For T7 global if Brent up good. But if no up also very ok
Why is it so?
Let me illustrate
Long ago during the tin and rubber collapse of 1985 to 1987 I met one guy who did the alternate and starter motor repair shop
I asked him how will his business be affected by the recession?
He said he is doing very ok even in bad times as people seek to repair their faulty alternator or car starter motor.
Same goes for battery repair shop. In those days they repair batteries instead replacing an entire new battery. They only service and change those spoilt parts and the car battery will function well again
So is T7 global
It's well intervention, workover and decommissioning jobs are to do repair and overhaul for existing oil Wells
For Petronas oil and gas well to function T7 will service and maintain its mechanical subsea parts for next 5 years
It does not rely on new well discovery or exploration
It works on existing 350 over oil and gas wells come rain or shine
As long as Petronas pumps its oil T7 global will be needed to keep oil flowing smoothly
Unlike hibiscus that need to constantly find new oil well or other topside that build more and more T7 global deal with over 350 oil and gas wells already in place. And these are fixed assets with fixed needs
@newbie4444, we never know when price would go up, but 1 thing am very confident..2020 would be the year for T7, overtaking Dayang and currymeeby miles.
Contract already signed and for a whoping 5 years !!.. even Dayang and Currymee sure nose bleeding when heard that news..huhu
Petronas job will continue, don care la who become next PM, what trade war is a all about, Trumph reelect or not..oil business continue as usual.
Don't time the market If you don"t have must buy some first in case all below 50 sen taken up by smart hands and no more left If after buying price weakens then add more on weakness T7 global is a stock on the verge of multi year bull run soon
from hong leong research: T7G has been bagging several contracts and could be seen as a laggard in the O&G sector. Currently, its orderbook stood at more than RM900m, with the tenderbook holding up at RM3bn. We believe traders’ would lookout for O&G maintenance players after a decent rally seen in CARIMIN, DAYANG and PENERGY over the past few weeks. Next phase of growth for T7G could be seen in aerospace segment, where the fully automated metal treatment facility will commence by end-2019. Based on our indicator, T7G could be poised for a breakout amid steady increase in momentum
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....
Ron90
4,127 posts
Posted by Ron90 > 2019-11-24 00:54 | Report Abuse
profit from those 2 contracts will only start to appear from first QR 2020..