Many companies in this industry are holding very high inventories due to the low oil price. Even if oil price were to recover slowly, it may takes years to digest the inventories in hand. If have the ability to hold the stock for maybe 3 to 5 years, then it is ok to enter now. I cannot hold that long, so it is better of me to wait for the breakout.
The Group reported a profit before tax of RM18.6 million in the current quarter, a 46% increase quarter-on-quarter from RM12.7 million owing to the foreign exchange gain recognised in the current quarter as compared to the exchange loss posted in last quarter.
Year-on-year, profit before tax was down by 72% from RM66.2 million. The poorer performance for the current quarter was principally due to lower revenue contribution from Shipbuilding Division on the back of lesser vessel deliveries as well as finance costs and share-based payment expenses recognised.
Yesterday Coastal announced that it commenced a USD371 million (RM1.5 billion) charter contract of its Jack Up Gas Compression Service Unit (JUGCSU) to Mexico’s national oil company Petróleos Mexicanos (PEMEX) in January 2016. With the JUGCSU charter it would contribute approximately RM120 million per annum to Coastal Contracts’ topline. I understand most of it has already been paid for so it should eps significantly and the share price to increase significantly soon. No wonder the family members were buying up to its maximum since March 22.
Yesterday Coastal announced that it commenced a USD371 million (RM1.5 billion) charter contract of its Jack Up Gas Compression Service Unit (JUGCSU) to Mexico’s national oil company Petróleos Mexicanos (PEMEX) in January 2016. With the JUGCSU charter it would contribute approximately RM120 million per annum to Coastal Contracts’ topline. I understand most of it has already been paid for so it should contribute to eps significantly and the share price to increase significantly soon. No wonder the family members were buying up to its maximum since March 22.
Oil futures rose Wednesday, with the U.S. benchmark posting a nearly 11-month closing high, as crude found support from continued supply disruptions, China import data and a decline in crude inventories.
On the New York Mercantile Exchange, West Texas Intermediate crude for July delivery CLN6, +2.32% rose 87 cents, or 1.7%, to settle at $51.23—the highest close for a nearby contract since July 15.
August Brent crude LCOQ6, +2.49% the global oil benchmark, rose $1.07, or 2.1%, to finish at $52.51 a barrel on London’s ICE Futures exchange, its highest close since October.
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....
ivan9511
3,854 posts
Posted by ivan9511 > 2016-04-27 01:05 | Report Abuse
johnmasino , why coastal only, dayang and armada also got potential ?
can teach a little bit ?
thanks