Saying that some how Hibiscus is in for doom and gloom when Brent Oil is still above 100 and gas prices are rising is mad. They've tripled their production and July - Sept will be another strong quarter.. If they turnover RM1.8 billion in 2 Quarter and Make RM500 million + are they still only worth 85 cents.. Too many naysayers in the market talking rubbish!
Short sellers are overwhelming the counter. Hibiscus despite tripling its production in an environment of reasonably high crude oil prices is trading as though recession is upon us. It has plunged from RM1.50 to RM0.855 in a matter of weeks. One can only hope that the management will reward loyal shareholders with a handsome dividend payout in the next quarterly result announcement. That or it can begin to buy back its own shares from the open market to reduce the rampant volatility and manipulation we are witnessing now.
That said, Citibank and other media enablers have done their job exceptionally well in cooling the spiraling inflation with constant recession mongering. There is a distinct possibility that if or when recession hits, oil prices won't deviate much from the current level. We might even see a two-tier economic phenomenon where Europe and the US slow, while Asia waking up from Covid slumber continues to grow.
The share price weakness is a buying opportunity. Scale entries. Those selling on the way down have no clue about the structural and fundamental aspects of the global oil complex. In fact, I'll be happy for it to go much lower. The main risk with this counter is actually management. They have not delivered.
I start buying Hibiscus now. When oil was above US$100, I'm actually quite uncomfortable with it as I fear it will similar to gloves sector. Price too good to be true and everyone jump onto the bandwagon to produce more and cause the market collapse. US$85 to $95 will be ideal to me especially with the new capacity. To me, this is a marathon rather than a sprint race. So lets hibiscus reap the benefit slow and steady.
No wonder it keep going up. It is all bcoz paktua keep on sapu with his 450K fund. I only manage to grab some at 0.795, 0.80 & 0.82. Those park at 0.77, 0.75 din get.
Democrats will be certainly defeated for the mid term election in Nov 22 if Crude oil remains at this high level. They would take whatever actions to make sure the prices come down.
some believes that crude oil will fall to 50s with recession coming, I believe otherwise, expecting crude oil to remain high despite slowdown or minor recession due to Ukraine war. If one believe crude oil will fall to 50s, then, surely hibiscus trading at 0.6x is highly possible. But, if crude oil were to trade above 80, it's difficult to imagine hibiscus trading below 1.00. I'm bullish on oil averaging above 90 at least for the next 12 months...
actually, faith is waning with brent falling below 100. Initially, I thought brent could stay above 100 until Ukraine war seeing light to a peace treaty.
The prices of the commodity are beyond real demand and supply. It is mainly determined by supplying money (print money) pouring into the market to create inflation. Minor inflation is good to the economy economy development. Interest rates policy is another tool to control the costs of funds channelling to the commodity.
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VTrade
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Posted by VTrade > 2022-07-12 14:59 | Report Abuse
If director do what we follow
So many indicator
Dumb dumb ikut