Almost 2 months institutional stay in-action for this counter. Feb around 35sen. Double whammy oil war and covid-19 in early Mar counter run down hill to as low as 9sen, then seem to climb but Cushing oil market crisis toward end Apr drag down to 12sen low. The next highest level tested at 19sen in May then stagnated around 15sen till now, despite good news and 1qtr profit just over rm16mil. Any statistical indicators seem weaks for significant price uptrending agai.
There's a hope for this counter next year only the way I see. I believed 2qtr not favourable otherwise there should be some significant improvement in price. Let see what is next.
Opec+ has achieved its Goal in Killing US Shale Operator. Previously Shale production can rebound rapidly bcos they have Co. like Schlumberger and private Bankers support. Private Banks had sunk more than 100billion into non-recoverable shale asset had thrown-in their tower (they allow mega Shale Oil Co. to go Bankrupt.)
From what i read, most Traders are "long on Oil" -----$60--70( if vaccine is available) by year end
For one whole year the company made profits, but the shares price don't move. Others counters that is nearly bankruptcy, prices of shares limited up. So the only is keep on buying, for the long term possible will hit the 0.40 target very soon.
long term.. I think need to wait next year. As of now, I cant see anyone selling. Lots of ppl holding this share until now ady. So long term.. need to wait next year.
With the big companies holding more than 70 percent of the total shares, PNB 54 percent, is one of the cheapest stocks available in KLSE. Is worth the value,
Bottom line they still need to secure more contracts..otherwise doesn't matter who holds the percentage. Sources come from more rigs count. Hopefully soon there's new contract announcements.
Here only need to zzzzz wake up at qtr only, no big deal, life made simpler as that. Go on island holidays enjoy sunshine and beaches around the world.
what Harry said is true...floating shares in market is less than 40%.... funds really need to acquire more in order to push the price moving.....how many is holding with price lower than current...panick will come and thats when the floating shares will increase. just wait for the wave.
Most probably 2nd qtr no income..never mind just hold patiently, coming year will be good. By that time I believed brent already hit 50usd and hopefully Velesto will get more rigs projects.
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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....
Macgyver11
2,492 posts
Posted by Macgyver11 > 2020-07-22 17:03 | Report Abuse
Velesto need more time to rise back..wait patiently till the time come unless they got new contracts...hopefully.