INSIDER
16-Mar-2020 MR LIM EEN HONG ( Chief Executive Officer ) Notice of Person Ceasing 6,200,000 UNIT

eduspec
cash flow 1.01mil
short term loan 19.21mil
long term loan 14.79mil
current liabilities 40.34mil

INSIDER
16-Mar-2020 MR LIM EEN HONG ( Chief Executive Officer ) Notice of Person Ceasing 6,200,000 UNIT

sell asset for survive that mean armada with high debt high losses with low cash flow face problem

Megvii was sanctioned by the U.S. Government, and added to the Entity List of the US Department of Commerce on Oct 9th, 2019

gpacket- wb market cap 203 millions

ARB BERHAD
Additional Listing Announcement /Subdivision of Shares

Shares Details of corporate proposal : Conversion of Irredeemable ConvertiblePreference Shares to Ordinary Shares
No. of shares issued under this corporate proposal : 2,730,000
Issue price per share ($$) : 0.2000
Listing Date : 19/05/2020

same like arbb

Oil plunges below US$12 as storage rapidly fills amid demand slump
April 21, 2020

Oil plunged the most on record to below US$12 (RM52.56) a barrel in New York as a historic demand slump fills inventories to the brim.
Futures fell as much as 40%. While the collapse reflects the most immediate May contract expiring today, it nonetheless highlights a fast-growing glut of oil, and rapidly expanding stockpiles at the American hub at Cushing, Oklahoma. Opec+’s record production cuts from next month are paling in the face of this evaporating demand.
The upcoming May contract’s expiry means traders are shifting their positions to June as they try to avoid taking deliveries of cargoes because of the lack of space to store them. That has opened up an unprecedented discount of more than US$10 between the two nearest contracts.
May WTI has fallen far lower than June ahead of expiry
There are signs of weakness everywhere. Buyers in Texas are offering as little as US$2 a barrel for some oil streams, raising the possibility that producers may soon have to pay to have crude taken off their hands. China reported its first economic contraction in decades last Friday, an indication of what is to come in other major economies that have yet to emerge from coronavirus-driven lockdowns.
“There is no limit to the downside to prices when inventories and pipelines are full,” commodities hedge fund manager Pierre Andurand said on Twitter. “Negative prices are possible.”
West Texas Intermediate (WTI) for May plummeted as much as 40%, the most since futures began trading in 1983, and was 35% lower at US$11.95 a barrel as of 1.13pm in London. The June contract declined 11% to US$22.37. Brent for June fell 5.7% to US$26.48 a barrel.
Crude stockpiles at Cushing — the key US storage hub — have jumped 48% to almost 55 million barrels since the end of February. The hub had working storage capacity of 76 million as of Sept 30, according to the Energy Information Administration.
Despite the weakness in headline prices, retail investors are plowing money back into oil futures. The US Oil Fund ETF saw a record US$552 million come in last Friday, taking total inflows last week to US$1.6 billion. The fund has said it would move some of its WTI holdings into the July contract, citing regulatory and market conditions.
The price collapse is reverberating across the oil industry. Crude explorers shut down 13% of the American drilling fleet last week. While that could cut production, with companies crimping their spending, it may not be enough.
“US shut-ins are gaining pace, but not fast enough to avoid storage filling to max,” said Paul Horsnell, head of commodities at Standard Chartered. — Bloomberg

俄沙"割喉战"停火 惟油价仍难止血
https://www.youtube.com/watch?v=BJgW-SwIlaA

债台高筑，股东无意负担，政府不愿救助，终于倒在新冠之下
https://www.youtube.com/watch?v=xo8rM2mIeRM

债台高筑，股东无意负担，政府不愿救助，终于倒在新冠之下
https://www.youtube.com/watch?v=xo8rM2mIeRM

美逾500家油商面臨破產？川普祭強硬手段...警告別來搶飯碗！
https://www.youtube.com/watch?v=ASrlw_x4jrw

美国原油价格跌破零！ 负37美元究竟是什么概念？
https://www.youtube.com/watch?v=7_ZSgrQioic

美逾500家油商面臨破產？川普祭強硬手段...警告別來搶飯碗！
https://www.youtube.com/watch?v=ASrlw_x4jrw

美逾500家油商面臨破產？川普祭強硬手段...警告別來搶飯碗！
https://www.youtube.com/watch?v=ASrlw_x4jrw

美国原油价格跌破零！ 负37美元究竟是什么概念？
https://www.youtube.com/watch?v=7_ZSgrQioic

美国原油价格跌破零！ 负37美元究竟是什么概念？
https://www.youtube.com/watch?v=7_ZSgrQioic

Oil prices under pressure after sub-zero plunge
Brent crude drops below $20 per barrel for first time in 18 years after WTI crash

Global oil markets remained under intense pressure on Tuesday, with Brent crude dropping below $20 per barrel for the first time in 18 years while other major benchmarks across the world tumbled.

Brent, the international marker, slipped as low as $18.10. The fall suggests markets see no immediate let-up to the collapse in oil demand that sent some US oil benchmarks plunging below $0 for the first time on Monday, leaving producers paying for buyers to take their oil away while available storage is scarce.

“The weakness we’re seeing in Brent today is more of a reflection of fundamentals — the fact that demand today is so weak,” said Christopher Haines, an analyst at Energy Aspects.

Coronavirus has sent the oil sector into a state of crisis, with lockdowns implemented by authorities to contain the outbreak slashing demand for crude by as much as a third.

Contracts for the US benchmark West Texas Intermediate for delivery next month tumbled as low as minus $40 a barrel on Monday — an unprecedented drop of more than $55. The slide was exacerbated by traders seeking to offload any obligations to take on physical product ahead of the contract’s expiry today as storage reached capacity at its delivery point in Cushing, Oklahoma.

Analysts at Goldman Sachs said retail investors, forced into last-minute sales as storage filled up, had been hit hardest by the slide in the May contract, which remained in negative territory on Tuesday at minus $4 a barrel, with the volume of trades on the day just a tenth of the volume of contracts for June delivery.

The June contract, which held above $20 a barrel on Monday, has also come under heavy selling pressure, dropping as much as 42 per cent on Tuesday to trade at lows of $11.79, suggesting the blowout in the May contract was more than just a blip.

While Monday’s slide reflected in part financial and storage issues, the fall in Brent — which can be stored on ships and more easily shipped to areas of higher demand — is “more reflective of the broader demand picture”, said Mr Haines.


Analysts said the June WTI contract — which has pared some of its losses to trade down 20 per cent at $16.34 a barrel — was likely to face further downward pressure in the coming weeks, given the supply glut shows little signs of abating. A record cut by Opec and its allies does not start to take effect until May and has so far failed to prop up prices.

Warren Patterson, head of commodities strategy at ING, said it was likely that “storage this time next month will be even more of an issue, given the surplus environment”.

“And so in the absence of a meaningful demand recovery, negative prices could return for June,” he added.

Explainer: What negative US oil prices mean for the industry
3 HOURS AGO

European equities traded lower, dragged down by losses in energy stocks. The continent-wide Stoxx 600 was down 2.4 per cent, with its oil and gas sub-index dropping 4.5 per cent. In London the FTSE shed 2.1 per cent, while Frankfurt’s Dax slid 3 per cent.

“Whilst we await the nature of the recovery, extreme oil price weakness — however it manifests itself — is not a flash in the pan and suggests equity risk in the oil & gas sector remains to the downside,” said Stuart Joyner, an analyst at Redburn.

Oil prices under pressure after sub-zero plunge
Brent crude drops below $20 per barrel for first time in 18 years after WTI crash

Global oil markets remained under intense pressure on Tuesday, with Brent crude dropping below $20 per barrel for the first time in 18 years while other major benchmarks across the world tumbled.

Brent, the international marker, slipped as low as $18.10. The fall suggests markets see no immediate let-up to the collapse in oil demand that sent some US oil benchmarks plunging below $0 for the first time on Monday, leaving producers paying for buyers to take their oil away while available storage is scarce.

“The weakness we’re seeing in Brent today is more of a reflection of fundamentals — the fact that demand today is so weak,” said Christopher Haines, an analyst at Energy Aspects.

Coronavirus has sent the oil sector into a state of crisis, with lockdowns implemented by authorities to contain the outbreak slashing demand for crude by as much as a third.

Contracts for the US benchmark West Texas Intermediate for delivery next month tumbled as low as minus $40 a barrel on Monday — an unprecedented drop of more than $55. The slide was exacerbated by traders seeking to offload any obligations to take on physical product ahead of the contract’s expiry today as storage reached capacity at its delivery point in Cushing, Oklahoma.

Analysts at Goldman Sachs said retail investors, forced into last-minute sales as storage filled up, had been hit hardest by the slide in the May contract, which remained in negative territory on Tuesday at minus $4 a barrel, with the volume of trades on the day just a tenth of the volume of contracts for June delivery.

The June contract, which held above $20 a barrel on Monday, has also come under heavy selling pressure, dropping as much as 42 per cent on Tuesday to trade at lows of $11.79, suggesting the blowout in the May contract was more than just a blip.

While Monday’s slide reflected in part financial and storage issues, the fall in Brent — which can be stored on ships and more easily shipped to areas of higher demand — is “more reflective of the broader demand picture”, said Mr Haines.


Analysts said the June WTI contract — which has pared some of its losses to trade down 20 per cent at $16.34 a barrel — was likely to face further downward pressure in the coming weeks, given the supply glut shows little signs of abating. A record cut by Opec and its allies does not start to take effect until May and has so far failed to prop up prices.

Warren Patterson, head of commodities strategy at ING, said it was likely that “storage this time next month will be even more of an issue, given the surplus environment”.

“And so in the absence of a meaningful demand recovery, negative prices could return for June,” he added.

Explainer: What negative US oil prices mean for the industry
3 HOURS AGO

European equities traded lower, dragged down by losses in energy stocks. The continent-wide Stoxx 600 was down 2.4 per cent, with its oil and gas sub-index dropping 4.5 per cent. In London the FTSE shed 2.1 per cent, while Frankfurt’s Dax slid 3 per cent.

“Whilst we await the nature of the recovery, extreme oil price weakness — however it manifests itself — is not a flash in the pan and suggests equity risk in the oil & gas sector remains to the downside,” said Stuart Joyner, an analyst at Redburn.

投资OIL/GAS公司要小心
https://klse.i3investor.com/blogs/tombthieve/2019-10-21-story231051.jsp

Oil prices under pressure after sub-zero plunge
Brent crude drops below $20 per barrel for first time in 18 years after WTI crash
Global oil markets remained under intense pressure on Tuesday, with Brent crude dropping below $20 per barrel for the first time in 18 years while other major benchmarks across the world tumbled.
Brent, the international marker, slipped as low as $18.10. The fall suggests markets see no immediate let-up to the collapse in oil demand that sent some US oil benchmarks plunging below $0 for the first time on Monday, leaving producers paying for buyers to take their oil away while available storage is scarce.
“The weakness we’re seeing in Brent today is more of a reflection of fundamentals — the fact that demand today is so weak,” said Christopher Haines, an analyst at Energy Aspects.
Coronavirus has sent the oil sector into a state of crisis, with lockdowns implemented by authorities to contain the outbreak slashing demand for crude by as much as a third.
Contracts for the US benchmark West Texas Intermediate for delivery next month tumbled as low as minus $40 a barrel on Monday — an unprecedented drop of more than $55. The slide was exacerbated by traders seeking to offload any obligations to take on physical product ahead of the contract’s expiry today as storage reached capacity at its delivery point in Cushing, Oklahoma.

Analysts at Goldman Sachs said retail investors, forced into last-minute sales as storage filled up, had been hit hardest by the slide in the May contract, which remained in negative territory on Tuesday at minus $4 a barrel, with the volume of trades on the day just a tenth of the volume of contracts for June delivery.
The June contract, which held above $20 a barrel on Monday, has also come under heavy selling pressure, dropping as much as 42 per cent on Tuesday to trade at lows of $11.79, suggesting the blowout in the May contract was more than just a blip.
While Monday’s slide reflected in part financial and storage issues, the fall in Brent — which can be stored on ships and more easily shipped to areas of higher demand — is “more reflective of the broader demand picture”, said Mr Haines.

Analysts said the June WTI contract — which has pared some of its losses to trade down 20 per cent at $16.34 a barrel — was likely to face further downward pressure in the coming weeks, given the supply glut shows little signs of abating. A record cut by Opec and its allies does not start to take effect until May and has so far failed to prop up prices.
Warren Patterson, head of commodities strategy at ING, said it was likely that “storage this time next month will be even more of an issue, given the surplus environment”.
“And so in the absence of a meaningful demand recovery, negative prices could return for June,” he added.

European equities traded lower, dragged down by losses in energy stocks. The continent-wide Stoxx 600 was down 2.4 per cent, with its oil and gas sub-index dropping 4.5 per cent. In London the FTSE shed 2.1 per cent, while Frankfurt’s Dax slid 3 per cent.
“Whilst we await the nature of the recovery, extreme oil price weakness — however it manifests itself — is not a flash in the pan and suggests equity risk in the oil & gas sector remains to the downside,” said Stuart Joyner, an analyst at Redburn.
Equities were also broadly lower in Asia, while futures tip US stocks to fall 1.8 per cent when trading in New York begins later.

Oil plunges below US$12 as storage rapidly fills amid demand slump
April 21, 2020

Oil plunged the most on record to below US$12 (RM52.56) a barrel in New York as a historic demand slump fills inventories to the brim.
Futures fell as much as 40%. While the collapse reflects the most immediate May contract expiring today, it nonetheless highlights a fast-growing glut of oil, and rapidly expanding stockpiles at the American hub at Cushing, Oklahoma. Opec+’s record production cuts from next month are paling in the face of this evaporating demand.
The upcoming May contract’s expiry means traders are shifting their positions to June as they try to avoid taking deliveries of cargoes because of the lack of space to store them. That has opened up an unprecedented discount of more than US$10 between the two nearest contracts.
May WTI has fallen far lower than June ahead of expiry
There are signs of weakness everywhere. Buyers in Texas are offering as little as US$2 a barrel for some oil streams, raising the possibility that producers may soon have to pay to have crude taken off their hands. China reported its first economic contraction in decades last Friday, an indication of what is to come in other major economies that have yet to emerge from coronavirus-driven lockdowns.
“There is no limit to the downside to prices when inventories and pipelines are full,” commodities hedge fund manager Pierre Andurand said on Twitter. “Negative prices are possible.”
West Texas Intermediate (WTI) for May plummeted as much as 40%, the most since futures began trading in 1983, and was 35% lower at US$11.95 a barrel as of 1.13pm in London. The June contract declined 11% to US$22.37. Brent for June fell 5.7% to US$26.48 a barrel.
Crude stockpiles at Cushing — the key US storage hub — have jumped 48% to almost 55 million barrels since the end of February. The hub had working storage capacity of 76 million as of Sept 30, according to the Energy Information Administration.
Despite the weakness in headline prices, retail investors are plowing money back into oil futures. The US Oil Fund ETF saw a record US$552 million come in last Friday, taking total inflows last week to US$1.6 billion. The fund has said it would move some of its WTI holdings into the July contract, citing regulatory and market conditions.
The price collapse is reverberating across the oil industry. Crude explorers shut down 13% of the American drilling fleet last week. While that could cut production, with companies crimping their spending, it may not be enough.
“US shut-ins are gaining pace, but not fast enough to avoid storage filling to max,” said Paul Horsnell, head of commodities at Standard Chartered. — Bloomberg

俄沙"割喉战"停火 惟油价仍难止血
https://www.youtube.com/watch?v=BJgW-SwIlaA

Oil plunges below US$12 as storage rapidly fills amid demand slump
April 21, 2020

Oil plunged the most on record to below US$12 (RM52.56) a barrel in New York as a historic demand slump fills inventories to the brim.
Futures fell as much as 40%. While the collapse reflects the most immediate May contract expiring today, it nonetheless highlights a fast-growing glut of oil, and rapidly expanding stockpiles at the American hub at Cushing, Oklahoma. Opec+’s record production cuts from next month are paling in the face of this evaporating demand.
The upcoming May contract’s expiry means traders are shifting their positions to June as they try to avoid taking deliveries of cargoes because of the lack of space to store them. That has opened up an unprecedented discount of more than US$10 between the two nearest contracts.
May WTI has fallen far lower than June ahead of expiry
There are signs of weakness everywhere. Buyers in Texas are offering as little as US$2 a barrel for some oil streams, raising the possibility that producers may soon have to pay to have crude taken off their hands. China reported its first economic contraction in decades last Friday, an indication of what is to come in other major economies that have yet to emerge from coronavirus-driven lockdowns.
“There is no limit to the downside to prices when inventories and pipelines are full,” commodities hedge fund manager Pierre Andurand said on Twitter. “Negative prices are possible.”
West Texas Intermediate (WTI) for May plummeted as much as 40%, the most since futures began trading in 1983, and was 35% lower at US$11.95 a barrel as of 1.13pm in London. The June contract declined 11% to US$22.37. Brent for June fell 5.7% to US$26.48 a barrel.
Crude stockpiles at Cushing — the key US storage hub — have jumped 48% to almost 55 million barrels since the end of February. The hub had working storage capacity of 76 million as of Sept 30, according to the Energy Information Administration.
Despite the weakness in headline prices, retail investors are plowing money back into oil futures. The US Oil Fund ETF saw a record US$552 million come in last Friday, taking total inflows last week to US$1.6 billion. The fund has said it would move some of its WTI holdings into the July contract, citing regulatory and market conditions.
The price collapse is reverberating across the oil industry. Crude explorers shut down 13% of the American drilling fleet last week. While that could cut production, with companies crimping their spending, it may not be enough.
“US shut-ins are gaining pace, but not fast enough to avoid storage filling to max,” said Paul Horsnell, head of commodities at Standard Chartered. — Bloomberg

俄沙"割喉战"停火 惟油价仍难止血
https://www.youtube.com/watch?v=BJgW-SwIlaA

Oil plunges below US$12 as storage rapidly fills amid demand slump
Bloomberg
April 21, 2020

Oil plunged the most on record to below US$12 (RM52.56) a barrel in New York as a historic demand slump fills inventories to the brim.
Futures fell as much as 40%. While the collapse reflects the most immediate May contract expiring today, it nonetheless highlights a fast-growing glut of oil, and rapidly expanding stockpiles at the American hub at Cushing, Oklahoma. Opec+’s record production cuts from next month are paling in the face of this evaporating demand.
The upcoming May contract’s expiry means traders are shifting their positions to June as they try to avoid taking deliveries of cargoes because of the lack of space to store them. That has opened up an unprecedented discount of more than US$10 between the two nearest contracts.
May WTI has fallen far lower than June ahead of expiry
There are signs of weakness everywhere. Buyers in Texas are offering as little as US$2 a barrel for some oil streams, raising the possibility that producers may soon have to pay to have crude taken off their hands. China reported its first economic contraction in decades last Friday, an indication of what is to come in other major economies that have yet to emerge from coronavirus-driven lockdowns.
“There is no limit to the downside to prices when inventories and pipelines are full,” commodities hedge fund manager Pierre Andurand said on Twitter. “Negative prices are possible.”
West Texas Intermediate (WTI) for May plummeted as much as 40%, the most since futures began trading in 1983, and was 35% lower at US$11.95 a barrel as of 1.13pm in London. The June contract declined 11% to US$22.37. Brent for June fell 5.7% to US$26.48 a barrel.
Crude stockpiles at Cushing — the key US storage hub — have jumped 48% to almost 55 million barrels since the end of February. The hub had working storage capacity of 76 million as of Sept 30, according to the Energy Information Administration.
Despite the weakness in headline prices, retail investors are plowing money back into oil futures. The US Oil Fund ETF saw a record US$552 million come in last Friday, taking total inflows last week to US$1.6 billion. The fund has said it would move some of its WTI holdings into the July contract, citing regulatory and market conditions.
The price collapse is reverberating across the oil industry. Crude explorers shut down 13% of the American drilling fleet last week. While that could cut production, with companies crimping their spending, it may not be enough.
“US shut-ins are gaining pace, but not fast enough to avoid storage filling to max,” said Paul Horsnell, head of commodities at Standard Chartered. — Bloomberg

俄沙"割喉战"停火 惟油价仍难止血
https://www.youtube.com/watch?v=BJgW-SwIlaA

俄沙"割喉战"停火 惟油价仍难止血
https://www.youtube.com/watch?v=BJgW-SwIlaA

俄沙"割喉战"停火 惟油价仍难止血
https://www.youtube.com/watch?v=BJgW-SwIlaA

俄沙"割喉战"停火 惟油价仍难止血
https://www.youtube.com/watch?v=BJgW-SwIlaA

俄沙"割喉战"停火 惟油价仍难止血
https://www.youtube.com/watch?v=BJgW-SwIlaA

俄沙"割喉战"停火 惟油价仍难止血
https://www.youtube.com/watch?v=BJgW-SwIlaA

yesterday ding sini 5.6 mil today become 10.2 mil ,tomorrow ding sana 10.2 mil later become 20.4 mil ..ding dong play ...china ding family styles

6 april shark buy 220 mil shares and 7april buy 340 mil shares

https://oilprice.com/oil-price-charts/45

俄沙"割喉战"停火 惟油价仍难止血
https://www.youtube.com/watch?v=BJgW-SwIlaA

https://oilprice.com/oil-price-charts/45

俄沙"割喉战"停火 惟油价仍难止血
https://www.youtube.com/watch?v=BJgW-SwIlaA

https://oilprice.com/oil-price-charts/45

https://oilprice.com/oil-price-charts/45

俄沙"割喉战"停火 惟油价仍难止血
https://www.youtube.com/watch?v=BJgW-SwIlaA

Which companies on Bursa have high cash and low debt
KUALA LUMPUR: The second extension of the movement control order to contain the Covid-19 outbreak — now totalling six weeks until April 28 — means that economic activities will remain subdued for at least another 14 days.
The pandemic, which has infected nearly two million and killed over 100,000 worldwide, presents the worst start possible for the recession expected ahead. As the infection curve has yet to near its peak, it is anyone’s guess on the depth of the economic downturn.
Against this backdrop, survival is the prominent concern now. Investors’ attention is drawn to companies’ balance sheets instead of growth prospects, which is widely expected to be minimal in the best-case scenario, as business volume dwindles and operating cash flow shrink.
Asia Analytica data shows that of some 880 listed companies (after excluding the 40 banks, insurers and investment trusts), 597 companies listed on Bursa Malaysia have cash that is less than their short-term liabilities.
Companies in many different sectors are underlined here, from furniture companies to retailers, automotive-related firms, and a wide range of manufacturers and trading companies.
Meanwhile, 223 listed companies have an interest cover ratio of below one times, meaning their earnings before interests and tax cannot cover interest expenses for a full year. The market capitalisation of most of these companies are below RM2 billion.
Some 321 companies were already in the red last year. Of the 599 profitable ones, around 45.6% of them saw profit decline in the period. Again, most on the list are small-cap firms, according to Asia Analytica data.
It is also worth noting that the economic downturn would be a tough test on companies’ sales quality. Companies with a high portion of credit sale with mounting receivables could be at risk amid the potential cash trap.
A random check shows that 75 listed companies or 8.2% have net gearing of over 100%. Sectors with the most companies in this category are logistics, construction, oil and gas, building materials and property development.
Others with net gearing of above 80% include power companies, telecommunications companies and building materials companies. Power producers’ liabilities are usually backed up by the steady cash flow from power purchase agreements.
On the flip side, notable sectors with low net gearing average include Internet and gas utility companies, and technology solution providers.
Of 79 generic companies with market capitalisation of above RM2 billion (ex-banks, real-estate investment trusts and insurers) only 22 have a cash ratio of above one times and net gearing of below 50%, led by Petronas Chemicals Group Bhd, Petronas Gas Bhd and IOI Corp Bhd.
As reflected by the price-to-book valuations, preference is given for companies with high cash, low debt, steady recurring income and high-quality clients, such as tech companies, and broadband providers.
There are also lesser-known small-cap companies that are cash-rich with sturdy past operations.
As a fund manager pointed out that a downturn is a brewing pot for merger and acquisition activities, as smaller, cash-rich companies with good assets or business prospects usually become undervalued after the market selldown.
The first quarter’s (1Q20) financial result will show how much cash was exhausted amid the two-week shutdown in the second half of March, while prospects of the entire half of 2Q20 being under movement restriction are still visible.

俄沙"割喉战"停火 惟油价仍难止血
https://www.youtube.com/watch?v=BJgW-SwIlaA

Which companies on Bursa have high cash and low debt
KUALA LUMPUR: The second extension of the movement control order to contain the Covid-19 outbreak — now totalling six weeks until April 28 — means that economic activities will remain subdued for at least another 14 days.
The pandemic, which has infected nearly two million and killed over 100,000 worldwide, presents the worst start possible for the recession expected ahead. As the infection curve has yet to near its peak, it is anyone’s guess on the depth of the economic downturn.
Against this backdrop, survival is the prominent concern now. Investors’ attention is drawn to companies’ balance sheets instead of growth prospects, which is widely expected to be minimal in the best-case scenario, as business volume dwindles and operating cash flow shrink.
Asia Analytica data shows that of some 880 listed companies (after excluding the 40 banks, insurers and investment trusts), 597 companies listed on Bursa Malaysia have cash that is less than their short-term liabilities.
Companies in many different sectors are underlined here, from furniture companies to retailers, automotive-related firms, and a wide range of manufacturers and trading companies.
Meanwhile, 223 listed companies have an interest cover ratio of below one times, meaning their earnings before interests and tax cannot cover interest expenses for a full year. The market capitalisation of most of these companies are below RM2 billion.
Some 321 companies were already in the red last year. Of the 599 profitable ones, around 45.6% of them saw profit decline in the period. Again, most on the list are small-cap firms, according to Asia Analytica data.
It is also worth noting that the economic downturn would be a tough test on companies’ sales quality. Companies with a high portion of credit sale with mounting receivables could be at risk amid the potential cash trap.
A random check shows that 75 listed companies or 8.2% have net gearing of over 100%. Sectors with the most companies in this category are logistics, construction, oil and gas, building materials and property development.
Others with net gearing of above 80% include power companies, telecommunications companies and building materials companies. Power producers’ liabilities are usually backed up by the steady cash flow from power purchase agreements.
On the flip side, notable sectors with low net gearing average include Internet and gas utility companies, and technology solution providers.
Of 79 generic companies with market capitalisation of above RM2 billion (ex-banks, real-estate investment trusts and insurers) only 22 have a cash ratio of above one times and net gearing of below 50%, led by Petronas Chemicals Group Bhd, Petronas Gas Bhd and IOI Corp Bhd.
As reflected by the price-to-book valuations, preference is given for companies with high cash, low debt, steady recurring income and high-quality clients, such as tech companies, and broadband providers.
There are also lesser-known small-cap companies that are cash-rich with sturdy past operations.
As a fund manager pointed out that a downturn is a brewing pot for merger and acquisition activities, as smaller, cash-rich companies with good assets or business prospects usually become undervalued after the market selldown.
The first quarter’s (1Q20) financial result will show how much cash was exhausted amid the two-week shutdown in the second half of March, while prospects of the entire half of 2Q20 being under movement restriction are still visible.

俄沙"割喉战"停火 惟油价仍难止血
https://www.youtube.com/watch?v=BJgW-SwIlaA

投资OIL/GAS公司要小心
https://klse.i3investor.com/blogs/tombthieve/2019-10-21-story231051.jsp

俄沙"割喉战"停火 惟油价仍难止血
https://www.youtube.com/watch?v=BJgW-SwIlaA

俄沙"割喉战"停火 惟油价仍难止血
https://www.youtube.com/watch?v=BJgW-SwIlaA

俄沙"割喉战"停火 惟油价仍难止血
https://www.youtube.com/watch?v=BJgW-SwIlaA