Scomi Energy’s (SES) share price has corrected by 10% in a month after it proposed a renounceable right issue of redeemable convertible bonds. As there are no changes in the underlying fundamental, we believe current weakness in share price provides good buying opportunity. We see multiple growth catalysts going forward: i) potential expanding orderbook from RM5.5bn to RM7bn due to increasing market share regionally; ii) commercialise graphene nanofluids and microwave treatment products; and iii) potential securing integrated project management (IPM) contracts. Our channel check reveals there are more potential marginal fields to be developed under Vestigo and expect more marginal field contracts to be awarded in 2H14. Given the multiple growth drivers ahead, we expect SES’ earning to grow at 3 year CAGR of 50% with P/E to fell to only 8x in CY16. We maintained our BUY call with unchanged TP of RM1.23 (based on unchanged 16x CY15 EPS of 7.67sen/share).
More and more I am learning that the key is in excellent management, good cash reserves, and strategic investments by the counter. This doesn't. Another mistake of investing in a counter and not doing some thorough homework. Once I break-even, I am out of this company.
Believed there are plenty more companies which are far worse than this company but they are doing much better n trade higher. Really don't understand the logic behind it. So many acquired project n fundamentally strong but price lingering below expectation. Real sad ...
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....
AK1882
89 posts
Posted by AK1882 > 2014-08-29 10:02 | Report Abuse
Look like scomies is going to die hard...........no buyers at all.......