Today KNM has proven one thing, even the oil price drops,the price is not entirely dependent on oil price movement....the business model like renewal energy is where the money is....
KNM has many plan & projects.. But, can it work and confirm ka ?? Also, please go up to RM 0.80 then I go... Cause I stuck at RM 0.710 for past six months liao....
Yes many project but all cannot make money cause all tendered very long time ago. Shares from 4b consolidated to 1b then always make shares issues, one day will go back to 4b then share price go back to 0.30.
knm bought borsig at a premium. which explains why they have shelved the proposed listing of the same. they just can't justify the value.that said, without borsig it is difficult to see how knm could still survive these past few years. I was made to understand that borsig is knm's top revenue earner. their contract margins are also very good. they are a trusted brand as far as process equipment is concerned. being German, their management is also fairly independent. with the embargo on Iran lifted, they should do even better I think.
actually knm is not strictly an oil and gas player. in areas where it is, its involvement is pretty much downstream. oil prices would have a more immediate impact on upstream players like sapurakencana and those with offshore operations. but eventually, the fall in oil prices in the long term would affect knm. on the positive side, knm has the alternative of focusing more on renewable energy projects. still, bioenergy plants are often very expensive to develop and uncertain due to lack of reliable technology in the market to drive such plants. still, if you agree that everyone wants alternative energy sources which are clean and environmental friendly, knm is already there in the market. it will take some time though as the world's dependence on oil is still high despite the fall in prices.
1) Many projects do not equate to profits 2) Many projects but they need to be completed to satisfaction and on time 3) Many plans do not equate to profits 4) Many plans require money to be invested, is there any? 5) Too much debts
6) I didn't know KNM was a big player in the renewable energy sector, care to elaborate which project experiences?
Why the WTI Crude Oil Price Is Up Today http://moneymorning.com/2015/08/04/why-the-wti-crude-oil-price-is-up-today-2/ ...... Between now and September, the number of active oil rigs will significantly shrink. That's because extraction levels from these wells peak within the first 18 months they're online. After that year and a half, their output rapidly declines.
That's why Moors sees oil prices climbing as high as $76 a barrel by the end of the year.
"Between July and September of this year, production will finally start to decline from the wells that were recently put on line," Moors explained. "Remember, these are the wells that have provided most of the excess volume."
"The translation? Eventually, the glut will recede, and the market is going to hand us some highly profitable plays in short order…"
This'll be 'best investment in the world': Rubenstein
Philanthropist and billionaire private equity professional David Rubenstein has told CNBC that oil prices will bounce back over time and will make carbon-related energy assets one the best additions to any investor's portfolio.
Speaking from Johannesburg, the co-founder and co-chief executive of The Carlyle Group, reiterated his bullishness on the sector and labeled renewable energy as less efficient and cost-effective.
"In time (oil) prices will come back, in time demand will catch up with supply, and in time I do believe that carbon-related energy will turn out to be one of the best investments in the world," he told CNBC Tuesday.
Read MoreOne trader's very contrarian case to buy coal stocks
"The consumption of energy is something that we need to do to make the world go forward." David Rubenstein, The Carlyle Group Co-Founder & Managing Director. Adam Jeffery | CNBC David Rubenstein, The Carlyle Group Co-Founder & Managing Director.
The asset management firm has $193 billion of assets under management, according to its website, and currently has $10 billion-$12 billion of "dry powder" to spend in the energy sector.
Oil majors and U.S. shale producers have been hit hard by a dramatic fall in the price of oil since mid-June last year. Brent crude and WTI have recently dipped back below the $50 a barrel level after a brief rally in the second quarter of 2015.
Throughout this period, Rubenstein has maintained his optimism, however, and told CNBC that he was "finding assets that are now for sale at much lower prices."
"We are, in the United States and outside the United States, very active," he said. "I don't want to predict any wide-scale declines in the value of all these (oil) companies but I do think there will be opportunities to buy things at lower prices."
As Oil Prices Slide Investors Prepare To Buy 7/27/2015 @ 10:55AM
Unless you’ve been living in a cave for the past year, you know that the price of crude oil has plummeted. At under $50 per barrel (WTI Crude), gas prices are lower, it’s cheaper to transport goods, and there are a host of other benefits. However, lower oil has also created a few problems. In this article, we’ll explore some of each and discuss a great investment opportunity emerging as a result.
Oil 101 Oil, fossil fuel, crude, whatever moniker you prefer, is highly ingrained in the fabric of our society. Until such time as a less expensive, more efficient, and abundant energy source is identified, oil should continue its dominance. It’s interesting to watch as “experts” forecast its price, much of which is driven by a profit motive. What do I mean? One expert confidently asserts that its price will go higher. Do they own a significant amount of crude? At the same time, another states the price will definitely fall. Have they “shorted” the commodity? At times I wonder if the “expert” opinions are merely a PR campaign attempting to influence the price. If the first person is more convincing, the majority will buy and the price may rise. If the second expert is more persuasive, investors may sell and its price will fall. The side wins the PR battle will make the greatest profit. And so it goes. Personally, I have no position in oil and, with no dog in the hunt, my comments are based purely on my opinion of the market.
Oil: The Downside Oil is both plentiful and widely used. As a financial asset, the total stock market cap (total outstanding shares times price per share) of all U.S. energy companies is $3.878 trillion. That’s equates to 7.7% of total U.S. market cap. Because the price of oil has declined so drastically, business has slowed and the companies engaged in the energy sector (about 971) are much less profitable. As a result, these companies are competing in a smaller business pool. Therefore, if the price remains low for an extended period, or perhaps more importantly if it falls further, some of the smaller companies in this sector will either be forced into bankruptcy or swallowed up by their larger brethren. The downside includes bankruptcies and layoffs but there is also an upside to consider, especially for investors.
Oil: The Upside Beyond the benefits previously mentioned, there may be a pot of gold at the end of the investment rainbow. Since the price of oil has declined, energy stocks have also fallen. At some point, when the price of oil stabilizes and the global economy resumes a more normal growth pattern, demand will rise and these stocks will rebound. This presents an excellent opportunity for the investor. It’s very much like the crash of 2008 except that it is confined to the energy sector.
Yes, there will be a great opportunity to buy energy company stocks at depressed prices at some point, hopefully in the not-too-distant future.
Could WTI Trade At A Premium To Brent By Next Year? ... More accurate monthly data shows that output likely peaked in March at 9.69 million barrels per day, falling to 9.51 million barrels per day in May (the latest month for which data is available).
In other words, low oil prices are forcing production cut backs. More declines in output should be expected in the months ahead. Moody’s expects more defaults in the oil and gas industry this year, as debt piles up and lenders cut off access to credit for drillers. “We expect that the energy sector will continue to be a primary driver of defaults over the next year,” Moody’s senior vice president, John Puchalla, said in a statement. Hedges are expiring, which have shielded profits up until now. Credit lines could be reduced, forcing liquidity crises for weaker companies. These developments could impact oil production overall. ...
currently OPEC is not cutting output right? and it seems they are not likely to cut output anytime soon..they purposely pump more oil so the supply will far outweigh demand and keep the price low. the longer they keep the prices low, then most of the SHALE producers will need to close shop..then the prices will rise again..it will take a few years for the Shale operators to restart operations and within this time frame the major OPEC players will get to enjoy the high prices just like before this.
People tell you oild price goes down does not means it affect KNM, so when oil price goes up does not means KNM will more more profit as well. If unlucky KNM will have another round of right issue again anytime soon and you saw it crumbling down. But then again as long as the company does not "gulung tikar" then any long term investment usually pays off.
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....
hissyu2
868 posts
Posted by hissyu2 > 2015-07-14 10:12 | Report Abuse
haha~~ indeed... run run run...