they have to push the share price for right issue.

Have to push up share price for right issues

Don't understand that the profit is much greater than the revenue in the last 3 quarters. Is the profit real or not?

Today sumatec should gap up by 2 sens upon opening as Dow gone up 250 points n oil price up 1.50 per barrel to over 60 usd.

Pang 72 what chance sumatec will follow hrc?

Share valuation : Assuming production cost of usd 30,0 per barrel of oil, the profit will be 715/2 =357.5 million rm. and over 4,250 million shares, its earning per share = 8.4 sens per share
Today share of 11.5 sens , earning 8.4 sens. Sumatec share is to to cheap!!Price earning ratio =11.5/8.4=1.333!!!

Tomorrow the share price will jump to break 13.5 sens towards next wave target of 20 sens.

Very positive news today in Star Newspaper stating Sumatec signed with a Company in Karshastan to supply gas equivalent to 36.5 millions barrel of oil over 15 years. This works out to be 2.4333 barrel of oil per year, This becomes 2.4333x60usdx4.0rm=583,92 million rm per year revenue on gas sale. Another source of income is from oil production at 1,500 barrel per day by march 2018. This can come to 1500x365x60x4.0 rm =131.4 million rm per year, making a total income of rm 715.32 million per year. No wonder today share price went up in the afternoon after news came out in the Star.

DON'T PANIC, RALLY IN THIS STOCK WILL RESUME SOON! UPSIDE STILL 5-FOLD THIS YEAR!

Author: themagicianmerlin | Publish date: Wed, 17 Jan 2018, 04:12 PM






I have discovered SUMATEC last two weeks. The share price has gone up since that to as high as 13sen yesterday.

Still don't believe in me? You decide yourself.

And remember, once big institutional funds realise its potential, they will get into the stock very fast like what you can see in the past two days. That time, you won’t be able to get current level of share price anymore. Share price will surely fly high.

I know it’s hard to believe this penny long time ago can become the next Petronas in Khazakhstan. Only for people who know better the operation of oil producer will gain the most.

The share price is now starting to reflect its fundamental value of 56sen. This is based on my opinion of its FY18 DCF valuation. For short-term, I expect SUMATEC will hit 25sen.

In fact, my DCF valuation is assumed conservatively and lower than management guidance here:

http://www.bursamalaysia.com/market/listed-companies/company-announcements/5661037

You can read my previous articles on SUMATEC here.

Part 1: https://klse.i3investor.com/blogs/themagicofmerlin/143497.jsp

Part 2: https://klse.i3investor.com/blogs/themagicofmerlin/144021.jsp



Again to remind you, although oil prices might see a correction after a long-rally, it will not give an impact to my FY18 DCF valuation.

My FY18 oil price forecast is at USD60/b. So, as long as oil price can sustain at this level and above, downside risk is zero and my valuation of 56sen will remain unchanged!

I believe SUMATEC will not go down even though oil prices make a correction this week. This is because SUMATEC still can make money at USD50/b with huge profit margin of 60%. Otherwise, it will be huge undervalued.

Plus, if oil prices do need to make a correction, it won't drop below USD60/b. As long oil prices can sustain at USD60 or above, SUMATEC is sitting on goldmine

I know SUMATEC has gone back down today... BUT for me, this is healthy correction. It is in the Wave 2 and the completion of Wave 2 was very fast after hitting Wave 2 support level of 9sen.




























Now, we are waiting for Wave 3, which is the resumption of the rally. It will hit 20sen and we will see SUMATEC to reach my short-term target at Wave 5.





My FY18 DCF valuation

This is rakushechnoye asset, worth of 21sen pre-share consolidation.



The valuation has not taken into consideration 100% stake in Rakushechnoye field yet.



This is karaturun asset, worth of 35sen pre-share consolidation





In total, its assets in Khazakhstan is worth 56sen as of FY18 DCF valuation.



Well, it is not too late to go in now. It is still at the beginning stage of the rally. Upside is huge of more than 5-fold from current price of 9sen.

It will take some time and gradually to hit 56sen but I expect within this year as my DCF valuation is in FY18 basis.

For short-term, maybe before its 4Q results release this February, I expect it will SHOOT UP to 25sen.







To remind you again:

SUMATEC is in strong position to turnaround and poised to register strong earnings from this year and onwards.

Quarterly, its financial results has started to turnaround in 3QFY17.





Given favourable oil prices in 4Q17, its 4QFY17 earnings would be surely registered even higher.





Not just that, its oil production would also improve in 4Q17 to average 1,000 barrel daily against average 500 barrel daily in 1H17 as guided by the Management in its recent quarters results.

The company expects total oil production to increase to 7,500/b daily by end of this year. This means next year will see full year of oil production of 7,500/b daily. Annualised it, we will get 2.74 million

profit taking coming to unwind the volume bought earlier, May close at 9 sens

note volume done more than 650 million shares. KLSE may quirey

why the time extension by 2 weeks to finish the assessments n make a recommendation? Is there possibility of hidden assets? or something else which cannot be confirmed? Hopefully there is some hidden assets.

In HOVID case , announcement of takeover was on 10-10-17 and advisor recommended shareholders to accept the offer on 9-11-17. It is reasonable to assume the whole process should be around 2 months and payment less than 3 months.

I agree with fl888 that the offer price is too low.Fu Yu control 70% n 30% of 360 =108 ml shares @ .58=rm62.64 ml to get hold of rm104ml. .A gain of rm41.36.ml
valuation should be rm104÷108 shares=rm0.96

Company taken private at 58 cents

capital repayment of 58 cents per share vs current price of 44 cents.Tomorrow price will shoot up

Actually the results are good. The Q1 profit is without gain from sale of land (previous results included 34.6mln)Recent EGM approval to sell land for 520 mln has not bèen included yet.