It is a process engineering company that build equipments to O&G, power, renewable energy, mining, palm oil refineries and etc.
In fact low oil price is beneficial to KNM because focus will be on downstream such as petrochemical and refinery even those hardcore still think it is an O&G counters.
. oil price/economy remains unstable. recent up oil price because of down us inventories. what about middle east? we don't know!! investors still hopping for profit taking or at least cut min losses.. good luck!
need to monitor the brent and WTI crude oil.. anything can happen if the oil price going up.. but they said TP for oil price just at 50 usd per barrel end of this year... so, can't expert too much..
The problem with stock of this kind is people are too afraid. And when people are afraid they sell when the macro is unfavorable. And do you know who is the happy one collecting? EPF is happy collecting at lower price when people is selling. And then they sell when they make some money. Then announced on Bursa, they sold some. And people are scare again, be it because they are selling or macro not so favorable. And they collect again. This cycle will not end.
This cycle will only end when people stop fearing and big shark or EPF has no choice but to collect at higher price. And they can repeat the same cycle but they only can sell at higher price.
These period is definitely a period of consolidation/accumulation. It is just a matter of time for this stock to reach RM0.65 this year.
. Every investors including epf has their strategies to max return! Rebalancing of global oil supply/demand still struggle! Just be mindful of every economic possibilities..
It is pretty irrelevant whether oil price up or down. If you have notice from the most recent report by Kenanga, you will notice that KNM actually get awarded with close to RM100mil contract from Kuwait Petrochemical Refinery. It was not announced probably because of non-disclosure agreement with client. And KNM is expecting more contract from the same downstream project in Kuwait. The story is the same for RAPID, Malaysia. Expecting more from RAPID.
So whether oil price up or down, focus will be on downstream now. And KNM will benefit from this trend especially from their subsidiary BORSIG. Trust me, accumulate and wait for more good news.
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....
stockmanmy
6,977 posts
Posted by stockmanmy > 2016-04-07 00:47 | Report Abuse
KNM not even an OG counter.
KNM is an engineering company.