Penguin International

[dydx]

Can Penguin fly? Technically, not.

But strangely this counter shot up 9.8% to close at $0.09 last Friday (19Jul13), and has advanced another $0.005 so far (9:26am) this morning! It looks like this special penguin could fly!

More info on Penguin International.....
http://www.penguin.com.sg/

[Ben]

ah, finally it is moving. one should go look at the last quarter result to access the potential of this company. there is lots of upside imo.

[dydx]

there is lots of upside imo.

I am happy to see a positive outlook comment on this counter, which I assume is backed by a positive assessment of the evolution of the underlying business and its profitability. I agree with you.

[shn]

I have browsed through the annual reports since 2005. It appears that Penguin has gone through a lot of ups and downs. The group's has built up a strong balance sheet over the last few years.

Its market cap is $62.7m at the last closing price of $0.095. NAV is 14.54 cents per share. It has no debt and has $40.1m of cash, which is about 64% of its market cap.

It builds, sells and charters fast support intervention vessels (crew boats), and also involves in ship repairs and chartering of passenger ferries.

Despite of a pile of cash accumulated, it seldom pays dividend and the last dividend payout was in 2007.

I am not familiar with FSIV sales and chartering market to assess the sustainability of its business.
It looks undervalued from the financial figures. I took a small stake yesterday.

I hope those who are familair with FSIV market could share your view.

[dydx]

2Q results just out, and both Revenue and PBT have shown very strong QoQ and YoY advances.....
http://infopub.sgx.com/FileOpen/Penguin_...eID=251420
There are reasons to believe that the solid PBT of $7.232m (+306.1% YoY) recorded in 2Q does not fully reflect the strong profitability of the underlying core business activities - building offshore crew boats, ship repair and chartering businesses - as it is after absorbing a $1.25m impairment provision for 3 laid-up ferries, and a $0.553m net fair value loss on derivatives.

I suppose sooner or later, Mr Market will have to re-rate this counter towards its justified fair value.

[dydx]

This special Penguin has started to take off today! So can a penguin fly? Yes, this one seems to be able to!

[shn]

Thanks for highlighting this stock. I added more when the price dropped - not a big stake though.

[dydx]

Today (12Aug13), an unprecedented high 14.94m shares changed hands. Penguin International touched an intra-day high of $0.112, and advanced $0.018 - a solid 19.6%! - to close at $0.11.

Quite obviously, the solid 2Q results released last Wed (7Aug13) have caught the attention of many new investors, who together have poured over $1.6m into this counter, presumably after doing their homework over the super-long weekend.

[Ben]

This special Penguin has started to take off today! So can a penguin fly? Yes, this one seems to be able to!

I have no doubt that this little penguin can fly. In fact it flew so fast and so high today that I only managed to catch some at below $0.10c. Luckily for me, I have started buying into this company since Sep-12 and so have accumulated a meaningful quantity at bargain price.

Q2 numbers were rock solid and way better than my expectation. The past few quarters’ performance plus the solid Q2 performance is a clear indication that the business uptrend for this company is real and intact.

As dydx has pointed out, there was a $1.25M impairment provision for three laid-up ferries included in Q2 numbers. Without which, the numbers would be even better. However, we need to ask ourselves why the company is not scrapping these ferries since there are no longer in operations? Like what it did to one of the ferries last year. Surely, keeping these ferries means not only impairment loss, but also maintenance costs and admin fees. I can only conclude that the company thinks that by keeping these ferries for subsequent sales will make more financial sense. One ferry was sold in Q1 for about $1M, so I reckon that these three ferries could be sold for more than $3M in total. This will boost its already high cash level.

---

Today (12Aug13), an unprecedented high 14.94m shares changed hands. Penguin International touched an intra-day high of $0.112, and advanced $0.018 - a solid 19.6%! - to close at $0.11.

Quite obviously, the solid 2Q results released last Wed (7Aug13) have caught the attention of many new investors, who together have poured over $1.6m into this counter, presumably after doing their homework over the super-long weekend.

While today volume is very high, the total transacted value of $1.6M is considered low. I believe institutional investors are not involved yet. Once these big boys have their eyes on this company, it surely will take off!

The best days for this company have yet to come. This I gather from the comment make by the company in its Q2 result announcement, and I quote below:

"Barring unforeseen circumstances, the Group expects to sell more crewboats built-for-stock, secure more newbuild orders and increase offshore charter revenue, while continuing to expand its fleet of crewboats and Fast Supply Intervention Vessels."

This little penguin has the attribute to become an emperor penguin in the not so distant future.

[SLC81]

Look pretty good as it could be setting up a base to fly up. $ 0.14 is possible once the situation in Syria is cleared