Uzma recently has been fast catching up with other oilfields service providers such as Scomi ES and Deleum. While Scomi ES is strong in drilling fluids, Uzma has been strong with patented technology to increase the recoverable oil, and they are aggressive in expanding right now.
It is akin to competition between Schlumberger, Halliburton and Baker Hughes ( Halliburton and Baker Hughes is currently in talks to merge). It is interesting to see how oilfield service providers stacks up each other after few years. The current market for oil & gas may looks dim but for oilfield service providers, they still have job to maintain the oilfield. They may be less affected from current falling oil prices..
687423, they have coil tubing product but I think the patent that is most valuable is in regards to rejuvenation of ageing oilfield, Advanced Production Enhancement System (uzmAPRES). Kindly check through this link.
During good time uzman is good. Any oil and gas is good But bad times - even petronas is not good - how can uzma/uzman be good Now also trade at PE 10 expensive eg if next year earnings drop by half the PE can be 20X = very expensive So look fwd when buying , don't just remember the good times when now times are really bad
Brownfields in Peninsular Malaysia are already past their prime, with production declining year after year. Some pipelines even need to be replaced with smaller diameter pipelines. The oil reserve is actually still huge but lower production is due to decreasing natural pressure that push the crude oil out from oilfield. To extract the remaining crude oil, the field operator need to use Enhanced Oil Recovery method to increase the oil recovery rate. I believe this is where UzmAPRES kicks in.
Based on news, 8 UzmAPRES had been installed at platforms, with 2 or 4 coming for the rest of this year. Each is rented at RM1 million per month, with profit margin 15-20%. That works out to be RM 14 million. Close to half of current FY profit. R&D for next gen UzmAPRES (called UzmART) is close to commercialization .
Besides, Uzma had just concluded two acquisition in Q3 which is worth RM114 million and have been reflected in their latest financial recent (that is why their borrowing increase). But It is a smart move to acquire chemical supplier, Premier Entreprise since drilling fluid has long been Scomi ES's forte.
At RM1.00, uzma valuation look very undemanding. Trading @ 4.5x Forward PE. Earning consensus is about 22 cents. It's dirty cheap! Even now around RM1.45 it trading @ 6.6x Forward PE. Most of the time, when sentiment at extreme level, either too bullish or too bearish, the price does not reflect to it true value.
So you guy make your own call. Another issue that you need to ask yourself, can the profit grow when the oil price drop? It is open secret that uzma business model is towards opex requirement of oil producers. If there is earning cut due to project delay or re negotiation of pricing, it will impact on profit margin. Thus the projected earning will even lower and drive the price lower.
Hahahaha saya sudah kaya round 1 semua saham trading saya woohoo!!! Renungkan posting saya yang lalu..
_______________
' Encik brocoli semalam saya pun dah post lah pada encik optimuss..........
Encik optimuss saya pun jual beli ikut madiba tapi saya lebih cun daripada guru sebab saya trader haha. Besok turun lagi saya makan lagi round 2 Mpay, Alam, GHL, MRCB, MMSV, Censof, Uzma dan Bonia. Minggu ini saya banyak lapar boleh makan hari hari bila saham turun sebab saya sudah tunggu lama daripada bulan Ogos sampai sekarang baru beli. Syiok nya panic selling saya beli muahahaha tapi jangan ikut sebab nanti you sakit jantung tak tahan gelora.
15/12/2014 20:38 ------------------------
Bila turun beli tapi timing itu mesti ngam ngam macam saya beli hari isnin dan selesa hahaha. Hari ini dan besok saya jual dapat keuntungan besar. Senang saja yay!!!
Hahaha abang adik tengok lah kaunter kaunter saya semua naik Alam +4 sen 62 sen, GHL +5.5 sen 68 sen, MMSV +4 sen 48.5 sen, Uzma +12 sen 1.60 sen, Censof +3 sen 36.5 sen ....Mpay saya pun ada tapi naik sikit tak apa sebab boss madiba masih pegang saya ada confident hehe. Renung renungkan lah kehebatsn saya. Saya pergi enjoy lagi sama kawan kawan saya meriah lagi malam ini.
Rekod pun ada bukan cakap saja hahaha ----------------
Encik optimuss saya pun jual beli ikut madiba tapi saya lebih cun daripada guru sebab saya trader haha. Besok turun lagi saya makan lagi round 2 Mpay, Alam, GHL, MRCB, MMSV, Censof, Uzma dan Bonia. Minggu ini saya banyak lapar boleh makan hari hari bila saham turun sebab saya sudah tunggu lama daripada bulan Ogos sampai sekarang baru beli. Syiok nya panic selling saya beli muahahaha tapi jangan ikut sebab nanti you sakit jantung tak tahan gelora.
Post a Comment
People who like this
New Topic
You should check in on some of those fields below.
Title
Category
Comment
Confirmation
Click Confirm to delete this Forum Thread and all the associated comments.
Introducing MY's First IPO Fund for Sophisticated Investors!
MQ Chat
New Update. Discover investment communities that resonate with your ideas
MQ Trader
M & A Value Partners IPO Equity Fund has been launched - Targeted 13% Return p.a
Latest Videos
0:17
New IPO: Building management systems (BMS), solar thermal systems and energy-saving services provider, Solar District Cooling Bhd aims to list on the Ace Market!
MQ Trader 558 views | 3 d ago
0:17
New IPO: The onshore and offshore support services provider for the O&G industry, Steel Hawk Bhd aims to list on the Ace Market!
MQ Trader 12913 views | 11 d ago
0:17
New IPO: The largest mini-market player and a leading groceries retailer in Malaysia, 99 Speed Mart Retail Holdings Bhd aims to list on the Main Market!
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....
Ahmad Muzamil Ahmad Murad
396 posts
Posted by Ahmad Muzamil Ahmad Murad > 2014-11-06 20:00 | Report Abuse
If 2.00 really coming good lo