Author Topic: Coastal  (Read 42823 times)

Offline tedbeh

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Coastal
« on: July 07, 2011, 03:09:30 PM »
Coastal is going to issue 1 :3 bonus, 1:8 warrant, very low PE at 6, any comment? Shall we buy now at 3.60?

Offline tedbeh

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Re: Coastal
« Reply #1 on: July 07, 2011, 03:12:42 PM »

Timing To Reload On Coastal Contracts Couldn't Be Better

Been a long time friend of Coastal Contracts. Investors would have been sitting on good gains if they had this stock for more than 6 months. For those who are more short term oriented, the timing to buy could not be better with the announcement of the ex-date for the bonus and free warrant issues. Going through that exercise should unlock at least another 10%-15% upside within the next 2-3 weeks

Last Friday, Coastal announced the ex-date for its 1-for-3 bonus issue which will fall on 14 July 2011. On this date, there will be about an additional 120.8m new shares being listed on the Bursa Malaysia which will total up its number of shares to 483.2m. Bonus issue also comes with free warrant. This free warrant will be issued on the basis of 1 warrant for every 8 shares held after bonus issue. Hence, to simplify things, if an investor holds about 6 Coastal’s shares before the ex date, he will get additional 2 new Coastal shares and 1 free warrant.

OSK: Coastal’s share price would be adjusted to RM2.67 on an ex-basis based on Friday’s closing while our fair value for Coastal would be adjusted to RM3.86 from RM5.15 now based on existing PER of 8x FY12 EPS as we incorporate in these additional bonus shares.

Coastal Contracts specialises in the construction of Offshore Support Vessels (OSVs), notably those in the 5,000BHP range. The group has grown from a two-boat shipper to a large-scale vessel manufacturer with RM760m outstanding contract orders that will last till 2Q12

Product Range / Products Capacity
Anchor Handling Tug Supply (AHTS) 5,150-10,728 BHP
Utility Support Vessel 2,400-3,500 BHP
ROV Support/Maintenance Vessel 5,000BHP
Offshore Landing Craft 1,200-1,262 BHP
Maintenance/Support Vessel 3,500 BHP
Accommodation Barge 300 Men
Tug Boat 1,200-3,200 BHP
Oil Barge 3,750 M8
* Barge 805-11,500 MT
Landing Craft 600-1,200 BHP
Source: Company, DBS Vickers

Growth prospects: Sustainable high crude oil prices, implementation of O&G NKEAs and the entry of strategic partners in its fabrication venture would increase demand for OSVs and breathe life into its oil rig component fabrication segment. Consistent net profit margins and strategically placed shipyard. A longstanding track record in maintaining c. 30% net profit margins in its vessel construction business and its strategically placed shipyard near Sabah’s marginal oil fields put Coastal in a good position to capitalise on a burgeoning East Malaysian O&G sector.

O&G-heavy clientele: 80% of Coastal’s customer base comprises service operators in the Oil & Gas sector, and the rest logistics service providers, navy and shipping agents. Typical orders for sectors other than Oil & Gas have a 6-8 month period between order and delivery, with the majority from returning customers. Notable customers in the O&G sector include Tidewater Group, Swiber Group and Maridive Offshore Projects S.A.E. The majority of Coastal’s vessel buyers are predominantly foreign companies from USA, Egypt, Singapore and Indonesia. Major customers for its repair and maintenance services include the Royal Malaysian Navy, Marine Police and Malaysian Maritime Enforcement agent. Its ship repair segment is a localised industry and makes marginal revenue contributions.

Coastal Contracts owns a 90-acre shipyard in Sandakan, Sabah, where 30-35% of its vessels are constructed. Of this, 52 acres are used for its potential fabrication venture, while 38 acres are for ship building. The remaining 65-70% of its vessel orders is outsourced to 10 third party Chinese shipyards in South and Central China. The group provides ship specifications and major components to install on the vessels. To ensure optimal product quality, the group employs dedicated engineers on-site to manage and oversee vessel construction. With most of its sales conducted by its offshore subsidiaries Coastal Offshore (Labuan), coupled with a predominantly international client base, Coastal is able to minimise taxes levied on its sales

Potential stock price catalysts: Possible MoUs worth RM300- 400m coming to fruition, of which RM100m is close to realisation. Other potential catalysts include further implementation of ETP O&G projects, order clinches in 2H11 and new partner to replace Ramunia. There is also the high possibility of M&A as the company's size and industry expertise both lend itself to being a very attractive acquisition target, in particular with its "low pricing".

Offline jollybee

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Re: Coastal
« Reply #2 on: July 08, 2011, 04:21:49 PM »
Coastal every day on roller coaster ride..............

Other market is either flat or red......

The happiest rider among all -> Coastal investor
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Offline tedbeh

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Re: Coastal
« Reply #3 on: July 11, 2011, 04:53:23 PM »
3 days until the ex-date of 14 July, would it be another Kulim?

Offline tedbeh

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Re: Coastal
« Reply #4 on: July 13, 2011, 06:56:51 PM »
Coastal is pleased to announce that its wholly-owned subsidiaries have secured contracts for the sale of a DP2-enabled maintenance/support vessel and two units of barges for an aggregate value of approximately RM98 million.



Including the new contracts and after adjusting for revenue recognition from vessels delivered to buyers in the second quarter, Coastal Group has about RM500 million worth of vessel sales orders awaiting delivery to customers up to 2012. The latest contracts have also lifted the Group’s year-to-date order wins to around RM430 million.



The revenue stream from the latest contracts is expected to contribute positively to the earnings per share and net assets per share of Coastal Group for the financial year ending 31 December 2011.


None of the Directors and/or Substantial Shareholders of the Company and persons connected with them has any interest, direct or indirect, in the above transactions
 :P

Offline Profit88

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Re: Coastal
« Reply #5 on: July 13, 2011, 07:30:26 PM »
Good news! Coastal has never disappointed  :thumbsup:
"Life is a storm, my young friend. You will bask in the sunlight one moment, be shattered on the rocks the next. What makes you a man is what you do when that storm comes." — Alexandre Dumas

Offline AngryBird

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Re: Coastal
« Reply #6 on: July 13, 2011, 07:33:28 PM »
tmr huat ah semua orang~~~

Offline tedbeh

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Re: Coastal - Bonus 1:3
« Reply #7 on: July 14, 2011, 09:07:18 AM »
The share price adjusted to 2.70 today, after the ex date of Bonus, but my maybank account still do not show the new share quantity, because this is the first time I have bonus share, would like to know whether the bonus share will be automatic go into my maybank account, Bro and Sis, please advise. Thanks

Offline arostock

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Re: Coastal
« Reply #8 on: July 14, 2011, 10:26:05 AM »
check with yr remieser. sometimes it take a few days b4 it is reflected in yr account.
a letter on the bonus will be issued to you.
Long Term Investment - Axiata, PChem,TM, Digi, KPJ, Coastal, IHH, Inari, KSL, Ecowld, Takaful
Med Term Investment - BHS, Kossan, Perisai, Icon, BDB, Homeriz
Short term - Focus, Asiabio, Sanichi, Nexgram, Nihsin
On My Radar - MH370

Offline zuolun

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Re: Coastal - Bonus 1:3
« Reply #9 on: July 14, 2011, 11:08:40 AM »
The share price adjusted to 2.70 today, after the ex date of Bonus, but my maybank account still do not show the new share quantity, because this is the first time I have bonus share, would like to know whether the bonus share will be automatic go into my maybank account, Bro and Sis, please advise. Thanks

If you bought your COASTAL shares yesterday on 13 July 2011 or earlier, your bonus shares (1-for-3) will be credited automatically into your CDS account with maybank on next Monday night on 18 July 2011.

Offline tedbeh

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Re: Coastal
« Reply #10 on: July 14, 2011, 01:46:33 PM »
Thanks a lot for the clarification. Cheers!

Offline Good to Great

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Re: Coastal
« Reply #11 on: July 15, 2011, 12:42:09 PM »
Anyone knows what is happening to Coastal these few days? ****** nonstop.

Offline tedbeh

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Re: Coastal
« Reply #12 on: July 15, 2011, 12:51:27 PM »
Very Small volume, but down for 2 days already, is it anything to do with the warrant?

Offline tedbeh

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Re: Coastal
« Reply #13 on: July 15, 2011, 12:54:47 PM »
 Think maybe some retail buyers didn't know that the share has been splited since yesterday, bcos the newspaper still showing previous high of 3.8x, quite sure the price will be adjusted back lateri

Offline jollybee

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Re: Coastal
« Reply #14 on: July 15, 2011, 02:35:48 PM »
Jolly already advised all not to buy Coastal before split issue.  This goreng counter already 30% up before bonus issue.  Best time to sell is during split.
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Offline escap

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Re: Coastal
« Reply #15 on: July 15, 2011, 02:41:25 PM »
Jolly already advised all not to buy Coastal before split issue.  This goreng counter already 30% up before bonus issue.  Best time to sell is during split.

Don't talk nonsense....calling Coastal a goreng counter is like calling Chateau Lafite a table wine or a Bugatti Veyron as just a normal sportscar. Coastal is supported with superb fundamentals, just check out their latest disclosures to Bursa.

The current share price weakness after the split is an excellent opportunity to accummulate more shares before the expected more announcements of awards of OSV (Oil Service Vessels) to Coastal. I have enough mother shares already...next I'm gonna wait for the new Coastal warrants to be issued soon and will accummulate the warrants as it's a cheaper entry into this fantastic company.

Offline Good to Great

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Re: Coastal
« Reply #16 on: July 15, 2011, 02:44:17 PM »
Jolly already advised all not to buy Coastal before split issue.  This goreng counter already 30% up before bonus issue.  Best time to sell is during split.

Jolly, normally price will drop when the bonus issue and the issuance of free warrants go ex?

Offline tedbeh

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Re: Coastal
« Reply #17 on: July 15, 2011, 03:21:22 PM »
Hwang DBS Target Price is RM3.90, OSK is RM3.86

Offline zuolun

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Re: Coastal
« Reply #18 on: July 15, 2011, 03:46:33 PM »
Very Small volume, but down for 2 days already, is it anything to do with the warrant?

The selldown could be due to contra/margin players who bought Coastal shares bet. RM3.58 to RM3.67 on Wednesday 13 July 2011, the last day prior to ex-all. Coastal's share price closed at RM3.62 (adjusted to RM2.72 after ex-all) with total volume done at 1,883,300 shares. The warrant's exercise price is RM3.18, if the share price remains weak at < RM2.50, it will be worthless because nobody will subscribe for it.

Offline wombie88

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Re: Coastal
« Reply #19 on: July 15, 2011, 04:02:55 PM »
 :thumbsdown: :thumbsdown: RUNNN.. RM2 ONLY BUY
selll SELLLL SELLLLLLLLLLLLL RUNNNNNNNNNNNN

Offline zuolun

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Re: Coastal
« Reply #20 on: July 15, 2011, 04:36:44 PM »
Hwang DBS Target Price is RM3.90, OSK is RM3.86

The company's 2QFY2011 earnings results should be out on Aug 2011. If the share price dropped to an attractive level, Funds who sold Coastal share earlier may be interested to collect back. (Note: CIMB-Principal Small Cap Fund used to have Coastal shares in their portfolio.)


Offline zuolun

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Re: Coastal
« Reply #21 on: July 15, 2011, 04:48:19 PM »
:thumbsdown: :thumbsdown: RUNNN.. RM2 ONLY BUY

If the share price really hits RM2, there is a always a ready buyer for every desperate seller. :P

Offline mark1970

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Re: Coastal
« Reply #22 on: July 15, 2011, 05:01:57 PM »
Will coastal drop like Mitra? Mitra also plunged on bonus issue ex-date and keep dropping since.

Just like Coastal, Mitra is also a profitable company and price has risen a lot prior to the bonus issue announcement.

Offline zuolun

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Re: Coastal
« Reply #23 on: July 15, 2011, 06:20:08 PM »
Will coastal drop like Mitra? Mitra also plunged on bonus issue ex-date and keep dropping since.

Just like Coastal, Mitra is also a profitable company and price has risen a lot prior to the bonus issue announcement.

Every company's share structure is different; Coastal's free float is at 27.4%, the shares are largely held by the boss at 60%.

Based on the company's financial data and expected earnings for FY2011, current share price at RM2.45 is at attractive level. :)

Offline zuolun

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Re: Coastal
« Reply #24 on: July 15, 2011, 06:39:11 PM »
Coastal Contracts at lowest since mid-April

By Joseph Chin of theedgemalaysia.com | The Edge – 4 hours ago

KUALA LUMPUR: Share price of Coastal Contracts Bhd fell to the lowest since mid-April of RM2.50 at the midday break on Friday, July 15 despite the positive outlook for the company with the latest contracts which increased its book order to RM500 million.

It fell 11 sen to RM2.50. Turnover was 302,900 shares done.  The decline in the share price was also in line with the cautious market sentiment, especially from the external headwinds from the US.

The FBM KLCI lost 4.59 points to 1,575.25. Turnover was 308.54 million shares valued at RM482.85 million. Declining stocks beat advancers 346 to 171 while 312 counters were unchanged.

On Thursday, Coastal Contracts announced it had fixed the exercise price for the warrants to be issued at RM3.18 per warrant. The exercise price of RM3.18 was a premium of about 21.84% over the closing ex-all price of Coastal shares after the bonus issue of RM2.61 on the same day.

The warrants were issued free on the basis of one warrant for every eight shares held after the bonus issue.

Maybank Investment Bank Research was positive about the outlook for the company after it won a RM98 million contract to build a maintenance/support vessel and two barges.

“Including the new contracts and after adjusting for revenue recognition from vessels delivered to buyers in the second quarter, Coastal Group has about RM500 million worth of vessel sales orders awaiting delivery to customers up to 2012. The latest contracts have also lifted the group’s year-to-date order wins to around RM430 million,” it said.

Offline Good to Great

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Re: Coastal
« Reply #25 on: July 15, 2011, 07:01:12 PM »
Every Coastal's shareholders gets 1 free warrant for every 8 shares they have after the bonus issue.

Anyone knows the price of the warrant given free to the shareholders? And its listing date?

Offline zuolun

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Re: Coastal
« Reply #26 on: July 15, 2011, 08:25:58 PM »
Every Coastal's shareholders gets 1 free warrant for every 8 shares they have after the bonus issue.

Anyone knows the price of the warrant given free to the shareholders? And its listing date?

Exact date and listing price of the warrant not released yet. Coastal's share price could rebound sharply if punters are interested to play up its warrant price. 

Offline zuolun

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Re: Coastal
« Reply #27 on: July 15, 2011, 08:48:06 PM »
Exact date and listing price of the warrant not released yet. Coastal's share price could rebound sharply if punters are interested to play up its warrant price. 

No. of warrants issued: 60,408,667
Exercise price for each warrant: RM3.18
Coastal share price closed at RM2.45

If the warrant price is listed at RM0.10 and punters play it up to RM0.20, theoretically the mother share price will mobe accordingly to RM2.65 (RM2.45 + RM0.20).

Offline papayashot

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Re: Coastal
« Reply #28 on: July 15, 2011, 09:22:52 PM »
I really sad to see this lovely stock will plunge like hell during these 2 days.. COASTAL should deserve a fair value by considering its profit that it has been making so far. I would like to stress that not only its tremendous earnings made so far, but also its CONSISTENCY in making good profits since its listing.

I am not really sure why people want to dump the share (most of the shares like MITRA, KPJ, etc..) right after the ex-date of bonus. Could someone please advise?

Shall we hold??


Offline tedbeh

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Re: Coastal
« Reply #29 on: July 15, 2011, 09:28:52 PM »
My guess only, Coastal Board is supposed to buy back 10% share, don't know whether they are the one who keep pressing the price down, let the retail buyers sell. That suggested why volume is so low, but the price dropped sharply

Offline ikan besar

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Re: Coastal
« Reply #30 on: July 15, 2011, 09:33:20 PM »
i love coastal but ...........
 :sweat: :sweat: :sweat: :sweat:
I heard dr kimmy lost alot of monies

Offline papayashot

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Re: Coastal
« Reply #31 on: July 15, 2011, 09:48:42 PM »
i c..
ya, since a long time ago they desire to buy back their share, but till now no action yet..

I would presume that those holding COASTAL till now must be a truly fundamentalist, who knows the true meaning of investing rather than speculating...


You see, although KLSE index is kinda high nowadays (1570++), some 2nd-liners are truly undervalued as compared to those bluechips like BURSA, SIME, IOI, etc... It is really "sayang" if something bad happens (due to uneven euro-zone condition), all the shares will be down no matter it is under-valued or over-valued...


A question to experts out there: "During recession time (bearish), shall we dump our undervalued shares, no matter it is making profit/loss? " Can you guys please enlighten on the necessary steps that we shall follow?

Offline zuolun

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Re: Coastal
« Reply #32 on: July 15, 2011, 09:54:08 PM »
Don't talk nonsense....calling Coastal a goreng counter is like calling Chateau Lafite a table wine or a Bugatti Veyron as just a normal sportscar. Coastal is supported with superb fundamentals, just check out their latest disclosures to Bursa.

The current share price weakness after the split is an excellent opportunity to accummulate more shares before the expected more announcements of awards of OSV (Oil Service Vessels) to Coastal. I have enough mother shares already...next I'm gonna wait for the new Coastal warrants to be issued soon and will accummulate the warrants as it's a cheaper entry into this fantastic company.

Agreed with you that Coastal's warrants are cheaper entry with the coversion period on 14 July 2016 (5 years from the date of issue on 14 July 2011). I'm interested to buy the warrants if it's listed at RM0.10.

Offline Richard188

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Re: Coastal
« Reply #33 on: July 15, 2011, 09:57:36 PM »
Will coastal drop like Mitra? Mitra also plunged on bonus issue ex-date and keep dropping since.

Just like Coastal, Mitra is also a profitable company and price has risen a lot prior to the bonus issue announcement.

same also, wait price stable first. dont enter.  :thumbsdown: :thumbsdown: :thumbsdown:
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Offline tajudinhelmikari

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Re: Coastal
« Reply #34 on: July 15, 2011, 10:03:53 PM »
No. of warrants issued: 60,408,667
Exercise price for each warrant: RM3.18
Coastal share price closed at RM2.45

If the warrant price is listed at RM0.10 and punters play it up to RM0.20, theoretically the mother share price will mobe accordingly to RM2.65 (RM2.45 + RM0.20).

The ex-price for warrant is 3.18 while the mother share is 2.45. So if the warrant is listed as 10 sen, it's still  very expensive.

Offline zuolun

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Re: Coastal
« Reply #35 on: July 15, 2011, 10:30:57 PM »
The ex-price for warrant is 3.18 while the mother share is 2.45. So if the warrant is listed as 10 sen, it's still  very expensive.

Warrant price at 10 sen is just an example for illustration purpose only. If the warrant is listed at a higher price, say at 30 sen or 50 sen and punters are interested to play it (up/down), then the mother share at current RM2.45 will move in lockstep with the warrant price.


Offline zuolun

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Re: Coastal
« Reply #36 on: July 16, 2011, 11:13:34 AM »
Based on past records, Coastal always declares Dividend payment on the month of August since 2004. The company also pays its shareholders a Special Dividend on August past 3 years from 2008 to 2010.

08/2003 IPO Price RM 1.60
08/2004 First and Final Dividend     (8 sen per share less 28% income tax)
11/2004 Subdivision of Shares       (RM1.00 Split Into RM0.20)
08/2005 First and Final Dividend     (6% less 28% tax)
08/2006 First and Final Dividend     (3.9% less 28% tax and 2.1% tax exempt)
08/2007 First and Final Dividend     (1.4% less 27% tax and 8.6% tax exempt)
08/2008 First and Final Dividend     (12% tax exempt)
08/2008 Special Dividend               (5.5% tax exempt)
08/2009 First and Final Dividend     (12% comprising a 4.5% tax exempt dividend and
                                                      a 7.5% single-tier dividend)
08/2009 Special Dividend               (3% tax exempt)
08/2010 First and Final Dividend     (12% tax exempt)
08/2010 Special Dividend               (13% tax exempt)
04/2011 Interim Dividend               (27.5% tax exempt dividend)

Offline zuolun

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Re: Coastal
« Reply #37 on: July 16, 2011, 02:52:56 PM »
Coastal's Major Substantial Shareholders:
1.  Ivory Asia Sdn. Bhd - Ng Chin Heng & family
    (Indirect/Deemed Interests (as at 7th April 2011): 62%
2.  Rickoh Corporation Sdn Bhd (AR2010): 4.14%
3.  Koon Yew Yin (as at 2011): 3.4%

Funds used to have Coastal shares in their portfolios:
1.  OSK-UOB Smart Income Fund (as at 31 Mar 2011)
2.  CIMB-Principal Small Cap Fund (Sold prior to Bonus Issue)

Offline zuolun

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Re: Coastal
« Reply #38 on: July 16, 2011, 06:09:39 PM »
Hwang DBS Target Price is RM3.90, OSK is RM3.86

Kenanga Research
Coastal Contracts - BUY -14 July 2011
Target Price: RM3.64


Offline zuolun

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Re: Coastal
« Reply #39 on: July 16, 2011, 06:46:46 PM »
Coastal's transaction data (unit price adjusted after ex-all)

Date        Open  High   Low  Close  Volume
20110715 2.610 2.610 2.440 2.450 984,100
20110714 2.690 2.710 2.600 2.610 536,000
20110713 2.700 2.752 2.685 2.715 2,511,067
20110712 2.700 2.700 2.685 2.700 1,129,067
20110711 2.715 2.715 2.692 2.708 1,054,133
20110708 2.685 2.715 2.685 2.715 852,933
20110707 2.708 2.708 2.678 2.678 692,933
20110706 2.715 2.730 2.692 2.708 1,287,867
20110705 2.692 2.715 2.692 2.708 1,260,533
20110704 2.730 2.745 2.685 2.685 2,245,867


Offline aspenvit

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Re: Coastal
« Reply #40 on: July 16, 2011, 07:14:15 PM »
Coastal's transaction data (unit price adjusted after ex-all)

Date        Open  High   Low  Close  Volume
20110715 2.610 2.610 2.440 2.450 984,100
20110714 2.690 2.710 2.600 2.610 536,000
20110713 2.700 2.752 2.685 2.715 2,511,067
20110712 2.700 2.700 2.685 2.700 1,129,067
20110711 2.715 2.715 2.692 2.708 1,054,133
20110708 2.685 2.715 2.685 2.715 852,933
20110707 2.708 2.708 2.678 2.678 692,933
20110706 2.715 2.730 2.692 2.708 1,287,867
20110705 2.692 2.715 2.692 2.708 1,260,533
20110704 2.730 2.745 2.685 2.685 2,245,867



A GOOD STOCK, MUST LET IT CORRECT FIRST,  K.
Question 1:
Who got allotted a lot of IPOs?
Question 2:
Who can borrow a lot of money to apply IPOs?
Question 3:
Why share price never move up while u are holding it? But nearly 100% move up right after u cut loss?

Offline jollybee

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Re: Coastal
« Reply #41 on: July 16, 2011, 07:16:03 PM »
Jolly, normally price will drop when the bonus issue and the issuance of free warrants go ex?

It is correct. I gave my advice to newbies in other post.  Coastal follows Mitra split issue.
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Offline zuolun

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Re: Coastal
« Reply #42 on: July 17, 2011, 01:26:07 PM »
A GOOD STOCK, MUST LET IT CORRECT FIRST,  K.

If you're bullish on Coastal, the company's warrant is a cheaper option to get the same exposure to the stock. Once the underlying share price recovers, the warrant could reap higher returns with lower capital outlay.


Offline zuolun

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Re: Coastal
« Reply #43 on: July 17, 2011, 02:30:07 PM »
1.  Total orders last reported = RM 760M.
2.  Lastest order received = RM 98M.
3.  Total orders = RM 858M (RM 760M + RM 98). 
4.  After adjusted for Q2 revenue, current total orders = RM 500 million (YTD orders at RM 430M).

Based on last year's record, 2QFY2011 earnings results is likely to be released on 24th August 2011.


Offline zuolun

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Re: Coastal
« Reply #44 on: July 17, 2011, 03:15:09 PM »
If crude oil remains stubbornly high at > US$95 per barrel, the Malaysian government would have to continue slashing its fuel subsidies.   

Quote
Snag in oil production may hit M'sian GDP

Crude exports fall 11.5% in Q1 due to decreased output at the deepwater field off Sabah


By S JAYASANKARAN
IN KUALA LUMPUR

June 22, 2011

MALAYSIA could have easily lost more than RM1.4 billion (S$569 million) in its first quarter because of decreased oil production at its first deepwater field off Sabah's coastal waters.

Late last week, Malaysia's Business Times reported that the wells were producing less than expected because of sand in the oil, adding that output should recover by this year. The paper cited Murphy Oil Corporation of the United States, the operator of the wells, as its source.

Even so, the impact of the technical flaws in the * oil field was such that Idris Jala, Minister in the Prime Minister's Department, said last week that crude oil exports fell 11.5 per cent in its first quarter.

If the problem persists, it could even affect national GDP (gross domestic product) growth. Mr Idris told reporters that the economy would 'rebound' once the problem was solved.

The episode illustrates how dependent the Malaysian economy is on the oil and gas industry. Last year, dividends, taxes and royalties from national oil company Petronas contributed almost 45 per cent of the federal government's revenue.

At its peak, oil executives familiar with the matter said that * was producing over 100,000 barrels a day but the newspaper report said that production was now at around 52,000 barrels a day.

Located under 1,340m of water, the * discovery lies in the southern part of Block K and is the first deepwater oil discovery made in Malaysia. Its discovery, which was sizeable, caused much excitement in Malaysia in the early 2000s as it indicated a turnaround in the country's oil reserves and ignited a revival of interest in deepwater drilling.

Indeed, Petronas has cut back on international oil exploration to refocus its energies - and money - on domestic oil exploration, especially in deep waters.

Even so, the report in Malaysia's Business Times seemed to indicate that the problem was temporary.

'We are currently carrying out a workover programme to install down whole gravel packs to hold back the solids (sands),' a Murphy spokesman was quoted as saying. 'In addition, we are adding extra surface equipment to help manage any solids that are produced.'

'The workover programme should be completed this year and production rates (will be) back to the planned level,' the Murphy spokesman said.

Murphy expects the initial field production rate to be 40,000 barrels per day (bpd) with a one-year ramp-up to a plateau of 120,000 bpd, which will provide meaningful production growth for the US oil firm.

Offline zuolun

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Re: Coastal
« Reply #45 on: July 18, 2011, 11:44:21 AM »
I really sad to see this lovely stock will plunge like hell during these 2 days.. COASTAL should deserve a fair value by considering its profit that it has been making so far. I would like to stress that not only its tremendous earnings made so far, but also its CONSISTENCY in making good profits since its listing.

I am not really sure why people want to dump the share (most of the shares like MITRA, KPJ, etc..) right after the ex-date of bonus. Could someone please advise?

Shall we hold??

Why people want to dump the share?

1.  People short-sell the stock at a higher price 1st and later buy it back at a lower price in order to make a profit.

2.  When contra and margin players see the share price drops drastically, they'll dump the stock to cut-loss because they don't have money to make full payment for the stock they bought earlier.

3.  For people who bought the stock prior cum-all last week at higher prices bet. RM 3.58 to RM 3.67, they'll lose money now if they've no holding power.

4.  For people who bought the stock at a cheaper price earlier, bet. RM 2.50 to RM 3.00 and are still holding them after ex-all, the value of the stock is adjusted accordingly.

Example:

Cost of 6000 shares bought at RM 3.00 = RM 18,000

Based on last Friday's closing price at RM 2.45 after ex-all;

Cost of 8000 shares (6000 shares + 2000 Bonus shares) at RM 2.45 = RM 19,600

The value of the 1-8 free warrant (1000 units) is not known yet.

Shall we hold??

It depends on your personal view (bullish/bearish) on Coastal, purchase price and risk appetite/tolerance.

Offline zuolun

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Re: Coastal
« Reply #46 on: July 18, 2011, 12:00:07 PM »
Definition of Short Selling

What Does Short Selling Mean?
The selling of a security that the seller does not own, or any sale that is completed by the delivery of a security borrowed by the seller. Short sellers assume that they will be able to buy the stock at a lower amount than the price at which they sold short.

Selling short is the opposite of going long. That is, short sellers make money if the stock goes down in price.

This is an advanced trading strategy with many unique risks and pitfalls. Novice investors are advised to avoid short sales.

Italy Moves to Curb Short Selling After Contagion Concerns Slam Markets

By Lorenzo Totaro and Elisa Martinuzzi
Jul 11, 2011 4:37 PM GMT+0800

Italy’s market regulator moved to curb short selling after the country’s benchmark stock index fell the most in almost five months and bonds tumbled on investor concern the nation may be the next crisis victim.

Consob ordered yesterday that short sellers must reveal their positions when they reach 0.2 percent or more of a company’s capital and then make new filings for each additional 0.1 percent. The measure takes effect today and runs through Sept. 9. The FTSE Italia All-Share Financials Index fell 0.8 percent as of 9:50 a.m. to the lowest in at least two years.

Europe’s finance ministers are meeting in Brussels today to seek ways to shore up Greece and defend the region’s other heavily indebted nations. The premium investors demand to hold Italy’s debt over German bunds hit a euro-era high of 267 basis points today.

“Italy cannot afford to pay the interest rates it’s paying right now,” Andrew Bosomworth, a fund manager at Pacific Investment Management Co., said in an interview on Bloomberg Television today. “Its debt is unsustainable if we project into the future these sorts of interest rates levels, so we do need something to change -- be that a policy response, be that a change in attitudes in the markets.”

Slow Growth

Standard & Poor’s and Moody’s Investors Service said in the past two months that they may cut the country’s credit rating because slow economic growth will make it tough to curb debt.

Consob’s commissioners held an emergency meeting yesterday after the country’s benchmark FTSE MIB Index (FTSEMIB) plunged 3.5 percent on July 8, led by a decline in UniCredit SpA (UCG) and other shares of banks, which are the among the largest holders of Italy’s debt. The regulator’s ruling follows similar action taken in other European countries, including Germany, Rome-based Consob said.

UniCredit, the country’s largest bank, today fell as much as 3.7 percent before reversing the loss to a 0.9 percent gain as of 9:55 a.m. Intesa Sanpaolo SpA (ISP), the second-biggest lender, dropped 1.9 percent. Both hit lows not seen since the period when markets were emerging from the crisis spawned by the collapse of Lehman Brothers Holdings Inc.

“Were Italy to undergo a sovereign and debt downgrade, earnings in the banking sector could be more heavily impacted than the market is currently discounting,” HSBC Holdings Plc analysts including Carlo Digrandi wrote in a note today.

Blaming ‘Speculators’

Italian politicians including Paolo Bonaiuti, an aide to Prime Minister Silvio Berlusconi, blamed the market slide on “speculators” and pledged action to rein in investors perceived to be attacking Italy. Bonaiuti said Italy would be united “in blocking the effort of speculators.”

On July 5, European lawmakers voted in favor of a ban on short selling of government bonds in the EU unless traders have at least “located and reserved” in advance the securities they intend to sell. The European Union Parliament also called for restrictions on traders’ use of credit-default swaps to profit from defaults on sovereign debt they don’t own.

Short selling involves the sale of securities borrowed from the owner, and generates profit when the trader repurchases them at a lower price and returns them to the owner. The amount of shorting is limited by the willingness of owners to lend.

Merkel, Sarkozy

The European Securities and Markets Authority, which co- ordinates the work of national regulators in the 27-nation EU, should be given emergency powers to temporarily ban short selling or trades in CDS on sovereign debt in the EU, the Parliament said.

Politicians including German Chancellor Angela Merkel and French President Nicolas Sarkozy have claimed that naked short- selling and credit-default swaps worsened the euro area’s sovereign-debt crisis, and have called for EU curbs.

Michel Barnier, the EU’s financial-services chief, said last year such trades may lead to “disorderly markets and systemic risks.” Finance ministers from the 27-nation region agreed in May that traders should be allowed to short sell government bonds and stocks if they have a “reasonable expectation” that they can obtain the underlying securities. They also rejected calls from Germany for a ban on sovereign CDS.
   

Offline tedbeh

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Re: Coastal
« Reply #47 on: July 18, 2011, 04:34:31 PM »
Very strange trading for Coastal, every day slip few cents, with very very low volume, and no body support, looks like some one is manupulating the price

Offline mark1970

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Re: Coastal
« Reply #48 on: July 18, 2011, 04:35:52 PM »
Very similar to Mitra...

Offline tedbeh

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Re: Coastal
« Reply #49 on: July 18, 2011, 04:39:10 PM »
And the shareholder is happily collecting back at cheaper price, afterall they know that this ia an undervalue counter.