add again @39 sen

Velesto Energy Berhad
Market heats up, rates on upward trajectory
A new benchmark rate of US$98,000/day?
Last week, Velesto secured a 3-year firm period drilling contract with Carigali Hess for US$98k/day, higher than contracts secured earlier in 2019 that ranged between US$67k- 76k/day. The fact that Carigali Hess had agreed to significantly higher rates suggests that the Malaysian and Southeast Asian (SEA) jack-up (JU) rig market is heating up, as can be seen by the rise in JU utilisation rates across SEA markets. But to what extent is US$98k/day the new benchmark against which future contracts will also be priced? In our model, we assumed that Velesto will price contracts in 2020F at US$75k/day, and US$80k/day in 2021F. If US$98k/day is the new benchmark, our assumptions are conservative, suggesting upside to our earnings and target price assessment.
Further JU rate upside seems assured...
The JU rig utilisation rate in SEA has risen from only 46% at end-Dec 2018, to 73% as at 6 Nov 2019, with Malaysian utilisation up from 67% to 88%, and from 56% to 91% in Indonesia. We are confident of further JU rate upside in FY20-21F, because Petronas and its production sharing contract partners have only fulfilled 75% of its drilling days forecast for 2019F, due to various operational delays. There is the potential for the 2019F shortfall of four rig-years to spill over into next year’s original demand for an average of 18 rig years, for a total revised demand of 22 rig-years in 2020F, the highest in half-a- decade. Also, in recent months, JU rates for numerous contracts in the Middle East and Vietnam have exceeded US$80k/day with increasing frequency. We are already seeing JU rigs tempted back to those markets from SEA, draining supply from this region and helping SEA rates catch up to their Middle East levels. Velesto itself is ready to bid for work in UAE, Qatar and Kuwait, if the opportunity arises and if it has available rigs.
...though up to 10 cold- and ready-stacked rigs may be available
While the current utilisation looks tight, we note that there are three young Seadrill units (below 15 years old) that are cold-stacked in Malaysia, and another seven young JUs (six years or younger) that are ready-stacked in Singapore waters. If Malaysian JU demand, activity levels and DCR rates rise sufficiently, these 10 units may be reactivated, which could moderate the rate upside. We will keep our rate assumptions of US$75k/day in 2020F and US$80k/day in 2021F until we see more evidence to support further upside.
Target price revised up to 47 sen
Our target price is raised to 47 sen as we factor in higher utilisation and charter rate assumptions, lower the cost of equity from 10% to 9.5% due to the decline in the Malaysian risk-free rate, and roll forward our target price to end-CY20F. Downside risks may emerge if Petronas decides to slow down drilling work to cool down the market.

By this week sure below 30 sen.

Hope people whom invest in this counter know what they get.

Don't said useless some people say golden egg. But turn to dirty egg.

I never see this type of counter, huge profit but price going south. Look like train divert Holland.

next will be 33.5 sen.

When one guy hit me , now other come to payback. I don't know who this guy but respect him.

pak tua sedang cinta sama velesto

tomorrow 50 sen no problem

If good making company give little bit dividends also ok, but after announce very good profit the price keep falling that is something not good, sorry to said I cut loss yesterday when I find the way they trade is will go worst. Let see today.

only half of the share enter market , price already drop , if another half enter will back to 30 sen. this what i am thinking.

will down to 35 sen today, con company.

Tomorrow back to support level, scary counter. That why pak tua already ta pau I think.

Oh no as what I thinking was happen.

buy @ 50 sen cl 49.5 , I prefer buy @ low than keep hold @ high price. Maybe right maybe wrong my move.

look like will go down to 48 sen today.

sign looking not good

manage to re enter at 50 sen, fail to get 49 sen due to limit.

Make nice profit at ifca and join back KNM @ 45.5

Tomorrow will be below 50 sen, sold @ 52 , ready to load any price below 50 sen.

Rsi 88% I think will come down

will see if drop 50 sen will add again. But won't drop below 50 i think.

If just goreng of course will drop back, but this counter move with some business for future. So I think will fly again afternoon .

if can stay above 50 sen very good for further up .

today maybe closing 53 sen

net cash

19 ml debt.

just start to move, 5g not yet. this share will go very high some more they have cash 70ml.

fly to sky

Maybe back to below 40 sen again.

If tomorrow down to 42 sen add again.

You not mention about Armada, Sardined mention it before collapse today. Knm drop just 2 cent not like armada drop 10 sen for penny stock is sick counter.

Fly fly hit 50 cent today

KNM

Entry 0.42 - 0.435

Target 0.45/0.49/0.54/0.61/0.65/0.72/0.77

Stop below 0.38

AQ VAR daily 1- 20 days
AQ VAR weekly 1 - 20 weeks

Not sure just for info do not trust on this.

Looking for Pak tua he he he is enjoying Huaan with big profit.

Knm par value 50 cents, they can split to 5 if they want after push the price.

KNM have asset much higher than debt, since he keep warm manage to make money from Redtone, now here for safe.

earning big money on KNM now.

I like Calvin research but never follow him, what he said is true but market not follow as his research. Market is always looking for boiling water not cold water.

@wiaxx123 invest according to what we afford he he, you maybe enter @ 10 cents that time.

I enter 500k knm @ 42 now 43 some profit for now.

will back after make some money they

I jump to KNM for now.

after make big money on Redtone now back to KNM he he

this counter is not speculation counter, so why worry? slowly move is better than drop like hell.

closing 58 cents ok la, nanti slow slow pecah 60 sen kemudian slow lagi janji dia uptrend.

This counter will bring big money if you can hold, long way to go. RM TP 1.00 maybe end of the year.

https://www.theedgemarkets.com/article/publicinvest-research-derives-fair-value-rm141-ame-elite#.XaLyQsc4YOc.whatsapp

Redtone will start move slowly until news out, may touch 60 cents next week. So far no any news and still long way to go. For me holding this share will bring big money. Tomorrow maybe up or pull back depending investor understand about Redtone future. Only from my view.