O&G counters goin down because of the recent resurgence of covid19 cases in US, it caused uncertainty on oil prices. But do not be panic, Pfizer vaccine boutta authorized for mass vaccination by FDA soon either this week or next week
#Mikecyc Haha Kon Mabell is chun chun lah on Shorting ke ..hahaha 07/12/2020 4:46 PM
Today nothing Mickey Mouse said will make Mabel angry...
All Mabel 11 Fossil Fuel Battleships and 11 Biodiesel Fuel Plantation are up cruising on Full Speed...
Mabel Fossil Fuel Battleship Armada and Bio Fuel TDM Plantation which is equipped with Medical Centres are both cruising at high speed with both exceeding 125 million shares traded.
Let see which one will break 40 sen first..
Meow Meow Meow
P/S Dr Ooi is still waiting for you with his long needle Vaccine ..
Dun panic, I remember someone from this group mentioned share prices will fluctuate this few days and move uptrend again. Share prices will not forever move up every day, if yes some things may be wrong. Last few days this counter moved up a bit and fluctuating, those play short term or T+ d that can't hold for long will be swept away. If anyone aiming for long term for sure will gains from this counter. As far as this counter is moving uptrend for times, is good for long term investment.
I do not wish to reply Mikecyc cause he's just spamming whatever he reads but Jojobaa can't stand people who forms their perception based on selected information so here goes a rebuttal:
Haha Kraken with RM 4.6 billion contract but made impairment RM 1.6 billion oredi ... schedule maintenance fund is used up ... each schedule maintenance will incurr 20 million ? 30 million or more Loss
Jojobaa's analysis: Impairments are done relative to investments made, it is not an operating loss per se, but rather a loss relative to the investments made. A company should be valued based on its future prospect, rather than its past investments. Impairments are done so the future cash flow of Kraken should be valued, not the impairments. In fact, impairments will boost up future profits via savings of depreciation of 1.6 billion during its life span.
Impairments are done based on a set of DCF calculations, which has assumptions bearing cash flow, contracts, extensions and oil prices. If circumstances change with relevance to this, or if present conditions are worse off than management's and auditor's expectations, then impairments can happen. Even Exxon impair billions, but again it is with respect to past investments made, not future cash flow, thereby a NON CASH FLOW EXPENSE.
>> EIA forecasts monthly Brent spot prices will average $42/b during the fourth quarter of 2020 and will rise to an average of $47/b in 2021 .
Jojobaa's analysis: According to the annual report and press releases, Armada CEO has said that FPSO business is relatively immune to oil prices. I wrote something about this above, maybe you should read it. The only way oil can affect FPSO business is if the oil prices are sustained at below cash flow break even for a PROLONGED period of time. Hope you understand that oil prices only affect the sentiment and future potential project decisions but not necessarily the results that Armada is running day to day.
Haha Kraken first oil in 2018 .. Huge Loss .... 2019 sold FPSO Perdana , result only with little Profit , if not will be in more than 200 million Loss .... 2020 still in Loss ..
On the contrary, Kraken is a lucrative profitable FPSO with over 650 million ringgit in revenue a year. It is the second most important FPSO for Armada after Armada Olombendo. Whatever Enquest produces is theirs to make or lose, Armada's obligation under the charter is merely to maintain the uptime, not on how much oil it produces. Look at the annual report and results and you will see that the uptime of Kraken has been near flawless for the last 3 quarters, despite Covid.
So to Mikecyc, it is no coincidence that Armada has surged after 2 quarters of consecutive results. You can continue to spam hate messages on a well run company but come back 3 months later post 4Q results release, and maybe we can have another talk then where you continue to bash Armada while shareholders continue to enjoy the upside.
Jojobaa has done extensive research on Armada and he knows that Kraken is 100% owned.
But look at the share of associate results for the past 3 quarters on Armada. It has only broken even whereas according to the annual report analysis of segmental breakdown, Armada should be able to make 100 mil from its share a year. Why has it not been reporting positive profits. Channel check reveals that there are deferred tax liabilities arising from temporary differences of the carrying value of the asset against its base, and these are non cash liabilities but will eat into the P&L. 4Q should see it returning to the black as the tax liabilities stops being included in the P&L statement.
It's been a while guys. US vaccine approval + US$900plus billion stimulus this week. All near term headwinds are just temporary - this is the best time to enter on short term weakness and ride the gains.
Mikekim, I remember you. Welcome back. I also did not write here for almost a year. It was not useful to post along all the garbage. But it is time to look into this investment again. I see good comments too. Seeing you here, is a good sign too.
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....
strattegist
23,459 posts
Posted by strattegist > 2020-12-07 17:32 | Report Abuse
relaxing...