HwangDBS Research has maintained a 'buy' call on UMW Oil & Gas Bhd (UMWOG), with an unchanged target price of RM5.15. This is based on the almost completion of its jack-up rig called Naga 5, which is being built at Keppel's yard in Singapore, and the company is in talks for longer charters for the jack-up rig beyond its first assignment for Nido Petroleum Philippines Pty Ltd.
In its research note, HwangDBS said UMWOG will be able to receive the Naga 5 jack-up rig by May this year, ahead of its first assignment for Nido Petroleum, which will commence operations in June.
"This is a six week job worth US$7 million to drill the Baragatan prospect on behalf of the SC 63 joint venture. Concurrently, UMWOG is in negotiations with prospective parties to secure a long-term charter for Naga 5," it said.
I guess UMwog will continue to drop, dun enter first wait & see On Monday. Some ppls already collect at RM4.10 something, but still fall down on Friday last minutes.
no worries lah..... the company has strong fundamental, this is rig rental business, high profit day rate. I am holding 150 big lots, waiting for a good timing to sell. Their new rig will be released from the shipyard April/May, once this became official, i predict the pricing will increase again.
if you remember, it used to shoot up to 4.6, but for couple days only, i sold 20 big lots at 4.45 actually that time. Bought back and accumulated until 150 big lots
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....
thunderbird
565 posts
Posted by thunderbird > 2014-03-13 14:23 | Report Abuse
HwangDBS Research has maintained a 'buy' call on UMW Oil & Gas Bhd (UMWOG), with an unchanged target price of RM5.15.
This is based on the almost completion of its jack-up rig called Naga 5, which is being built at Keppel's yard in Singapore, and the company is in talks for longer charters for the jack-up rig beyond its first assignment for Nido Petroleum Philippines Pty Ltd.
In its research note, HwangDBS said UMWOG will be able to receive the Naga 5 jack-up rig by May this year, ahead of its first assignment for Nido Petroleum, which will commence operations in June.
"This is a six week job worth US$7 million to drill the Baragatan prospect on behalf of the SC 63 joint venture. Concurrently, UMWOG is in negotiations with prospective parties to secure a long-term charter for Naga 5," it said.