Posted by synergyCT > 2017-08-22 11:32 | Report Abuse

FYI, trading in SCOMI's shares will resume with effect from 2.30 p.m., Tuesday, 22 August 2017.

Posted by ryan7642 > 2017-08-22 12:43 | Report Abuse

Fly or fall let's guess?

Posted by chinaman > 2017-08-22 12:46 | Report Abuse

i believe I can fly. wakaka

Posted by JaJa7777 > 2017-08-22 12:49 | Report Abuse

Freeman,

This Page and what we are all talking about is Scomi Group BHD - your post only goes to reiterate the state that it is in and the need for them to consolidate what small possibilities they have to stop the fall and demise of the company (group).
Regarding Ophir and to add.... if they don’t consolidate, Scomi group will only get a bite % of the potential that is Ophir and as is at present they can’t touch any of that until mid 2018.
Our estimates on the potential revenue for Scomi from Ophir is nearer the $42 Mill over 3 years, but as there has been no recover or return yet lets wait and see and more to the point revenue is not profit!

In the statement there is also a mention of selling off assets to generate cash..... i look at Scomi group and see next to no viable assets that are worth selling off and certainly not generating the values mentioned so i turn my attention to Scomies and vessels sitting idle???
Indonesia at 79% utilization rate, that's great - what is the GP margin on that and of that what goes back to the group....

I know irrelevent to the topic but - Scomies planning to enter the US market in the near term, with what i may ask?? and can i just point out that the US is not the first time Scomi has been there before and there are plenty of good reasons they are not there now.... do a little research - some of the cases and suits make for a good entertaining read.... not to mention the failed buisness units and the whole reason they pulled out.
If i remember rightly they were at one point associated with Derrick equipment company - probably the only reason they were the US in the first place but a Good Ole American company.... not sure you can break into that market with the set-up and possible assets to hand as is now..

Posted by JaJa7777 > 2017-08-22 13:21 | Report Abuse

https://asia.nikkei.com/Markets/Nikkei-Markets/Malaysia-s-Scomi-Group-To-Merge-With-Scomi-Energy-Scomi-Engineering-In-Share-Swap-Deal

http://www.thestar.com.my/business/business-news/2017/08/22/scomi-to-take-units-private-via-share-swap/

The merger will also result in a reduction in administrative and operational expenses and dispense with the duplication that exists with three listed entities, as all businesses will be housed under one listed company.

Is this what is ment by - low gearing???? We call it redundancies........

Posted by JaJa7777 > 2017-08-22 14:04 | Report Abuse

The bottom line...from last qtr reports
Scomi: PBT -87,810,000
ScomiES: PBT-72,242,000
ScomiEN: PBT -12,288,000
Combined: PBT -172,340,00

That's last qtr and this qtr due this month (Maybe delayed, i wonder why???) with share prices down, revenue down, operating costs have remained somewhat flatlining and court cases not helping anything, the question is..... what is the value of the new shares going to be...
I see a false jump coming in the share prices as we re-open them today and the news of additional shares (potentially) being handed out will encourage this.... the fact still remains that the units are failing, the prices will head straight back down and this whole process will take months and months and months...

Posted by Boonming > 2017-08-22 14:24 | Report Abuse

Based on rough calculation...

20 Scomi Group is = 2.20sen at cost which is also =
10 new shares +
7 FREE warrants (@11.3sen 78sen)

So our net cost will be 1.42 or diverse by 20 = 7.1sen per share today.

Which is 4.5sen cheaper to current closing price of 11.5sen!!!

Posted by freeman > 2017-08-22 14:38 | Report Abuse

jaja7777
scomies doing ok, the last qr huge loss was due to huge amt of asset impairment (one off),
specifically referred to idle osv vessel based on frs11(recoverable vs pojected cf). just because the mkt value of osv drop due to slow down in oil gas mkt they decide to write off its value, while the osv itself doing fine with min maintenance and without any leasing or financing commitment. when the market is ok would they write back the value? all was done to supress the share price .. buyback the share for the good of sgb

Posted by JaJa7777 > 2017-08-22 15:24 | Report Abuse

Fair comment but still we are looking at the group not just ES, intresting times will be when the qtr results come out and will be the real test.
The doors are open again and as predicted - EN and ES have just taken a hit and BHD has taken a big leap, the spike will fall as the realisation will sets in, to some degree the propaganda works as everyone suddenly thinks they have a heap of extra shares coming their way....

As Boonming has mentioned, the prices will have to be watched carefully and the supposed release/consolidate/merger or what ever they decide to call it goes ahead, at what point during this process the share price becomes fixed????? and we can work out the real value of the new group...

for the time being - BHD will keep going down, ES and EN will recover slightly (Just my thoughts but lets see..)

Posted by JaJa7777 > 2017-08-22 17:52 | Report Abuse

Wow what a day......Huge amount of volume changing hands for these units.
EN and ES ooouch...
Lets see what tomorrow brings.

Just a foot note and off subject again (Apoligies for that)
Director Tunku Alizan Raja Muhammad Alias has retired from the company.
Any news where we are with the court case???? was he not instrumental in the supplemental contracts for the KL Monorail expansion - seems like a timely move???

Posted by ryan7642 > 2017-08-23 08:35 | Report Abuse

Will it back to 0.18-0.2 range?I think soon..the price will definately up trend till that range to satisfy EN n ES shareholders at least

Posted by nippy65 > 2017-08-23 09:11 | Report Abuse

Shareholders of Scomies are very very unhappy.

Posted by freeman > 2017-08-23 09:22 | Report Abuse

Boonming Based on rough calculation...

20 Scomi Group is = 2.20sen at cost which is also =
10 new shares +
7 FREE warrants (@11.3sen 78sen)

So our net cost will be 1.42 or diverse by 20 = 7.1sen per share today.

Which is 4.5sen cheaper to current closing price of 11.5sen!!!
22/08/2017 14:24

http://www.thestar.com.my/business/business-news/2017/08/22/scomi-group-shareholders-to-benefit-from-merger/

_____


This is a flaw calculation

u should not include the free warrant with no. of share holding now and calculate average cost

u should only include the free warrant with the reduced new no of share and calculate average cost for u


based on price 0.115 once consolidated.. sgb shareholder lost 15% automatically

breakeven only if the price of new share at 0.14

Posted by freeman > 2017-08-23 09:57 | Report Abuse

If u buy at price higher than .115 u lose even more

Posted by newbird01 > 2017-08-23 10:42 | Report Abuse

yes,u are right..very risky to enter this stock...be careful

Posted by JaJa7777 > 2017-08-23 12:19 | Report Abuse

I think we will hit all time record lows - the deal is a loss loss at the moment which ever way you look at it.
The whole situation with warrants is all the more worrying too - absolutely no guarantees there and i think have only been thrown in as a sweetener to try and make up for the short fall in the share deal
Its a shame for ES as it was looking like the only potential out of the bunch and now have been dragged into it - they are the only potential cash cow for the group...

Updates on the court case and qtr reports will see this lot plumit even further and at that point it will be time to close the doors once and for all.

Posted by longvalley > 2017-08-23 17:31 | Report Abuse

What abt the ophir........??

Posted by JaJa7777 > 2017-08-23 19:09 | Report Abuse

Ophir - well behind schedule......First flow of oil from Ophir was expected to be the end of sept but that’s optimistic to say the least and it’s not immediate cash in the bank......

Scomies, was to be the beneficiary of that and the group would have been able to get its hands on its % of cash from it from mid-2018 onwards - if there were no more delays that is......
The predicted returns are wildly over optimistic too but that’s Scomi press for you...
I would not be surprised if this whole exercise revolves around the group trying to get is hands on that cash as soon as possible.....

ES now at an all-time low, Group is plummeting and EN following.
Qtr. reports will be the same as last or worse - Losses of 20+ Mill (USD) over a qtr can’t be sustained by a company of this size and when you look at the amount of loans etc..... doesn’t matter what Ophir brings in or could bring in????? Losses and loans are not investment opportunities so all you can do is sell off assets, they have just made that statement, vessels are first to go, only problem is that buyer needs to be found and any buyer will look at this situation and will be looking for a barging.....
Apart from the vessels there really isn’t anything else of value to sell off.
They talk about new technology and the Chinese.... Scomi just doesn’t have this and nothing that can’t be found elsewhere.
Selling something to the Chinese might be a quick short term fix for them both but it will not be substantial and not stop the rot from above.

As investors in the market we like to look a trends.... if we see something we have invested in going down we can either jump or cross our fingers and convince ourselves that it will go back up or wait for an all time low and reinvest.
Vary rarely do we seriously take a look at the cold hard facts.......
I hope that none of you are waiting for things to go back up and any of you that are waiting for an all time low..... its coming but Good Luck if you do go down that path.

Posted by centrio88 > 2017-08-23 20:38 | Report Abuse

Tomorrow sure up

Posted by freeman > 2017-08-23 22:49 | Report Abuse

Jaja7777
Dont believe everything u read in newspaper
I.e on saturday about share buyback.. on monday shareswap
But everything was planned to supressed share price so that will be cheap for them to buyback
Who feeds info to newspaper.?

Scomies will not sell their vessel
The vessels are not under financing or leasing
The gearing of scomies is low
When income from ophir come.. the % can easily cover the min loss easily.. the huge loss shown in the last qr is huge impairment of asset (vessels) this just to make thing look bad..
When scomies expecting income from ophir they wil buy back the share

When ophir well operating.. must be scomies also supplying chemical for drilling and waste, and opportunity for vessel will be utilized

Posted by freeman > 2017-08-24 00:21 | Report Abuse

What is the purpose of star biz journalist using wrong calculation to potray the benefit of consolidation?
On saturday they say buyback
On monday the say share swap
Back up with wrong calculation tt could mislead investor

Posted by hollandking > 2017-08-24 01:30 | Report Abuse

you shouldn't be touching this at all in the first place. I really don't know what attract some ppl to this counter.

Posted by freeman > 2017-08-24 15:07 | Report Abuse

cateris paribus at price of 0.12 old scomi or post newco = buyer will lose 15%

Posted by Ganii > 2017-08-25 10:03 | Report Abuse

Freeman, may I know why you said "buyer will lose 15% at 0.12" and on the other hand you also said "everything was planned to supressed share price so that will be cheap for them to buyback."

So we should let the Scomi big shareholders to buy back or what? Or maybe something is still going in the deal? Please clarify. Thanks bro.

Posted by Alibabaa > 2017-08-25 13:02 | Report Abuse

Ganii, what Freeman tried to say is that the current price of 0.12 is a discount now. Its fair value is 0.14

Posted by snwong13 > 2017-08-26 08:01 | Report Abuse

.
http://www.theedgemarkets.com/article/scomi-group-confident-securing-monorail-deal-china-soon

Posted by JaJa7777 > 2017-08-28 12:44 | Report Abuse

ES is taking the brunt of this exercise with a five year low and no signs that it will stop.
EN flatlining...... but given its potential im sure this is happening in background and would other-wise be heading South too
The group - still slowly but surly heading South.

Court case updates????? and latest Quarterly reports please......

Posted by freeman > 2017-08-28 13:02 | Report Abuse

Ganii


ORIGINAL COST :RM100,000
ASSUME / REFER PRICE : RM0.115
QUANTITY HELD (bought with Rm100K) : 869,565

NEW SHARE : 434,783
free WARRANT : 304,348
TOTAL SHARE+ WARRANT : 739,130

AT PRICE OF NEW SHARE : 0.115
VALUE POST CONSOL : 85,000 (LOSS 15%)

Posted by Ganii > 2017-08-28 15:47 | Report Abuse

O ic

Posted by Espresso > 2017-08-28 16:29 | Report Abuse

Freeman's calculation is correct. But the share price after merger should be 0.230

So the value of total share plus warrant will be = 739130 x 0.23 = RM 169,999.

Posted by freeman > 2017-08-28 16:51 | Report Abuse

u have to include the warrant in your profit or loss calculation..

Posted by freeman > 2017-08-28 17:01 | Report Abuse

and u have to consider the new share issued to shareholders of scomi eng and scomies

Posted by freeman > 2017-08-28 17:04 | Report Abuse

In the event that the Proposed Mergers are not implemented, the basis for the Proposed Bonus Issue of Warrants will be adjusted such that the potential aggregate number of new Consolidated Shares arising from the exercise of all outstanding Warrants will not exceed 50% of the total number of issued shares of the Company (excluding treasury shares and before the exercise of the said Warrants) at all times.

Posted by freeman > 2017-08-28 17:09 | Report Abuse

if the merger not implemented, of course u will get the price of 0.23.. but the quantity of warrant u going to get will be adjusted (lesser i think)

Posted by JaJa7777 > 2017-08-28 17:31 | Report Abuse

Warrants are a way for a company to raise money through equity, correct?
warrants come with a min life span just like options - so how long for this one if it does go ahead
Warrants in my opinion are for mid to long term investments - Does Scomi have the time to turn this mess around?
Warrants are usually offered at a price lower than that of a stock, Correct? and we dont know what the value will be yet....

I love maths and i love speculation.... but in this case if you dont know the value of X and the value of Y or the terms of the warrants now let alone if or when this happens you will be praying not speculating....
And that all assumes that the share prices will recover to an acceptable level not keep diving as they are.

Any news on the court and the qrt reports for sure will see them heading south even quicker.

Posted by freeman > 2017-08-28 23:03 | Report Abuse

This is a put warrant
U will only able to exercise it at price of 0.21

SGB # newshare = 958mil , value $210mil
SCOMIENG # newshare = 488mil x implied value $0.3
SCOMIES # newshare = 1,405mil x implied value $0.126

Total value implied :$323mil /total #newshare 2,852mil

= adjusted value per share after consol n merger = $0.115

If exercised warrants there will be further dilution

Posted by freeman > 2017-08-28 23:14 | Report Abuse

If consol n merger go through .. the new adjusted price will be around 0.115

If only consol success and merger fail then the new adjusted price will be 0.23

Posted by Foogle > 2017-08-29 10:00 | Report Abuse

MSWG agrees to the consolidation

http://www.theedgemarkets.com/article/watchdog-group-agrees-scomis-rationale-consolidation?type=malaysia

Posted by chawhoe168 > 2017-08-29 12:29 | Report Abuse

how can you total up the warrant and the consolidated share units? apple is not equal to orange.

NEW SHARE : 434,783
free WARRANT : 304,348
TOTAL SHARE+ WARRANT : 739,130 <<<<<<<<<(???????)

AT PRICE OF NEW SHARE : 0.115 (??????????)
VALUE POST CONSOL : 85,000 (LOSS 15%) (??????)

supposing 434783 X 0.23 (consolidated unit price) = 100K (total cost will be the same)
but you have free warrant 304,348 units. warrant price I not sure yet (Warrant price is not exercise price)

Posted by freeman > 2017-08-29 15:06 | Report Abuse

the warrant has intrinsic value of RM0.113 .. refer proposal
that is why i m using 0.115 as basis price.. as assumption if i using 0.113 the loses will be a lot more
pls do yr own calculation
and the price post consol and merger will not be 0.23 but 0.115
if only consol then it is correct the price will be 0.23, but there will adjustment in the quantum


so price will be diluted to 0.115.. of course if the price can climb to .23 u can consider the warrant as profit

Posted by Imdb > 2017-08-29 15:44 | Report Abuse

At least Scomi can save cost over the listing fee, BOD fee, administrative
efforts and cost.

Posted by JaJa7777 > 2017-08-29 19:15 | Report Abuse

Wait for the qtr report and then see what happens to the prices....

Posted by Hussien > 2017-08-30 16:40 | Report Abuse

I would say freeman's calculation is about right. However, when you combine the revenue of three companies, the revenue, cash flow, NTA, ES and expense will be much more different and my guess is now is the worst case scenario.

It should do better than 0.115. A more rational pricing for Scomi will be 0.16 at least.

Posted by Alibabaa > 2017-08-30 16:45 | Report Abuse

Scomi Group: To strengthen its merged entity. Scomi Group will focus on strengthening its merged entity with Scomi Energy Services and Scomi Engineering’s financial fundamentals with the implementation of cash realisation initiatives. The company said that cash realisation initiatives would help it raise at least USD50m (RM213.6m) by disposing of and/or streamlining the merged entity’s existing assets within 12 months from the completion of the exercise. It will also continue to pursue the current growth strategies of both Scomi Energy and Scomi Engineering to improve their financial performance, moving forward. (StarBiz)

Posted by Boonming > 2017-08-30 17:08 | Report Abuse

The way i look at it is @ 0.115 is low.

And there is no rights issue meaning the company is not asking for money, which they can with excuses.But they didn't.

Posted by JaJa7777 > 2017-08-30 17:45 | Report Abuse

Disposing of and/or streamlining the merged entity’s existing assets within 12 months from the completion of the exercise to raise USD50m, that’s great but looking at the last YOY and more importantly the last qtr - fully year the losses were over USD43m, last qtr they lost over USD 22m and this coming qtr will be no different USD 25m, revenue is effect 50% less what it was in 2015/16 and that is for the group (Scomi) only not including EN and ES.
The group doesn’t have much in the way of debts although loans are high, but EN and ES are running high on debt and loans.

USD 50 million is not going to go very far in 12 months’ time.... disposing of assets will not be quick as Scomi doesn’t have that much and will be reliant on the vessels, the merger has to happen for that to happen
That and the cash will not be realised overnight

Posted by Ganii > 2017-08-30 18:47 | Report Abuse

So, does that mean it is okey to buy at 0.115? The paper loss at this moment will raise and we just don't know by how much

Posted by Alibabaa > 2017-08-30 18:49 | Report Abuse

It shouldn't be at this current price. I guess people is waiting for further news to boost up their confidence.

Posted by longvalley > 2017-09-01 20:51 | Report Abuse

Mgmt just 1 wallup ur money n d rubbish..........beter give thr syok sendiri...........!!!!!!!!!!!!!!!!!!!!

Posted by longvalley > 2017-09-03 08:10 | Report Abuse

Better sell now the ong: scomi,sumatec n reach ill go to nowhere............!!!!!!!!!!!!!!!!!!!!!!!!!!!!?