TOKYO, Oct 28 (Reuters) - Oil prices fell on Wednesday for a second straight day, with Brent hitting its lowest in two weeks after official figures showed a surprise jump in U.S. inventories of crude.
Brent crude dropped $1.36, or 1.6%, to $83.22 a barrel by 0130 GMT, a two-week low, having declined by 2.1% in the previous session.
U.S. oil fell $1.28, or 1.6%, to $81.38 a barrel, a one-week low, after dropping 2.4% on Wednesday.
Crude stocks rose by 4.3 million barrels last week, the U.S. Energy Department said, more than double the 1.9 million-barrel gain forecast by analysts.
The "hefty" stock build came "on the back of a large jump in net imports of crude oil and still sluggish refinery processing," Citi Research commodities analysts said in a note.
Still, gasoline stocks fell by 2 million barrels to the lowest in nearly four years, even as U.S. consumers struggle with rising prices to fill their tanks.
At the WTI delivery hub in Cushing, Oklahoma, crude storage is the most depleted in three years, with prices for longer-dated futures contracts indicating supplies will stay low for months. (Reporting by Aaron Sheldrick; editing by Richard Pullin)
2 wk a ago they said low inventory today suddenly high...market gimmick. Surprise jump in USA inventories
Do you know that Billions of shares of stock are bought and sold each day, and it's this buying and selling that sets stock prices. Stock prices go up and down when someone agrees to buy shares at a higher or lower price than the previous transaction. In the short term, this dynamic is dictated by supply and demand.
Ultimately, demand for a stock is driven by how confident investors are about that stock's prospects. In the short term, things like quarterly earnings reports that beat expectations, analyst upgrades, and other positive business developments can lead investors to be willing to pay a higher price to acquire shares. On the flip side, disappointing earnings reports, analyst downgrades, and negative business developments can cause investors to lose interest, thus reducing demand and forcing sellers to accept lower prices.
In the long term, the value of a stock is ultimately tied to the profits generated by the underlying company. Investors who believe a company will be able to grow its earnings in the long run, or who believe a stock is undervalued, may be willing to pay a higher price for the stock today regardless of short-term developments. This creates a pool of demand undeterred by day-to-day news, which can push the stock price higher or prevent big declines.
Sometimes demand for stocks in general increases, or demand for stocks in a particular stock market sector increases. A broad-based demand increase can drive individual stocks higher without any company-specific news. One example: The COVID-19 pandemic led to consumers increasing spending online at the expense of brick-and-mortar stores. Some investors believe this change is here to stay, which led to an increase in demand and higher prices for e-commerce stocks across the board. Likewise with O&G and Plantation. Brent crude oil was trading at US$86 (about RM357.59) per barrel, while crude palm oil closed at an all-time high on Wednesday with the benchmark palm oil contract for January 2022 rising by RM127 to RM5,071 a tonne.
The big picture is what matters
Long-term investors, don't much care about the short-term developments that push stock prices up and down each trading day. When you have many years or even decades to let your money grow, things such as analyst upgrades and earnings beats are irrelevant. What matters is where a company will be five, 10, or 20 years from now.
While a lot of ink is spilled about daily fluctuations in stock prices, and while many people try to profit from those short-term moves, long-term investors should be laser-focused on a company's potential to increase its profits over many years. Ultimately, it's rising profits that push stock prices higher.
So focus on the end game and ignore the noises. Elsewhere in the Deep Blue Ocean, all Energy Battleships and Supertankers plus Jet Fighters are cruising full speed.
The same with the Thick Green Jungle, all Plantation are Flourishing and Booming. Yesterday, one of Mabel Plantation gave Terengganu State Heritage Trust Board (LTAWNT) RM1.87 million its share of profit from the plantation and healthcare group. The payment was for last year's profit for the development of LTAWNT’s 1,336-hectare oil palm plantation by TDM at its Air Putih Estate in Kemaman. Earlier this week they launched the 6th Medical Centre. This will be complementary to the existing Medical Centre provided by Mabel Sunway and Sime Darby.
To SIR with Love..
Meow
Stock: [SERBADK]: SERBA DINAMIK HOLDINGS BHD
Oct 28, 2021 8:03 AM | Report Abuse
Ownership Breakdown
State or Government 4.4%, 147,000,000 shares General Public 4.8%, 162,240,114 shares Institutions 25.8%, 871,390,934 shares Individual Insiders 65.0%, 2,192,163,030 shares
To be honest, what we discuss here does not make any difference..
All of us only hold 4.8% of Serba. Usually the silence the majority are the main holders.
After the last few days of dropping prices , some weaker holders of Armada have already sold, higher probability of more buyers coming in . If drop further I would consider to buy more to add onto my holding. Armada Stirling would be in FY22 revenue contribution .
#armadatuah2017 one more cun quarter plus contract for Caspian sea...it can break 0.55..last year failed to break this 29/10/2021 9:59 PM
Indeed. Last year Armada stopped at 55. This year we the Armadaian Battleship crew have the ambition to break this 55 Wall capitalising on the Bullish Brent Oil Price.
Black Pearl Weather Forecast
Moving Average (Short Term) NEUTRAL Moving Average (Mid Term) STRONG Moving Average (Long Term) STRONG Ichimoku Kumo STRONG RSI STRONG Stochastic STRONG
Support : 0.49/0.46 Resistance: 0.53/0.57
The Wind is on our side boys . That all we need. Hoist the colours
From CIMB report Oil & Gas ‘Makmur Tax’ may negatively impact Petronas Dagangan’s FY22F core EPS forecast by 10.7%; no or little impact on Velesto, Bumi Armada, Yinson, Sapura Energy, or Dialog
Petronas Dagangan (PDB) may be negatively affected by the ‘Makmur Tax’, as we forecast group pretax losses excluding associates at RM893m for FY22F. Virtually all of the group pretax losses are housed under the one single holding company, rather than split up across several subsidiaries. As a result, we estimate that the ‘Prosperity Tax’ may reduce PDB’s FY22F core net profit by up to RM71m (7 sen/share), or 10.7% of our current core net profit forecast of RM668m. The negative impact to our DDM-based target price is also c.7 sen/share, which is immaterial against our current target price of RM19.90.
Velesto is unlikely to be affected by the ‘Makmur Tax’, as we forecast group pretax profits for FY22F to be below the RM100m threshold for the application of the aforementioned tax. In any case, each of its jack-up rigs are housed in separate legal entities, and the RM100m threshold is to be measured on per-legal entity basis.
Bumi Armada is unlikely to be affected by the ‘Makmur Tax’, as its floating production storage and offload (FPSO) vessels are all based outside of Malaysia. Most of Yinson’s FPSOs are also based outside of Malaysia, with the exception of the FPSO Helang; we estimate that the FPSO Helang does not earn more than the RM100m threshold for the tax to apply.
Sapura Energy is unlikely to be affected by the ‘Makmur Tax’, as most of its work is outside Malaysia. For its Malaysian business, it may be able to use its carriedforward tax losses to offset any potential taxable profits, in our view.
Dialog is unlikely to be affected by the ‘Prosperity Tax’, in our view, despite our forecast of group pretax profits of RM726m in FY6/22F (RM446m from subsidiaries and RM281m from associates). This is because we expect the individual companies to either generate less than RM100m in pretax profits in the 2022 year of assessment, or for the individual companies to enjoy significant unutilised capital allowances and investment tax allowances that can be used to almost-fully offset taxable profits.
Expecting around RM150mil core net profit, with upside potential up to RM180mil underpinned by steady JV/associates earnings contribution.
At RM150mil per quarter (RM600mil per year), it is under 5x price-to-earnings ratio.
Next year, earnings will jump with Armada Sterling 5 contribution from Q3 2022 onwards.
Also, expect contract for the SC vessels in the Caspian sea to materialise in the next few months.
Downside at the moment is that Armada Sterling 5 deployment may see delays due to issues at Sembcorp Marine. Nothing concrete at this point, but be prepared for any delays. The soft share price over the past week may be due to insiders selling as they know about this.
Today Bursa drop to 1530.920 = 31 mata Volume = 3.471,673.400 = 3.229 billion traded 178 Counters Green ...996 Counters Red Unchanged Counter = 337 Untraded Counter = 773 Only 85 counters are categorised as a strong pullback counter from more than 1000 counters. All thanks to our Finance Minister.
Today all Mabel Biofuel Plantation are also down. Thanks to our Finance Minister Cukai Makmur. The only Mabel Plantation that are GREEN are Non Malaysian Plantation i.e Singapore Wilmar Plantation and Indonesia Bumitama Agri
Bumi Armada is unlikely to be affected by the ‘Makmur Tax’, as its floating production storage and offload (FPSO) vessels are all based outside of Malaysia. Most of Yinson’s FPSOs are also based outside of Malaysia, with the exception of the FPSO Helang; we estimate that the FPSO Helang does not earn more than the RM100m threshold for the tax to apply.
Last year Armada stopped at 55. This year we the Armadaian Battleship crew should have the ambition to break this 55 Wall capitalising on the Bullish Brent Oil Price.
Black Pearl Weather Forecast
Moving Average (Short Term) NEUTRAL Moving Average (Mid Term) STRONG Moving Average (Long Term) STRONG Ichimoku Kumo STRONG RSI STRONG Stochastic STRONG
Support : 0.49/0.46 Resistance: 0.53/0.57
The Wind is on our side boys . That all we need. Hoist the colours
3 weeks ago , I commented on a swap strategy, from Armada to Hibiscus, roughly 400k shares. Hibisc range 0.89 - 0.945. Since then I have made 2 cycles of average 4 sen from hibisc. Solid profit RM30K in 3 weeks.
Niki expects 150-180 mil profit next qrt. Results out in 3 weeks. until then it will not move beyond 0.525. Even if it move it will have to breach the tough resistance of 0.55(R1), 0.58(R2-unlikely). Yah agree never fails to dissappoint.
Unloaded my last tranche of Armada 50k shares at loss. Fed up , Market no confidence on this engine (high debt, possibly higher operating cost, possible delay in Ar sterling contribution.
Going for my 3rd cycle on hibisc. Just collect this morning 0.885/890. I 'm confident of making an average of 3-4 sen (0.920-0.925) by next week.
Dont talk to make yourself feel good, don't soak on something that is not moving. Move on. Consider options. Hibisc has dynamic daily trade range ,sometimes 3-4 cents daily. Easier to make money rather than waiting on a sluggish counter, the market have no confidence at this moment.
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 > 2021-10-26 17:23 | Report Abuse
closed red