yield curve inverted

very true. what we investor want ia dividend from free cash flow.

Good morning DK, can you add me to this group? Thank you very much.

Ally can share. Thank you very much.

Many do not know only government hospital accept Corona patients, not private hospital.

Pe ratio, book value or free cash flow?

apple168, by saying that valuation not attractive....are you refering to PE ratio, book balua or free cash flor

@ Mabel....kakinada project is 7% WACC. It is a bit high. Do you know the reason?

finance cost is tax deductable

deduct finance cost first from profit, from the figure the balance you deduct 24% tax, not deduct tax first.

You go through quarter report, operating profit margin is 40%, net profit margin is 15% after deducting interest and tax.

According to your estimate of 2b revenue and 30% margin, PAT would be RM600m, not RM 450m.

why you estimate your own figure when it is clearly stated in quarter report. According to latest annual report, with every 0.5 percent drop in US interest rate, company will save RM24m per year. US interest rate trend is dropping gradually. can you see the trend now?

ckca...your figure doesnt tally with quarter report. Interest plus princial being paid now is RM130m per quarter, means RM520 M per year. RM3

It is a norm for new management to do spring clean once takeover a new company , so that they can show improvement in the future.

johnchew, refer annual report 2018, forex movement wont have big effect Armada's bottom line. In contrast, interest rate of US will have bigger effect of Armada's bottom line bacause most of their loan is in USD.

johnchew....correct me if I am wrong. Impairment is in year 2018. so it is history. no more future impairment. ImpIrment high is due to unused or underutilised FSPO. If lets say kraken is fully utilised and achieved targeted profit, impairment will be reversed and D/E ratio will come down.

USD interest rate just been brought down. Impairment is already history. Geco, you better do your own homework, others opinion can only be made as a reference only.

@johnchew, USD weak is good for Armada. Their loan is mostly demoninated in USD.

Impairment can be reversed and hedging is done. So currency fluctuation wont affect profit..

Egg counter dont think affected by trade war. they only conduct business regionally. dont export to US

FL bhd dont think benefit.
you forgot to put M1 :-)

IDSS cry

Good for you. Well done. All the best.

Thanks @Johnchew for all the info. oil prices all volatile. manipulated by various superpower.

Shale oil production cost is at least 40 per barrel leh....@johnchew, can you share your information on US shale ool production cost?

I have been wondering. Some quarters speculate future oil price will go down to 30-40 USD per barrel. But isn't it below cost of shale oil production cost. It is not sustainable.

WACC 10% is too high. please refer back previous Mabel comment. Around 5%?

price ding dong from 0.26 to 0.255, IDSS how to make money.

lol....i am still around. Waiting for next quarter result before decide next course of action

@moneykj1....Are you sure gross profit 123m per year? lol. You math fail la.

with selling of unutilised vessels and increase operating performance, things will improve gradually.

Arma interest coverage ratio is 1.79.....slightly above minimum acceptable level.

Lol ckca play with emotion.

this type of business got steady cashflow. Earning not volative.

operating cash flow is strong at 1.2 billion a year to cover vessel maintenance and finance cost.

qqq.....now we only hold this counter and monitor how well and how soon management execute their plan.

@qqq....Operating profit can cover debt and going by Armada future plan, debt will be pared down which will bring down finance cost and depreciation cost. They will increase operating efficiencies as well. This is the future direction of the company. If execution can be carried out successfully, profit will only increase steadily in the future.
About current debt level, it is already reflected into current depressed share price. What I like is the profit margin and ROIC of this company. Should debt been pared down in the future, valuation will be much more than PE 8 as assigned by investment bank.

@qqq.....thanks for the guidance. i agree with you. Armada has high debt but it is reflected The worse is over foe Armada into share price.

12.103 million is one off gain from selling of property, plant and maintenance.

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