free2invest, I believe the new revenue/income from the 4 mega projects will do enough to alleviate Armada's debt concerns. Not to mention a potential one-off payment from Woodside.

Thank you Knownfact and Specter.

@Knownfact, actually I was wondering, the RTA in the new building when will become operational? They just buy the land in January. Did the MD not speak about it?

free2invest, if you read the annual report management has already said they don't want to do that...but you never know lah with these people. Still I think it's a small chance only, but something to keep in mind should it come to that. Bail immediately for the rights issue in any company with market cap above RM500mil.

Yeah @mikekim, the leverage seems to be an issue at the moment in preventing Armada from contesting major FPSO projects. Two or three really good quarters will be of a lot of help to ease the leverage concern.

I believe they are gunning for a smaller FPSO in the near/mid term (AndaiAndai in Indonesia and PNGC 98/2 in India which will use a repurposed Armada Claire). In the longer term, by perhaps Q1 2018, they will be in a position to undertake a larger project like Kraken/Olombendo.

My one concern is they go down the route for a rights issue - that would be unforgivable and I will bail immediately.

Keep your horses in check. Turnaround is just the first phase. Hard to say how the market will react. It will probably go higher as management has confirmed first gas for Karupan Sterling III, which I believe has not been priced in. Also, the price has fallen a lot in recent days, time to make some back up again. I think RM0.75-0.76 is possible by the end of the day. The balance sheet is stronger, and lingering fears of unsuccessful turnaround have been put to bed. So yay for that. But don't cheer so fast...still a long way to go to getting full profitability.

I think this is the first time they have acknowledged First Gas in Indonesia (Karupan Sterling III)? There was zero media reports about this. So this means all that remains is the Kraken going live, then the Fab 4 will be in full swing!

Quote:

In the first quarter of 2017, we started operations on both the Armada LNG
Mediterrana FSU and the Armada Olombendo FPSO in Malta and Angola,
respectively. We have also recently received first gas on the Karapan Armada
Sterling III in Indonesia and we hope to soon deliver first oil on Armada Kraken in the
UK sector of the North Sea. Full charter income from all these projects will result in a
significant improvement in revenue streams for the Group throughout 2017.

Back to black baby!

Now this sets the tone for further recovery in Q2, and by Q3 or latest Q4 we shall see the full power of all four new projects unleashed. Keep in mind Q1 results have minor contribution from Olombendo, which on its own should be contributing RM200mil++ per quarter to the topline.

lol charts...

Actually strong RM is beneficial for ES Ceramics, since their raw materials are imported (i.e. ceramics). They sell their product mainly locally (Malaysia + Thailand). With lower average FX rate, this Q should have less cost pressures.

Come on lah. Share more news from AGM. What about expansion? Did they talk about the third particleboard manufacturing line? When does it come online? Same with the additional RTA factory being built on the adjacent line - any timeline for commencement of operations there? What is their tone for the outlook of the company in the near to mid term?

Thanks!

Wow Manulife offloading...doesn't look good here.

Have faith Steve. I bought at RM0.64, I'm steady ni. It will take time, but should Parkson turnaround, you're looking at a multibagger here. Just wait. Cut loss when it drops below RM0.50.

31/5/2017 is the final day...can we get back to above RM3? Or fall below RM2.90? What happens tomorrow will set the pace for the next quarter or so.

Its coming down!!! :)

Hevea meeting how?

All jokers and jokers only.

Bearish stock now. Won't sell, still hold till it goes back to 3.50 inevitably in 3 months time.

RI impossible to cancel lah. It's a huge RI ok. Not some kuci mayam one. They need the money or else their debt will keep eating into profits.

In the short term things like FX matter, but in the long term fundamentals will always prevail. Pick which side you're on (investor or trader).

http://www.scmp.com/business/article/2096053/hong-kong-stocks-inch-lower-lukewarm-turnover-expected-festival-looms

Interesting, seems like speculative buying due to a potential tie-in with an e-commerce giant?

So cool, will have decent results. Not great, not bad. In black ink. That's most important. Ayuh, kit a nantikan sama2

Jokers man, the lot of you. Who gives a damn about elections.

PRGL has gapped up today. What's the reason?

It depends Toto, all their profit from now on must be passed to some kind of an Islamic zakat fund. They can't keep the profit (except if they sold it on the first day). They can only recover the cost of their investment. For those who bought in RM1.30-RM1.45...I figure they will just sell and move on to other compliant counters. Otherwise their money is just stock for no reason...best deploy it elsewhere.

Lined up at RM1.46, this is my final try. Hope it gaps down tomorrow to that level, then bounce back up.

ROE must move up first before this company can have a rerating. ROE lags P/BV.

Eh, not to detract the conversation but I do think Parkson at RM0.60 is a good buy (0.26X P/BV).

Still I have to look into Insas further, but it seems like I've missed the initial boat, and Insas will lose its attractiveness once Inari hits the peak, which is not too long away now (reaching a cyclical peak).

Worth a read: http://www.thestar.com.my/business/business-news/2017/05/27/riding-out-the-storm/

I cannot advice those who bought the stock above RM0.70...but if you managed to get on the train below RM0.65, my honest advice is to keep the stock till RM0.90 at least, which will definitely be achieved by year's end barring any disaster such as contract being cancelled. Easily 40+% profit in a year...hard to beat those returns.

Wow, P/BV of 0.44X and ROE of 10%++. Even with some holding company discount, that's a great proposition!

@ShareRich, to clarify I'm not being selfish and hoping for USD rise. Heck no. I buy stuff from Amazon occasionally so a weak USD is good. But I think for the general well-being of the country and balance between cost of living and exports/manufacturing competitiveness, ~RM4.00-RM4.20 seems like the best trade-off between the two. RM4.50 was too high for cost of living. RM3.30 did no good for our export competitiveness.

Any idea why local/international funds don't hold this stock? Look at the annual report top 30 shareholders and nothing...kinda makes me think why?

Is anyone going for the AGM?

Problem is as MYR strengthens Hevea might be losing its edge. Anything above RM4.20 is still considered good...but the Ringgit has gone to RM4.27 now and it's getting ever closer to RM4.20...

Hold lah, Kraken's around the corner. Buy on fall to RM0.70.

Rights issues are a disaster, everybody hates it. It's the last recourse a company can take.

Read my comments from before. Just sell the stock. Buyback after Ex date if you are still interested.

That's it. Looks like we're stuck here for now. Share price likely won't fall much further, but upside is also limited in the near term.

No i missed it

It looks like until all Islamic Funds have stopped offloading, the price will be depressed. It likely won't spike down anymore, but might be depressed to ~RM1.50 for the next half year unless there is a strong re-rating catalyst. As you see by the volume today, it is likely those who sold off are traders that got spooked. No major fund has offloaded yet. They have six months to offload.

Investors with Shariah mandate are given 6 months from today to dispose of Shariah non-compliant securities provided the market price of such securities exceeds or equal to the investment cost. On the other hand, investors are allowed to hold their investment in newly reclassified Shariah non-compliant securities if the market price is below investment cost.

Patience...drop more... :)

I hope some more funds dump after lunch or next week. Can't be this is all.

Damn, why I always miss out. I wanted in at 1.50!

Sold all at RM0.74. Bought at RM0.57 in late February. Will buy back in the future if valuations are attractive again.

Muslims can't buy this stock anymore. Islamic funds have to dispose ASAP due to regs

What's the outlook for the stock? Down, same, up?

Removed from Shariah index, prepare for temporary selldown. If go to RM1.50 I buy...

Whatever major selling will happen today. Then we use this as a base to push forwards...