Looks like the answer to the question on profitability was A - Loss. What a total disappointment ! Looks like inventory cost which has a bearing on crack spreads has a huge bearing.

I'm curious as to what Pet-Dag's result will be. It should also be bad due to high inventory cost.

AlfI3 Sheldon, when can v expect UOB's advice comment?

You would have received the notification of conditional mandatory takeover dated 14 Feb. Independent Advice will be despatched by 24 Feb.

I believe that the final price offered will be higher than 3.10. Seow brothers & the fund managers are going to demand for more.

RainT - Good daily traded volume (liquidity premium), low PE, well-known brand, making good profits, decent dividends, foreign-owned, recession-resistant....

Need I go on?

There was a RM696m drop in AFS investment. It was clarified to me that the drop was due to decline in price of shares of a company listed on London Stock Exchange, invested by KLK.

cherry88 - then how come Sports Toto not going up by the same earnings multiple??

I'm willing to catch more if it falls.

Personally I feel that the offer is way too low.

If you use the textbook lowest or base case valuation which is NTA, the shares as at end of 2017, it's worth RM3.30. After 1 year of profit, it should be worth even more.

My feeling is that KJ probably has been talking down the earnings over the past quarters to portray a company that is ugly so that minority shareholders will just let go at the low price they offer.

Can-one wants to buy the company for a song.

I've no idea precisely when but UOB KH is supposed to be objective and logical when they give their opinion about the price - usual text book stuff like valuations based on PE and dividend discount model.

at these prices might as well sell magnum & buy toto unless it's to do with u-mobile

News on U-mobile perhaps?

The offer is so measly. Also if any dividends declared, the offer price will be reduced by the dividends.

Better wait for UOB Kay Hian's advise. If they are objective, I believe they would say that it's worth much more.

20 is possible. As more & more profits are retained, the company becomes increasingly valuable. Think Berkshire Hathaway

If the price hits 20, you might see me in the Forbes List - somewhere between Teh Hong Piau & Vincent Tan

Parttimer - results about to be released. I'm hoping & I think that there's a general consensus that there'll be no earnings surprises a dividend of about 25 sen

There's a rumble in the jungle

I feel a minor erection

As long as the share price is below RM7.50, I look forward to only dividends

Weakening MYR caused by the kleptocrats is the main cause

A main factor holding down our market (including Petron) is political uncertainties on especially succession - useless bums!

Choivo - I went through your analysis of Hengyuan - pretty remarkable in your derivation of "real refinery earnings" - I think I'm a relative guru in finance but I humbly say that I've learnt something from you - TQVM

Come on Choivo & Johnbrooks & others - we're playing the "Guessing Game" - what do you speculate will be the profit for the last 2018 quarter?

A - Loss
B - 0 - 50m
C - 51m - 100m
D - > 100m

As stated earlier - Simonlee76 & i guess C; Remain Calm B & Chickenputih D - what's your guess?.

EPF is buying in chunks. Perhaps they are acting in concert with Can One

Despite gasoline margins under pressure, in Malaysia there's some lagging in the adjustment of prices. The govt does consult the petrol station operators to ensure that they earn a decent margin before deciding on the retail prices.

I feel given that the 3 quarters cumulative profit already amounts to 250m+ with reserves 1.5b+ and 25 sen dividend is only 59m+, they could and should easily pay 30 sen.

Based on the feedback on profits so far then we could expect a healthy dividends of > 25 cent per share?

Guessing game - what do you speculate will be the profit for the last 2018 quarter?

A - Loss
B - 0 - 50m
C - 51m - 100m
D - > 100m

My guess is C

This stock is an enigma as an "investment stock", trading at a PE of 4.04 !!

I think as Can One & gang picks up the shares cheap, they are also throwing the shares if the price goes beyond 2.80 due to the demand so that the net shares bought will be cheaper than 3.10.

The previous offer by Aspire was RM3.30 & that was considered low by minority shareholders.

Now a year plus later, the following cannot be denied

- RM is weaker against USD
- RM is of lower value from time value of money context
- Net asset value per share has increased given that the peanuts dividends paid lately were far less
the earnings.

One can conclude that 3.10 which is a steal !

It's due to our local education - tainted by politics basically destroys the potential livelihood of the children

bestreturn fourM, what do you mean? Don't understand what you saying. Care to explain?

what he means is that this counter is not boring given that there's results announcement one month, price going ex next month and dividend payment the following month. The cycle is repeated 4 times each year.

HoHoHo ... it's going to be a white Christmas!

Choivo Capital if you value KLK at market value, than yes, it is undervalued.
but i think KLK is way too expensive to begin with. I'll only buy it if it was 50% cheaper.
in which case, not that cheap anymore.

If you're interested in KLK, then buy Batu Kawan - better value for the earnings

market has advanced for 2 days but my horses are running backwards - haha

any idea why the suspension?

Oh dear WTF!

Caught a falling knife at 6.72!

How low can it go!

Also if the co which we own are buying, it's something like we're buying the shares ourselves.

A lot of share buybacks - that's a v good move!

heng yuan showed a loss in the latest quarterly

This Co can afford to pay a pretty good dividend given the good run of profits of late to pacify shareholders for the poor price.

That will give Petron shares an added boost in demand.

There's enough reserves and cash to pay 30 sen which would amount to RM40.5m.

BTW - managed to strike 1 at 6.97

Actually I stand corrected as aircraft fuel will be priced based on market price.

It's the lubes, gas and other products which are stagnant in prices that earn fat spreads when crude price is down.

I agree Chiovo that oil price change has little bearing on the Co's fortunes.

In fact a drop would be better because even though the inventory held is marked down, Petron's downstream namely aircraft fuel will earn fatter crack spreads in the longer run when inventory is replenished.

Car petrol spread is government regulated so the spread is somewhat stable.

I've just conferred my crystal ball and it says 4 sen

Care to guess how much dividends?

0, 1, 2, 3, 4, 5 or 6 sen - come on let's have some fun!

tq again

bursa announcement ...

Kuala Lumpur High Court Civil Suit No : WA-22NCvC-773-11/2018 Konsortium Lord-Saberkat Sdn Bhd (Plaintiff) v Petron Malaysia Refining & Marketing Bhd (Defendant)

Petron Malaysia Refining & Marketing Bhd ("Petron") wishes to inform that Petron was served with a Writ and Statement of Claim from the solicitors of Konsortium Lord-Saberkat Sdn Bhd ("Lord Saberkat").



Previously, Lord Saberkat had filed a writ against Petron based on allegations that Petron failed to pay Lord Saberkat for the works and tasks that were allegedly ordered by Petron and were allegedly carried out by Lord Saberkat per the Standard Transportation Agreement No. 2005-01FM dated 19 December 2005, as amended ("Agreement") between Petron and Lord Saberkat ("the First Suit"). This Agreement was for the supply of transportation services by Lord Saberkat to Petron for the delivery of fuel to Petron's service stations in Peninsular Malaysia.



Petron refers to the announcements to Bursa Malaysia Securities Berhad made on 3 November 2014, 30 June 2015, 14 July 2015, 21 July 2015, 24 July 2015, 10 December 2015, 6 January 2016, 8 November 2016, 15 December 2016 and 10 January 2018, in relation to the First Suit.



For the First Suit, the High Court on 30 June 2015 dismissed most of Lord Saberkat's claims and subsequently both Lord Saberkat and Petron separately filed an appeal against the judgment of the High Court. The Court of Appeal heard the two appeals together and dismissed Lord Saberkat's appeal and allowed Petron's appeal. Lord Saberkat then filed a motion to seek leave to appeal to the Federal Court and this motion was dismissed by the Federal Court. Lord Saberkat then filed for motion to review the Federal Court decision and was also dismissed by the Federal Court. Subsequently, Lord Saberkat filed a motion to amend the Order made by the Court of Appeal dated 10 December 2015 and was also dismissed by the Court of Appeal on 24 September 2018.



Lord Saberkat has since filed an application for leave to appeal to the Federal Court in relation to the dismissal by the Court of Appeal, which has been fixed for case management on 20 December 2018.



Lord Saberkat has now filed a new claim against Petron allegedly over a breach of contract in relation to the same Agreement ("the Second Suit").



The claims filed by the Lord Saberkat pursuant to the Writ and Statement of Claim, as pleaded therein, are as follows:



a) Damages amounting to RM109,183,517 particulars of which consists of the following :

Loss of Orders amounting to RM62,732,065;
Loss of Profit amounting to RM24,126,724; and
Depreciation, Loss of value of Lord Saberkat's dedicated fleet of road tankers amounting to RM22,324,728
b) General damages;

c) Interest on damages from the date of the Writ until satisfaction of the judgment at such rate as the Court deems fit;

d) Costs; and

e) Such further and other relief as the Court may deem fit, just and equitable.



Petron has intructed external counsel to act on its behalf and Petron will defend its position and take all necessary legal action as deemed appropriate. Petron strongly denies that there are any such breach of contract and claims as alleged by Lord Saberkat.



Petron does not expect or anticipate any impact to its finances or operations as a result of this Second Suit.

Wow - Legal suit against Petron in excess of RM109m!

What are their chances of winning?

No way toto would have given the 500k. That's bad governance. - it's most likely VT's own money.