Correct me if I am wrong, but I remember reading from the company's proposal dated 28 August 2014 that the renounceable rights issue will be at an indicative issue price of 40 sen on the basis of 1 rights share for every 2 Sumatec share.

How much would that be in absolute terms?

So the rights issue will be priced at how much?

I thought oil price went up?

Nobody gives a shit about the weekly EIA inventory reports anymore.

The sudden increase is due to the first full-quarter contribution from their first oil rig - Pacific 101. Imagine what the future earnings will be like when Pacific 102 and 103 are ready.

To all those people who said that the company is in financial trouble because cannot service its debts, please come and suck my "gugu" now.

Net profit increased from 600k to 13million!

Eh hello, results are damn good lah wei.

Results out!

If dip to 0.35, I cut my "gugu"

Wah, Chinese New Year eve also got people fry mee goreng.

Not bad what, still up 2 sen compared to yesterday.

The reply to UMA query is already out.

Aiyah, no need to argue. Everything will unfold tomorrow.

Crude.

Fuiyohhhh, 2nd round coming!

I haven't seen so much excitement in this forum for a very long time.

You forgot how much it has dropped over the last few months.

Fuiyoh, today top active counter.

Resistance at 52sen. The last two attempts to breakout failed.

Your 200 lots were most likely snapped up by RHB analysts themselves.

WTF? I thought you've been asking people to run?

So everyone here thinks the company will go bankrupt and close shop?

I don't think it will go bust because the first jack-up rig is already bringing in revenue. The contract has already been signed so regardless of what happens to the price of oil, the charterers still have to pay Perisai USD144,000 per day. This should be able to cover the first drawdown of their borrowings, although there won't be much left for profit.

What if drop below 20 sen?

Hypothetical question: if this counter falls to 30 sen, would you dare to go all in?

So far there is still no sign of rebound. How low can it go?

Seems like panic selling to me. Sell first, ask questions later.

I thought you said will drop to 25 sen?

This is human psychology at work. If I asked any of you a few months ago what you will do if Perisai fell below 50 sen, I am sure most of you would say that it is impossible and that you would sell your house and go all in if that ever happened. Now that it has really happened, no one dares to buy the share. It's always like this in a bear market and the bottom always comes at a time when everybody is still feeling fearful. A good example was Genting back in 2008. It fell below RM4 for a short period of time. Nobody dared to touch the share that time even at such a discounted price. Unbeknown to them, that was already the bottom. The opportunity passed them by just like that.

It can't keep dropping forever. There must be a bottom somewhere.

Very unlikely. $60 per barrel is a more realistic figure. Oil cannot be very far from the bottom now.

Much as I agree that the company is going through a difficult period, I doubt there will be further downside risks to its share prices next year because the current selling spree is caused not so much by the decline in earnings, but by the panic due to falling oil prices. Once oil prices stabilise, all the oil and gas counters will rebound. Thereafter, it is unlikely perisai will ever revisit current prices again, even with all its debts, as I believe that at 50 sen, most, if not all the negatives have already been factored in.

40 sen would be a more realistic bottom in my opinion, but that is just under the assumption that it will fall further. It may or may not happen. For all you know, the price might suddenly rebound. It could go either way.

I agree. First half of 2015 is going to be tough. It will only recover after Perisai 102 (due to be completed in mid-2015) commences operation and after they can find charterers for Enterprise 3 and Rubicon. But the fact that the company is going through a rough patch is already reflected in the current price. If I am not mistaken, it has fallen the most among all the oil and gas counters (from RM1.60 to 50 sen).

It will not collapse because the Kamelia and the Pacific 101 have already secured contracts and are already in operation. That's why the company can still cover their debts despite two of their vessels being left idle.

The borrowings were already known long ago. It's not like we just knew about it. The current downtrend is more due to the idling of their two vessels - Enterprise 3 and Rubicon - which have been the mainstay of their earnings. However, this earnings vacuum is offset by the cash flow from their new FPSO (Kamelia) and jack-up oil rig (Pacific 101) ventures.

To suggest that the price will fall to 20-30 sen is ridiculous. The IPO price back in 2004 was 33 sen, but back then it was just a simple vessel chartering company. It has since come a long way and restructured itself, with the expansion into FPSO projects and jack-up oil rig ventures. Despite all the borrowings and shortcomings, the perisai now is no longer the perisai in 2004.

What murali has said about the borrowings are true. However, we have to bear in mind that oil and gas counters are now in a bear market - most of the selling are caused by irrational panic. I think perisai can be considered severely oversold now. If and when the company starts to recover from the current downturn, do you all think the shares will still be traded at 50 sen?