2Q'19!

So, for all you know, the company could be the one mopping up the shares this morning.

“The market over the last week has attempted to stabilise and I still think that’s what is happening today,” said Gene McGillian, manager of market research at Tradition Energy in Stamford, Connecticut." — Reuters.

Brent Weekly Chart - a Bullish 2nd White Candle is forming up nicely for this week :-)

"We are quite confident that OPEC+ will be successful in tightening up the front end of the oil market thus keeping the Brent crude oil one-month contract in $60+ a barrel territory over the next six months," SEB commodities strategist Bjarne Schieldrop said;

Accumulation phase gaining momentum...expect the profits for the next 2 quarters to increase consecutively...in-line with the Golden Rule for stock selection...backed by a strong & prudent management team that possessed shrewd Business Acumen.

Koon Bee's revised TP of 3.50 is within reach :)))

Oil Prices Inch Higher Amid Disruption In Libyan Exports
Tue, 11th Dec 2018 10:42
WASHINGTON (Alliance News) - Oil prices rose slightly on Tuesday after declining as much as 3% the previous day on concerns over an equity sell-off and doubts over how OPEC and its allies will implement planned supply cuts to ward off a glut.

Global benchmark Brent crude rose 0.25% to USD60.12 per barrel, while US West Texas Intermediate (WTI) crude futures were up 0.37% at USD51.19 per barrel.

The recovery comes after Libya's National Oil Company (NOC) late on Monday declared force majeure on exports from the El Sharara oilfield, which was seized at the weekend by a local militia group.

The shutdown is expected to result in a production loss of 315,000 barrels a day (bbl/day), and an additional loss of 73,000 bbl/day at the El Feel oilfield.

Traders are also digesting Chinese customs data released over the weekend, which showed that China's crude oil imports rose 15.7% year-on-year to a record high of 10.48 million b/d in November. The previous record high was 9.64 million b/d reached in April 2018.

Copyright RTT News/dpa-AFX

TM and KLCC Property out of FBM KLCI list; AMMB Top Glove in MARKETS; Friday, 7 Dec 2018
"It added that the new additions for the FBM Mid 70 Index are TM, UMW Holdings, Carlsberg Brewery Malaysia, Aeon (M), Boustead Plantations, Hibiscus Petroleum and Matrix Concepts Holdings."

https://www.thestar.com.my/business/business-news/2018/12/07/tm-and-klcc-property-out-of-fbm-klci-list/#gHf0JrBmLlWdXCRQ.41

Did OPEC cut enough?
Oil prices moved higher after OPEC members and 10 other oil producing nations agreed Friday to cut output by 1.2 million barrels a day.

While the amount is bigger than expected, some analysts said oil prices could still be vulnerable.

"I would describe the cuts as close but not close enough with regards to eliminating the global oil glut. A combined reduction of 1.5 mbpd was needed to avoid a supply surplus in the first half of next year," said Stephen Brennock, an oil expert for PVM Oil Associates.

Nevertheless, two things are going to happen next week: -
1) IDSS on borrowed scripts will definitely have to cover back all their shorts' position. This will help to lift Hibiscus's price substantially;
2) For the next 6 months, Brent will be likely to trade between the range of USD60 and USD70. This would mean that the TP of 1.75 is right on track.

Hence, all faithfull Hibiscus's investors should be basking in joy and richness this coming Christmas. Have a pleasant weekend. Cheers!

OPEC member-countries and other oil producing countries have agreed to cut crude output by 1.2 million barrels per day, a spokesman said as quoted by Bloomberg.

A very promising cut indeed - "Russia ready to cut 200,000 barrels per day."

UPDATED: OPEC Oil Cuts At Risk As Russia Yet To Commit
Reuters Thursday, December 6, 2018 - 7:05am

This story was updated with more information at 7:05 AM CST. It was originally posted at 6:49 AM CST.

OPEC and its allies are working towards cutting oil output by up to 1.5 million barrels per day (MMbbl/d) but could fail to reach a deal if no compromise is found with non-OPEC Russia, the Saudi energy minister said on Dec. 6.

As the Organization of the Petroleum Exporting Countries gathered in Vienna, it awaited news from Russian Energy Minister Alexander Novak, who flew home from the Austrian capital earlier for possible talks with President Vladimir Putin.

Novak returns to Vienna on Dec. 7 for discussions among Saudi-led OPEC and the group's allies.

OPEC hopes to prop up the price of crude, which has fallen by almost a third since October, but U.S. President Donald Trump has demanded it make oil cheaper by refraining from output cuts.

"We hope to conclude something by the end of the day tomorrow ... We have to get the non-OPEC countries on board," the Saudi minister, Khalid al-Falih, told reporters.

"If everybody is not willing to join and contribute equally, we will wait until they are."

LOL...

The strong fundamentals will soon be reflected in its price as IDSS addicts will wean and migrate to other weak counters.

LAST NIGHT, DOW CRUMBLED WHILE OIL HELD FIRM - Interesting times ahead...

If Trump is forced by the U.S. Senate and Congress to addresses MbS as the main culprit in the Khashoggi case, the gloves will be off. An anti-Western/U.S. move by the mainstream Arab countries will be a threat not only to Western influence in the region, but also confirms Russia’s growing influence in the region.

1) Firstly, intensified cooperation between Russia and Arab power players will be a nightmare scenario for U.S. and EU policy strategists. The first effects will be that Trump’s Tweets and Brussels’ warnings will be met by a one-sided NOPEC oil production cut and price strategy. Without any doubt, one of the outcomes could be that OPEC and Moscow, already accused of playing a price cartel strategy, will no longer keep the wishes of Western partners in mind. There will be no more room for policy negotiations on volumes, prices and economic growth as Putin and Crown Prince will decide their own fate.

2) The second issue will be that Russia and the Arab world will decide their own new geopolitical structures and power plays, in which the U.S. and Europe are no longer on their priority list. A full-scale 180 degree strategic turn by the Arab world is not in the interest of the world, and especially not of the West.

A strong NOPEC oil strategy, based not only on market fundamentals, but infused with geopolitical backlashes and power play, will result in a very volatile and risky environment. Politics always have been playing an important role, even if Khalid Al Falih continues to reiterate that OPEC is not a geopolitical policy maker, but a producer of commodities.

***Strangely none of the major analysts have looked at the position of Moscow in the Khashoggi affair. Putin and his consorts have been totally quiet, not addressing the case at all. At the same time, Moscow and Riyadh have been working out major investment deals, energy cooperation for the next century, while Russian forces have been flying into major Arab capitals for so-called military exercises with friends. While we have been reading newspapers and listening to one-sided news analysis coming from Turkey and unnamed sources, the main players have discussed already the full answer to any threat possible.

The OPEC meeting in December could be the first sign of a new energy/geopolitical reality, in which U.S. shale is being met by a Russian dreadnought fueled by Saudi oil. The signs are written on the wall that changes are imminent, but don’t expect it to be news about the removal of the Saudi Crown Prince. OPEC is changing, while geopolitical power brokers have already created a new theater of powers. Trump will have to switch gears to cope with this growing threat. Without some real brinkmanship, Khashoggi could be the next millstone around the neck of the U.S. president, not on the head of MBS.

By Cyril Widdershoven for Oilprice.com

TECHNICAL CHARTISTS ALREADY SPOTTED THE BULLISH REVERSAL WHILE THE BEARS WERE STILL PARTYING AWAY @ IDSS CLUB.

Brent oil may reverse downtrend
REUTERS; SINGAPORE, NOV 8

Likely to find support in a range of $69.69-$70.58

Brent oil may reverse its downtrend in a range of $69.69-$70.58 per barrel, as suggested by a projection analysis and the hourly RSI.

The range is formed by 161.8 per cent and the 150 per cent projection levels of a downtrend from $81.84. Wave pattern on a bigger downtrend from $86.74 suggests a completion of a five-wave cycle by end of this week

The current wave labelled (e) is expected to end around $69.69, as pointed by a falling trendline. The bullish divergence on the hourly RSI confirms an exhaustion of the downtrend. Technically, oil is becoming stronger and stronger. It is poised for a decent bounce.

Indeed, the short-lived bounce on Wednesday signals that bulls could be testing the water before launching well-prepared attacks.

On the daily chart, oil is trying to stabilise around a support zone of $70.55-$71.37, formed by the 38.2 per cent retracement of the uptrend from $44.35 to $86.74, and the 86.4 per cent projection level of an upward wave (C).

This zone will work together with the target zone on hourly chart to stop the fall and cause a bullish reversal.

A vicious threat or what??
Iran's powerful hardline cleric, Ayatollah Ahmad Alamolhoda is further reported to have declared that Iran has the power to "instantly" create conditions for $400 a barrel oil prices if it decides to act in the Persian Gulf.

He said as reported in regional opposition media:
"If Iran decides, a single drop of this region's oil will not be exported and in 90 minutes all Persian Gulf countries will be destroyed. The UAE and Saudi Arabia will be destroyed in 60 minutes. After 90 minutes the U.S. will have nothing in this country. And we haven't even started with Israel. Beware of the day we go after Israel, too. That's why they want us to round up our missiles."

Correction In Oil Creates An Opportunity For Investors
By Martin Tillier - Oct 27, 2018, 6:00 PM CDT
Out of context, it seems slightly ridiculous, but many trading decisions come down to what I refer to as the “magic number” theory.....

Latest bombshell...
Saudi Crown Prince Spoke To Khashoggi By Phone Moments Before He Was Killed: Report
The obvious question is what happens and how the Saudi royal family will respond if it is pushed too far, and whether the worst case scenario, a sharp cut in oil exports, could be on the table if MBS feels like he has little to lose from escalating the situation beyond a point of no return.

Legally, YES!!!

http://www.theedgemarkets.com/article/oil-price-bright-spot-volatile-market?type=corporate
Oil price a ‘bright spot’ in a volatile market
By Wong Ee Lin | 2018-10-15 08:59:55
KUALA LUMPUR: As stock market investors prepare for more market volatility in the months ahead, high oil price remains a bright spot for Malaysia being the Asean region’s only net exporter of oil and gas (O&G), according to analysts.

Once a Writ of Summons has been filed, the defendants (Lime Petroleum AS (Lime Norway) and the following directors or officers of Lime Norway at the material time: (i) Hans Ove Leonard Lidgren; (ii) Svein Helge Kjellesvik; and (iii) Ivar Aarseth) has got no choice but to pay up.
This amt of RM136M would be reflected in the coming quarter results!

Going forward, it will have a positive impact on the EPS :)))

Its an old case involving cheating by the Norwegian company dated back to April 2016.
Very good news for Hibiscus.
Legally, they should be richer by US$35m (RM136m)!
Don't mess with Kenneth!!!

"The legal action follows GHL's filing of the complaint at the Oslo Conciliation Board, which is the municipal's lowest level of the legal system for civil cases, back in April 2016.
The claim was for an estimated value of US$35 million (RM136 million) and above."
http://www.theedgemarkets.com/article/hibiscus-unit-files-writ-summons-against-lime-petroleum?type=corporate

Brent oil rebounded.
Too many positive buy calls from research houses...how to resist!!
TP=1.73 - Public IB Research;
TP=1.75 - Alliance DBS Research;
TP=3.28 - Koon Bee :-)))

Funds are rushing in to buy at lower price.

By Public Invest Research | 2018-10-11; 10:08:54
Funding not likely to be issue for Hibiscus Petroleum’s new buy
Maintain outperform with an unchanged target price (TP) of RM1.73
http://www.theedgemarkets.com/article/funding-not-likely-be-issue-hibiscus-petroleums-new-buy?type=corporate

Rebound in crude oil prices may not lift all players
http://www.theedgemarkets.com/article/rebound-crude-oil-prices-may-not-lift-all-players?type=corporate

"Conversely, there will be a positive impact on upstream players such as Hibiscus Petroleum Bhd, Reach Energy Bhd and Sapura Energy Bhd."

The announcement was timed perfectly to coincide with the recent price correction and the reversal of Brent Oil this morning.

The interview with the MD, Dr Kenneth Gerard Pereira, a Malaysian aged 57, was to assure serious investors that he has hands-on experience in the O&G business. 
Imagine having to go round begging for funds in his initial years. 
So, his message is nimbly clear..."Don't come and mess around with my darling stock or I will finish you"!!!
The only way is up :-)

Hibiscus's management team - a vintage class of O&G professionals.
http://www.hibiscuspetroleum.com/management-team

Europe opened strong for Brent.
Spot touched US$85.70.
Going forward, everything is on track for a sparkling performance!!!

A quick recap...

"Posted by GM68 > Sep 20, 2018 11:24 AM | Report Abuse 
Oil price is still holding above $79.
Every one dollar rise give Hibiscus a net profit of 1.3 millions."

Remark: At the current oil price of $85, that means an increased of $6. This will equate to an additional net profit of $7.8m!
So, at $90 to $100, what will be the net profit be?

SPECIAL DIVIDEND SOON?
Despite remaining silent on any special dividends announcement after accepting the deal in Aug, we still believe KPS will distribute part of its cash proceeds from sale as special dividends to reward its loyal shareholders, with the state of Selangor holding about 63.4% stake.

To recap, KPS paid out a special dividend of RM99m or 46% from the total proceeds of RM213m in Oct 2013 following the completion of disposal of its 56.57% stake in Kumpulan Hartanah Selangor Bhd (KHSB) to Kumpulan Darul Ehsan Bhd (KDEB) in Sep 2013.

For conservative approach and assume a 40% distribution from the RM570m cash upfront (rather than using RM765m), shareholders can expect a 42sen bumper special dividend.

On the other hand, even after deducting total net debt of RM453m in 2Q18, we still can expect at least RM117m or 22sen per share to be distributed.

Hence, given the potential special dividend ranging from 22-42sen per share, this will translate into a whopping yield of about 13.9%-26.5% based on KPS’ closing price of RM1.58.
************************************""""""""
From their in-depth analytical writeup, Hong Leong Research has meticulously illustrated on the Special Dividend that is expected to be paid out.

As such, it is not surprising that they must have collected enough shares by now and having the last laugh.
On a side note, credit must be given to the uncanny operator in keeping the price down until the closing for reason known to you and me...Lol..

Still expect to buy at 1.52? Come Monday, you be the judge.
Cheers and have a blessed weekend ahead!