Penguin International

After last evening's Q1 result announcement, this morning Mr Market marked down Penguin's share price by as much as $0.023 or 11.7%, to $0.173 at one instance, and this has attracted in some cheerful buyers (presumablysome new investors and some existing shareholders who added to their positions) who have loaded up a cool 5.4m shares so far. Thank goodness the buying is now supporting the share price at $0.178 now, which gives most of this morning's buyers sitting on a small profit already.

By reacting to the announcement news, this morning's sellers - including those supposedly longer-term investors who have suddenly turned jittery sellers - and have willingly passed over some of their profits and wealth to the corresponding buyers. Such is the irony in the stock market.

Look at the commentary for 1Q2015 result. Yesterday was 12 May 2015. Already almost half of 2nd quarter period. Most probably 2Q will not be fantastic. Look at 2Q last year. It posted the best result for the quarter last year. If one expectation that worst is over and company will gonna do well in 2nd Q. He is indeed in for a big 'surprise'.

not vested.

it's been almost 6 months since the big oil price drop from its lofty highs. Though oil has regained some of that highs, most of the O&G sector should still be in cut cost mode.

Given order book takes 6 months+ to finish, next quarter result will really show if there is significant drop in orders. Since management doesnt reveal order book, investor can only depend on their comments on the industry.

As mentioned before after last quarterly posting, management has already warned :

[Sobering sentiments in the offshore oil and gas industry are expected to temper demand for the Group's crewboats and Fast Supply Intervention Vessels in sales and charters. However, demand for security vessels (Flex Fighter) and passenger ferries (Flex Ferry), as well as ship repair services, is expected to be less affected. ]

this quarterly :
[Sobering sentiments in the offshore oil and gas industry are expected to temper demand for the Group's crewboats and Fast Supply Intervention Vessels in sales and charters. The Group has moderated the pace and volume of its shipbuilding activities in response to the industry slowdown, while it seeks out new projects outside of the oil and gas industry.]

at 18c there is now some discount to NAV and net cash has risen to 37.85% of Mcap. Yield is good and div likely to be maintained if earnings maintained at this level and doesnt drop further.

However given the "sobering sentiments" in O&G, Penguin share price likely continue to slide so long as oil price doesn't pick up back to above $80 level. Maybe there will be another boost in "AFrican" orders. heh.

(13-05-2015, 10:22 AM)safetyfirst Wrote: Thanks moderator, the ignore-list is a wonderful feature. I found the first person to add into my ignore-list today

haha! why u soo bad?!!

Let's shoot some penguins!

I bought significantly more @0.176 today. The 1Q result is not good, but not as bad as Mr. Market has reacted.

(13-05-2015, 05:13 PM)CityFarmer Wrote: I bought significantly more @0.176 today. The 1Q result is not good, but not as bad as Mr. Market has reacted.

Maybe it's just me and my bad karma with "shipping" stocks. I've lost money on all the shipping stocks I've bought so far!

(13-05-2015, 05:50 PM)Sampling Wrote:

(13-05-2015, 05:13 PM)CityFarmer Wrote: I bought significantly more @0.176 today. The 1Q result is not good, but not as bad as Mr. Market has reacted.

Maybe it's just me and my bad karma with "shipping" stocks. I've lost money on all the shipping stocks I've bought so far!

Cyclical industry requires a cyclical approach. Value investment approach does not apply. I have long stay clear of cyclical stocks.

Shipping stocks as I have mentioned many times over is 7 grinding bears and 3 sharp bulls. More often than not attempting to ride the bull cycle results in more bull Sh** than real results. Got to be a sharp shooter with cyclicals.

Following last evening Q1 result announcement, Penguin closed at $0.179 today (13May15), down $0.017 or 8.7%, with close to 8.7m shares (approx. 1.3% of the company's 660.51m issued shares) transacted. The counter went as low as $0.173 in the morning; supported by persistent buying, the share price managed to recover a portion of the loss and closed at close to the day's high.

Hi CityFarmer

Applause to your conviction. Previously taken a big bite at 0.24 - 0.26. Already a core holding in my portfolio (1/3). Nevertheless, took a small bite this morning at 0.176. Would like to add more, but not sure if it is wise for such high concentration in a single stock.

(13-05-2015, 07:25 PM)Yoyo Wrote: Hi CityFarmer

Applause to your conviction. Previously taken a big bite at 0.24 - 0.26. Already a core holding in my portfolio (1/3). Nevertheless, took a small bite this morning at 0.176. Would like to add more, but not sure if it is wise for such high concentration in a single stock.

might be good to see what happens in the O&G sector. BBs have finished playing this counter since the last push to 27c. Since its peak at that price in august last year, penguin has retreated to 52week lows, in a short span of less than a year. A >30% drop in price. This just shows how volatile this counter is.

until O&G recovers it will be leaner days for Penguin. Price likely to drift down as speculators cut their losses, from the high volume today, can see many have thrown in the towel. dun forget it was less than 10cents just a couple years back. Wouldn't look at it until it hits at least 15c level.