Coastal Contracts may rebound higher after it continued holding above the MYR1.09 support. Given that the stock has formed a “Bullish Harami” pattern on 31 Oct, this indicates a potential rebound. A positive bias may emerge above the MYR1.17 level, with an exit set below the MYR1.09 threshold. Towards the upside, the immediate resistance is at the MYR1.25 mark. This is followed by the MYR1.34 level.
1) Coastal Marine Pte Ltd and Coastal International Marine Inc have secured contracts for the sale of two units of low-end vessels,
2) Coastal Dynamic Pte Ltd and Coastal Marine Pte Ltd have also been awarded with charter contracts for two units of offshore support vessels.
All of the vessel charter contracts are for less than one year period.
Although the value of the contracts was not disclosed, it will contribute positively to COCO’s earnings in FY6/20. Not taking into account the potential value of the contracts above, the group has secured approximately MYR45m worth of contracts YTD.
Clearly, job flow has improved. Last year, COCO only announced one contract win – for two units of offshore support vessels. The group managed to return to profitability in FY6/19, after slipping into losses in FY6/18 due to a few kitchen sinking exercises (one-off items amounting up to MYR599m).
Moving forward, COCO’s earnings hinges on its chartering business, which contributed 100% to the group’s PBT in FY6/19. This segment is banking on a 12-year USD372m charter contract to the national oil company of Mexico, which has commenced operations in Aug 2016, providing the group with recurring profit. As for its shipbuilding segment, this segment was loss making in FY6/19, mainly on lower vessel sales during the year.
all these sales and revenue might only reflect on next quarter not this coming quarter. I expect moderate result this Quarter but coming up with a spike on book order and profit. 1.50 can only reached by another Q.
Coastal Contracts was testing the RM1.29 level during its intraday high. With an RSI level above 70%, it may move higher above this mark with a target price of RM1.36, followed by RM1.44. Meanwhile, it may drift sideways if it fails to cross the RM1.29 mark in the near term. In this case, support is anticipated at RM1.23, whereby traders may exit on a breach to avoid the risk of a further correction.
A counter eats away 53% of my capital on paper. When will you return me the capital. Not need a single cent of interest. I am impatient to say goodbye.
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....
Molly Ngui
409 posts
Posted by Molly Ngui > 2019-11-06 15:53 | Report Abuse
Heading to 1.20 hope to see 1.25 this week