Poor results or not, I'm seeing more and more of Petron petrol station...... they are taking over Shell station ... if Petronm come to east Malaysia aggresively, no doubt many will use it compare to Petronas .
I would have preferred maintenance etc to scare people away long enough for me to pick this for 2019, but not so bad i guess, since i bought more last week.
john0909 what is that revolving credit - unsecured 240,000mil?
Just think of rev credit as a much bigger form of bank OD. Petron needs it as it's working capital has increased reducing "Cash flow from operations" by a whopping RM368m
sheldon Just think of rev credit as a much bigger form of bank OD. Petron needs it as it's working capital has increased reducing "Cash flow from operations" by a whopping RM368m 29/08/2018 17:54
Apparently it seems like petronm cashflow / receivable got affected (perhaps due to the petrol subsidize) hence the revolving loan of 240mil in...
john0909 Apparently it seems like petronm cashflow / receivable got affected (perhaps due to the petrol subsidize) hence the revolving loan of 240mil in...
I think you're right. The subsidy mechanism I understand is that if price of crude goes up then the govt will pay the petrol station operators & if crude goes south, then the operators will pay the govt. The govt as it is today is hard pressed for funds so that could be the receivables.
BTW - our earnings beat Petdag. To add insult to injury, they pay dividends - yet their share price is more than 3 times compared to Petron. Their PE is 16 times while ours hover around 5.5 times.
I agree that prices should go beyond 10 - that's why I'm stubbornly holding on to my portfolio.
I've been in the market long enough to infer that sometimes big players use financial behavior & psychology to buy a good stock cheap or sell a worthless one expensive.
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
godofgamble
171 posts
Posted by godofgamble > 2018-08-23 19:45 | Report Abuse
Professional Investors have to understand that petronm trade at PE around 6. Company has No debt now.
While Petdag trade at pe around 17..
If exclude all those uncertainty OPEC policy, i will definitely start buy this counter agressively.