Penguin International

What I like is they have zero debt

(22-01-2015, 10:24 AM)new-comer1 Wrote: What I like is they have zero debt

The better is the quality and potential - both in growth, market reach, and earnings - of Penguin's range of products; the earning assets - especially the 2 productive yards, and the growing fleet of crew boats - bringing in recurrent earnings; and the competent and proven management team and workforce, which together should sustain Penguin's business and bring it to greater height over time.

(22-01-2015, 12:57 PM)dydx Wrote:

(22-01-2015, 10:24 AM)new-comer1 Wrote: What I like is they have zero debt

The better is the quality and potential - both in growth, market reach, and earnings - of Penguin's range of products; the earning assets - especially the 2 productive yards, and the growing fleet of crew boats - bringing in recurrent earnings; and the competent and proven management team and workforce, which together should sustain Penguin's business and bring it to greater height over time.

that has already been priced in.....

(22-01-2015, 08:13 PM)wahkao Wrote: that has already been priced in.....

Not many is able to fully say - with confidence - what is being priced in and what hasn't. It is a complexity that not many investors can grasp. Does Mr. Market has full view of what Penguin is all about? I doubt so.

(22-01-2015, 08:13 PM)wahkao Wrote:

(22-01-2015, 12:57 PM)dydx Wrote:

(22-01-2015, 10:24 AM)new-comer1 Wrote: What I like is they have zero debt

The better is the quality and potential - both in growth, market reach, and earnings - of Penguin's range of products; the earning assets - especially the 2 productive yards, and the growing fleet of crew boats - bringing in recurrent earnings; and the competent and proven management team and workforce, which together should sustain Penguin's business and bring it to greater height over time.

that has already been priced in.....

This stock is not low risk high returns, sorry to say.

i have similar view that the risk reward ratio is poor, hence i divested from it after it drop abt 10% from peak

(22-01-2015, 08:42 PM)new-comer1 Wrote:

(22-01-2015, 08:13 PM)wahkao Wrote:

(22-01-2015, 12:57 PM)dydx Wrote:

(22-01-2015, 10:24 AM)new-comer1 Wrote: What I like is they have zero debt

The better is the quality and potential - both in growth, market reach, and earnings - of Penguin's range of products; the earning assets - especially the 2 productive yards, and the growing fleet of crew boats - bringing in recurrent earnings; and the competent and proven management team and workforce, which together should sustain Penguin's business and bring it to greater height over time.

that has already been priced in.....

This stock is not low risk high returns, sorry to say.

You may say whatever you want. If Penguin is able to sustain its earning like the past 3 quarters, it will have an earning per share of 5 cents.

There aren't many counters in SGX able to achieve 5 cents of eps with share price at 21.5 cents... Further, it practically has no debt.

ignore wahkao for good

BTW the 20 cent thingy kickstart in March?

Penguin's FY results will be out in 3 weeks. Similar to dydx's view, I expect full year to be 5 cents EPS.

Given the growth potential of the stock and the overhang of low oil prices, a p/e of 8 to 9 is fair for the company. Therefore, the valuation of Penguin is 40-45 cents. Secondly, I expect the company to produce an annual free cash flow of approx 4 cents, therefore at 0.23, FCF yield is 17.4%. If we are to apply a FCF target yield of 10%, the valuation of Penguin is 40 cents. In addition, Penguin's capex too is likely to slow down given the high Capex expenditure over the past 3 years due to its major transformation.

But what is the downside? Well, given the company b/s, I will take an impairment of 25% of its PPE, receivables and inventories; leaving it at about 15.3 cents. So at a price of 23 cents, the downside is 8 cents while the upside is 17 cents.

What else more can I say? The profile and business acumen of the management is top-notch! I like their conservativeness. I rather play safe than to risk. I can sleep in peace knowing these are the people who are running my business! Furthermore, they seldom rest on their laurels. The management constantly look into ways to improve their current vessels specs and make their products relevant. They are not NATO (no action, talk only). What they've mentioned in their annual report, have they delivered?

[Image: 10zxshh.png]

(extract from: http://www.penguin.com.sg/wp-content/upl...n-AR13.pdf - page 15)



"Good, better, best. Never let it rest..." On 15 January, Penguin Shipyard International delivered its first crewboat in 2015 to a Malaysian owner, EA Technique. Named "Nautica Tg Puteri XXX", the Flex-40SL is Penguin’s 83rd Flex. For now, global demand for crewboats remains steady against a backdrop of cheaper oil. After all, crewboats are a basic necessity in the offshore industry. And the Flex is the logical choice of enlightened crewboat owners.