Penguin International

Hi Weii,

No problem, i am happy to share my thoughts etc. Btw just curious, you mentioned the focus in high growth industries, bio medical etc, are the stocks you are looking at listed on SGX? Is it possible to share what are you looking at; if you are not comfortable to share publicly, feel free to share by PMing me

In the current market sentiment, I sense among some VB members and the general retail market, the pessimism they have towards Penguin and the oil support industry at large. To quote Berkshire's 1990 shareholder letter: "The most common cause of low prices is pessimism - sometimes pervasive, some times specific to a company or industry. We want to do business in such an environment, not because we like pessimism but because we like the prices it produces. It's optimism that is the enemy of the rational buyer."-- 1990 shareholder letter

Of course, if it is a good business then stick with it, if it is not, you shouldn't have bought in at the first place.

(28-02-2015, 07:52 PM)CY09 Wrote: Hi Weii,

No problem, i am happy to share my thoughts etc. Btw just curious, you mentioned the focus in high growth industries, bio medical etc, are the stocks you are looking at listed on SGX? Is it possible to share what are you looking at; if you are not comfortable to share publicly, feel free to share by PMing me

Weii, I would be interested to know too. If you have not started a thread on stocks you deemed to be undervalued, it'll be beneficial to VBs (and also yourself due to cross-referencing of opinions) to do so.

In 2010, Abu Dhabi National Oil Company (ADNOC) terminated the contract for 2 vessels which resulted in Penguin having to refund the payment received during construction. Isn't it normal that customer who cancelled contract have to pay for work already done? Is the Abu Dhabi case a special one or are most of Penguin's contracts written in this manner, i.e. customer can cancel order and get a refund? Thanks.

I guess when we look at Penguin, we should bear in mind that the company's "Flex" crewboats - particularly the "Flex-40" series - have become quite a volume product in the last 2 years having been sold to a growing number of new and repeat buyers across the Asian, Australasian, and African regions.

The 1st para (copied below) in the home-page of Penguin's corporate website gives an idea of the current pace of the business and how the management sees it…..
"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."

We should also remember Penguin's crewboats and particularly the Flex-40 and Flex- 40SL are designed for a variety of “flexible” roles, including crew and cargo transfer, anti-piracy, security escort, fire- fighting, oil spill response, medivac and safety standby. Owner-specified option include ballistic protection, gun mountings and racks, extra cabins, a dedicated hospital room, active interceptors and business class seats. Therefore, they are being sold in volume mainly because of the superior and flexible features, as well as the great economics being offered to their buyers.

Look at 4Q2013 and compare with FY2013 and 1Q2014 and etc.... compare the EPS

Look at 4Q2014 and compare with FY2014.

4Q2014 might signal a trend.....higher earnings? or lower earnings?

That's the reason why some people are selling.....


not vested

Having just reviewed the FY13 AR again and looked at all the nice penguin pictures in it…..
http://www.penguin.com.sg/wp-content/upl...n-AR13.pdf
and also the latest FY14 full-year result…..
http://infopub.sgx.com/FileOpen/Penguin_...eID=336087
My conclusion: Penguin is no ordinary penguin - it is an Emperor Penguin!

More info on Emperor Penguin…..
http://www.penguinworld.com/types/emperor.html

(03-03-2015, 08:32 PM)dydx Wrote: Having just reviewed the FY13 AR again and looked at all the nice penguin pictures in it…..
http://www.penguin.com.sg/wp-content/upl...n-AR13.pdf
and also the latest FY14 full-year result…..
http://infopub.sgx.com/FileOpen/Penguin_...eID=336087
My conclusion: Penguin is no ordinary penguin - it is an Emperor Penguin!

More info on Emperor Penguin…..
http://www.penguinworld.com/types/emperor.html

Was excited by this Emperor Penguin, then started to look through the annual report.
Under PPE (property,plant & equipment) there is a category called the "motor launches", can share share what they are and whether these are at cost or valued to market price.

Thanks thanks : )

(03-03-2015, 10:16 PM)ValueMushroom Wrote: Under PPE (property,plant & equipment) there is a category called the "motor launches", can share share what they are and whether these are at cost or valued to market price.

Thanks thanks : )

Motor launches should include the existing fleet of passenger ferries and crewboats for charter out to 3rd-parties or own operations. They should be based on historical cost less appropriate depreciation based on prevailing accounting standards and Penguin's accounting policies, which understandably are quite conservative.

(04-03-2015, 09:00 AM)dydx Wrote:

(03-03-2015, 10:16 PM)ValueMushroom Wrote: Under PPE (property,plant & equipment) there is a category called the "motor launches", can share share what they are and whether these are at cost or valued to market price.

Thanks thanks : )

Motor launches should include the existing fleet of passenger ferries and crewboats for charter out to 3rd-parties or own operations. They should be based on historical cost less appropriate depreciation based on prevailing accounting standards and Penguin's accounting policies, which understandably are quite conservative.

To add-on a well-explained answer.

The motor launches are mainly used for chartering. The chartering biz is profitable, even almost half of the total expense is depreciation. The depreciation curve is pretty conservative, and was adjusted further in last year(or the year before?).

As proposed, I have moved those dividend investing posts to a more appropriate thread below. Feel free to continue the discussion over there.

http://www.valuebuddies.com/thread-3707-page-5.html

Regards
Moderator