Once RI confirmed, I don't think there would be a sell down. On the contrary, I believe it will go up because:- 1] Those that want to sell would had sold 2] The market already priced in the RI effects 3] Once confirmed RI, that means UMWOG WILL be bailed out by PNB and chances of survival and eventually recovery increases
On the other hand, if RI rejected, then there will be a sell down.
Some chaps here r so pathetic . At 29 sen thinking of selldown. Already sold down from 90sen before these dodgy deals came about. All engineered for crash for insiders to make money. If anybody worried, don't buy or just sell yr holding & go to other forums . Stop spreading rubbish at this prices
If the RI really rejected, not sure how PNB will save this company. Maybe will end up like THHE. But likely RI will be approved because there is no door gift in this EGM. Perhaps not expecting minority to come and vote because it's really done deal. Even if RI proceeds, don't expect price will fly, it will remain below RM1 for some years. If Q2 continues to record loss, it is obvious the current day rate is below the company's breakeven rate. Any contract awarded will only reduce its loss, will not make them profitable.
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Proven that current day rate is below their breakeven point. Even if all their rigs are contracted out will still loss money. The only thing that can save them is high oil price.
Even now 6 out of 7 rigs is under contract but the company still in loss making. Very difficult to predict the future direction of this company and same goes to future share price.
Malaysian Oil and Gas cost of operation are above and very high. Their directors, CEO are not innovative business man but only politician (good in PR). Earn big big remuneration and should resigned like Media Prima CEO recently. Very sad - Good in talking can cari makan in Malaysia but not really professional qualified.
Based on current DCR avg USD75 which below operation cost hence very difficult to get profit. Latest contract bagged Naga 5 for USD26.4M (1 year) = 26.4M/365days =USD 72k Upto end of 2017 maybe only breakeven. In year 2018 maybe start generate profit.
Please remember they don't get the full day rate all the time. Some time, they get repair rate, breakdown rate, moving rate etc. and they are all below the agreed full day rate. And oil companies can always make them go on standby at zero rate as and when they like. Nowadays, oil companies are also making them pay for the additional equipment needed for the operation. This business is not easy to do nowadays. By the way, what happen to the Middle East entry they talked about few years ago?
Hi guys, today is the day - EGM. You want a healthy stock price bounce, go and VOTE to deny PNB the exemption and force PNB to take the company private. Investor12345 is right, if rights Issue is to take place, the dilution will be extreme. You can forget about the price bounce for a long time to come. You'll be stuck with your UMWOG position. Again, don't believe the ruse that UMWOG will go belly up without the cash injection from the rights issue. It will survive alright.
As reported in TA security report : We note that the EGM to vote on the rights issue will be held on 25th Aug 2017. A vote to reject the proposal would once again call into question UMWOG’s short-term liquidity risk. That said, this is unlikely given that PNB and its subsidiaries (whom will fully underwrite the rights issue), collectively hold 45% stake in UMW-OG.
Will return to the black within 3 years. Finally some honesty from the management. It will return to the black within 3 years if their assumption materialize. If the day rate remains the same for the next 10 years, I really wonder how many cash call can they make.
USD 50 - 55 - 65 for crude oil..USDollar is already confirmed tonight it will weaken further. most likely break DXY 90 with target 89. So high chances crude oil WTI to spike in short term..USD 49-50
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Posted by oasischeah > 2017-08-15 10:17 | Report Abuse
As soon as the RI is official, it will trigger a sell down.