Bro psd57. U are right. Daya has to look into their coming quarters performance. Once their Q1'14 start improving, the price should be able to move well ady. :)
Psd57, richmond168 and butterfly. Thanks for your analysis. In view of high risk ahead and poor chart for daya. I will take position on small basis only probably 100k units of daya in the event of good performance of global stock market. Based on charting, price should go south. I am hoping for panic buy for daya tomorrow morning with good price upward if global stock market improved. I believe daya has been oversold for the past few days. In the event that performance stock market is poor, i will forget daya and will short knm tomorrow morning. Thanks bro. Will be joining this forum after 5 pm. Very busy schedule.
FYI....DAYA....From Starbiz news today Daya to raise RM950mil It plans to buy two offshore sub-sea construction vessels
PETALING JAYA: Daya Materials Bhd is planning a RM950mil fund-raising exercise to pay for the purchase of two offshore sub-sea construction vessels (OSCVs), Siem Daya 1 and 2 (SD1 and SD2), according to Kenanga Research. “Daya revealed that it is working on a very large fund-raising exercise comprising a 15% private placement, rights with warrants issuance, convertible bonds and senior debt financing worth a cumulative RM950mil,” it said in a research note following a meeting with the company. ItsaidtheOSCVscostUS$140mil(RM460mil) each. “Daya reiterates savings of US$15,000 (RM50,100) per day per vessel under an ownership model versus the current lease model. Post the corporate exercise and acquisition, net gearing is expected to rise to less than two times (from the current 0.3 times), but management is comfortable with this level given the cash-flow backing assets.” Kenanga also noted that Daya had incurred US$9mil (RM30mil) in cost overruns during its fourth quarter ended Dec 31, 2013, “attributable to human error” in capturing costs for its Tapis enhanced oil recovery (EOR) project. “Management acknowledged the weakness in internal controls and has since refocused attention on budgeting and cost controls. With the Tapis EOR project at 96% completion as at end-December 2013, no more cost overruns are expected in 2014.” Kenanga said. “On this front, a subsidiary-level management reorganisation exercise has been initiated with a new chief executive officer, chief financial officer and legal counsel now leading its subsea business.” Daya reported a net loss of RM15.58mil for the fourth quarter of 2013, compared with a net profit of RM5.18mil in the previous corresponding period. Revenue, however, increasedtoRM139.96mil from RM98.31mil previously. Kenanga said due to its fund-raising exercise and cost overruns, Daya is expected to remain in the red in the first quarter of its current financial year.
FYI....Gpacket....From Starbiz news today... Intel sues G-Packet for RM60mil
CEO confident of out-of-court settlement
PETALING JAYA: Intel Capital, which invested in convertible bonds issued by Green Packet Bhd in 2008, has filed a suit seeking RM60mil from the telecommunications company. In an announcement yesterday, Green Packet disclosed that it had to make changes to its contingent liabilities in its books for the financial year ended Sept 30, 2013 because of a suit served on it by Intel on Sept 27 last year. The amount set aside is not known. Intel claimed that the company did not fulfil its obligations under a put option and tag-along rights agreement (POTA) that was executed in July 2010. Under the POTA, Green Packet is to acquire all of PacketOne Networks (M) Sdn Bhd (P1) Class B irredeemable convertible preference shares of RM0.10 each (Class B ICPS) if Intel exercised its right to exchange the RM50mil guaranteed redeemable convertible exchangeable bonds (GCEB). The GCEB are to be exchanged into Class B ICPS that Green Packet is to purchase for RM60mil. On Nov 26, 2012, Intel exercised its option to convert the bonds into Class B ICPS shares. It ended up with 200,000 preference shares. Subsequently, Intel exercised its right under the POTA requiring Green Packet to purchase the 200,000 preference shares. Green Packet contended that it had obtained legal advice and was advised that Intel’s exercise of the POTA was flawed and that the terms and conditions of the POTA may not be valid. The company told Bursa Malaysia that it had challenged Intel’s exercise of its right under the POTA which it claimed was null and void. Green Packet stated that although the company was negotiating with Intel on a settlement structure for the POTA, the American chip manufacturer had initiated a legal suit against the company. The court has set April 1 this year for decision. When contacted, Green Packet chief executive officer C.C. Puan said he was confident the matter with Intel would be amicably settled out of court. It has also been speculated that Green Packet’s P1 was inching closer to a strategic merger and acquisition deal with either DiGi.Com Bhd or Telekom Malaysia Bhd. Insiders said if that deal were to materialise soon, then the obligation to Intel would be settled.
changlk-Wow your data is impressive man. I don't know how you get it. Sorry, yesterday night was busy doing something. Just randomly picked some but most of them are going south.
PublicInvest Research Author: PublicInvest | Latest post: Tue, 4 Mar 09:15
An official blog in i3investor to publish research reports provided by PublicInvest Research team.
All materials published here are prepared by Public Investment Bank Berhad.
PUBLIC INVESTMENT BANK BERHAD (20027-W) 9th Floor, Bangunan Public Bank 6, Jalan Sultan Sulaiman, 50000 Kuala Lumpur T 603 2031 3011 | F 603 2272 3704 | Dealing Line 603 2260 6718 Blog Headlines (by Date) Blog Index DAYA MATERIALS BERHAD - An Unexpected Finish Author: PublicInvest | Publish date: Mon, 3 Mar 10:13
Daya’s full year FY13 performance took an unexpected dive in 4Q, attributed to the cost overrun in the cable laying project which was largely completed in October 2013. YTD revenue recorded RM513.5m (+85% YoY) while earnings plunged to RM3.4m (-83% YoY). Management has reassured that the cost overrun issues have been fully accounted for this quarter and hence will start their FY14 balance sheet on a clean slate. Despite our disappointment to this quarter’s unfavourable outcome, fundamentally based on the prospect of Daya’s O&G segment in particular, its vessel chartering will provide growth for the Group going forward. We are maintaining our Outperform call on Daya with an unchanged TP of RM0.43 based on 12x multiple to its FY14 EPS of 3.7 sen.
Dragged by Oil and Gas (O&G).From what we understand, Daya initially recorded higher profits YoY, however due to the cost overrun issue from the cable laying project, a revision had to be made to the profit margin. Albeit this incident, O&G will contribute significantly going forward, premised on i) the LT charter of Siem Daya 1 (SD1) and Siem Daya 2 (SD2) to Technip, which has been deployed in North Sea as of end-February. ii) prospects of exploration and production business via its investment into Reach Energy (soon to be listed SPAC). iii) Downstream chemicals and specialised lifting services. iv) Outstanding orderbook of RM1.7bn.
Improving Polymer business. A slow growing division from the prospects of the industry and continued foreign competition. The Group however had implemented ongoing operational initiatives to deliver better production efficiency and improved cost structure, reflected in the positive results.
Technical Services to grow. Revenue increased due to the progress in several projects which were previously delayed, thus higher revenue was registered this year. A significant contributing division going forward, as the Group continues to build and execute its orderbook.
Maintain Outperform. We continue to recommend Daya based on our PE valuation of 12x implied PER to our FY14F EPS of 3.7 sen. As the Group’s vessels SD1 and SD2 have already been chartered out for a LT contract with Technip, earnings visibility is already materialised hence we see our valuation as reasonable at this juncture.
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....
Posted by hepitrade > 2014-01-02 18:04 | Report Abuse
What say you, bro & sis ?