@rattynz, Thanks for your info. There is only 1.9milbbl left a week before. WTI oil also rising extraordinarily and closing the gap on Brent oil which means refineries drawing a lot of crude oil from their inventory. New US regulation halts new oil drilling in Permian Basin. There are 7 initiatives to lower gasoline price in US. 3 of them made no progress. US Energy Secretary conceded current gasoline price hike due to Biden hastily Green energy transition and Ukraine War. The other 4 initiatives may take a least one year to see bear fruits.
Ya. Datuk Micheal Tang keep buying. This guy is great. Was involve in Tropicca and the price shoot up. Then went into QSR Brands and the price shoot up too. Was involved in the injection of Mid Valley Megamall into KRIS Components. Share price shoot up also. Now is involved in Omesti. Price at 4 week high. No surprise if he used SPAC to swallow Hibiscus. Recent shakeout suits him. He was the youngest partner in Law Firm Shearn D
The other interesting this is that all of Hibiscus's oil production in Malaysia is Malaysian Tapis or equivalent. These are the best grades in the world with the lightest APi (gravity) and extremely low in Sulphur which requiring far less refining, ideal for producing high quality fuels, and as such it's priced differently. So while Brent dropped as low as 102 last week, Tapis only went down to 118 a barrel, and it's also on its way back up again. Perhaps with refineries under pressure to meet northern hemisphere fuel demand it will head up even more.. https://rentar.com/best-crude-oil-world-crude-oils-better-others/
1) Hibiscus closing price on 24/6/22 was RM 0.905 (market cap RM1.8b)
2) For Q4FY2022, hibiscus plans to sell 2,076,751 boe of oil and gas, with estimated revenue of at least RM800m and net profit of RM150m-200m. By the end of 31/03/2022, hibiscus had unrestricted cash of RM273m. It is safe to estimate hibiscus will has unrestricted cash of RM400m by 30/06/2022
3) For FY2023, Maybank estimates hibiscus will generate EBITDA of RM1,482m and Hong Leong estimates hibiscus will generate EBITDA of RM1,463m
4) EV = Enterprise Value = Market cap + Total debts - cash For FY2023, EV / EBITDA = ( 1800m + 0 - 400m ) / 1463 = 0.957
5) The largest shareholder, Datuk Micheal Tang bought total of 10,792,100 shares in between 18/02/2022 - 14/03/2022, with share price at least RM 1.10. He bought another 20,000,000 shares in between 22/06/2022-23/06/2022
As a value investor, can you miss a chance to invest in a company with excellent management team, zero debt, low cost producer ( average OPEX less than USD 20/boe) , potential of growth ( Teal West Project, Marigold Project, unlock 2C resource of North Sabah, acquisition of another valuable oilfield) and extremely low EV/EBITDA ( deeply undervalued). Datuk Micheal Tang doesn't think so
FYI, the average EV/EBITDA of Oil and Gas (production and Exploration) of United states for January 2022 is 8.28
twynstar thx for the write up.... its the "other expenses" in the last QR that was left undefined that is causing concern... if they report a 150m or so other expenses.... then the profits are wiped out
Well if Dtk Michael bought his initial shareholding at 50 Million as you suggest.. He just invested over 18 million to up his shareholding by only 11%.. Why would you do that if you think it's still heading down. Why would the largest shareholder in Hibiscus head back for even more and a significantly higher price if he doesn't beleive in the business and significantly higher future upside. His cost average has climbed.. I suspect he also knows that big dividends are also coming which will cover off his ongoing investment. If he wasn't supremely confident in the future of the business he could have offloaded his shares at 1.50 and he'd have netted RM100+ million.. Instead he's taken a 100 million+ hit and gone in for more...what does that say?...
PSAi3alert - thank you for the elaboration. Still, what is the point that you wanted to make? Perhaps this is what you meant: that the additional purchases by Datuk Michael is a drop in the ocean and matters little? OR, as per rattynz explanation, that he is showing faith in the company, even averaging up?
Generally, it is a positive sign when a major shareholder buys into a bear market, and, for me, it is a positive sign.
But, I take note of the huge amount of shares traded over those days you stated.
Furthermore, highly likely that a 1.5 sen dividend will be declare this coming August when 4QFY22 is announced given the good cash flow. This will gives a 1.6% yield (assume average price for latest purchase is RM 0.95/share). Not bad for less than three-month holding with capital appreciation too.
tomorrow is dateline for c22.. after tomorrow.. will skyrocket above rm1.10.. why.. IB need fund for next call warrant expired 30 july.. so today n tomorrow will not reach above rm0.995.. will start climb mybe on friday..
(Bloomberg) -- Libya’s state oil company said it may suspend exports from the Gulf of Sirte, which contains many of the OPEC member’s main ports, in the next three days amid a worsening political crisis.
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