What happened? See price moving, blind2 hantam few lots first. Why shipping good business? Freight rate improving, I remember there is an index, something like baltic Dry index? Showing good signs or what?
Here is why MISC did not experience the growth in early 2021
2011- MISC Berhad (MISC) today issued a statement through the local stock exchange, Bursa Malaysia, announcing its decision to exit the liner business (container shipping) via cessation of the said business.
The Company, in its announcement to the exchange, explained that the radical change in the operating dynamics of the liner industry which is driven by high operating cost and rapid changes in global trade patterns is challenging the validity of today’s operating models. With the pursuit of size being the centre of this change, leading operators are now testing the size limits of vessels in order to maximise economies of scale and realise greater cost efficiency. This push for investments in larger vessels comes at a time when operators are struggling to stay profitable with a depressed freight rate environment, which is not expected to improve any time soon due to the continued heavy delivery of new container vessels.
I post this to stress the fact that MISC missed the biggest bull run of container and freight shipping of the century because of the decision to dispose their shipping lines. This news is relevant to explain why MISC:MK never experienced the growth or SP appreciation. Many shareholders were disappointed.
Even NOL could not survive its container shipping, wht makes u think MISC can? MISC sold container shipping business more than 10 years already, another one or two years, its few chemical tankers also will be sold.
Container shipping got cartel like mearsk, cma cga, Asia oocl etc.. Typical company won't have place. How many shipping companies collapsed in last decade.
A supply chain crunch that was meant to be temporary now looks like it will last well into next year as the surging delta variant upends factory production in Asia and disrupts shipping, posing more shocks to the world economy.
Manufacturers reeling from shortages of key components and higher raw material and energy costs are being forced into bidding wars to get space on vessels, pushing freight rates to records and prompting some exporters to raise prices or simply cancel shipments altogether.
“We can’t get enough components, we can’t get containers, costs have been driven up tremendously,” said Christopher Tse, chief executive officer of Hong Kong-based Musical Electronics Ltd., which makes consumer products from Bluetooth speakers to Rubik’s Cubes.
Tse said the cost of magnets used in the puzzle toy have risen by about 50% since March, increasing the production cost by about 7%. “I don’t know if we can make money from Rubik’s Cubes because prices keep changing.”
The market is looking very good today. Looks like I no longer have to do any analysis for Malaysia as the next emerging market. Anyways will be leaving my job as equity strategist soon. Last quarter
Foreign investors are back. The time has come and there is a probability that they will buy either plantation or shipping companies or financials which form the core industries in Malaysia. Tech companies, not so much given its recent run-up.
Invasion of Ukrain is imminent, Putin will invade Ukrain..cannot tahan Ukrain turning into NATO allies and let NATO surrounds the Russian border with all the NATO missilles, especially US misslies.stationed there... Screw the sanctions said Putin, get your missiles away from my backyard.
Oil price will shoot up, inflation will rear its ugly head, Fed will raise rates, markets will have severe correction
MISC will indirectly benefit from oil price increase, along with other benefiaciary like commodity oil palm stocks
When natural gas supply is disrupted via pipe from Russia to Europe with the invasion of Ukrain, The world, or Europe now can only depends on LNG which can be shipped, there is only limited number of LNG ships in the world around 600+. MISC is now in the sweet spot
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....
LossAversion
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Posted by LossAversion > 2021-05-06 14:41 | Report Abuse
7 sen dividend exdate 24 May