Halite, the key question to ask is why they need to do the expansion? Purely for growth or force to do it? If force to do it in order to comply with certain requirement, then you better pray refinery industry is good. If refinery industry going downhill and yet petronm need to dump in so much money to keep going, things will be disasterous. That's all from me. Good luck.

it is like nestle's investors feeling happy if nestle suddenly announce it will allocate multi billion dollar into property business..

The problem here is petronm need to spend 14 billion into refinery for growth? I thought petronm investor like retailing business? You have no objection company is spending 3x of market cap into refinery?

Halite,

- based on current trend margin compression is here to stay.
- next quarter petronm need to get at least 108 mil net profit for YoY improvement.
- current year earning is boasted with one-off gain.
- uncertainty with its capital funding for massive expansion. right issue? stop dividend?
- mandatory plant shutdown

Above are the factors which make me feel uncomfortable to put money in petronm at current price. Maybe it is just me.

use what to go up? next quarter even more challenging for petronm.

petronm peak is over.

pjseow, enjoy the crash.


pjseow When HY dropped RM 2 at one point this morning , Petronm lost only 20s .
I just wrote yesterday and a few days ago , I sold HY at RM 17.00 and switched to Petronm because Petronm has the retailed businees like PEtDag which has much more stable earnings to cushion the more volatile refining earnings . This morning big drop of HY share price is in response to the online news in Star that the crack spread drop to US 6 . Petron earnings in Q4 16 and Q1 17 were more than 40 sen despite the fact that the crack spreads were only 5 to 6 dollars during that time . HY is not for the faint hearted whereas Petron earnings are more consistent. You can sleep better if you invest in PEtron compared with HY . OF course , if HY share price shot up suddenly due to a big spike in crack spread to more than 10 dollar , dont feel jealous . Just Be contented with a more slow and steady rise while you enjoy your good night sleep every night .
15/01/2018 13:59

don't worry, petronm will continue to crash tomorrow.

you like retair business so much, why not buy petdag? a lot are self conflicting, don't know what they really want. to win big you have to focus what you want. got it?

you want so called safe investment, go buy FD. got it?

talk bad about hengyuan all you want. the fact is who is laughing all the way to bank now? stock price performance don't lie. hengyuan outperform petronm is a fact.