Posted by focuz > 2014-05-27 23:54 | Report Abuse

It's better to have a core competency than being Jack of all trades but master of none. Time proven strategy to roll ones bizness. Don't play hard to get, got interested party & price is right. SELL!

Minimal liabilities would mean less burden, more time & energy given to drive growth. Hope that the management sees through the growth strategy in O&G support services.

May not be bad at all. After all, off-shore O&G upstream players are wanting services from company like Silkhld.

All I want is tat share price shoot way up high 2molo. To give me time to think, go long term or not. It's worth to keep a close watch of Silkhld.

Posted by sklyte > 2014-05-28 00:30 | Report Abuse

To answer this:

Silk highway debt - close to RM900m, OSV close to 900m as well, thus borrowings will reduce to 500m post disposal, and the company will have rm500m debt over its equity portion of 320+m in fy2015

currently osv are paying 7% interest per year, with debt reduced, interest should be lowered to 5.5-6%, thus savings of RM30+m, add into OSV earnings you will get about RM65m PAT... 12 times earnings RM780m/ (number of shares) = RM1.xx count yourself... still got 40% upside from here if you can hold for 6 months...

Anyway I hope another guy comes and offer higher, this deal sucks, the reason I bought this stock is because the highway alone should be more than RM550m, which should translate to about RM1.80 per share, darn...

Posted by sklyte > 2014-05-28 08:38 | Report Abuse

limit up starts...

Posted by prc4wifefe > 2014-05-28 08:40 | Report Abuse

Mostly the sale will be to reduce net gearing

Posted by sklyte > 2014-05-28 08:43 | Report Abuse

i think will be dividend, the gearing is on the company level, not sure what they gonna do, they shouold disclose in announcement

Posted by eddyng3300 > 2014-05-28 08:52 | Report Abuse

Dividend is on the way, as to reward the shareholders

Posted by sheep > 2014-05-28 09:07 | Report Abuse

IJM paying how much per share?

Posted by sheep > 2014-05-28 09:17 | Report Abuse

how come can go so high?

Posted by ryei > 2014-05-28 09:20 | Report Abuse

roughly RM0.82 per share.

Posted by mclove > 2014-05-28 09:30 | Report Abuse

mind to share how to derive to the offer price?

Posted by huat888 > 2014-05-28 09:31 | Report Abuse

Debt is Rm 1.720 billion. Rm 398 million may be to pare down the debt

Posted by joerakmo > 2014-05-28 09:35 | Report Abuse

Sale would include 900m of debt (Mudharabah)

Posted by focuz > 2014-05-28 09:38 | Report Abuse

Deleum next gear - acquisition.

Posted by ryei > 2014-05-28 09:54 | Report Abuse

just take the total share issued divide by the offer price..

Posted by focuz > 2014-05-28 10:05 | Report Abuse

Oh! No. So fast already dwn 3.5c from peak. Looks like lost steam. Didn't use kapal minyak diesel.....

No fear holding??

Posted by sheep > 2014-05-28 10:15 | Report Abuse

buying momentum slowed down....all waiting to collect at lower price?

Posted by bovun2014 > 2014-05-28 10:19 | Report Abuse

http://klse.i3investor.com/blogs/kltrader/53102.jsp. Fair value rm 1.08

Posted by sheep > 2014-05-28 10:24 | Report Abuse

so buy or wait?

Posted by bovun2014 > 2014-05-28 10:27 | Report Abuse

the risk to downward is reduced as RM398mil supported which translated at least 75 cents support. There is only way- going up.

Posted by focuz > 2014-05-28 10:45 | Report Abuse

Hope will come soon. I like it - rm1.08
The chart shows overbought condition.
Anybody want predict wat's TP b4 rm1.08 ?

Posted by Joel > 2014-05-28 10:56 | Report Abuse

Mean Silkhld will fall down today, rite bcos of overbought condition?

Posted by lee9fold > 2014-05-28 10:58 | Report Abuse

wont fall :D

Posted by focuz > 2014-05-28 11:02 | Report Abuse

Technical indicator only. It's like what Sheep has said. Punters will wait see, look see & see how. If got good participation can pullback tday.

Posted by focuz > 2014-05-28 11:04 | Report Abuse

....pullback up

Posted by rqsh > 2014-05-28 11:34 | Report Abuse

bought 0.90 10 lots

Posted by rqsh > 2014-05-28 11:47 | Report Abuse

Will move all time after lunch. goodluck

Posted by Joel > 2014-05-28 14:15 | Report Abuse

10 Lots u mean is it 10,000 units share or 1000 units share u had bought ? rqsh

Posted by walawalabingbang > 2014-05-28 16:20 | Report Abuse

10,000 lots lol for better earning..huat arr..naik kuda italy

Posted by focuz > 2014-05-28 16:21 | Report Abuse

Roadblock: 0.925

Posted by bovun2014 > 2014-05-28 16:24 | Report Abuse

someone collect at 0,925 below

Posted by focuz > 2014-05-28 16:36 | Report Abuse

Resistance: 0.935

Posted by sheep > 2014-05-28 16:41 | Report Abuse

PROFIT TAKING TOMORROW...

Posted by sheep > 2014-05-28 16:43 | Report Abuse

support at 0.88

Posted by sklyte > 2014-05-28 19:17 | Report Abuse

suddenly so many ppl coming in, this counter is defintielyworth alot more, see how ijm goes up, they are buying it at so cheap! stupid silk management!

Posted by Joel > 2014-05-28 21:18 | Report Abuse

My remisier said Tomorow Profit Taking ( SILKHLD ) for sure !

Posted by eddyng3300 > 2014-05-28 21:23 | Report Abuse

my remisier also say the same, tomorrow profit taking day, coz need to fill the price for today's gap up. 0.86 to 0.88

Posted by optimusx8888 > 2014-05-28 21:24 | Report Abuse

shooting star? game over? so high volume never end up 10c on such a big news. becareful on the private placement selling, their cost is 72c? now they make 20c and selling on good news.

Posted by optimusx8888 > 2014-05-28 21:27 | Report Abuse

this is toppish... a lot of churning and aggressive selling and when it drop to 88.5 push it up again to sell.

the jewel of the crown is the highway. they opted for fast cash 400m. where do u think the 400m would end up? it wont b any capital repayment for sure. maybe give u some free warrant later to entertain u.

thereafter.....

Posted by optimusx8888 > 2014-05-28 21:34 | Report Abuse

the question is not so much on how silk sold its highway. its do u want to hold/invest in silk without a highway? with only some old boats ?

Posted by sunztzhe > 2014-05-28 22:10 | Report Abuse

Look at the Facts and the business fundamentals of SILK highway Toll versus the OSV business fundamentals.
SILKHLD had two fundamental business as of yesterday.
The SILK highway toll and the OSV business.
The SILK Highway toll will see an exponential increase in traffic when all the mass housing projects by MKH and the rest comes on stream. That means increasing recurring income over time and this will lead to increasing fundamental over time. Unfortunately with the latest development this is no longer the case.

The OSV business will see increasing price competition in the forthcoming years. PETRONAS CEO had already cautioned about 2 months back that OSV rates will surely come down as the supply is now much more than demand. OSV players have to look to overseas market to fill the gap. Overseas OSV rates will not be as lucrative as PETRONAS OSV rates. That means the fundamental of OSV business with PETRONAS will deteriorate over time as supply of OSV exceeds the demand by PETRONAS. OSV rates for sure will come down in the future as stated by PETRONAS CEO.

SILK is also investing in new OSV assets and that means higher depreciation in the future years whilst the OSV rates will decline as cautioned by PETRONAS CEO. High depreciation will eat into accounting profits and will dampen the Net Profit and subsequently lower the EPS. Lower OSV rates in future will result in lower gross margin contribution by OSV business and hence result in lower EPS.

Just look at the facts and decide by yourself.

Posted by LTInvestor > 2014-05-28 22:18 | Report Abuse

Optimusx8888, u certainly need to get the fact right before u open your mouth. Research more about Jasa before u talk :

- youngest fleet in the country with avr age of 4 years
- most of its vessels secured contract till 2016-2018
- Major portion of revenue derived from large fleet which less affected by charter rate
- understand more on accounting policy of each OSV player in Malaysia, debt structure & cash flow generating capability of OSV player.

Posted by optimusx8888 > 2014-05-28 22:21 | Report Abuse

ltinvestor. the detail is not important. osv is not even a profitable sub section in time to come, youngest fleet so what? its already oversupply. check dictionary what is Oversupply means, also, check your economy 101 what is Oversupply means to the rate.

go see how Maybulk suffering for so many years n so many shipping business folded n then u come back n tell me.

Posted by sunztzhe > 2014-05-28 22:30 | Report Abuse

LTinvestor,
Just look at the big picture.
OSV rates will decline in Malaysia over time.
Lower OSV rates means lower Gross Margin contribution resulting in lower EPS. Lower EPS means lower share price.
Whatever the accounting policy is, the fact remains that the cash flow generation capacity of an OSV will decrease over time as margins will decrease due to more competition and increasing maintenance cost. Moreover interest rates will surely go much higher in the future compared to current rates and that means interest servicing cost will go up and this will further eat into the accounting profits resulting in lower EPS.

Posted by LTInvestor > 2014-05-28 22:49 | Report Abuse

Optimusx - "Oversupply" is a statement from Petronas which i will not comment. I'm commenting on the your fact about the company which are grossly wrong - old boats, declining rates n losses.

At current market cap of about rm413m & and estimated proceeds of 398m from disposal of highway, better take math/finance classes before make your sell call in public

Posted by optimusx8888 > 2014-05-28 23:08 | Report Abuse

ltinvestor. you made a very simplistic assumption that all 398m from disposal is to put in the company cash book and they have no debt obligation or whatsoever .

u really need to enrol for some basic accounting class.

go read carefully and come back tell me what kind of debt they have. u simply look at the market cap, the stock price x number of share, and the disposal price.
omg.

Posted by optimusx8888 > 2014-05-28 23:15 | Report Abuse

ltinvestor. lets do this simple test on your math ability and your IQ

ali has 2 cow, ahmad also has 2 cow. so total how many cow?

=4? bingo. thats your math and your IQ level.

but let me tell u, ali and ahmad are sibling and the cow belong to the family.

so the answer is =2.

Posted by focuz > 2014-05-29 00:18 | Report Abuse

@LTInvestor: You can stand on your ground.

Is it coincidence or what, I have seen many times a blogger who starts with handle prefix OPTIMUS would come dropping by any upswing counter and does he/her very best to disparage and belittle. So just brush it off like a fly over your shoulder. I won't say that it is not irritating, VERY irritating indeed.

Posted by sheep > 2014-05-29 09:16 | Report Abuse

analyst said good buy for ijm. is it a good sell for silk? profit coming on stream next year yet they wana sell.

Posted by sheep > 2014-05-29 09:27 | Report Abuse

Opti: sell sell !!!
LTI: buy buy !!!
If price goes up today, LTI wins. If price goes down , OPTI win. Let's c who gets more support. wakakakakaka

Posted by focuz > 2014-05-29 10:53 | Report Abuse

Ystrdy got profit.

Ai..yoh! My etrading platform got a glitch. Morning check no Q for me. Didn't pay attention. 1 hour ago check, got get at morning low. If not ahh check out gain 0.03c

Hope can maintain abv 0.92c tday.