Posted by Frank Soweto > 2016-02-13 05:53 | Report Abuse

another new year another great article from Kc :)
Maybe missing no 11 - donfollowblindly especially if you're extremely suwey ( bad luck )LOL but can also do with No 5 as a close replacement LOL
Anyway thanks KC n gong Xi Fa Cai to u :)
n also to my good buddy invest88 :)

Posted by TeckChuan Lee > 2016-02-13 10:50 | Report Abuse

"The heavy exposure on 2 jack-up rigs with heavy borrowings and the crash of oil price."

KC can you point me to the exact report of this borrowing matter? I checked the latest balance sheet the debt/equity are ok? what am i missing here?
Also can you tell us what made you so bearish on O&G? are the capex of oil producers not going to go back to the level before? in the future?

Posted by kcchongnz > 2016-02-13 11:13 | Report Abuse

Teck Chuan,

Coastal used to be in huge net cash position with minimal borrowings and hence low risk, and they were doing very well in their operating business in ship building. The latest report has shown it went into a net borrowing position. But I agree it is still not that bad in terms of total debt in relation to its total equity.

When it get into more exposure in the oil and gas sector, the plunge of oil price has affected all companies in this industry.

That caused the huge drop in the share price of those companies, including Coastal. That is just a reflection of the state of the O&G companies now.

Now,I don't predict the price of oil in the future, and the prospect of O&G companies. One thing I can say is in business, almost everything is cyclic. That implies oil price will definitely rise again, but I don't know when.

Posted by TeckChuan Lee > 2016-02-13 11:15 | Report Abuse

thank you for the heads up

Posted by Alphabeta > 2016-02-13 21:45 | Report Abuse

For your info TeckChuan, i am also looking at Coastal closely. I have make one round in early 2014. It rolling 4Q FCF has turn negative in 09/14. With the sale of one of its JUG, its should be in a better position to weather the O&G storm. Its current price looks quite attractive.

It has sold one of its Jack Up rig and waiting for delivery for the 2nd one in 4Q.

http://www.thestar.com.my/business/business-news/2015/04/22/coastal-contracts-clinches-rm807mil-rig-sale/

http://www.offshoreenergytoday.com/coastal-contracts-sells-jack-up-rig-to-avoid-market-downturn/

Due to the late delivery of the 1st Rig by the builder, Coastal file a notice of arbitration in Singapore seeking damages.

http://www.rigzone.com/news/oil_gas/a/141037/Coastal_Contracts_Unit_TML_Seeks_565M_in_Damages_from_2_Rig_Builders

http://www.bursamalaysia.com/market/listed-companies/company-announcements/4890525

Posted by engeng > 2016-02-14 15:23 | Report Abuse

KC, heard tat u gv online FA training, can gv some info about that?

Posted by kcchongnz > 2016-02-14 16:40 | Report Abuse

Posted by engeng > Feb 14, 2016 03:23 PM | Report Abuse
KC, heard tat u gv online FA training, can gv some info about that?

Please contact me at

ckc14training2@gmail.com

Posted by Elwin Kai Kai > 2016-02-25 10:20 | Report Abuse

mr.kc i would like to ask whether u have a book？ cause i really like ur valuabale methodology and skills in investing... if u do have one can let me know where i can get？ i love to attend ur training but not very good using linkedln

Posted by Elwin Kai Kai > 2016-02-25 10:24 | Report Abuse

the 2 book u recommended me， i have finish reading and still hunger for more... so if possible i really hope 2 have a step by step guide book and coaching directly from you...so i can follow through as i go through this unending learning process

Posted by kcchongnz > 2016-02-25 16:16 | Report Abuse

Posted by Elwin Kai Kai > Feb 25, 2016 10:20 AM | Report Abuse

mr.kc i would like to ask whether u have a book？ cause i really like ur valuabale methodology and skills in investing... if u do have one can let me know where i can get？ i love to attend ur training but not very good using linkedln


I am still compiling my book. It is not an easy task. it takes a lot of time. I will let you guys know once it is done.

However, what is in the book will be more general. If you wish to learn in a structured manner, attending my course is definitely a better way.