As per the press release by scomi energy: As a Malaysian-based company, we are benefitting from the strengthening US dollar as 95% of our revenue is in that currency,” .. If this is true, profit will be able to sustainable... Wait for quarter result to prove it...
As per the press release by scomi energy: As a Malaysian-based company, we are benefitting from the strengthening US dollar as 95% of our revenue is in that currency,” .. If this is true, profit will be able to be sustainable... Wait for quarter result to prove it..
Based on the news flow, i believe the company can sustain its earning even at the current oil price. The CEO say weak RM is good for the company as the 95% of revenue is in USD. QR result will b released very soon...
At the current low oil price and bottom at the oil cycle, IF the company still can sustain its earning at P/E of 7times.. Seem to be a good bet for long term investment...
QR result released, Negative: Result below expectation, oil prices remain low.. Positive: Strong Cash flow of RM50mil this quater, lower gearing at 0.2 times..
For decade, malaysia's oil and gas sector is considered shinning industry. Everyone, including HLB's boss would like to involve. Anyway, his investment is only a very very very small compared to his weath and would not affect his ranking. At the PE of 7X, it is not a bad investement in oil and gas at the bottom of the commodity cycle.
At the current low and bearish oil environment, it will be good if the company can maintain its profit... Last year the company is making RM80mil, the share price is RM1.20, the coming year the company forecasts to make flat around RM70 to 80mil, the share price now is at RM0.265, and yet investor seem no interest.. HAHAHA... THIS IS Share market....
From from analysis, it seems to be good bet IF the company manages to maintain flat profit coming years. The coming has cash positive flow of around RM150m +, and the debt gearing is coming down every year during the bottom of the commodity cycle. INVEST FOR THE COMMIG CYCLE, BE A CONTRARIAN INVESTOR..
a factor of reasons; (1) those that cannot hold, already sold out. (2) those on margin, already margin called out. (3) oil bottom? (just guessing, contrarian view) (4) ringgit weakened so much that; (a) pointless to earn the mere 3.25-4% FD returns. (b) foreign investors convert cheap ringgit to invest in the local markets, when it rebounds, 2X profit. (5) Ah Quek is in the counter, confidence in the sly fox, or erm, genius. (6) Cheap. (7) NTA: 0.35 (8) like previous inputs by fellow investors, the flat profit for this share price is good enough.
"Investors" are accumulating the share. U will only see BIG move in stock price when the oil and gas industry is getting better and analyst start to re-rate the stock.
At the current price RM 0.295 and earning of RM70m per year, no body seem to be interested. Laughing.. when Price at RM1.10+ and earning is RM80mil, ppl is chasing.
Analyst Keep upgrade the target price whenever it goes higer.. Analyst keep downgrade the price whenever it goes lower..
value_invest totally agree with you on your latest post
current oil price stays low because all oil producing countries continue pumping oil, no one is willing to give away market share , that can only mean one thing -- business as usual for Scomies
Scomies should be able to maintain flat or slightly lower profit for coming years if oil price stay low. With it profit, positive cash flow and reducing gearing, it is consider good at the bottom of the oil cycle. From the volume for past weeks, there are "investors" accumulating the stock. Downside is limited. Investment for mid term..
In fact for the pass few weeks, i have noticed that some other stocks present the same trend.. NOT only this counter. "Invesrtor" start to bargain hunt the good stocks... Sound great!!!!
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....
C-put
158 posts
Posted by C-put > 2015-08-07 08:46 | Report Abuse
Market sentiment was too bad.. cautious~~