Posted by KC Loh > 2013-01-13 11:36 | Report Abuse

Risk trader, you are assuming or you have details of RSC Tembikai award?

Posted by trader66 > 2013-01-13 22:57 | Report Abuse

A LONG time owner of 10,000 shares of Scomi Group Bhd has been excitedly stirred by the recent goings on at Scomi Group Bhd. Like a load of existing individual shareholders of Scomi Group, this investor had acquired the shares at a much higher price during the company's heydays. And like many of these shareholders, this investor had naturally “written off” this investment, considering Scomi Group's depressed stock price for the last few years.

But with Scomi hitting the news on a weekly basis these days, this investor is hopeful. “In Scomi's case, any news is good news, considering its been quiet for so long.”

Most of all, the investor's excitement has stemmed from one fact: IJM Corp Bhd's entry. The thinking is that with the established IJM coming into the picture, Scomi Group will be better run, more contracts could be secured and business could boom.

But is that hope justified or in other words, will the Scomi Group/IJM picture turn out as honky dory as many expect?

There are some challenges.

Firstly, is the question of whether IJM will indeed surface as the single largest shareholder of Scomi Bhd, as has been planned.

To recap, IJM has bought and paid for just under a 10% stake in Scomi Group. As part of the deal, IJM is to secure an additional 15% by subscribing to RM110mil worth of debt papers to be issued by Scomi Group. Those debt papers could then be converted into shares.

A vote by a simple majority of Scomi Group shareholders (excluding IJM's block as it will not be allowed to vote) is needed for this additional 15%, via the debt papers, to be issued to IJM. The big question now is, will this vote go through?

StarBiz had speculated recently that businessman Tan Sri Abu Sahid Mohamed was strengthening his position in Scomi Group.

Adding to this, a recent report has indicated that there is a complication in the current controlling block of Scomi Group, a 14.63% stake jointly owned by Scomi Group's chief executive officer Shah Hakim Zain and Datuk Kamaluddin Ahmad, the son of former Prime Minister Tun Abdullah Ahmad Badawi.

If this report is accurate, namely that Shah Hakim and Kamaluddin are looking to split up their ownership in this block, then its possibly another hurdle to IJM securing their additional 15% in Scomi Group.

What more, shareholders like Abu Sahid have indicated their unwillingness to have IJM take control of the former. Abu Sahid has a 8.71% interest in Scomi Group while his associate Datuk Phillip Siew Mun Chuang has acquired a 5.61% stake.

While the motives and ultimate goals of this group of seemingly opportunistic investors in Scomi Group remain unclear, the fact is that they are now rightful owners of significant blocks of shares in Scomi Group and will have a strong say in decisions that need to be approved by shareholders.

A second possible issue facing the Scomi Group/IJM partnership relates to the anticipated risk-service contract (RSC) that it is close to securing from Petroliam Nasional Bhd (Petronas) for the Tembikai and Cenang marginal fields off Peninsular Malaysia.

StarBiz broke the news in September that Scomi Group is believed to be among the frontrunners to snag the RSCs for those marginal oilfields.

The two fields are said to be lucrative as they are in shallow waters and have the most reserves, with the contracts valued at between US$200mil (RM620mil) to US$400mil (RM1.2bil) each.

If and when secured, that would bode well for Scomi Group as well as IJM, whose entry into Scomi Group was largely premised on it (IJM) wanting to get back into the oil and gas business.

Market talk is rife that Scomi Group is as good as having secured at least one of the two RSCs. But market talk also has it that the RSC will actually be parked under Scomi Group subsidiary, Scomi Marine Bhd, which boasts a healthier balance sheet and which is also the group's oil and gas division.

The market is awaiting some clarity on this from Scomi Group.

In any event, such a prospect bodes well for Scomi Marine shareholders, whose stock has seen some intense speculative buying in recent weeks.

But does that mean that IJM would have done better by buying into Scomi Marine?

On the other hand, an on-going group wide restructuring will see Scomi Group owning more than 60% of Scomi Engineering. So the thinking goes that IJM, if and when it is in control of Scomi Group, should have in turn, good control over Scomi Marine.

But that theory will fall short of materialising if IJM does not get their additional 15% in Scomi Group.

Hence in the words of one market observer who claims to be in the know of events unfolding at Scomi: watch this space.

Posted by trader66 > 2013-01-13 23:05 | Report Abuse

Scomi Group Bhd has secured a RM380m contract for a drilling fluids and completion services job in Indonesia, pushing its orderbook to RM603.6m in this segment. The three-year project starts in July 2013. The oilfield services segment now has a total orderbook of RM1.7bn and Scomi is participating in tenders in excess of RM3bn (Malaysian Reserve).

Posted by lonelyreload > 2013-01-13 23:38 | Report Abuse

so many news but the fact that it does not increase also no use lo~

Posted by KC Loh > 2013-01-13 23:40 | Report Abuse

trader66, your 10.57pm posting is from where?

Posted by kytan > 2013-01-13 23:42 | Report Abuse

i also can not get any update news from scomi. Love to know more since scomi can fly

Posted by Ng Kai Yau > 2013-01-14 07:23 | Report Abuse

http://www.btimes.com.my/Current_News/BTIMES/articles/SCOMI7/Article/

Posted by Frank Soweto > 2013-01-14 08:24 | Report Abuse

Good sharing Ng, Now u know why IJM is getting into Scomi heh 1/3 out of 45 Billions :)

Posted by Frank Soweto > 2013-01-14 08:26 | Report Abuse

and ABU too :)

Posted by rocket > 2013-01-14 08:34 | Report Abuse

read that article before. it is from staronline on NOvember 2012.
link
http://biz.thestar.com.my/news/story.asp?file=/2012/11/5/business/12272301&sec=business

Posted by Ng Kai Yau > 2013-01-14 09:07 | Report Abuse

morning frank. yup now only i realise, i m slow

Posted by Frank Soweto > 2013-01-14 09:09 | Report Abuse

haha Morning Ng slow & steady win the race :)

Posted by Ng Kai Yau > 2013-01-14 09:25 | Report Abuse

hopefully it will frank, i m interesting on trader66 post and look like he know a lot of insider info which we dont know. thaks for trader66 post, can you give us more info you know?

Posted by KC Loh > 2013-01-14 11:25 | Report Abuse

Thanks for the article Ng My

http://www.btimes.com.my/Current_News/BTIMES/articles/SCOMI7/Article/

Bro kcfan, a bit better now? Hehe

Posted by KC Loh > 2013-01-14 11:31 | Report Abuse

Scomi Group Bhd confirmed that it had supported a bid submission for Petronas' Tembikai and Chenang cluster risk service contract (RSC) project Terengganu. Scomi did not name the foreign partner for the RSC bid, but The Edge Financial Daily reported that the foreign partner was Cue Energy Resources Ltd of Australia. (Financial Daily)

What is the definition of "cluster "? :)

Posted by Ching Yin Carrot Loh > 2013-01-14 11:53 | Report Abuse

Cluster analysis?
An investment approach that places securities into groups based on the correlation found among their returns. Securities with high positive correlations are grouped together and segregated from those with negative correlation. Between each cluster, very little correlation should exist. Holding stocks in each cluster provides the investor with a diversified portfolio.

http://www.investopedia.com/terms/c/cluster_analysis.asp#axzz2Hv0cE8Xp

Posted by Ng Kai Yau > 2013-01-14 12:03 | Report Abuse

it is a cluster field and will use the same resources for E & P work

Posted by KC Loh > 2013-01-14 12:14 | Report Abuse

ng KY, deep man deep....

Posted by pshiny > 2013-01-14 13:23 | Report Abuse

Sorry, maybe I am blur, but isn't the news about Scomi confirming that they supported a bid actually old news, I mean they are confirming that they bidded, not naming partner, which could have been the Oz Cue company, so now there is actually no new news per say....and we are back to the band of 34.5sen to 38sen......isn't it

Posted by KC Loh > 2013-01-14 13:25 | Report Abuse

back to square one, unless Petronas has already awarded the RSC which Scomi management doesn't know about it, as said!

Posted by Joven > 2013-01-14 13:29 | Report Abuse

A cluster deal is one where many sub contracts are in it....some choose to have a master contract to managed the subcontract while others leave it as is. Reason in many companies ,(I am not saying this one) do the many contract but not doing a master contract is becoz it's easier to stagger out the contracts to get budget....

Posted by pathew > 2013-01-14 17:48 | Report Abuse

who went and push up the prices today? I was expecting to buy in at 345.... sigh, Q tomorrow again la

Posted by ladahitam > 2013-01-14 18:01 | Report Abuse

Gonna fly tmr time to reap....

Posted by pathew > 2013-01-14 18:05 | Report Abuse

@pepper, care to share how did you come to that conclusion?

Posted by ladahitam > 2013-01-14 18:19 | Report Abuse

Bursa has approved the new issues to IJM. Next EGM, battle on,

Posted by Ng Kai Yau > 2013-01-14 19:04 | Report Abuse

http://www.bursamalaysia.com/market/listed-companies/company-announcements/1174209

Posted by Risk Trader > 2013-01-14 19:38 | Report Abuse

Buy maximun.......very good counter for long term investment.

Posted by lonelyreload > 2013-01-14 19:39 | Report Abuse

so many news again but it does not change the fact that this stock will not rise.. damm those dramas~

Posted by prc4wifefe > 2013-01-14 19:45 | Report Abuse

Good news???

Posted by KC Loh > 2013-01-14 19:58 | Report Abuse

this is only one leg in already about the bond issuance in compliance with SC's approval. Still need the EGM and the vote to clear the final hurdle as in their company resolutions, of which abu's faction can still vote! but i do have a feeling bye bye ABU :) soon!

IJM, take the lead please thereafter! Shah has given enough heart wrenching moments :)

Posted by Ng Kai Yau > 2013-01-14 20:57 | Report Abuse

good 1, bye bye abu...

Posted by KC Loh > 2013-01-14 21:00 | Report Abuse

Tbh, I think the Indonesian and Myanmar contracts won helped! Sic em boy! Chase jumbo's Abu out! :)

Posted by weiboy90 > 2013-01-14 21:04 | Report Abuse

hmm..which means IJM will be the largest shareholder?
http://biz.thestar.com.my/news/story.asp?file=/2013/1/14/business/20130114185023&sec=business

Posted by Ng Kai Yau > 2013-01-14 21:05 | Report Abuse

this bond issue was drag too long, just because of 1 or 2 people. Hopefully the board to act fast and fix the date for EGM

Posted by trader66 > 2013-01-14 22:35 | Report Abuse

Scomi Group Bhd confirmed that it had supported a bid submission for Petronas' Tembikai and Chenang cluster risk service contract (RSC) project Terengganu. Scomi did not name the foreign partner for the RSC bid, but The Edge Financial Daily reported that the foreign partner was Cue Energy Resources Ltd of Australia. (Financial Daily)
Source: CIMB Daybreak - 14 January 2013

Posted by trader66 > 2013-01-14 22:46 | Report Abuse

Scomi: Eyes more monorail deals. Scomi Engineering aims to secure one third of the USD45bn (RM137.2bn) worth of new monorail projects that will be implemented in Asia and South America over the next five years. Scomi group COO of transport solutions Kanesan Veluppillai said, in India, the value of new monorail projects is around USD25bn and USD15bn in Brazil. Pipeline monorail projects in Taiwan, Indonesia and Thailand make up about USD10bn. (Business Times)

Posted by hawk > 2013-01-14 22:48 | Report Abuse

Will the approved conversion for IJM dilute the share price?

Posted by lonelyreload > 2013-01-15 00:13 | Report Abuse

is there any limits to buy Scomi stock?

let's say if i got 1 million also can buy all at rm0.35?

Posted by jumbo > 2013-01-15 00:32 | Report Abuse

Jumbo thinks KClow should get it right,...it was KClow who was trying to be cynical when approaching the ABU stand with pictures and pretending he is innocent

Jumbo see Abu Sahid also should sue KClow using his name in the Scomi forum inciting hatred!


Posted by KC Loh > Jan 12, 2013 04:26 PM | Report Abuse

i found out the meaning of Abu!

https://www.dropbox.com/s/osldgl86m8jmikk/734645_10151198488362592_1394136199_n.jpg

Posted by KC Loh > 2013-01-15 00:43 | Report Abuse

Oh hahaha...still cannot get over anger that I exposed him on same subject in Maybank thread! Clenched fist and gritted teeth I hears behind bangla's motives! Wahahahaha

Jamban, you didn't tweet Abu ar as you claimed you tweeted the authority! You expert finding twitters accounts as you are a master twit right? LoL

OK, strays and canids are to be ignored tonight. Humans are tired! Ha ha ha

Posted by jumbo > 2013-01-15 00:48 | Report Abuse

Jumbo see kc very nervous and laughing insanely.....but Abu for kc does not change
Trying to rally political support, Jumbo advice again against calling Abu as what it's meant by KC!


Posted by KC Loh > Jan 12, 2013 04:26 PM | Report Abuse

i found out the meaning of Abu!

https://www.dropbox.com/s/osldgl86m8jmikk/734645_10151198488362592_1394136199_n.jpg

Posted by jumbo > 2013-01-15 00:49 | Report Abuse

Jumbo remind KClow again from bringing politic into forum.....whoever you support keep it to yourself ok

Posted by KC Loh > 2013-01-15 00:51 | Report Abuse

LoL. I see second casualty of mental shutdown coming soon! Dave had to go for "holidays" already! Hahahaha

Posted by jumbo > 2013-01-15 00:51 | Report Abuse

Jumbo know why KClow is doing this as the time and date is stated in his posting....he is trying to rally more ppl to support Abu...pls do not fall for it

Posted by jumbo > 2013-01-15 00:52 | Report Abuse

Pls be inform KClow Abu is this........not Abu sahid...


Posted by KC Loh > Jan 12, 2013 04:26 PM | Report Abuse

i found out the meaning of Abu!

https://www.dropbox.com/s/osldgl86m8jmikk/734645_10151198488362592_1394136199_n.jpg

Posted by jumbo > 2013-01-15 00:53 | Report Abuse

This guy should be arrested for incitement

Posted by KC Loh > 2013-01-15 00:53 | Report Abuse

Haha have to keep this for laughs again in future!

Posted by jumbo > Jan 15, 2013 12:51 AM | Report Abuse
Jumbo know why KClow is doing this as the time and date is stated in his posting....he is trying to rally more ppl to support Abu...pls do not fall for it

Posted by jumbo > 2013-01-15 00:54 | Report Abuse

Jumbo warn again this is investment forum KClow.....pls respect that

Posted by jumbo > 2013-01-15 00:55 | Report Abuse

Pls be inform KClow Abu is this........not Abu sahid... Refer to his posting on jan 12


Posted by KC Loh > Jan 12, 2013 04:26 PM | Report Abuse

i found out the meaning of Abu!

https://www.dropbox.com/s/osldgl86m8jmikk/734645_10151198488362592_1394136199_n.jpg

Posted by jumbo > 2013-01-15 00:56 | Report Abuse

He has been warned that this is a serious offence .....but he still continue...to incite the word