Rates for Capesizes are in a correction phase..which may be a while but from the past trends over the years, it is just another healthy phenomena.
Going back to fundamentals, the market is picking up steam in China and many of the bulk carriers are full.

https://www.hellenicshippingnews.com/baltic-index-falls-on-lower-capesize-vessel-rates/

Nothing to worry.. as the BDI tracks rates of all classes Capesizes, Panamax, Supramax vessels. Capesizes rates fell last night but Panamax and Supramax classes still increased.
Usually Capesizes vessels (170,000 tons and above) carry iron ores and coal..
MAYBULK does not own any Capesizes .. according to latest annual report.
It owns Supramaxes and Panamax which usually ferry soy, grains, sugar... all in demand currently.

Albukhary.. very true. It is now trading at a PE of 2.31 based on latest qtr results.. and for a growth sector in this economic recovery though slow and cautious, I feel that there is enough momentum to ride it through to Dec .. it’s moving very cautiously but definitely on the UPTREND.

Chngmenghui .. thank you very much for your sharing of the link and I hope all in this forum can share and benefit everyone.. let’s keep it positive and productive

Hi everyone, you all can get lots of world business info from shipping industry.
You can try google Hellenic shipping..
Few years ago, I decided not to listen to what the analysts report .. and prefer to do research from actual news in industries that we invest.
For my palm oil portfolio, I follow indian vege oil association And the US soy news because palm oil move in tandem with soy oil as both are most consumed in the world and sometimes used interchaeably.. India is worlds largest importer of palm oil far exceeding China at 2nd spot

Stay invested.. the BDI may go for some correction but don’t worry.
China companies have stopped selling spot for coal. The shortage is quite bad. As such, there will be continuous import of coal and coal is transported by dry bulk.
The shortage is ha d in hand with the current boom in China’s steel industry. You need huge amount of coal to fire up the furnaces...
also, coal is still a big part of China’s energy source. Winter is approaching soon and demand for coal for power generation/ heat will soon start..
The demand for energy in the west for winter will also help the crude prices..

thank you for your daily updates chngmenghui...
iron ore shipments is booked thru September.. as such no other space available for other cargoes.
Its a herd effect. the soy bean shipment to China from US is expected to begin in September.
As such the demand for dry bulk space is on the up trend.

Thanks for daily BDI updates chngmenghui...

NTA is important but not THE most important. The trend of the industry with good management is as important..

I did not attend the AGM ... unfortunately. I usually read the minutes posted later

cheahsk good question. Tq. freight rates are contracted forward..eg, 2019 peak at September but for voyage 1st qtr 2020 . Therefore, in accounting, the sales will only be recognized upon completion of the service...As such it is reflected in end 2019 last qtr and 2020 first half.
Same here, the rates sold now at peak will be recognise when the voyage will be effected in the later months...

Dont worry too much about the BDI movement though it does give an indication on the rates and ultimately profitability of Maybulk. The last time the BDI hit 1500, Maybulk was trading at 0.70 in Sept 2019....
However, this round, things are different. Back in 2019, people were brazing for a slowdown. This time around, there is a shortage of Capesize bulk movers... due to surge in iron ore import to China..
Last weekend deal US and China also see the agreement to purchase more soy beans from US.. meaning more demand of bulk carriers...

Just buy and keep... there will be some corrections here and there in the BDI...fundamentally the market shortage is real...

Yes, the rates are very high now because there is a shortage of dry cargo carriers in the market.

Mah Sing will gap up definitely.

BDI rises to 923..this is a good indication of economic activity picking up. Maybulk at 0.38 is very cheap

its on the uptrend... breakout is just one day show it should settle higher than previous days...

BDI now at 714 from 679 previous day.. definitely a reliable indicator of the freight rates and activities. Maybulk has been on the accumulation phase between 0.36-0.385.. if you observe, the volumes are slowly building in . This shows that there is an active accumulation.

if you want to make big money, you have to have the foresight, patience and confidence and most importantly GUTS... of course apply your guts wisely.

Another counter is Mahsing with cash reserves over RM 1 billion and active management with good dividend each year. EPF was buying above RM 1 plus before the crash. Able to give dividend 0.0335 in September 2020..

Another counter is TSH.. very strong management with maaturing crops. When COVID is over, surely demand for palm oil will pick up... US China trade war, China will not buy soy, high chance may switch to palm oil. If india lockdown reopen fully, consumption will spike. If you read MPOC report, india stockpile is very low and has started contracting 200,000mt of palm oil in end May for shipment June... This is called spot buy.. usually in commodities we buy in forward months.
What this means is that they need the commodity rather urgently and we have stock because our stockpile is high ..

Chesslim, you say it right. Be greedy when others are fearful.

Lowest for Maybulk in March was 0.22 ... it has been inching up trying several attempts at 0.385 and 0.39 once..
Looking at the movements, it is consolidating and will try to push above 0.40. Once above 0.40, it should be the new support...

From my experience in the past, Maybulk always track the BDI.. Baltic Dry Index
BDI rebounded from Second try near 400 level last week to 679 currently..
1. This is the correct timing to enter Maybulk as economies start to return.. raw materials and food supplies are needed. This is Maybulk main business- dry bulk cargoes
2. Since the US - China drama 2 years ago, the bulk industry has almost no new ship building contracts. This means that as old ships retire, there will be less and less ships in the market.
Therefore, with US reporting a sudden increase in jobs in May, the confidence is slowly coming back.
3. BDI should stabilise around 1200-1400 level by September ... I am tragetting Maybulk at RM 0.9 by September..

Rights issue? For what purpose? the cash flow statement is strong..

a drought will spark a shortage..

Robert Kuok says one must have GUTS to make it..!
FV for Mah Sing is RM1.22 according to earlier research house recommendations
Mah SIng has over RM 1 billion in cash and cash equivalent.
They have lots of land banks in startegic location.
The dividend yield is currently about 10% based on current price ... last dividend paid RM0.045 Sept 2019.

Many developers are already asking government to relax the RPGT and lower the threshold for foreign buying...

Just buy and keep... imagine, with EPF selling ( you can look above in the DISCLOSURE icon ),
Mah SIng is supported at 0.44-0.45 ... once the selling is done, Mah Sing will climb in tandem.

Other property stocks have started to move slightly... IOIPG, UEMS, SIMEPROP....

Results will be out after Raya for 1st Qtr 2020 which is traditionally property sales are good for 1st quarters each year.. ( you can check the qtrly results for most property companies ) due to bonus received and CNY mood...

Last but not least... always the same story when it reaches higher... " should have.. "

Warren Buffet says.. buy in a business you understand, be greedy when others fear, strong fundamentals....

because EPF dumped Mah Sing..

A counter like maybulk is very tightly held. It has to be becoz the capital investment is high and returns are low.. it is a long term on going business like hotels... impairments on old ships etc is part and parcel.
Stay calm guys.. at the BDI around 400 plus.. it is already at its all time lows..
We must invest in the know and once the lockdown is gradually opened, dry bulk cargo like iron ore, wheat, barley , sugar and other dry items will pick up.
In this time, not many companies are investing in new ships.. its a cycle. Its a visible cycle, Maybulk has hit 0.39 earlier and hit 0.325 recently and making a rebound.
Up and down are ways to accumulate...
If you can ride this wave, confidently, you will reap the rewards ... this kind of business, you can sleep tight

no need to be overly concerned about BDI... Maybulk has its freight mainly covered 6 months ahead. Once lock down is lifted, the ship freight rates will go up because there arent many new ships coming into market.
Besides, price is on uptrend

agree with Friendship and masterkevin

Actually if you observe, these penny stocks have got limited downside..... buying on pure fundamentals, Borsig alone is worth RM1.7b / 2.6b paid up = RM 0.65 not taking into account other assets...
Income stream from Peterborough should come in 2022 ...
not too worried about the involvement in O&G coz the oil prices will rebound once the market activities pick up... the planes are almost grounded at the moment....
Best time to buy and keep... keep invested!

https://www.bloomberg.com/news/articles/2020-03-03/treasuries-crack-1-asia-stocks-set-for-declines-markets-wrap

End March announcement ...results for yr ended Jan 31 2020.. very very good. Production lead time 4-6 months, price of raw material down, RM weaken ...

Sardin81, please help shed some light.. my only concern is that they do not have sufficient funds to complete the Peterborough project and may do another rights issue.. would appreciate your kind opinion. Thank you .. always valued your inputs

Numbers are correct.

With the warrants expiring in April, will that affect the price of KNM shares?

Warrant has an expiry up to 2024. Conversion 0.395 so I think its not too demanding a valuation..

The BS and cash flow statement looks healthy with positive cash coming in. Co not embarking on any new project. So, I don’t think RI is necessary..

Thank you DoomStock..I am new in share investing. I bought Velesto because based on the 3rd Qtr 2019, it showed a marked increase in revenue and profit..the notes to the report shows that it is due to 2 rigs chartered and another 2 to be commissioned in Qtr 4. So , I bought with the hope that Qtr 4 results will be better before the profits stabilise.... would appreciate your advise. Thank you very much.

It’s a good company worth keeping. Just invest and keep it aside. It will pay you well ..

Joyce126, I fully agree with you. The results coming out in 2 weeks.. definitely showing a higher profit contributed by the water flosser business in US and the Cloud business..
worth accumulate more at 0.225-0.23

if true, the price translated per piece of KNM would be RM 1.7bln/2.6 bln shares = 0.653 per piece

Thanks John Doe for your clarification.. ha ha! its good to have positive constructive and positive comments here..

K One Qtr ended June 30 2019 incoporated earnings and revenue from the Cloud investment. However, the contribution from Dental Flosser contract received in January 2019 should be included in Qtr ended 30 September to be announced by end Nov.
Therefore, it will be a big increase Q to Q...Yr on Yr...
So, the EPS for this Qtr should be higher than 0.3

Agree with Sardin..
if they are looking for suitors for Borsig at min price 1.7mil or IPO, KNM mother company cannot look weak. So, I believe this quarter and the next quarter will be stronger than previous 2 quarters

I hope as always, there will be subsequent announcement for additional parcels of the same contract.. ha ha

Kk7198.. that’s really a good piece of advice.

Treat KNM like a pension fund.
The way to play KNM is only long term strategy. We all know it will reach RM3.00 sooner or later. Imagine you buy below RM0.40 now.. and it is riped with Peterborough, impress and other existing business. RM1.5bil in debt is nothing... with the way they are practicing their corporate governance and transparency, it is behaving like a blue chip. Meaning they are trying to become a blue chip soon. What is blue chip? One of the criteria is they pay regular dividends because they want to attract funds .
Imagine when KNM is paying RM 0.20 per share each year later on..your average dividend yield is 50%...not to mention people who bought earlier.
it is better than a pension fund.

Masterkevin212...thank you for the thai tapioca prices.. definitely a helpful info. So, if KNM has its own plantation , the residual after extracting the starch for ethanol fermentation or other usages are usually sold for animal feed.

definitely still on the accumulation exercise...

Additional contract awarded today ...
https://www.theedgemarkets.com/article/knm-secures-three-more-contracts-worth-rm52m-indonesia

on Sardin's calculation of contribution of Impress Ltd.. assuming a NP margin at 20% equals RM90 mio
translated to price of share at PE 15 ( super conservative ) would be 90 x 15 / total shares 2.6 billion = RM0.52 ( JUST ON IMPRESS ALONE ).

i just use simple logic.. General Lee is extremely capable having lead KNM to listing in 2nd board, promoting to main board, having the foresight and guts to acquire Borsig and thereafter ride the tough times but yet started Impress Ethanol and Peterborough ...with all the great potential that we all can read, it is not likely he does not know what is going on in KNM share movements...

If a takeover bid is actually true, the bidder would want to finish the episode in the shortest possible time and prices would surely be wild.. however, the movement seems to be very steady .