TreeTopView @sheldon, I don't want to get into this discussion too much as I don't hold the stock, however I'm bored this afternoon and saw your comment about BK not having any exposure to foreign debt.
I have to correct your statement, BK does have foreign loans , such as USD, GBP, AUD, JPY, EURO. and RMB.
Noted I stand corrected tq. However note 35 of the Ann Rpt only mentioned rather vaguely sketchily ... "The aggregate outstanding nominal value of the Ringgit Sukuk and Non-Ringgit Sukuk issued under the 2nd Programme shall not exceed RM1.6 billion (or its equivalent in foreign currencies)."
Yada yada blah blah blah. Intellectuals, please tell us the bottom line. Is the market for Petron shares on Mon 29 Aug going to ... A. rise up like superbull B. bounce up & down a little around where it is C. drop despite all the huffing & puffing of a great EPS ?
Sslee - I read your proposed questions for the AGM and they're quite pointed. Some of the questions I had asked in the past myself like which petrol stations belonged to Petron & which to the evil twin sister but did not get a clear response. They should rightfully disclose such info in the annual report. My concern and many in this chat is the 230m derivative losses.
We're aware that there are 2 companies sitting side-by-side. One is 100% owned whilst the other is about 70%++ owned, making the latter something of a step child. When derivative trades are done, it's quite easy I think to park the deals in one company or the other based solely on personal discretion and that is a serious concern.
Think about this ... The share price shot up in anticipation of a favourable quarterly results against the backdrop of better crack spreads & inventory gains etc. Then the price started a steep downfall to something reflective of the results even before the results were announced.
Compared to corresponding quarter, revenue increased 90% but EPS only by a paltry 3.4%. The 230m derivative loss is massive although I believe a big chunk is unrealised. Did a rogue trader contribute to this calamity?
Despite the leaping oil prices and the so-called improving crack spreads, the results are disappointing. Looks like the management lacked the caliber and could not seize the moment and make some windfall profits. The massive derivative loss implies that the traders seriously failed at almost every hand in the game trying to out guess the crude price trajectory. They were not mediocre but below mediocre.
Johnzhang - i think and mainly HOPE that your point is valid - dump the shares to force margin players without deep pockets to sell, further aggravating the downward pressure so that the profiteers may pick the shares up for a song.
Things are looking good. CPO Futures prices are through the roof today 24 May. Results are in line with expectation. If you consider the latest EPS of 80.3 & extrapolate to a year = 3.21. This is the highest annual (projected) EPS BK had ever registered. Perhaps they could've declared a much higher dividend than 20 sen.
supersinginvestor @sheldon Thot u so negative about petronm Wat happened? Lol
I was justified with shares trading at single digit PEs, low dividends & several other real or imagined issues, some of which I had raised with our watchdog. But money talks and all's forgotten when the share price skyrockets. Now we smoke peace pipe.
I've been holding Petron for a long time - sitting on massive unrealised losses. I felt that the share price severely underperformed relative to its fundamentals. So I used to hound the board to declare bigger dividends - all fell on deaf ears.
Now it's beautiful music. As for how long it'll last, no one knows. My demands are simple - that I'll not be left without a chair when the music stops.
So the steep fall in commodity prices is affecting the share price. Despite that the management would have hopefully locked-in future prices at much higher levels. The results for at least 2 quarters should be nothing less than awesome.
What the management could do to get the attention of the investors and prop up the share price is to declare an equally awesome dividend.