HAHAHA.... I am sure some of sellers today were not aware that this share has already consolidated ( 2 to 1, now reflected in CDS balance yet) and worse still they thought share price appreciated due to current O&G run, my friend is one of them until I told him. Luckily! If not, will be oversold!
Now the trading platforms wont allow oversell or shortsell, i.e. if you have no or not enough stk in cds, they will reject your trade. Is only you oversold if you have stock, before consolidation if you have 100k stock, now becomes 50k, and if you intend to sell 50k of your stock not knowing the consolidation, you sold all your holdings. Your intention is to sell just half but after consolidation, you sold all.
Why does the price of SCOMI drop post consolidation, when at closing of pre-consolidation was at 0.165?
Theoretically, upon consolidation of SCOMI shares 2 into 1, the price should double up from 0.165 to 0.330, but the market valued it downwards 0.260/0.255 today instead of 0.330 as should be the case?
As I have said before, going forward what has the group to offer in terms of earnings visiblity, wining contracts and clarity into the messy legal issues in Mumbai and with Pasarana. Ophir profitibilty alone cannot be compromised or bailout for othes loss making sectors like the marine business. Still, we have yet to see Ophir performance, maybe next month. The direction is somewhat blur. A lot of, we tender for this and that in the millions and billions. Todate nothing has come out of it for a long long while. In turn, confidence is an issue with this counter. ..
To answer to nippy65, the consolidation exercise is purely a consolidation exercise, and has nothing to do with the future value of SCOMI, another adjustment will be expected post MERGER with SCOMIEN, which will not happen immediately but much further down the road. Until then, SCOMI should only reflect its immediate value and not its future adjusted value post Merger.
Mumbai Metropolitant Reagon Development Authority has said it has made Scomi Engineering 'ineligible' from bidding for the operations of Chembur-Jacob Circle Metropolitant corridor. ...... The reason, Scomi has not maintained Mumbai Monorail in a satisfactory manner and we are not willing to have Scomi onboard for Monorail in future.
The above extracted from Dnaindia Mumbai Monorail. So, what is the future for Scomi Engineering and Scomi Group ? And what is the status in Brazil line 17 ? Going concern issue will resurface ? Reputation at stack ? What can Scomi offer to shareholders in terms of contracts award going forward ? How many contracts have they won in the past one year ?
Now that the equity restructuring is over, the group has to move on looking forward to some good news for shareholders. However for a start , the latest news on Scomi Engineering with respect to development in India on their monorail participation is absolutely very depressing. And the share prices are showing the effect.
Agree with nippy65, the prospect of SCOMIEN in the Indian and the Brazilian deal has cast shadows on their performance, much less to talk about the local performance in KL. Will SCOMIEN and SCOMI able to get more monorail deals in the future is really becoming more scanty and remote, given the opportunity in Brazil and India has not turned out to be a great moral booster for SCOMIEN/SCOMI.
The Merger exercise announcement just out on 30-Jan-2018 for SCOMIEN at swap of 10 SCOMI shares for every 7SCOMIEN shares held as of 13Feb, plus a bonus of 1 warrant for every 10 )new) SCOMI shares held ex 13-Feb, and at the same time SCOMI shareholders will get a bonus of 1 warrant for every two SCOMI shares held as of 13Feb.
The value of SCOMIEN of 0.30 is already a down revision from last week's peak of 0.35 but an upside of 0.15 from 0.85 prior to the EGM. The intrinsic value going forward is not going to be optimistic given the dismal performance of SCOMIEN in both BRAZIL and INDIA, even after merger if nothing is going to be done apart from the MERGER.
I said that @0.26, SCOMI seems to be undervalued, but that is only to reflect the consolidation exercise of consolidating two existing SCOMI shares into one new SCOMI share, purely nothing to do with the future prospect.
Come 13th Feb, the share swap and bonus warrant will take effect resulting in more Scomi shares in the market. Can the current share price at 0.26 holds by then ? I think is more of a case of downward price pressure. Hope to be wronged. As I said earlier, a closer resemblance to a capital reduction than consolidation. .
DrMario, we will have to pray very hard for 0.50. Firstly, there is a need for some fundamental improvement in the business, revenue and earnings visibility as catalyst to trigger such uptrend. You see any silver lining ?
I already am smelling that the coming qtr is going to be another loss making. No chance of improvement yet, unless an award in favour of SCOMIEN results in the material litigation against SPAD. BUT this is yet to happen even in the near future.
Does SCOMIES contribute any profit to SCOMI post merger? Bearing in mind that SCOMIES (Energy) is a service company. Does SCOMI Energy have any production rights to sell crude to collect revenue?
With that in mind, SCOMIES contribution due to higher oil prices is insignificant. SCOMIES revenue will depend on new service contracts being awarded by production owners.
I think a slow decline until Friday, will hold steady early next week..... Uptrend after the 13th and then the Qty results will be in the following week....... big sell-off and some panicking as the realization sets in.
Scomi will make some announcements about how they are selling of assets and making investments in renewable again and they are tendering in some massive projects and the future is all looking rosy....
A resemblance to a capital reduction??? not sure but something smells not quite right about the whole thing..... The group aims to pare down its debt with cash from its operations - selling off assets, no new work and falling revenue with increased overheads and costs... not sure how it is going to use cash from operations when it is running in the negative?????
Something is brewing and i think more of a brown lining.
Capital reduction??? Funds retained in the capital of a company to be returned to its shareholders??? not sure that would ever happen, But If there were a big sell-off after the qty and then the company did a big buy up there are various scenarios that would be extremely beneficiary to the large stock holders (And you know who they are)!! Allowing a payment of dividends might just be one of them???? this would be very nice for the big holders especially after a big buy up. Allowing the company to use its capital to buy back Directors shares, again very nice option. Can all go under the disguise of a capital reduction i guess
All of the above will not have any impact on you or I but those at the top would be sitting very pretty.
Voluntary winding up???? Also make sense for the directors, reduce the debt, reduce the costs and overheads sell off the assets and go down the voluntary route, leaves the directors and major share holders 12 months to collect what ever is left over???
Just my cynical thoughts... it will be an interesting few months that is for sure....
Without much information to go by, Scomien isfor sure going to impact Scomi Group Bhd negatively unless new job announcement which is not likely to happen. Without new jobs, jobs and jobs, is doomed and gloomed. .
Yep new jobs is what is needed, and by the looks of all the statements that is into RE. problem is Scomi don't have a single foot hold in RE other than a JV???
Mukhnizam statement - Scomi will be redeploying employees, following its shift into new businesses such as the RE move. In terms of staff layoffs, Scomi will mitigate the number of terminations, but the firm will not extend project- based contracts.
In other words they are going to be laying off a heap of staff and currenty have no new work..... Do they have the money to lay the staff off??? maybe why they are going to sell off some assets...
As at Sept 30 last year, Scomi Group stood in a net debt position of RM673.7mil, while Scomi Engineering has a net debt of RM473.6mil. In the first half of financial year 2018, it posted a wider net loss of RM42.17mil. Scomi Engineering is also in the red, with an increased net loss of RM31.28mil
Next qtr in a few weeks and i cant see it turning that around nor will selling off a few assets make that much of an impact with the growing losses
With the current state of affairs Scomien is confronted with, I do not see how it can contribute positively to Scomi Group Bhd, at least not at the moment. A daunting journey.
With the additional shares swap from Scomien couple with the turmoil and nervousness in world maket and absence of new jobs, more pressure will be on the share price which prehaps can go below 0.20. As good as capital reduction.
nippy65...are you trying to bring down the price so that you can buy cheap...20 sens is like pre-consol price 10 sens, like all time low....doesn't make sense in view that oil price is not USD30 and it is USD65 now and their Ophir field is already producing oil.
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