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"Kuah Boon Wee: Unless revenue picks up, we are looking at a loss for FY2016. New capital expenditure for the oil & gas market is quite weak at the moment. I don’t anticipate an improvement in this aspect. At this juncture, we are not promising a dividend for FY2016."
Dividends cut = share price drop... 
Looking forward to that!
1) Try NOT to LOSE money!
2) Do NOT SELL in BEAR, BUY-BUY-BUY! invest in managements/companies that does the same!
3) CASH in hand is KING in BEAR!
4) In BULL, SELL-SELL-SELL!
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Isn't he stating the obvious? I think many buddies here are much wiser...
(31-07-2015, 03:48 PM)brattzz Wrote: "Kuah Boon Wee: Unless revenue picks up, we are looking at a loss for FY2016. New capital expenditure for the oil & gas market is quite weak at the moment. I don’t anticipate an improvement in this aspect. At this juncture, we are not promising a dividend for FY2016."
Dividends cut = share price drop...
Looking forward to that!
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31-07-2015, 05:32 PM
(This post was last modified: 31-07-2015, 05:35 PM by brattzz.)
he has to say, what he has to say... so can't fault him for that... 
MTQ gives off a feel that they are able to go through this trough... no doubt, we have to give face to his dad, Snr. Quah at least..  (veteran and shrewd boss!)
dividends cut, share price drop... sure, they can do 10% share buy-back, but why waste the cash?
also, there's an announcement about "mulling purchase" for growth... this part, i need to understand more...
"MTQ Corporation Limited (SGX:M05) is seeking acquisitions. Kuah Boon Wee, Chief Executive Officer of MTQ Corporation, said, “To grow, the company has decided to look to acquisitions and build complementary niches to bundle more services together.”
M&A at the trough, often are either extremely good deals, or extremely lousy ones...
*vested am excited!
1) Try NOT to LOSE money!
2) Do NOT SELL in BEAR, BUY-BUY-BUY! invest in managements/companies that does the same!
3) CASH in hand is KING in BEAR!
4) In BULL, SELL-SELL-SELL!
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01-08-2015, 10:57 AM
(This post was last modified: 01-08-2015, 11:03 AM by AQ..)
I'll prob call for more caution here - we are only 1y into the perfect storm (the confluence of a rate hike, oil collapse, a G0 environment where there's no global leadership and the proliferation of HY bonds/ETFs) - there's not much hurry to do anything IMO.
If oil rebounces, capex will not rebound at the same scale; but if oil dips more or stays here, the downside will accelerate. The asymmetry of the payoffs suggests to me that waiting to see the free show is much better than taking a position and paying for the ticket.
This week the local banks all reported higher NPL provisions esp for M'sia and Indonesia over O&G sectors while the Jardine groups are also seeing the trickle thru from low commodity prices into slower consumption. With an essentially G0 environment not providing any leadership and governments not having the fiscal space to stimulate, a rate hike from the Fed can cause a lot of stress for over-leveraged plays.
So far, just abt everyone in the O&G space reported losses. The NPL appearances from the banks suggest a domino of bankruptcies leading to further credit freeze is not unlikely to happen soon.
For MTQ, the adverse effects of operating leverage and 20+mio of goodwill on the balance sheets might come home to bite.
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Very well put on the stark realities of our current market environment; I agree, except that some of us have already committed investments into O&G space, and the challenge is whether to pull out now, leading to a realisation of the loss, or hold on, which may lead to further drops in prices. For instance, recently someone in another investing forum said (MTQ was going for 70+ cents then) that he would jump in when MTQ reaches 60 cents, which is pretty darn close now. No wonder Peter Lynch said investing needs a little bit of brainpower but lots of gut power!
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01-08-2015, 05:20 PM
(This post was last modified: 01-08-2015, 05:22 PM by brattzz.)
macro biz fundamentals has changed, so yeah, cut/realised loss is the logical choice!
Believe in the management, then hold,
*vested, am excited!*
1) Try NOT to LOSE money!
2) Do NOT SELL in BEAR, BUY-BUY-BUY! invest in managements/companies that does the same!
3) CASH in hand is KING in BEAR!
4) In BULL, SELL-SELL-SELL!
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No dividend? How about bonus shares then? Hehehe.
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02-08-2015, 10:12 PM
(This post was last modified: 02-08-2015, 10:15 PM by brattzz.)
Words from Snr.Kuah,
Kuah Kok Kim: The dominant player in the Middle East is Saudi Arabia. They have not cut back. But, we must bear in mind that there is severe price cutting pressure. What we did for a dollar 2 years ago, the customer is only prepared to pay 70 cents now (July 2015). We need to structure ourselves to be able to cope with these new margins.
Kuah Kok Kim: In 1998, oil price was less than US$10 and we were profitable. The market condition that we experienced in 1998 was nowhere as bad as what we are seeing now. I have never seen such a bad market in all my years in the industry.
In recent years, an enormous amount of capital expenditure has been put into new equipment. The market has become saturated for us now.
Jr.Kuah: because of our focus in Southeast Asia, Australia and the Middle East, we are more into the shallow water activity. We do not have a physical presence in regions with deep water activity such as Brazil, North Sea, Gulf of Mexico and Norway.
All O&G players take note!
1) Try NOT to LOSE money!
2) Do NOT SELL in BEAR, BUY-BUY-BUY! invest in managements/companies that does the same!
3) CASH in hand is KING in BEAR!
4) In BULL, SELL-SELL-SELL!
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(02-08-2015, 10:12 PM)brattzz Wrote: Words from Snr.Kuah,
Kuah Kok Kim: The dominant player in the Middle East is Saudi Arabia. They have not cut back. But, we must bear in mind that there is severe price cutting pressure. What we did for a dollar 2 years ago, the customer is only prepared to pay 70 cents now (July 2015). We need to structure ourselves to be able to cope with these new margins.
Kuah Kok Kim: In 1998, oil price was less than US$10 and we were profitable. The market condition that we experienced in 1998 was nowhere as bad as what we are seeing now. I have never seen such a bad market in all my years in the industry.
In recent years, an enormous amount of capital expenditure has been put into new equipment. The market has become saturated for us now.
Jr.Kuah: because of our focus in Southeast Asia, Australia and the Middle East, we are more into the shallow water activity. We do not have a physical presence in regions with deep water activity such as Brazil, North Sea, Gulf of Mexico and Norway.
All O&G players take note!
http://www.valuebuddies.com/thread-745-p...#pid117060
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