Posted by stockraider > 2019-09-15 12:22 | Report Abuse

Quality company if it is overvalue is a bad investment loh...!!

Gruesome company is investable, when it is extremely undervalue with huge margin of safety, it can be a great investment mah..!!

The concept is to take advantage of Mr market with your concept of value and valuation v mkt price loh...!!

Posted by stockraider > 2019-09-15 12:24 | Report Abuse

AN EXAMPLE OF GREAT INVESTMENT WHERE 3iii call it GRUESOME loh...!!

Armada have the following good news & catalyst and its share price will keep shooting upwards on sustain basis loh...!!

1. Armada equity and contract on hand much bigger than yinson.

2. Armada latest to qtr earnings has exceeded yinson. With its last qtr earnings exceeded yinson profit 2x.

3. Armada borrowing has been reduced by 1 billion & coming down further.

4. The new ceo has initiated alot of wealth creation initiative.

5. Most importantly armada share price already breakout from rm 0.30 resistance and expected the momentum to carry it higher loh...!!

6. EPF has been regularly buying armada recently with large quantities.


Yes u will see better days for Armada, just hang tight loh...!!

Posted by stockraider > Sep 15, 2019 11:45 AM | Report Abuse X

Saudi issue add Extra boost for armada....which already riding on string of extremelly bullish news mah...!!

Posted by stockraider > 2019-09-15 12:25 | Report Abuse

Posted by mikekim > Sep 14, 2019 3:36 AM | Report Abuse

A good company does not mean it’s a good investment.
A bad company does not mean it’s a bad investment.

At what price, is what makes all the difference.

30 cents for a global FPSO giant. High debt, yes. But at such a damn cheap price? More please!

Posted by stockraider > 2019-09-15 12:28 | Report Abuse

Remember a better company does not mean a better investment loh...!!

In stockmarket we have handicaps call under valuation loh....!!

Certainly Armada is safer and better investment than yinson based on higher margin of safety loh....!!

Posted by 3iii > Jul 4, 2019 11:34 AM | Report Abuse

There is no argument that Yinson is a better company than Armada in the same sector.

Yinson enjoys a higher gross margin, operating margin, pretax margin and net margin than poorly managed Armada. Its returns on capital too are higher than those from Armada.

In terms of liquidity, Yinson is also much better. Its risk of defaulting on any loans should be low, given its interest coverage of 2.69. The bankers must be having sleepless nights with Armada where its interest coverage is only 0.97. Current ratio of Armada is 0.3 and its continuation as an ongoing concern is very much dependent on the generosity and kindness of the bankers. As a businessman, you do not wish to be in this unfortunate situation, but this is fact.

As for the quality of management, Yinson's management is definitely more superior than those of Armada. Well, we can infer this from their business profitability. The profit margins of Yinson are so much higher than those of Armada. As very simple comparison, gross profit margin of Armada is only about 20% while those of Yinson is 54.83%.

The recent multiple impairment charges taken by Armada are red flags which "investors' of Armada should take note of. Don't be misled by the SPIN put into this by icon8888. Impairment charges hide a lot of rubbish of the past. It also is a sore thumb that the management has overpaid for many acquisitions in the past that have not delivered. Your money or cash from the company had been spend unwisely. Beware of institutional imperative.

From the above two paragraphs, the management of Armada is sub-par to that of Yinson.

There should be no argument that in terms of:

Quality of business: Yinson is better than Armada
Quality of management: Yinson is beter than Armada

Ah, so, what is the discussion in this thread? It has to do with ....


(Icon) Bumi Armada - A Not So Good Company Selling At Cheap Price Can Be A Good Buy

Yinson

Profitability
Gross Margin +54.83
Operating Margin +48.21
Pretax Margin +31.99
Net Margin +22.70
Return on Assets 3.23
Return on Equity 12.54
Return on Total Capital 8.04
Return on Invested Capital 4.14

Capital Structure
Total Debt to Total Equity 270.74
Total Debt to Total Capital 73.03
Total Debt to Total Assets 58.46
Interest Coverage 2.69
Long-Term Debt to Equity 247.75
Long-Term Debt to Total Capital 66.82
Long-Term Debt to Assets 0.53


P/B 2.57x

Bumi Armada

Profitability
Gross Margin +27.62
Operating Margin +20.77
Pretax Margin -94.96
Net Margin -95.21
Return on Assets -13.39
Return on Equity -51.98
Return on Total Capital 3.26
Return on Invested Capital -25.30

Capital Structure
Total Debt to Total Equity 308.81
Total Debt to Total Capital 75.54
Total Debt to Total Assets 66.78
Interest Coverage 0.97
Long-Term Debt to Equity 98.63
Long-Term Debt to Total Capital 24.13
Long-Term Debt to Assets 0.21

P/B 0.27

Posted by stockraider > Jul 4, 2019 11:42 AM | Report Abuse X

Why valuation leh ??

To prevent Mr Market taking advantage of u mah ???

U should buy when Mr Market is pessimistic & selling like in the case of armada & not chasing overvalue yinson loh..!

Posted by stockraider > 2019-09-15 12:34 |

Post removed.Why?

Posted by stockraider > 2019-09-15 12:39 | Report Abuse

Moving forward, let's continue to monitor what mikekim said. He's our CFO in this Forum since he is not only Financial Savy, he also reads alot....

@mikekim Next up in focus: Armada Claire.

According to AmInvest:

"The group’s other idle Armada Claire, currently laid up in Batam, is being evaluated for a fresh charter for deployment as well as potential disposal."

Claire is a big one. Redeploy / sell this, we can get 35-40 cents.
Win the US$285m compensation, 50 cents and above.

I reiterate - do not fail to see the big picture. The company is definitely turning around.
The new CEO is a lot more hands on:

1) Went on Kraken to oversee and enforce improvements

2) Restructured most debt to LT

3) Sold idle Perdana FPSO

4) Sold 5-6 idle OSV, deployed other OSVs for new contracts in Malaysia, increase utilization from 39% to 51%

5) Secured ONGC FPSO new contract award

6) FPSO Olombendo's expected contract expansion

He also went on record to state that 2H 2019 will be much better. We'll see.

Posted by stockraider > 2019-09-15 12:41 | Report Abuse

REMEMBER ARMADA IS EVEN BETTER THAN YINSON MAH, IF YINSON CAN DO IT SURELY ARMADA CAN LOH....!!

Posted by stockraider > Sep 8, 2019 11:18 PM | Report Abuse X

LETS BE HONEST LOH....!!

DO U THINK HONESTLY YINSON AT RM 6.78 AND QL RM 6.90 TODAY, CAN BE A 10 BAGGERS AH ??

ARMADA DIFFERENT LOH....IT HAS THE ATTRIBUTES OF 1O BAGGERS AT CURRENT PRICE RM 0.26 PER SHARE MAH...!!

WHY LEH ??

Posted by stockraider > Sep 8, 2019 10:24 AM | Report Abuse X

Very simple answer the fact is armada is better & has beaten yinson in terms of earnings in the past consecutive latest qtr mah...!!

ARMADA IS CURRENTLY MORE PROFITABLE COMPARE WITH YINSON MAH....!!

TO TELL U THE PROSPECT OF ARMADA COMPARE WITH YINSON, U SEE THE FOLLOWING LOH...!!

30-6-2019

ARMADA PAT RM 78.2M
YINSON PAT RM 49.9M

31-3-2019

ARMADA PAT RM 62.2M
YINSON PAT RM 60.7M


Posted by (HK1997 again) Philip > Sep 8, 2019 8:35 PM | Report Abuse

Do you even have the patience to wait for ten baggers? With your track record, I think you already mati pucuk sell before the business growth shows itself.

I bought yinson from rm1.15 to today and enjoy multiple growth in business, you on the other hand like to buy rumors and speculations like your bjland which dropped to 20 cents after your incessant promotion.BTW RAIDER PROMOTION OF BLAND AT RM 0.15 TO RM 0.155 MAH...!!

Who is the one cheating forum investors?

Posted by stockraider > 2019-09-15 12:44 | Report Abuse

Posted by Mabel > Sep 9, 2019 9:33 PM | Report Abuse

Absolutely ming...

Whether you like it or not, Armada improvements certainly cannot be ignored. This is my observation for the last 9 months:

1. Great Global presence
2. Improve management
3. Huge growth potential (I can’t emphasize this enough)
4. Profitable with fantastic results on two consecutive quarters
5. PE is still low even at current profit levels

Since we want to compare Apple to Apple, I like to borrow what stockraiders shares:

(Quote)

Armada a truly quality company and about same standard as Yinson loh !

1. It achieved the latest same qtr profit as yinson.
2. It has slightly lesser gearing compare to yinson
3. It has more FPSO than Yinson (this explained the concern Roger has)
4. Armada revenue is twice of yinson.
5 Armada equity is twice of yinson.

MOST IMPORTANT INVESTMENT PREPOSITION: ARMADA is 7 times cheaper than yinson.

(UnQuote)

Please, if anyone have a counter that fulfills all the above criteria, please let me know. I’ll make sure I put a % of it in my portfolio.

Posted by stockraider > 2019-09-15 12:45 | Report Abuse

ON THE POSITIVE SIDE AT LEAST U CAN SEE ARMADA GOT CAPACITY & OPPORTUNITY TO APPRECIATE 4X OR 4 BAGGERS FROM RM 0.255 TO AT LEAST RM 1.00 MAH....!!

ON THE OTHER HAND YINSON ALREADY FULLY VALUE AT RM 6.75 LOH...!!

DESPITE THE FLAWS U HAVE HIGHLIGHTED DON FORGET ARMADA IS CURRENTLY MORE PROFITABLE THAN YINSON MAH....!!

ARMADA IS CURRENTLY MORE PROFITABLE COMPARE WITH YINSON MAH....!!

TO TELL U THE PROSPECT OF ARMADA COMPARE WITH YINSON, U SEE THE FOLLOWING LOH...!!

30-6-2019

ARMADA PAT RM 78.2M
YINSON PAT RM 49.9M

31-3-2019

ARMADA PAT RM 62.2M
YINSON PAT RM 60.7M


Posted by Robert Waters > Sep 9, 2019 7:21 PM | Report Abuse

I have both Yinson and Armada in my portfolio for 5 years.

Yinson has no idle assets.
Is not selling anything at 10% per dollar spent.
Yinson buought new vessel.
They do not have any court cases. Bankrupt clients.

BA has:
4 out of 7 FPSO idle or not profitable
Selling assets rather than using
Taking two clients to courts
Technical problems (Kraken) where BA pays clients.

Consequence
yinson growth by 100%
BA lost 75% and I am at 25% of my investment

So do not accept some analyst telling me about liquidity, monetizing, gain... etc.

I lost 75% and analyst tells me some gain mumbo jumbo???
Where is my gain if 3/4 of my money is lost?

In the end both companies work in same field of business.

I worry that BA will continue like this in the future, then all of us will be burnt. This company has been here for 20 years and they have a mode of operation. Same people.

Posted by stockraider > 2019-09-15 12:48 | Report Abuse

People already discount the risk of armada thats why it is rm 0.26 and not rm 2.60 like in the case of similiar valuation like yinson mah...!!

But do remember the downside risk of armada will be low but the upside of armada will be damn high loh....!!

It is a paradise now for armada, u can make alot of monies just dumb dumb buy hold cheap cheap strategy mah...!!

Don waste time with idss very risky loh....u r just gambling....just invest in armada when there is huge margin of safety n with strong earnings recovery loh....!!

Posted by ckca > Sep 7, 2019 4:52 PM | Report Abuse

Stockraider and his Yinson and Armada again. Has Yinson defaulted his loan repayment yet ? Armada has already "defaulted" its loan repayment,

PN1 was supposed to be placed on Armada face.. Armada was just saved last minute when they manage to beg the banks to DELAY the repayment. Remember it is DELAYED and not payment okay. PN1 will be coming again, all of you know how dangerous when a company is hit by PN1, seldom they will ever recover... when you have RM11 billion debt, you can forget about recovering if hit by PN1. Because when hit by PN1 nobody dares to deal with you, every single creditor will go after you, every debtor will try to delay payment to you because waiting for you to collapse. Maybe thats why they sell off perdana because they know nobody will lease from them.

If Yinson also go hit by something like Armada ( cant do bank repayment ), it will join Armada at the bottom also, so dont be so confident using your Yinson as a bait. Yinson has potential to join Armada club. If you like to compare Yinson and Armada ( same business ) why not also say both of them join the Perisai club.

These people are just trying to lure newbies to buy to push up the share price so that they can sell and run. Otherwise they will not be spending so much time luring people into it. Want to profit from newbies just admit it lah. IDSS already admit and made it very clear, IDSS want share price to fall. IDSS can profit from it because the company is in deep trouble, share price will surely drop. If company is doing well, nobody will dare to play IDSS with it.

If you are afraid IDSS is the cause of share price drop, then better sell and buy back cheaper. But I think that is not your worry, your worry is like everyone else, Armada has RM11.5 billion debt and are unable to pay. Selling one FPSO is not enough, selling ALL FPSO is also not enough. How they get into debt is not IDSS fault, its their own fault. You want your money ( investment ) to be handled by people who get themselves stuck in the forever grownig RM11500 million debt ?

Posted by stockraider > 2019-09-15 12:50 | Report Abuse

Most importantly do not missed this 10 baggers opportunity, very hard to find mah.....!!

Posted by stockraider > Sep 8, 2019 10:24 AM | Report Abuse X

Very simple answer the fact is armada is better & has beaten yinson in terms of earnings in the past consecutive latest qtr mah...!!

ARMADA IS CURRENTLY MORE PROFITABLE COMPARE WITH YINSON MAH....!!

TO TELL U THE PROSPECT OF ARMADA COMPARE WITH YINSON, U SEE THE FOLLOWING LOH...!!

30-6-2019

ARMADA PAT RM 78.2M
YINSON PAT RM 49.9M

31-3-2019

ARMADA PAT RM 62.2M
YINSON PAT RM 60.7M

U will notice that Armada profit has exceeded yinson for the past 2 latest qtr loh.....!! Armada will be a big fish again soon mah..!

NOW DID ARMADA DEFAULT ? THE ANSWER IS NO LOH...!!
ARMADA HAS NEVER BEEN PN 17 MAH....!!
YES ARMADA DID THREATEN to DEFAULT, IF THE BANKS INSIST ON RECALLING THEIR LOANS LOH..!! IT JUST A NEGOTIATION TACTICS MAH....SINCE AT THAT TIME ARMADA OWE MORE THAN RM 13 BILLIONS MAH, AND ARMADA HAS NOT MISSED OUT IN ANY LOAN INSTALMENT PAYMENT JUST LIKE WHAT YINSON HAS BEEN PAYING ITS INSTALMENT CONTRACTUALLY LOH...!!

Armada did that to bring the banks to their financial senses loh...if they simply recalled and do not refinance their loan of few billions there are dire consequence for both the banks and armada to suffer loh..!!

Furthermore the huge impairment losses has no bearing on the operating cashflow of armada mah, in fact the operating cashflow is even better than yinson mah...!!

The fact is all has end well...Armada did pay down at least Rm 3 billion of loans eventually, the bank agree to extend and eventually to refinance their loans and lately kraken issue has been positively solve.

That means u are looking armada should value close to Yinson matrix that is Rm 2.60 and not Rm 0.26 loh...!! Armada will shine again & great profit opportunity of 10x bagger mah...!!

Now if u look at yinson, if the same happen,banks recalled a few billion loans, the samething will happen like armada too....but yinson risk bankrupt bcos financial muscle less strong n armada has proven it can survive loh...!!


Posted by (HK1997 again) Philip > Sep 8, 2019 7:07 AM | Report Abuse

Very simple answer to why yinson is valued so much higher than armada.

1. Has yinson defaulted on their perpetual loan? Is armada in default of its loan? Is it able to pay back the loan by November or MUST negotiate? When a company is forced to do things, that is when banks know they have them by the balls and can squeeze out any contractual agreement.

2. Why did armada default? Could it be the interest repayments are too high? Could it be the jobs they win are not enough to even pay back the interest repayments?

3. For armada to be a big fish soon they need to settle the 11.5 billion debt into manageable profitable business. Is this even doable with the current market environment?

4. You want to think that armada is yinson up to you, buy don't go around saying that yinson is worse than armada. It just make you look cheap and bad.

How about your sapura rm3 in 3 years 3 months? No more singing the same song?

How about INSAS rm0.9 by August 31? Failed attempt also? Now push to rm1 in February? Or become July?

Or how about your hengyuan intrinsic value margin safety rm35? How many kids you have to tell before we know what kind of investor you are?

Face the facts myvi boy, you throw numbers around like they mean something, but you have zero credibility.

Posted by stockraider > 2019-09-15 12:51 |

Post removed.Why?

Posted by PunTatBerSiul > 2019-09-15 12:55 |

Post removed.Why?

Posted by stockraider > 2019-09-15 12:55 |

Post removed.Why?

Posted by stockraider > 2019-09-15 12:56 | Report Abuse

Posted by stockraider > Sep 7, 2019 11:16 AM | Report Abuse X

CORRECTLOH...U NEED SOME LEADERSHIP AND SOME CONTRAIAN ATTRIBUTE TO STEP OUT AND BE COUNTED AND A MAKE A DECISION TO SPOT THE CHANGE OF COURSE WHERE NO OTHERS DARE TO SEE MAH....!!

THAT HOW U STANDOUT AS 20% OF THE CROWD THAT MAKES MONIES LOH...!!

Posted by calvintaneng > Sep 7, 2019 11:09 AM | Report Abuse

The reason why 80% of active share market players eventually lose money is due to fear and greed syndrome

There is the crowd psychology called "group sentiment or herd sentiment or as the Great Guru John Maynard Keynes called it" animal spirits "

Human nature being what it is will think together. There is the comfort zone of popular consensus. We seek approval and endorsement to our views from one another

Take IBs(investment banks) for example
If one IB gave a bad downgrade for Uzma another 2 more will be embolden to join in and even more brazen to give a lower forecast

So one say Uzma is worth 61 sen and another even dropped the price to 57 sen.
By popular mental consensus people even sold down Uzma to 55 sen.

Group feel and herd mentality caused "group think and group perception" perception that is now distorted by the crowd

NO more individual view and no more independent thinking

To say the contrary is like a sore thumb sticking out and be called a fool?

NO IB banker wants to be the odd one out. Stay in the comfort zone of popular group think.

AND so fatal for all newbie and even seasoned players who swallowed all the lies.... Hook, line and sinker

In the end of end game more than 80% who followed popular forecasts will eventually lose money

Posted by stockraider > 2019-09-15 12:57 | Report Abuse

Posted by mikekim > Sep 6, 2019 7:43 PM | Report Abuse

The reality here is that Bumi Armada has 2 options:

1) Sell the Armada Perdana vessel that has been fully written down, get US$40m real cash that can be used to fund the ONGC contract.

2) Hold on to the Armada Perdana vessel, hoping that it an be redeployed (after sitting idle for 2 years) on another project, after incurring the required capex to modify the vessel to suit the new oil field, while incuring substantial maintenance opex for the idle vessel with no cashflow until (potential) redeployment.

Note that an FPSO vessel is a very complex vessel, purpose-built for a specific oil field and cannot be easily substituted or redeployed. It's not as easy as substituting a Toyota with a Honda or Mazda. FPSO Perdana has been sitting idle for years, burning cash for maintenance with no revenue and redeployment opportunity in sight.

Arguably you can say that why didn't Armada push to redeploy Perdana to the other oil field in Nigeria that CESL is planning to do. Again, there are risks involved. CESL firstly has proven to be a client with no credibility, having defaulted payments many times in the past. Does Armada still want to get in bed with CESL on another new oil field, incur substantial capex for modification of the FPSO vessel (instead of getting money back), and run the risk of being screwed by CESL again in the long term? Considering all these, I think not.

So I think the BA team made the excellence choice. Good work.

Posted by stockraider > 2019-09-15 13:00 | Report Abuse

When u feel angry that is 2 yrs ago, that time armada was rm 0.80 mah...!!

Now u should feel happy bcos it is rm 0.26, u can take revenge n the company turning around mah.....!!

Btw the FPSO is sold for Rm 200m & not zero value like what u mentioned loh....!!

Posted by Robert Waters > Sep 6, 2019 9:07 PM | Report Abuse

The more I think about it ... the more angry I become.
Company has an asset for 2 years. They spent money on it and get nothing.
Asset sits in an production area.

Another company is willing to pay 5 million and put it to production.
THEY ARE WILLING TO PAY RM 200M OF WHICH THERE IS A RM 20M PROFIT FOR ARMADA LOH...!!

Why BA could not put it to production? They have 2000 employees.
50 service vessels sitting idle that could be used to tow it and put to work somewhere else. YES ARMADA HAS THE OPERATIONS ASSETS BUT THEY DO NOT HAVE THE FPSO ORDERS LOH...!! USUALLY THE OWNER OF OILFIELD WILL DECIDE WHICH FPSO OPERATOR TO SIGN UP MAH..!!

Why nigerians can do what BA cannot? THE CONTRACT IS OWN BY THE NIGERIA & NOT ARMADA MAH....!!

This company is in a business of fixing vessels and putting them to work to take oil and gas. Yet I hear that they have done good by write down, write back, impairment this, profit that. Get mortgage on vessel. Multiply selling price by P/E and get profit per share? THE WRITE DOWN IS DUE IDLE ASSETS, WHICH HAS NO INCOME MAH....!!

They have NOT connected FPSO to well to produce hydrocarbon which is their business; and they left it to Nigerians their own core business for promise of money from them. This is not encouraging. U NEED TO UNDERSTAND OWNING OILFIELD IS A DIFFERENT BALL GAMES, ARMADA KNOW HOW TO OPERATE FPSO BUT THEY DO NOT OWN OILFIELD LOH....!!


Posted by stockraider > Sep 6, 2019 9:41 PM | Report Abuse X

WHY THIS IS A VERY GOOD DEAL FOR ARMADA LEH ??

IF THIS FPSO IS NOT SOLD ARMADA IS EXPECTED TO INCURRED A LOSS OF RM 50M PA ON THIS IDLE FPSO LOH...!!

NOW THEY HAVE SOLD IT FOR RM 20M PROFIT, NET NET....ARMADA MAKES RM 70M (RM 50M PLUS RM 20M PROFIT FROM DISPOSAL}

THIS IS A SHARP TURNAROUND IN INCREASE OF PROFITABILITY GOING FWD FOR ARMADA LOH....!!


Posted by stockraider > Sep 6, 2019 9:47 PM | Report Abuse X

LOOKING AT ARMADA NTA PER SHARE OF RM 0.57 WITH ALL THE BALANCE SHEET CONTROVERSY BEING CLEARED OR BEING CLEANED ......THE VALUE OF RM 0.57 APPEARED CONSERVATIVE LOH.....!!

THIS MEANS ARMADA SHORT TERM TP OF RM 0.60 IS VERY REASONABLE MAH...!!

IF U BOUGHT INTO ARMADA AT RM 0.26, YOUR SHORT TERM PROFIT POTENTIAL MAY DOUBLE TO THE HIGH TP OF RM 0.60 PER SHARE LOH...!!

Posted by stockraider > 2019-09-15 13:00 | Report Abuse

Posted by stockraider > Sep 6, 2019 9:56 PM | Report Abuse X

Oil & Gas Sector - Rising asset utilization heralds a new dawn
Author: AmInvest | Publish date: Fri, 6 Sep 2019, 9:19 AM

Investment Highlights
Largely in line with 2Q2019 expectations. The results of the companies under our coverage were within expectations as out of 8 companies under our coverage, 6 was in line with expectations. Velesto Energy outperformed, rebounding to a surprisingly strong 2QFY19 net profit from a rig utilization of only 74%. However, Sapura Energy disappointed notwithstanding a much lower loss stemming from minimal early-cycle fabrication margins derived from the huge central processing platform jobs for Sarawak’s Pegaga and India’s KG-DWN 98/2 NELP blocks amid a crude oil price decline.

Core net profit surged 79% QoQ to RM1.2bil largely due to Sapura Energy’s absence of cost provisions for its marine assets which slashed its losses by 79% QoQ. The sector’s 2Q2019 EBITDA margin rose 5ppts QoQ to 39.9% with flattish revenue QoQ at RM7.7bil as higher contributions from Sapura Energy, Serba Dinamik and Bumi Armada were offset by declines from Dialog Group, MISC and Yinson (see Exhibit 3).

Higher asset utilization is finally moving charter rates. After 4 years of low charter rates, recovery in asset utilisation has begun to drive up charter rates for rigs and vessels in tandem with rising offshore activities. Rig charter rates are beginning to track upwards on tightening utilization rates to near 70% while older rigs are being retired amid slowing new units from China yards. In the North Sea, Borr Drilling recently secured rig charter rates above US$100K vs. US$70kK currently in Malaysia. MISC, which is looking at a vastly improved pipeline of potential investments over US$4bil, has indicated that charter enquiries have dramatically escalated over the past 2 months for the offshore, LNG and shuttle tanker segments following project scarcities in 1H2019.

Malaysia’s 2Q2019 contract awards rebounded 2.1x QoQ and 59% YoY to RM4bil following a lull in 1Q2019 and driven by multiple awards to Sapura Energy while Bumi Armada secured a 30% stake in ONGC’s KG-DWN 98/2 FPSO charte

Posted by stockraider > 2019-09-15 13:03 | Report Abuse

Top Key Players:

BP, Petronas, Chevron, ExxonMobil, Shell, Petrobras, Bumi Armada Berhad, SBM Offshore, BW Offshore, MODEC, Bluewater Energy Services B.V., Aker Solutions ASA, Yinson Holdings Berhad, Teekay Corporation, among others.

Armada Value Proposition

1. A Top 5 FPSO operator in the world by fleet size. Operating presence in Asia, Africa and Europe. T&I and OSV (lossmaking) are complementary businesses.
2. Unlike OSV and T&I operations, FPSO’s contracts are more bankable, providing steady visibility (long-term charters, termination protection) with reasonable project IRRs.
3. FPSOs tender pipeline is strong. Winning a job is a catalyst.

Latest Valuation for Armada

Operations (MMYR) Details
- TGT1 (Vietnam) 835, NPV (6-year extension), 5.6% WACC
- D1 (India) - 50% 266 NPV (firm); 5.6% WACC
- C7 (India) - 50% 266 NPV (firm); 5.6% WACC
- Kraken - 100% 1,470 NPV (firm); 7.0% WACC
- Olombendo - 100% 4,831 NPV (firm); 5.8% WACC
- Madura (Indonesia) - 50% 385 NPV (firm); 5.8% WACC
- Malta FSU 609 NPV (firm); 5.8% WACC
- Kakinada – 30% 486 NPV (firm); 7.0% WACC

FPSO 9,146,000,000

I agreed with cheemeng79 based on today's movements between 0.26 to 0.255, I really wonder how IDSS can make money. Come and join us la. Armada is a a sure thing...

Mid Term TP : 0.40
Lomg term TP: 4.55

Let all HUAT Together !

Posted by Icon8888 > 2019-09-15 13:03 | Report Abuse

I don't buy based on Low PBR either

Gruesome or not gruesome

Posted by stockraider > 2019-09-15 13:05 | Report Abuse

Posted by mikekim > Sep 5, 2019 8:24 PM | Report Abuse

What hidden motive are you talking about?

People or promoters who bought the shares, definitely believes that it’s going to go up, hence they share their views on why it’s going up. What’s so hidden about this?

IDSS players sell shares that they don’t have by borrowing it from brokers in the morning, and they believe the shares will go down, and share their views on why it’s going down, so they can cover their position end of day and make a profit.

The key point here is there’s no good or bad on both side. Just opposing views and opposing motives. You are posting here supposedly as an IDSS player not because you’re so altruistic and wants “ikan bilis” not to lose money. By calling other people “ikan bilis” in the first place is already derogatory and shows how much you really don’t care about them, so why pretend to be the “good guy”? Your motive is just to hope that the share price will go down and profit from it, simple as that, how’s that any different from the motives of “promoters” who want it to go up and profit? No one is saying that the promoters are altruistic, I hold Armada’s shares and I’ve been posting why I think it’s good since @0.215 and encouraged people to buy it, and I’m still holding it because I believe so. Of course I have vested interest because I’m in a long position, but at least I don’t pretend to be “good” and altruistic and take the high horse.

So really, no need to pretend to be “good”. We all just want to make money, and we all have our own motives.
There is no moral high ground or low ground.

Just read through the facts and fundamentals and everyone here will make their own call.

Posted by stockraider > 2019-09-15 13:07 |

Post removed.Why?

Posted by stockraider > 2019-09-15 13:10 | Report Abuse

There is no bad intention at all mah....!!

It is genuine profit opportunity to buy armada bcos the price is low with huge margin of safety mah....!!

Remember Armada use to trade above Rm 4.50 b4 & at current price of rm 0.26 it is huge profit opportunty loh...!!

With recovery of earnings there are more appreciation coming mah.....!!

Armada could be a potential 10 bagger stock loh...!!

Posted by ckca > Sep 5, 2019 6:17 PM | Report Abuse

it is very clear the promoters have bad intention, all they want is you buy high, they reap the profits because they already bought much earlire at lower price. The IDSS are the good guys, we do not encourage you to pay higher price for the shares, we encourage you to buy at lower price ( if you love the share so much ).

FOR EXAMPLE... sell at 26sen, buy back at 13 sen, your cost will cut by half, you still have your Armada ( if you like it so much ). Why want to keep at 26 sen and let drop all the way down to 13 sen and your see your money reduce by half still have the same number of your favourite Armada share.?

Best is dont buy at all, wait for 13sen only buy ( that is if you like Armada so much also )

Posted by stockraider > 2019-09-15 13:13 | Report Abuse

Epf will want to buy back alot more armada....bcos they have sold at much higher price b4....now is time to accumulate big while cheap loh..!!

Posted by RJ87 > Sep 5, 2019 11:24 AM | Report Abuse

Later EPF sapu, PNB sapu...

U see ckca in news paper hanging from the fan...!



Posted by ckca > Sep 5, 2019 11:26 AM | Report Abuse

RJ87 Later EPF sapu, PNB sapu...
~
U see ckca in news paper hanging from the fan...!

05/09/2019 11:24 AM

no more buying from them already lah, they buy before the announcement and thats it. Finish buying... if they buy vol less than 200K ah

Posted by stockraider > 2019-09-15 13:13 | Report Abuse

Right approach loh...!!

REMEMBER THIS....!!
In successful investment u always try to make big big but lose small small loh....and armada is a stock u can make very big mah...!!

Time to accumulate big when u have opportunity loh...!!

Posted by No right Nor wrong Only to Win > Sep 5, 2019 11:32 AM | Report Abuse

Puzzle me
When a turnover stock
Reverse for better & stronger

Many only want to earn peanuts
Shud cherrish this golden opportunity

Armada ship will send you ship by ship from the gold mine.

Posted by stockraider > 2019-09-15 13:15 | Report Abuse

In armada case u buy rm 0.20 asset to make rm 1.00 mah...!!

Not make rm 0.20 lah....!!

Make big big loh...!!

Posted by RJ87 > Sep 5, 2019 10:58 AM | Report Abuse

In this game, u buy RM1 asset to make RM1.2. All u care about is the 20sen. What happens to RM1 asset at the end don’t matter. Sell scrap metal is a bonus.

Can understand?

Posted by stockraider > 2019-09-15 13:17 | Report Abuse

Posted by Mabel > Sep 5, 2019 10:17 AM | Report Abuse

Aiyaa...why stress your selves so much ...Listen what the femes John Chew said" Relax, hisap curut dulu"...:)

Let's listen what the experts said...."If Yinson can do it, so can Armada..."

Mid Term: 0.40
Long Term:4.55

----------

Extract from Edge that was published earlier...

Yinson Holdings Bhd, a company whose mainstay is floating production storage and offloading (FPSO) vessels that are used for the production and processing of hydrocarbons, and for storing oil.

Yinson has five FPSOs operating in Malaysia, Ghana, Nigeria and Vietnam and one floating storage and offloading (FSO) vessel with a locked-in charter in Vietnam, other than a few offshore support vessels that are not very significant.

“Yinson is leveraged to capitalise on FPSO contracts,” In a June report, he highlights that demand for FPSOs would be exceptional this year with as many as 19 new jobs with capex of US$17 billion up for grabs for eight of the world’s largest FPSO operators, including Yinson.

In its first financial quarter ended April 30, Yinson registered a net profit of RM49.85 million (down 17.51% year on year) on revenue of RM209 million (down 11.13% year on year).

A “buy” call on Yinson and a 12-month target price of RM9.45 on the stock. This is at a 41.25% premium to the stock’s close of RM6.69 last Thursday.

Another “buy” on FPSO owner and operator Bumi Armada Bhd, “Wait for the upcoming quarters, things will pick up at Kraken,”

To recap, Bumi Armada, which is 34.89%-controlled by businessman T Ananda Krishnan, was awarded a contract by oil company EnQuest to supply and operate the Armada Kraken FPSO in the East Shetland basin, which is about 400km northeast of Aberdeen.

Armada Kraken arrived on location in February 2017 and first oil was achieved in June that year. However, there have been disputes, which have resulted in massive impairments at Bumi Armada.

Bumi Armada Bhd posted a net profit of RM78.21 million in the second quarter ended June 30, 2019 compared to a whopping net loss of RM585.48 million in the year-ago quarter, on the back of higher contributions from Armada Kraken FPSO and Armada Olombendo FPSO.

In a filing today, Bumi Armada said revenue for the quarter dipped to RM535.64 million from RM654.04 million a year earlier, due mainly to decrease in revenue from its offshore marine services (OMS) segment. Earnings per share stood at 1.33 sen versus loss per share of 9.97 sen previously.

For the six months ended June 30, 2019, Bumi Armada a posted net profit of RM140.42 million versus net loss of RM537.06 million in the year-ago period, while revenue was lower at RM1.03 billion against RM1.25 billion previously.

In a separate statement, Bumi Armada executive director and chief executive officer Gary Christenson said during the second quarter, there was a noticeable improvement in the performance of Armada Kraken FPSO, which helped the overall FPO revenue.

"The OMS business saw a noticeable improvement in the OSV (offshore support vessels) fleet utilisation, mainly due to higher demand in Malaysia. The SC (subsea construction) vessels in the Caspian Sea, however, continue to seek new contracts.

"Over the rest of 2019, the group will continue to focus on the initiatives highlighted previously, namely safety, operational performance improvements and various financial efficiencies, including selective asset disposals," he said.

At the midday break, Bumi Armada shares were 9.09% or 2 sen higher at 24 sen, for a market capitalisation of RM1.4 billion.

As our Financial Expert Mikekim said, " Time to go back to 2 Billion Market Cap. "

Posted by Sslee > 2019-09-15 13:47 | Report Abuse

Dear all,
I often see 3iii and stockraider arguing for the sake of arguing non-stop for over a decade.

Both have their valid point but also their blind spot.
3iii keep arguing buying quality stock but refuse to answer when to sell quality stocks? Should it be PE 30X, 40X, 50X or 100X?
And by what measurement he defined gruesome companies? Is turn-around companies gruesome companies? Is Insas a gruesome company or whatever not to the liking of 3iii is called gruesome companies especially the one promoted by stockraider?

https://www.investopedia.com/articles/stocks/10/when-to-sell-stocks.asp
When to Sell a Stock
Sell for Valuation
This is a difficult decision, part art, and part science.
The value of any share of stock ultimately rests on the present value of the company's future cash flows. The valuation will always carry a degree of imprecision because the future is uncertain. This is why value investors rely heavily on the margin of safety concept in investing. Another more reasonable selling tool is to sell when a company's P/E ratio significantly exceeds its average P/E ratio over the past five or 10 years.

On the other hand stockraider will argue buying at the low enough price with margin of safety is a sure win formula and of cause he will give a sky high TP and later will tell you, you are sohai and greedy if you do not know how to cut win?

So please take both of their arguement with a pinch of salt. You much develop you own system/strategy to survive and prosper in stock market.
https://klse.i3investor.com/blogs/kianweiaritcles/224940.jsp

Thank you
P/S: 3iii and stockraider is equivalent to American animated series “Tom and Jerry” they will argue for another few more decades.

Posted by stockraider > 2019-09-15 17:15 |

Post removed.Why?

Posted by stockraider > 2019-09-15 17:34 | Report Abuse

WHY U REALLY NEED TO CHASE ARMADA WHO HAS RISEN ABOVE RM 0.30 VERY FAST LOH....!!

JUST IMAGINE IF U HAVE BOUGHT INTO ARMADA AT RM 0.80 TO RM 1.00 WHEN THE SHARE PRICE HAD BEEN CRASHING CRASHING TO RM 0.16 FOR A LONGTIME.!!

U FEEL VERY SORRY FOR YOUR FAMILY ESPECIALLY THE FUND FOR CHILDREN FUTURE EDUCATION HAD BEEN SUBSTANTIALLY DEPLETED BCOS U LOH...!!

U WAITED AND WATCHED THE SHARE MKT ESPECIALLY ARMADA DON KNOW WHAT TO DO LOH.....!! BCOS U NO LONGER TO AFFORD THE PAIN OF FURTHER LOSING MAH..!!

THEN SUDDENLY RAINBOW APPEAR...ARMADA SHOOT UP FROM RM 0.22 TO ABOVE RM 0.305 ARE U GOING TO WATCH ANY FURTHER LEH ??

NO LOH...!! U SHOULD PUT YOUR MONIES TO WORK right a way & THIS IS WHY LOH ??

Armada have the following good news & catalyst and its share price will keep shooting upwards on sustain basis loh...!!

1. Armada equity and contract on hand much bigger than yinson.

2. Armada latest to qtr earnings has exceeded yinson. With its last qtr earnings exceeded yinson profit 2x.

3. Armada borrowing has been reduced by 1 billion & coming down further.

4. The new ceo has initiated alot of wealth creation initiative.

5. Most importantly armada share price already breakout from rm 0.30 resistance and expected the momentum to carry it higher loh...!!

6. EPF has been regularly buying armada recently with large quantities.


Yes u will see better days for Armada, just hang tight loh...!!

Posted by stockraider > Sep 15, 2019 11:45 AM | Report Abuse X

1.Saudi issue add Extra boost for armada....which already riding on string of extremelly bullish news mah...!!

2. technically the share price very bullish as it just broke the resistance rm 0.30 loh...!!

Posted by 3iii > 2019-09-15 19:37 |

Post removed.Why?

Posted by stockraider > 2019-09-15 19:40 |

Post removed.Why?

Posted by 3iii > 2019-09-15 20:01 |

Post removed.Why?

Posted by stockraider > 2019-09-15 20:01 | Report Abuse

When 1st icon promoted armada it was around rm 0.205! U KNOW WHAT HAPPEN ??
As usual 3iii tell people in i3, it was a gruesome CO & the consequence lost of profit making opportunity for investor to make a return of 50% in just a period of 2 mths loh....!!

Quality company if it is overvalue is a bad investment loh...!!

Gruesome company is investable, when it is extremely undervalue with huge margin of safety, it can be a great investment mah..!!

The concept is to take advantage of Mr market with your concept of value and valuation v mkt price loh...!!

AN EXAMPLE OF GREAT INVESTMENT WHERE 3iii call it GRUESOME loh...!!

Armada have the following good news & catalyst and its share price will keep shooting upwards on sustain basis loh...!!

1. Armada equity and contract on hand much bigger than yinson.

2. Armada latest to qtr earnings has exceeded yinson. With its last qtr earnings exceeded yinson profit 2x.

3. Armada borrowing has been reduced by 1 billion & coming down further.

4. The new ceo has initiated alot of wealth creation initiative.

5. Most importantly armada share price already breakout from rm 0.30 resistance and expected the momentum to carry it higher loh...!!

6. EPF has been regularly buying armada recently with large quantities.

Yes u will see better days for Armada, just hang tight loh...!!

Posted by stockraider > Sep 15, 2019 11:45 AM | Report Abuse X

Saudi issue add Extra boost for armada....which already riding on string of extremelly bullish news mah...!!

Technically armada share price already breakout with a strong upside loh...!!

Posted by 3iii > 2019-09-15 20:04 |

Post removed.Why?

Posted by freddiehero > 2019-09-15 20:06 | Report Abuse

yes.. the point in ti break 0.30

Posted by stockraider > 2019-09-15 20:07 | Report Abuse

Remember a better company does not mean a better investment loh...!!

In stockmarket we have handicaps call under valuation loh....!!

Posted by freddiehero > 2019-09-15 20:07 | Report Abuse

and now armada rili done to break..

Posted by 3iii > 2019-09-15 20:07 |

Post removed.Why?

Posted by stockraider > 2019-09-15 20:11 | Report Abuse

SPOTTING A NAPSHOT STOCK B4 EMERGING INTO A POTENTIAL BULL RUN LOH.!

Posted by Mabel > Sep 9, 2019 9:33 PM | Report Abuse

Absolutely ming...

Whether you like it or not, Armada improvements certainly cannot be ignored. This is my observation for the last 9 months:

1. Great Global presence
2. Improve management
3. Huge growth potential (I can’t emphasize this enough)
4. Profitable with fantastic results on two consecutive quarters
5. PE is still low even at current profit levels

Since we want to compare Apple to Apple, I like to borrow what stockraiders shares:

(Quote)

Armada a truly quality company and about same standard as Yinson loh !

1. It achieved the latest same qtr profit as yinson.
2. It has slightly lesser gearing compare to yinson
3. It has more FPSO than Yinson (this explained the concern Roger has)
4. Armada revenue is twice of yinson.
5 Armada equity is twice of yinson.

MOST IMPORTANT INVESTMENT PREPOSITION: ARMADA is 7 times cheaper than yinson.

(UnQuote)

Please, if anyone have a counter that fulfills all the above criteria, please let me know. I’ll make sure I put a % of it in my portfolio.

Posted by stockraider > 2019-09-15 20:59 | Report Abuse

Why Investors fail? - Koon Yew Yin
Author: Koon Yew Yin | Publish date: Sun, 15 Sep 2019, 8:38 PM

All stock market investors must check their track record to see how they have been preforming. If you have been making money consistently every year, you should find out how to improve to make more money. If you your performance has been poor, then you should identify your mistakes and not to repeat the same mistakes. In any case, you should continue to learn how to improve your performance. They say practice makes perfect.

My most expensive mistake
First I am ashamed to admit my most expensive mistake by buying too many Jaks shares using too much margin finance in anticipation of the future profit from the electric power generation contract in Vietnam. I lost about Rm 64 million which I have openly posted article about my disaster on I3investors.com and on my own blog: koonyewyin.com. The lesson I learned is that never to buy any stock in anticipation of future profit. As a result, I have formulated my share selection golden rule.

My share selection golden rule:
The company must report 2 consecutive quarters of increasing profit and the price chart is showing up trend before I start to buy. Never buy any stock if the price chart is showing down trend.

If you google, you can see that many professional fund managers in America cannot even beat the S & P 500 index. Even our local fund managers make less than 10% per year.

Most individual investors often failed because of the following reasons:

1 They rely too much on news, financial reports and professional analysts recommendations. When an investment bank analyst interview a company representative, he always hear good news of the company. No company representative will say that his company has too much problems or not doing well.

2 They believe in their ability to pick the right stock and wait for the right time to buy and the right time to sell. They believe in timing the market. Record shows short term or day traders often lose money due the transaction cost.

3 They do have the required knowledge and experience. Unfortunately many of them do not realise or want to admit that they are really not so clever. Sometime even a company is reporting good profit, its share price does not reflect it. Only investors with the necessary experience know why the share price remain depressed. It take time to gain experience. For example, Thong Guan reported fantastic profit and each share has about Rm 1 cash, yet its share remain depressed. In fact, I have posted my article namely “TA is more important than FA” which you can see from i3investors.com or on my blog: koonyewyin.com.

4 Fear: They cannot control their emotion of fear, ego and greed to think logically to make the right investment decision. Many clever investors cannot control their fear to buy a good stock even when its price chart and financial analysis are positive, for example Dayang. Again you can read my article on i3investors.com or on my blog: koonyewyin.com.

5 Greed and ego: They often failed because they refused to sell when the company start to report reduced profit and when the price chart is showing down trend. They are too greedy or they are too egoistic. If they sold, they have nothing to boast that they have bought the stock at a much cheaper price.

Posted by 3iii > 2019-09-16 08:29 | Report Abuse

http://www.investlah.com/forum/index.php/topic,29171.msg1568936.html#msg1568936


http://www.investlah.com/forum/index.php/topic,29171.msg1569101.html#msg1569101


A good company deserves a higher valuation. It is possible that you paid a slightly higher price than you wanted to pay for the stock, which lowers your overall rate of return, but time is on your side and your long holding time minimizes the impact of the higher purchase price to your overall return. Also, you will always find the opportunity to add to your position at lower valuations, though not necessarily at lower prices.


Deep value investing investors need to be cautious and aware of this approach's inherent problems. Those companies dropping and appearing in the deep-bargain screener probably deserved to be traded by low valuations. Their stock prices were likely low for the right reasons, and buying these would likely have resulted in steep losses.

Posted by stockraider > 2019-09-16 12:00 |

Post removed.Why?

Posted by Moore > 2019-11-21 18:37 | Report Abuse

Hey mate @3iii, how to reach more profit from volatility market?

Do I need to find it by the course? can give me suggestion?