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In a short span of 1 year, Nam Cheong share price has cratered from 32 cents to 9.7 cents. The decline has been dramatic.
WIth its recent FY results, showing only a 0.4 cents EPS and a rather lackluster cash flow generations and ballooning inventories, I wonder will an impairment soon be made in the low oil price environment.
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I remember there was a lot of analyst hoohah for this stock, especially on next insight.
But no surprise, most of oil gas related stocks have lost half their value. Next will likely be property related stocks where the bubble hasn't deflated significantly yet..
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21-06-2017, 04:21 PM
(This post was last modified: 21-06-2017, 04:24 PM by karlmarx.)
Seems like it will only be a matter of time before Nam Cheong winds up. This is a very clear indication that it has no ability to pay creditors as banks would have given several warning/notices before serving the writ of summon. There is still a market for its shares, so shareholders can still recoup some of its money. Unless they are counting on some white knight, which I think is unlikely.
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If there is a white knight, most probably the knight will only be incentivised to "save" the company, at the expense of minorities.
Recent First Ship lease Trust's white knight Navios, is an example.
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I recall that a few years back, all the analysts were bullish on this company, citing its "build first sell later" strategy as its competitive advantage in securing orders. That only worked when demand kept increasing.
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