Because they are the IMMEDIATE BENEFICIARY from higher oil prices. They can generate profit from selling oil at higher prices. But for all other O&G players, they ONLY do provide services and construction etc. So, those sort of players will ONLY come in and benefit LATER!
For me, I will choose Hibiscus and Serbadk ..... O&G counters still not yet recovered, for those downsteam one, it depend on PETRONAS capex for 2nd half 2017 and for year 2018, PETRONAS still cut its capex, so downstream one is still not yet recovered at this moment.
For upstream, this will benefit from crude oil price increase, especially those having low cost for running the business, like Hibiscus. Other depends depend on its cost, extraction rate and finance cost.
For Rapid project, those related to Rapid project still can have a look, but room for upward potential may be limited.
I believe wincloud & hjzhawii also talk NONSENSE. Both Reach & Sumatec not running business in Malaysia. U should read properly and maybe need to come out with your article to justify it rather than c-o-c-k-i-n-g rubbish here!
I just checked Reach went up from 29sen to 32sen today while a Sumatec is still lagged behind but will follow suit soon. I am sure MoneyFace is in deep depressed because he faces no money.
Well, u can choose whatever O&G stocks u like from A to Z. U can also say this, those, that, there. But without your strong justification to prove me wrong, is just MEANINGLESS talk. What I highlighted here is the IMMEDIATE beneficiaries and turnaround story and cheap valuation.
if there is figure comparison and more facts to share, would be more concrete to convince us to buy sumatec, reach, dnex or any O&G company. Let the data speak by itself rather than million of words. thanks in advance.
Last I heard of sumatec is that Tan sri Halim Saad major shareholder wants to cash out. Big headache for him. not sure whether this issue is settled. Big paid up 5c per share. Needs mountains of shares traded to move. In reality there is an increase demand for energy resource,but just temporary due to catastrophies, but nothing extraordinary to vouch for huge price increments.
Greatful, I would be grateful if u pay me to get more numbers especially forecast numbers. I am not sure u have read properly my article. It should justified well and the numbers itself U can check its latest QR from bursa. It's public available. If I have to provide everything here, it would not be national service!
quarter report filing to bursa shall me most reliable, from recent QR, for 1h2017, reach total cost is 95.4m opex+30m net finance cost = 125.4m, so all in cost pb = 125.4m/(182x3200)=rm215.3pb or $50pb.
minimum work program from 1/7/17 to 30/6/18 is rm 145m or 36pQ, 1/7/18 to 30/6/19 is 529m or 132mpQ, 1/7/19 to 30/6/22 is another 1161m,
current qtr revenue is only 41m, how many barrels need to extract just to cover minimum work program alone?
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
Patron
1,173 posts
Posted by Patron > 2017-09-14 17:26 | Report Abuse
Of all the OG stocks you pick Reach and Sumatec...