I think Dow may hit new lows again, (because there's still no signs of concrete recovery in US side), we are next.....sigh!

who is the "Another"?

Target price to enter is Suka you one.

there goes our FD!

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Added on March 12, 2009, 2:51 pm
James Bond very laku....yunno!
Most people want to get hold of him!

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Added on March 12, 2009, 3:00 pmsigh.... to de-stress, I curi went to Tenji for a quick buffet...feel better like butter now.

This post has been edited by sharesa: Mar 12 2009, 03:00 PM

many will be devastated as their life-long savings are tight to them

check this out:bank negara statistics

Kinwawa,
Sapcres going to approve another dividend 3cents tax exempt soon, yeah!!

still not too late to buy....., my lowest is @0.72 and highest @1.75, 3cents tax-exempt dividends to come ......

**the only minus point is , in this sort of bearish market, many stocks have difficulty to scale high even with such a piece of good news.

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Added on March 18, 2009, 12:04 amwhy don't you ask the dealer house to direct bank-in into your account? Can save lotsa time & costs.

This post has been edited by sharesa: Mar 18 2009, 12:04 AM

AIG management never seems to learn their lesson. They should put a stop on these bonuses where actually they should have been closing shop a while ago. People will be able to withstand without any bonus till company recovers, better than being jobless out there.

This post has been edited by sharesa: Mar 18 2009, 12:37 AM

I don't mind holding Sapcres until 2012 as their 3b contract will provide significant earnings till that year for time being.

what they can do is : No bonus payments, reduced salary but no retrenchments.
If not happy, pls resign as there is another person waiting in-line for a job. (Company no need to pay retrenchment benefits).
What I heard a moment ago, when bonuses were announced during board meetings, even gov officials didn't do much. Now, they are investigating.

stock + gambling expert

don't wolli so much.... I hv seen resorts' trend, many a times when KLCI is down , they are up! Keeps fingers crossed.

New job bodes well for SapuraCrest

Tags: Brokers Call | Maybank IB | SapuraCrest

Written by Financial Daily
Thursday, 19 March 2009 10:46

SAPURACREST Petroleum Bhd’s success in bagging the RM3 billion Gemusut-Kakap job to install pipes and facilities (IPF) has gone down well with analysts who cover the stock.

Most research houses were already expecting the award of the latest job and some had factored in the earnings thereof.

Speculation of SapuraCrest winning the job has been around since the middle of last year.

In reports released yesterday after the announcement of the award, Maybank Investment Bank (Maybank IB) upgraded its call to a hold from fully valued while Kenanga Research maintained a buy. Both research houses assigned the target price of 80 sen for SapuraCrest’s shares.

Maybank IB said SapuraCrest could theoretically earn about RM130 million in earnings before interest and tax (Ebit) from this project or RM43 million per annum over the next three years based on a blended margin of 4.5%.

However, it cautioned that “earnings could fall below expectations on rising opex (operating expenditure) at its 50% associate (SapuraAcergy Sdn Bhd), which owns the Sapura 3000 vessel, and implementation delays at the Gumusut-Kakap project which may stretch earnings recognition beyond three years”.

“A sensitivity analysis suggests that a RM10 million delay in revenue recognition for this project could negatively impact net profit by RM1 million,” added Maybank IB.

Nevertheless, the job should bode well for SapuraCrest in the coming years at least. Kenanga said the bulk of the work in the current year would involve engineering and procurement, while the offshore installation phase would only come onstream next year.

The research outfit said the contract would contribute favourably to SapuraCrest’s IPF division’s earnings and support the research house’s FY2011 net profit expectations of RM178.9 million, up 23.8% from that of FY2010.

“Despite the flattish top line expectations of RM3.84 billion FY2011, we assume a 50% share on the joint venture’s year-on-year revenue of RM1 billion with a 4.5% Ebit margin, similar to the margin assumption for its IPF division for FY2010 and FY2011,” it noted.

SapuraCrest’s price-earnings ratio (PER) of 6.8 times is slightly above regional service providers, but this, Maybank Research said was justified, as there was no real direct comparable company in the Asian market. Also, SapuraCrest’s share price is supported by decent dividend yield of 7.5%.

Kenanga Research said the award of the contract could be taken to mean that oil majors were still spending.

“We take this as a positive sign that Petronas and the oil and gas majors are living up to their statement of continual capex spending in such trying times,” it said.
At yesterday’s close, shares of SapuraCrest put on three sen to 70 sen.



This article appeared in The Edge Financial Daily, March 19, 2009.