MY WATCHLIST 

SUPERMX - CORRECTION OVERDONE

Supermax closed at 3.03. up +6%. The very convincing showings today indicates that Supermx has somewhat achieved a convincing trend reversal and discarded the bearish outlook in the light of the much awaited sterling 4^th Qtr results to be released next week. Do look at the big picture as this company has highly good credential and good long-term prospect.

Extract from Affin-Hwang Capital Research  dated 15Feb 2016

…..upgrades Supermx to “BUY”. The research House said it is expecting Supermx to post strong earnings as two of its much delayed plants are now operational.

Supermx is scheduled to release its fourth quarter results next week.

Affin raises the target price to 3.40 from 2.20, or 16 times fiscal 2016 and 9.5% for fiscal 2017.

Affin said Supermx share price fell 14% recently as sentiments turned against glove stocks. Affin thinks that the correction was overdone and value has emerged at this juncture…

SKPETRO - BANKING ON THE HOORA OF THE OIL REVERSAL

SKPETRO closed 16Feb at 3.03..a whooping 0.13 cts gain thus achieved a resistance breakout at 1.88 which was accompanied by higher than average volume which could well demonstrated a better days going forward but not forgetting the oil price movement which should have a direct impact on its share price. This oil & gas giant is also a favorite of local and foreign fund managers

A component of the KLCI index and also play a part in dictating the direction of the KLCI

Last week, oil and gas giant SapuraKencana Petroleum (SAKP) announced that the group had secured contracts and contract extensions with a combined value of USD382M via its subsidiaries and jointly controlled entities.  Macquarie Equities Research (MER) on Friday, published a report highlighting the impact of these contracts on the group’s earnings.  Excerpts of the report can be found below…

Event

• SAKP has secured $382m (approximately RM1.58bn) worth of new contracts and contract extensions.

‌
Impact

• These contracts include:

1. a 10-year contract from Murphy Sarawak for the provision of maintenance services for GE-supplied gas turbines and centrifugal compressors;
2. a 10-year contract from Petronas Floating LNG (L) Ltd for the maintenance services for GE-supplied aeroderivative gas turbines, centrifugal compressors and electric generators and electric motors; and
3. extension of contract for semi tender rig SKD Jaya with BP Trinadad & Tobago for an additional one well, expected to remain on contract until April 2016.

• MER are positive on the contract wins. The 10-year Murphy Oil and Petronas FLNG maintenance contracts awarded to SapuraKencana GE Oil & Gas Services (a JV between SAKP and GE Power Systems Malaysia) will provide long-term recurring income. Assuming an EBIT margin of 10%-15%, MER estimates these maintenance contracts to contribute an annual profit of RM7m-RM10m.
• Meanwhile, the contract extension for SKD Jaya will help maintain SAKP's rigs utilisation at 75%.‌

Other related news :-

***DOHA (Feb 16): Top global oil exporters including Russia and Saudi Arabia agreed on Tuesday to freeze output to tackle a global glut but said the deal was contingent on other producers, with Iran absent from the meeting and planning to ramp up shipments.

The Saudi, Russian, Qatari and Venezuelan oil ministers visited Doha for a previously undisclosed meeting — their highest-level discussion in months on joint action to help prices recover from their lowest in more than a decade.

http://www.stockhut.com.my/news/97984

****U.S. stock futures leapt higher on Tuesday, fueled by a stabilization in oil prices and hopes that Japanese and European central banks will continue to ease policy.

http://www.marketwatch.com/story/dow-futures-rally-almost-200-points-as-investors-warm-to-risk-2016-02-16?dist=beforebell

*****THE WALL STREET JOURNAL

Saudi Arabia, Russia, Qatar, Venezuela agree to freeze oil production

By Summer Said and Benoit Faucon

Published: Feb 16, 2016 7:22 a.m. ET

http://www.marketwatch.com/story/saudi-arabia-russia-qatar-venezuela-agree-to-freeze-oil-production-2016-02-16?dist=beforebell

CANONE – A MUST BUY COUNTER

Canone close the day 16 Feb at 4.30 for a good 0.08 cts gain. There is much room for upwards trend achievement in the light of the much anticipated results to be released next week or the following week.

Price is expected to trend upwards to test its recent high of 5.17 soon on the back of the anticipated extra good results and the talked about some good corporate development to be announced this month.

Related readings :-

http://klse.i3investor.com/blogs/canone/89515.jsp

BIMB- TOO CHEAP TO IGNORE

Related readings :-

http://klse.i3investor.com/servlets/ptres/34323.jsp

HAPPY TRADING & GOOD LUCK

BURSAMASTER

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