I agree with your statement as to why did Petdag's shares sore extremely high initially due to new petrol stations that are being opened.

Here is just my point of view?



So what happens when oil prices rebound ?
  a. People would still use Petronas as their preferred choice
  b. Petronas constantly comes up with new methods to drill oil with an aim of lowering the cost
  c. Profits start increasing as demand increases
  d. More people would start investing in the O&G sector which would eventually drive share prices up
  e. Finally, investors like us that entered and managed to average our share prices out could be sitting relaxedly

Err nice try for a  'analysis'... but you are missing several MAJOR points. 

Petronas IS NOT Petdag. Nor it is Petonas Carigali (the unit responsible for actually drilling oil), they are separate entity.

Petdag only business is to distribute fuel at petrol station, sell lubricants and LPG gas tank.. thats it. 

It does not drill any oil.. it simply just purchase from petronas refinery to be distributed via petrol station. If fuel price comes down, petdag have to write off inventory, if oil price goes up, less people will pump at petrol station.

And now there is a petronas petrol station in almost every kampung.. where can it expand to? 

what it ur TP PetDag? no more in your watch list?

I remember you did highlight profit margin every every litter is rm50sen if the station belong to petdag itself.

Gas is always cheaper than fuel oil... and it burns cleaner too. If oil is cheap, then natural gas will be even cheaper. 

Can hardly find any industry using fuel oils for their burners and boilers now.. all switched to coal or gas. 

what it ur TP PetDag? no more in your watch list?

I remember you did highlight profit margin every every litter is rm50sen if the station belong to petdag itself.

ya.. im learning fundamental analysis.. but not a good start for the 1st time in the market . Bought skpetro and Cimb after study their annual report but never expect the external news hurt both counter so much. Anyway, I'm still holding both, when the price keep coming down, I started to suspect my own skill.. maybe i should really ready to cut loss... Anyone daikok got comment on this 2 counter ? 
Thats the reason why integrax shareholder refuse to sell ? once tnb take control over integrax. they able to control over the management?

And now there is a petronas petrol station in almost every kampung.. where can it expand to? 

I agree with your statement as to why did Petdag's shares sore extremely high initially due to new petrol stations that are being opened.

Here is just my point of view?

(a) Why invest in petronas particularly ?
1.
Most people use Petronas as their preferred choice of petrol. Im not saying everyone but most as being observed by the past. Friends, families, guys from car clubs such as Porsche Club Malaysia & Malaysian Super Cars club have a huge percentage of members that usually incline towards using Petronas rather than its competitors such as Shell, Caltex.... Now you might say that the sample size of the population that i choose isn't large enough to come up to a conclusion but i guess its pretty decent to be used as a gauge to estimate the number of Petronas "fans" aka users.Have done some travelling and realised that the Petronas stations are the ones that are usually full especially in rest house areas.

2.
Looking at past charts and graphs has given me confidence that its pretty easy for Petronas to maintain a minimum share price of around RM23- RM25 in the long run.

Why so ?

a. Peoples preferred petrol brand
b. Oil prices could probably reach an all time low of maybe 10-15 dollars a barrel as what some economist/traders 
            have predicted but it would eventually have to return back.
c. There has been thousands of research that has claimed that we are reaching an era in which oil shortage may be 
            an issue. (When supply goes down and demand remains the same, keeping the other factors as ceteris paribus,   
            prices would eventually raise to meet the new equilibrium point.

* So i guess the key strategy here would be to start buying every time it drops significantly when ever its below RM16.

So what happens when oil prices rebound ?
  a. People would still use Petronas as their preferred choice
  b. Petronas constantly comes up with new methods to drill oil with an aim of lowering the cost
  c. Profits start increasing as demand increases
  d. More people would start investing in the O&G sector which would eventually drive share prices up
  e. Finally, investors like us that entered and managed to average our share prices out could be sitting relaxedly
      while receiving a handsome return
If my memory serves me right, Petdagang did reach an all time low of about RM14.60 (something) and i really wanted to get into the market but gesh was busy with my final exams   If i did buy it at 14.60 and sold it at todays price, i would have easily made about RM300+++ per lot in which i really regret for not doing lol  
Does my analysis sound right huh Boon3 ? Looking forward for your guidance.
Cheers!
*Please don't forget to recommend us as to any "potential shares" that you foresee would be doing well
-edited: spelling

Not test you lar... see what is your opinion only... 

what it ur TP PetDag? no more in your watch list?

I remember you did highlight profit margin every every litter is rm50sen if the station belong to petdag itself.

in fact gas is cleaner, but it is not easy to transport. gas -> liquid -> gas.. so much energy wasted..

Myanmar, Africa 

Do you know what????

I just realised you were talking about Petgas.

LOL! LOL! LOL!

Cheh.. 

But petgas also a boring company.. no action one.

But at least earning steady, less capex, less maintenance.. much higher margin than petdag. 

Pakai pipeline.. as in Natural gas.. no need compression, no need transport cost.   

do u believe malaysia in building gas pipeline? later someone repair road or dig hole to repair water pipe.. kabooom 

Petdag did hit above 30.00.
Are you sure you be happy selling at today's price?

.... your thinking mindset is ok....
but I do believe a lot of people do prefer Shell oil over Petronas.
Performance is better, mileage is actually even better.... but of course there many who would argue over this.

I found the posting I wrote before... Petdag was trading at 21.00 then.

I said NO to the stock then.....

see post #1953

and the earlier somemore.... posy #1624

and see also post #1637
Petdag quarterly performance updated...