Penguin International

[CityFarmer]

If I didn't make a mistake,I think the increase in revenue of 1Q2015 as compared to 1Q2014 is due to the increase in the number of non oil & gas work boats delivery as well(i.e. the Flex Fighter from African customers),whereas the decrease in other operating income due to the lack of disposal of any crew boats is because the primarily composition of the offshore charters are for the oil & gas customers.

Just to contribute on the "lack of disposal".

Base on last 8 quarters, vessel disposal only happened on 2 quarters. So "lack of disposal" is a norm for quarterly reports.

I do expect disposal within FY2015, which mean disposal in one of the next 3 quarters.

[Stephentoh]

Much have been mentioned and debated by fellow mates. Interesting views on both sides of a coin. I will like to add on my views on penguins. Though quarterly reports are essential guides for a company but I feel that a full year report will provide a more indicative guidance to how penguin fair, take for instance, the sale of boat maybe in be secured in a bulk contract or individual sale , these may reflect in certain quarters and not others. Thus, if there is any erosion on penguin earning power the full year result will speak for it. Moreover, those statements highlighted by many buddies here that are reflected in the official penguin website exist for a reason, if penguin can't achieve those target it wouldn't even be there.
No doubt eps plays a huge role to indicate earning power , but quality of management do plays a part to account for evaluation. I would say opportunities always lie around, no denial of sobering outlook but it does not mean tumbling times for the coy.

(Vested and added more)


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[CityFarmer]

Build-to-stock is more risky than build-to-order, but the strategy has its own merit. Jaya was a fail case, but Nam Cheong has been doing well with the same strategy, amid the headwind.

Penguin reminded me of my bad experience with Jaya.

Obviously the model is different as Penguin focuses on small boats. I suspect the demand of such boats ties in with the tail end of O&G support industry equipment - rigs maybe commissioned before the need for vessels for transportation of workers to them.

Being a specialised manufacturer of boats, they would just have to make hay while the sun shines just like any other business.

As for build for stock - i take it literally as speculative builds. Cannot sell then add it to ownership and run a lease business. Unfortunately, when overall business is down, outright buyers will be scarce not to speak of leasing.

Anyway, the annual report offers very little guidance - ie its a black box. Share price cyclicality on top of business cyclicality will result in future discount rating on transparency of the company.

For a start, Penguin just happen to be a situational stock - perhaps aided by gush of liquidity starve of investment ideas.

Odd Lot Vested
More than a decade

[touzi]

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

I got mine this morning @0.179 even though I queue at a much higher price! Anyone know how is this possible? I always thought that the system will match the seller to the highest buyer.

BTW, CF why do consider the result "not good" when the operating cash generated at $11.66 Mil is almost double that of Q1FY14? Am I looking at the wrong thing?

[pianist]

Since like most of U able trade during day time... how is that possible with a day job.

[valuebuddies]

Err... Because we all have a screen and some buttons?

[Bibi]

Not so because of having a screen and buttons. Because they know the likelihood of getting caught by company is low. Alternatively, one can trade during lunch hours which i believe wont infringe any employment clauses or queue your stock purchase during off office hours. My employer actually banned all financial sites e.g: all brokerage firms, SGX, yahoo finance etc..

Its a bit frustrating cos there was once Penguin released its result in the morning and i was heavily vested but unable to see its results.

[Life is a game]

My opinion is now not a good time to accumulate penguin. Until we can see the next quarter result and estimate the whole year earnings to see if ROE has deteriorate and calculate the new intrinsic value.

[CityFarmer]

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

I got mine this morning @0.179 even though I queue at a much higher price! Anyone know how is this possible? I always thought that the system will match the seller to the highest buyer.

BTW, CF why do consider the result "not good" when the operating cash generated at $11.66 Mil is almost double that of Q1FY14? Am I looking at the wrong thing?

The algo is to match sellers with the closer buyers. You asks with reserved price, and bids with offered price.

One major concern, is the margin, both GPM, and NPM. No disclosure on the matter, but I guess might partly due to lower margin petrol-boat sales. Let's observe the following quarters, to see it is a blip or a new normal.

(vested)

[CityFarmer]

Not so because of having a screen and buttons. Because they know the likelihood of getting caught by company is low. Alternatively, one can trade during lunch hours which i believe wont infringe any employment clauses or queue your stock purchase during off office hours. My employer actually banned all financial sites e.g: all brokerage firms, SGX, yahoo finance etc..

Its a bit frustrating cos there was once Penguin released its result in the morning and i was heavily vested but unable to see its results.

A screen and buttons, not necessary means PC. It includes mobiles e.g. Tablets and Smart-phones. Tablets and phones with mobile links, are out of the scope of company firewall.

I don't mean neglecting your work and focus on stock. Taking few minutes of break, is reasonable, while not violating company rules.

One hint, SGX has a app to allow you to peek into company announcement via smartphone. It isn't friendly, but a quick peek into key numbers are possible.

(sharing an experience)