Author Topic: Coastal  (Read 42818 times)

Offline escap

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Re: Coastal
« Reply #50 on: July 18, 2011, 05:04:34 PM »
And the shareholder is happily collecting back at cheaper price, afterall they know that this ia an undervalue counter.

Yes i agree also with your thoughts. However, the current weakness in the share price could be due to the following factors, cos it really does not make sense for this excellent company to be sold down having just announced new contract orders and with upcoming good news just around the corner. Here are the factors I think are contributing to the current price weakness:-

1) Bonus issue exercise just completed. Now after the bonus issue there will be free warrants to be issued on a 1 for 8 basis.
2) It is actually in the best interest of the major shareholders/stakeholders to have a weakened share price as when listed, the warrant initial price will be very low as they will be technically "out of the money" as the exercise price has already been set at RM3.18
3) Therefore once the warrants are listed and the price is still cheap, major stakeholders will wallup up a lot of these warrants cos they know they are sitting on a gold mine as they will definitely know that current share price is way undervalued
4) When more good news (Contracts, even M&A possibility for larger fabrication works) is released, the mother share will recover and should easily go past RM3 in the near future. Just imagine the % gains from those warrants picked up a low price for those majority shareholders. Remember, this is the 1st ever time Coastal issue Warrants and definitely the majority shareholders will not want to let go this golden opportunity to reap fantastic gains from the warrant appreciation which in % terms will be much higher than the mother share.

The above is just my own analysis of the current scenario.

Offline papayashot

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Re: Coastal
« Reply #51 on: July 18, 2011, 10:01:56 PM »
Yes i agree also with your thoughts. However, the current weakness in the share price could be due to the following factors, cos it really does not make sense for this excellent company to be sold down having just announced new contract orders and with upcoming good news just around the corner. Here are the factors I think are contributing to the current price weakness:-

1) Bonus issue exercise just completed. Now after the bonus issue there will be free warrants to be issued on a 1 for 8 basis.
2) It is actually in the best interest of the major shareholders/stakeholders to have a weakened share price as when listed, the warrant initial price will be very low as they will be technically "out of the money" as the exercise price has already been set at RM3.18
3) Therefore once the warrants are listed and the price is still cheap, major stakeholders will wallup up a lot of these warrants cos they know they are sitting on a gold mine as they will definitely know that current share price is way undervalued
4) When more good news (Contracts, even M&A possibility for larger fabrication works) is released, the mother share will recover and should easily go past RM3 in the near future. Just imagine the % gains from those warrants picked up a low price for those majority shareholders. Remember, this is the 1st ever time Coastal issue Warrants and definitely the majority shareholders will not want to let go this golden opportunity to reap fantastic gains from the warrant appreciation which in % terms will be much higher than the mother share.

The above is just my own analysis of the current scenario.


Hi:

Can someone please enlighten? If the warrant is so cheap, then is it better to collect more mother share coz. the mother share is considerably cheaper, as compared to exercised warrant later (RM 3.18 + warrant price)? 

Offline zuolun

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Re: Coastal
« Reply #52 on: July 18, 2011, 11:55:36 PM »
Yes i agree also with your thoughts. However, the current weakness in the share price could be due to the following factors, cos it really does not make sense for this excellent company to be sold down having just announced new contract orders and with upcoming good news just around the corner. Here are the factors I think are contributing to the current price weakness:-

1) Bonus issue exercise just completed. Now after the bonus issue there will be free warrants to be issued on a 1 for 8 basis.
2) It is actually in the best interest of the major shareholders/stakeholders to have a weakened share price as when listed, the warrant initial price will be very low as they will be technically "out of the money" as the exercise price has already been set at RM3.18
3) Therefore once the warrants are listed and the price is still cheap, major stakeholders will wallup up a lot of these warrants cos they know they are sitting on a gold mine as they will definitely know that current share price is way undervalued
4) When more good news (Contracts, even M&A possibility for larger fabrication works) is released, the mother share will recover and should easily go past RM3 in the near future. Just imagine the % gains from those warrants picked up a low price for those majority shareholders. Remember, this is the 1st ever time Coastal issue Warrants and definitely the majority shareholders will not want to let go this golden opportunity to reap fantastic gains from the warrant appreciation which in % terms will be much higher than the mother share.

The above is just my own analysis of the current scenario.

1) Bonus issue exercise just completed. Now after the bonus issue there will be free warrants to be issued on a 1 for 8 basis.

The Bonus shares are issued by Coastal to reward its existing long term shareholders who believe that the company's share is truly undervalued with strong fundamentals and excellent earnings y-o-y. Long term investors could be those who bought the stock at < RM 1.00 during crisis in Mar '09 while short or mid term local Funds like CIMB-Principal Small Cap Fund might have bought the stock late last year at average price RM 2.75 per share and sold all at the peak at RM 3.80++ once it hit their target price. The 1-for-8 free warrants are beneficial to Coastal in monetary term when every shareholders subscribe for the mother share. If the share price rebounds sharply to hit high at RM 3.80++ again due to more orders or M&A; every warrant holders will sure subscribe for it at RM 3.18 during the 5 years period (until 14th July 2016).   

2) It is actually in the best interest of the major shareholders/stakeholders to have a weakened share price as when listed, the warrant initial price will be very low as they will be technically "out of the money" as the exercise price has already been set at RM3.18.

Agreed but should be "market manipulators" instead of "major shareholders/stakeholders"

3) Therefore once the warrants are listed and the price is still cheap, major stakeholders will wallup up a lot of these warrants cos they know they are sitting on a gold mine as they will definitely know that current share price is way undervalued

Agreed but should be "market manipulators" instead of "major stakeholders"

4) When more good news (Contracts, even M&A possibility for larger fabrication works) is released, the mother share will recover and should easily go past RM3 in the near future. Just imagine the % gains from those warrants picked up a low price for those majority shareholders. Remember, this is the 1st ever time Coastal issue Warrants and definitely the majority shareholders will not want to let go this golden opportunity to reap fantastic gains from the warrant appreciation which in % terms will be much higher than the mother share.

Agreed but should be "market manipulators" instead of "majority stakeholders"

NOTE: Market manipulators refer to big players who have the financial muscles to push the share price up and down every now and then to make profits from weak retail investors who sucumb to greed and fear.

Offline mestikaya

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Re: Coastal
« Reply #53 on: July 19, 2011, 08:54:28 AM »
good imagination :D :D :D

Offline zuolun

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Re: Coastal
« Reply #54 on: July 19, 2011, 12:26:59 PM »
good imagination :D :D :D

Coastal was one of the TOP 10 Holdings of CIMB-Principal Small Cap Fund; the fund manager run road at RM 3.80++ in May 2011.  :D :D :D

CIMB-Principal Small Cap Fund - TOP HOLDINGS as at 30 April 2011
1.  QSR Brands Berhad - 5.15%
2.  Aeon Co. M Berhad - 4.73%
3.  Ta Ann Holdings Berhad - 4.42%
4.  Guan Chong Berhad - 4.40%
5.  Time Engineering Berhad - 4.25%
6.  KPJ Healthcare Berhad - 3.81%
7.  Coastal Contract Berhad - 3.61%
8.  Tradewinds Malaysia Berhad - 3.36%
9.  Time Dotcom Berhad - 3.34%
10. KPJ Healthcare Berhad -Warrant - 3.23%


Offline tedbeh

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Re: Coastal
« Reply #55 on: July 19, 2011, 12:55:21 PM »
Is CIMB still keeping it?

Offline zuolun

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Re: Coastal
« Reply #56 on: July 19, 2011, 12:56:15 PM »
And the shareholder is happily collecting back at cheaper price, afterall they know that this ia an undervalue counter.

Agreed but should be "market manipulator" instead of "shareholder".

NOTE: "market manipulators" are a bunch of crooks/invisible big players whereas "market makers" are visible and legalized managers who work for financial institutions. These people are able to swing the share price up and down like a yo-yo. :P

Offline zuolun

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Re: Coastal
« Reply #57 on: July 19, 2011, 01:00:00 PM »
Is CIMB still keeping it?

the fund manager run road at RM 3.80++ in May 2011 means CIMB's fund manager sold Coastal shares and took profit at RM 3.80++ in May 2011


Offline zuolun

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Re: Coastal
« Reply #58 on: July 19, 2011, 05:17:32 PM »
Very similar to Mitra...

Mitra's share price hit low of 0.555 and high of 0.585; closing price at 0.585 (+0.02, +3.54%), today.

Mitra's warrant price hit low of 0.235 and high of 0.295; closing at 0.295 (+0.045, +18.0%), today.

Once the mother share is able to trade higher at 0.59 or above tomorrow morning, the stock could have a imminent rebound. Its warrant price has been on a strong uptrend since listing; it's more profitable (in % term) to buy the warrants than the mother share when both counters turned positive, today.  :)


Offline tedbeh

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Re: Coastal
« Reply #59 on: July 19, 2011, 05:21:43 PM »
the fund manager run road at RM 3.80++ in May 2011 means CIMB's fund manager sold Coastal shares and took profit at RM 3.80++ in May 2011



Thanks for the clarification

Offline zuolun

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Re: Coastal
« Reply #60 on: July 19, 2011, 05:30:25 PM »
Thanks for the clarification

Don't worry about Coastal. It's oversold at RM 2.38 (13 Day RSI at 13.41).

It'll rebound sooner than Mitra once the warrants are listed. :)




Offline Stockstalker

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Re: Coastal
« Reply #61 on: July 19, 2011, 05:33:13 PM »
Don't worry about Coastal. It's oversold at RM 2.38 (13 Day RSI at 13.41).

It'll rebound sooner than Mitra once the warrants are listed. :)


When are the warrants going to be listed?

Offline mark1970

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Re: Coastal
« Reply #62 on: July 19, 2011, 06:07:30 PM »
Don't worry about Coastal. It's oversold at RM 2.38 (13 Day RSI at 13.41).

It'll rebound sooner than Mitra once the warrants are listed. :)





Agreed. Coastal won't crash and delist from Bursa. Current market sentiment is quite bad, people do not want to hold too many quantity of shares, so may sell some of the bonus shares. Imagine now, if drop 1c = drop 0.42%, 10c = 4.2%. Previously at 3.50 level, drop 1c = drop 0.28% or 10c = 2.8%.

Eventually it will come back, only a matter of time... Next catalyst is its quarterly financial announcement in Aug.


Offline O'NiJ

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Re: Coastal
« Reply #63 on: July 19, 2011, 06:12:03 PM »
coastal expected to play second fiddle in the weeks to come upon BUMI TRAP ARMADA!!!!!

better to punt/short term swing bumi........ greater potential...

yum yum....


Offline zuolun

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Re: Coastal
« Reply #64 on: July 19, 2011, 06:44:30 PM »
Will the rest jump on the bandwagon?

By SHARIDAN M. ALI
July 16, 2011

Analysts give mixed views on the reactions in the O&G industry


OIL and gas (O&G) experts are expressing mixed views on how the impending “marriage of the year” between SapuraCrest Petroleum Bhd and Kencana Petroleum Bhd, if they make it to the altar, will influence the local industry landscape.

OSK Research analyst Jason Yap thinks the merger between Kencana and SapuraCrest will definitely prompt other players to consider consolidation as well.

“But the consolidation trend may lean towards smaller companies joining the big boys rather than to consolidate among themselves,” he tells StarBizWeek.

Will the merged entity attract or approach smaller O&G companies to join them? Yap says that potentially the merged entity may be attracted to offshore support vessel (OSV) players like Petra Perdana Bhd and other companies that have high-horse power vessels in their fleet much required in the current O&G development.

In December last year, there was market talk that SapuraCrest was looking into an asset expansion with Petra Perdana as a likely target. News reports indicated SapuraCrest had hired investment bankers to look into a potential asset expansion exercise that included the possibility of acquiring O&G companies late last year.

But now, it can be a different story altogether as the merger, if it goes through, will first have to focus on management, operation and working culture integration between the two companies.

Consolidation or integration of companies to a bigger and stronger entity, according to an OSK Research report, is vital since the O&G industry is a highly capital-intensive business.

For instance, in the first development of marginal fields in Malaysia via the risk-service contract, both SapuraCrest and Kencana have to invest US$200mil (RM600.7mil) each.

“The benefits of a bigger merged entity include having better success rate when bidding for new contracts, better chances of being picked as a main contractor, which will command better margins for work done compared to a sub-contractor, increasing the ability to compete in the global market, and possessing more financial muscle to raise future funds, such as for marginal oilfield development,” says OSK Research.

Meanwhile, an ECM Libra analyst says the merger proposal does not guarantee that the rest of the players in the industry are going to follow suit.

“This is because if the merger between Kencana and SapuraCrest goes through, the bulk of consolidation of the local O&G industry would have been completed. Malaysia Marine & Heavy Engineering Holdings Bhd (MMHE) had earlier inked an agreement with Sime Darby Engineering to acquire the latter's yard,” she says.

In May, MMHE entered into a memorandum of understanding with Sime Darby Engineering to acquire its 130-acre Pasir Gudang yard for RM399mil cash.

This is expected to radically transform Malaysia's fabrication landscape because if one includes Petronas' Teluk Ramunia yard, MMHE will have access to the country's largest domestic fabrication yard of 672 acres, which is 3.5 times Kencana Petroleum Bhd's current 192 acres, says AmResearch in a report in May.

“Nevertheless, the merger may be the trigger for smaller market cap companies, such as Petra Energy Bhd and Dayang Enterprise Holdings Bhd, to merge as they can do better by being bigger,” says the analyst.

AmResearch in one of its reports in April that was spot on over the mergers and acquisitions between MMHE and Sime Darby as well as Kencana and SapuraCrest also mentioned the likelihood of a merger between Coastal Contracts Bhd and Alam Maritim Resources Bhd.

A source close to the matter says the merger should trigger the consolidation trend in the industry.

“The big boys are pursuing it. And as a result of the big boys consolidating, smaller O&G companies may be affected due to fewer sub-contracts by the bigger players.

“Take for example like SapuraCrest. After the merger, it would not have to sub-contract the fabrication part anymore as its future partner Kencana has the capability to do so,” he says.

Offline zuolun

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Re: Coastal
« Reply #65 on: July 19, 2011, 07:15:17 PM »
Agreed. Coastal won't crash and delist from Bursa. Current market sentiment is quite bad, people do not want to hold too many quantity of shares, so may sell some of the bonus shares. Imagine now, if drop 1c = drop 0.42%, 10c = 4.2%. Previously at 3.50 level, drop 1c = drop 0.28% or 10c = 2.8%.

Eventually it will come back, only a matter of time... Next catalyst is its quarterly financial announcement in Aug.

Coastal hit low of RM 2.34 and high of RM 2.39, closing at RM 2.38 (unchanged); market seemed to have finished flushing out margin and T+3 contra players today.  :D  :D  :D

Offline zuolun

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Re: Coastal
« Reply #66 on: July 19, 2011, 10:33:04 PM »
When are the warrants going to be listed?

An application for the quotation of up to 60,408,667 Warrants will be submitted to Bursa Malaysia Securities Berhad after the completion of the bonus issue exercise. The Warrants will be quoted within two (2) market days after the said submission.

General Announcement
Reference No OI-110719-44445 

Submitting Merchant Bank: OSK INVESTMENT BANK BERHAD 
Company Name: COASTAL CONTRACTS BHD
Stock Name: COASTAL
Date Announced: 19/07/2011 

Type : Announcement
Subject : NEW ISSUE OF SECURITIES (CHAPTER 6 OF LISTING REQUIREMENTS)
BONUS ISSUES

 
Description : COASTAL CONTRACTS BHD (“COASTAL” OR THE “COMPANY”)

BONUS ISSUE OF NEW ORDINARY SHARES OF RM0.20 EACH (“BONUS SHARE(S)”) IN COASTAL (“SHARES”) ON THE BASIS OF ONE (1) BONUS SHARE FOR EVERY THREE (3) SHARES HELD (“BONUS ISSUE”)
 

Announcement Details/Table Section :

We refer to our announcement on 18 July 2011 relating to the Bonus Issue.

We wish to highlight that 120,817,333 Bonus Shares were granted listing and quotation on the Main Market of Bursa Malaysia Securities Berhad on Tuesday, 19 July 2011, marking the completion of the Bonus Issue.

This announcement is dated 19 July 2011.

Offline zuolun

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Re: Coastal
« Reply #67 on: July 19, 2011, 11:20:41 PM »
Tide is turning for O&G sector

Written by Financial Daily     
Monday, 18 July 2011   

Oil & gas sector
Maintain overweight: We upgrade the offshore service vessel (OSV) segment to “neutral” following a 8% to 37% correction in share price year-to-date. Operationally, we opine the worst is over for the sector and prospects are set to improve, albeit at a gradual pace over the next 24 months. Stocks wise, we have upgraded Alam Maritim Resources Bhd, Tanjung Offshore Bhd and Perdana Petroleum Bhd to a “hold” (from “sell” previously).

The sector experienced weak day rates, low utilisation and high idle time, hit by vessel supply overhang and seasonally anaemic offshore activities. Some contracts were also terminated early. The impact is more adverse on companies with older vessels (more than 15 years) compared with those with a younger fleet. The downbeat state was reflected in the January to March results. Financially, all reported results in the red.

Day rates have gone through the floor and stabilised, while utilisation has improved as field activities pace up. There has also been a series of contract extensions (with one- to three-year terms). However, day rates secured to date are still 7% to 8% lower than the peak rate secured in 2007/08.

Charter rates are expected to trade sideways over the next 24 months as the market absorbs supply overhang and low utilisation levels.

New orders have also picked up following nominal activity over the past 24 months. However, demand is largely confined to platform supply vessels (PSV), accommodation barges and high-end anchor handling, tug, and support vessels of more than 5,000bhp. We understand that about 10-12 new PSVs will be needed to support domestic operations, notably deepwater. Demand for accommodation barges is on the rise, as rejuvenation and maintenance activities pick up.

Putting things into perspective, as activities pick up in tandem with rising drilling works, results in 2H should improve vis-à-vis 1H. Companies with strong balance sheets will capitalise on the rising demand for new OSVs (that is platform supply vessels). Companies with smaller balance sheets will seek joint ventures for growth. We do not rule out mergers and acquisitions with OSV companies positioned as “acquiree” targets owing to their undemanding valuations. A few may remodel their business, as they position to be less exposed to the cyclical OSV market.

Most of the negatives have been priced in, we feel. Downside is capped but share price performances of OSVs under coverage, i.e. Alam Maritim, Perdana Petroleum and Tanjung Offshore are unlikely to outperform the market in the near term, for 2011 is a consolidation and transformation period. — Maybank IB Research, July 15


This article appeared in The Edge Financial Daily, July 18, 2011.


Offline zuolun

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Re: Coastal
« Reply #68 on: July 19, 2011, 11:31:30 PM »
Opec: Venezuelan reserves surpass Saudi

News wires 18 July 2011 18:20 GMT

Venezuela's proven crude reserves surpassed those of Saudi Arabia last year, making it the world's largest oil reserves holder, Opec said in its annual statistical bulletin.

Venezuela's proven crude oil reserves reached 296.5 billion barrels in 2010, up 40.4% on the year and higher than Saudi Arabia's 264.5 billion barrels, Opec according to a Dow Jones report.

In the long run the boost in reserves, which comes alongside increases from Iran and Iraq, may empower members of Opec who favour a defence of high prices. However, there are doubts over whether all of Venezuela's heavy oil discoveries are economically viable.

The data broadly confirm Venezuela's statements that it had reached this level of reserves in January. Opec normally relies on its members' assessments for statistical data.

Iraq's and Iran's proven reserves were also upgraded by 24.4% to 143.1 billion barrels and by 10.3% to 151.2 billion barrels, respectively, roughly in line with the countries' earlier disclosures.

Venezuela, Iran and Iraq were part of a group that refused to endorse a Saudi-led push to hike output at an acrimonious Opec meeting 8 June.

Analysts have questioned how economic Venezuelan reserves additions could be, as most come from the heavy and extra-heavy oil in the Orinoco Belt, which is difficult and expensive to extract.

Venezuela's statistics have long been a controversial topic in oil circles, though disagreements on the matter have recently eased. The International Energy Agency last month said it revised the method used to calculate the country's oil-production figures, bringing its estimates closer to those of Caracas.

The set of statistics may also vindicate Iran's claims that sanctions are not crippling the development of its oil and gas industry. For instance, crude oil exports from the Islamic Republic to Europe in 2010 rose 34.5% to 764,000 barrels per day on average.

Overall, Iranian oil exports rose by 0.7% as exports to Asia and the Pacific fell by 11%. Iranian natural gas reserves and exports rose by 11.8% and 48.7%, respectively.

Last year, the European Union implemented stringent sanctions on Iran which, without banning crude purchases, complicate them by putting restrictions on insurance, financial services and energy sectors.

The numbers also underscore the recovery of the Nigerian oil industry with 17 more rigs active in the West African nation and 437 additional producing wells, following a successful amnesty for militants in 2009.

Overall, the numbers show Opec members strongly benefited from higher oil prices in 2010, with the total value of their petroleum exports up 27.2% at $745.1 billion and their overall gross domestic product rising 11.2% to $2.325 billion.


Offline zuolun

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Re: Coastal
« Reply #69 on: July 20, 2011, 10:06:16 AM »
Coastal hit low of RM 2.34 and high of RM 2.39, closing at RM 2.38 (unchanged); market seemed to have finished flushing out margin and T+3 contra players today.  :D  :D  :D

Confirmed the relentless selling of Coastal past 3 days is finally over with today's opening price gapped up 0.04 at RM 2.42. Coastal is now trading at RM 2.45 (+0.07, 2.94%) with very low volume done at 100,600 shares.

Offline zuolun

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Re: Coastal
« Reply #70 on: July 20, 2011, 11:19:39 AM »
Confirmed the relentless selling of Coastal past 3 days is finally over with today's opening price gapped up 0.04 at RM 2.42. Coastal is now trading at RM 2.45 (+0.07, 2.94%) with very low volume done at 100,600 shares.

Margin and T+3 contra players who bought Coastal cum bonus on the 11th - 13th of July 2011 (from RM 3.58 to RM 3.67) are forced to liquidate their trading positions and sold their shares to short-sellers on the 14th to 18th of July 2011 (from RM 2.34 to RM 3.71), after ex-all.

The share price gapped up (0.07 or 2.94%) to hit high of RM2.46 this morning is due to short-covering because no one would sell Coastal shares cheaply now after T+3.  :D   :D   :D
 
Coastal's transaction data (unit price adjusted after ex-all)

Date        Open  High   Low  Close  Volume
20110719 2.390 2.390 2.340 2.380 716,000
20110718 2.450 2.470 2.350 2.380 930,300
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

0110708 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
[/b]

Offline zuolun

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Re: Coastal
« Reply #71 on: July 20, 2011, 12:49:33 PM »

Hi:

Can someone please enlighten? If the warrant is so cheap, then is it better to collect more mother share coz. the mother share is considerably cheaper, as compared to exercised warrant later (RM 3.18 + warrant price)?

Coastal management fixed its warrant's exercise price at RM 3.18 after ex-all dated 14th July 2011 is similar to pricing a new IPO called Coastal Warrant on the market at 60,408,667 units with the underlying share last traded at RM 3.62 per share on 13th July 2011. The listing price of Coastal's warrant is determined by market forces; no one knows how much investors would value the 1-for-8 warrant as it's given free to existing shareholders. (Some listed company with very tight cashflow requires its existing shareholders to pay for its warrants and subscribe at exercised price.) The listing price and price movement of the warrant should help adjust the mother share price postively if investors are bullish on Coastal.

Offline zuolun

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Re: Coastal
« Reply #72 on: July 20, 2011, 01:11:12 PM »
Coastal management fixed its warrant's exercise price at RM 3.18 after ex-all dated 14th July 2011 is similar to pricing a new IPO called Coastal Warrant on the market at 60,408,667 units with the underlying share last traded at RM 3.62 per share on 13th July 2011. The listing price of Coastal's warrant is determined by market forces; no one knows how much investors would value the 1-for-8 warrant as it's given free to existing shareholders. (Some listed company with very tight cashflow requires its existing shareholders to pay for its warrants and subscribe at exercised price.) The listing price and price movement of the warrant should help adjust the mother share price postively if investors are bullish on Coastal.

The gameplay is the same as those Covered Warrants (CALL/PUT) issued by a market-maker (financial institution). The only difference is that Company warrants have a long life span (5 years), whereas Covered Warrants have a short life span (3 - 6 months). If more players gamble on the warrants and able to influence the warrant price movement positively; the underlying mother share price will theoretically move in tandem once the warrants are "in-the-money". 

Offline zuolun

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Re: Coastal
« Reply #73 on: July 20, 2011, 04:04:45 PM »
Don't worry about Coastal. It's oversold at RM 2.38 (13 Day RSI at 13.41).

It'll rebound sooner than Mitra once the warrants are listed. :)

Those who panically dumped Coastal at its lowest price at RM 2.34 yesterday must be crying now! :'(  At RM 2.34, the share price was already down 37 sen or -13.65% in just 7 days from its ex-all price at RM 2.71 after a positive announcement of the RM 98 million order one day earlier. Selling-off after a 13.65% drop in the price showed that people are really desperate and fearful then! However, for those who dare to buy Coastal when it dipped to its lowest at RM 2.34 yesterday are laughing all the way to the bank now. :D There is a quote by Warren Buffett: "Be fearful when everyone is greedy. Be greedy when everyone is fearful“.  :P

Offline tedbeh

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Re: Coastal
« Reply #74 on: July 20, 2011, 04:07:34 PM »
yes, have to put faith in good counter! It recorded 60 continuous buying transaction just now!

Offline zuolun

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Re: Coastal
« Reply #75 on: July 20, 2011, 04:26:42 PM »
yes, have to put faith in good counter! It recorded 60 continuous buying transaction just now!

The short-sellers had covered some of their 

Based on yesterday's total volume done at 716,000 shares; the frantic buying today at higher prices is likely short-covering by short-sellers who shorted Coastal from RM 2.71 all the way down! Those lucky and daring ones who bought on dip bet. RM 2.34 to RM 2.39 yesterday can contra and take profit today! :cash:  :cash: :cash:



   

Offline zuolun

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Re: Coastal
« Reply #76 on: July 20, 2011, 04:33:54 PM »
The short-sellers had covered some of their 

Based on yesterday's total volume done at 716,000 shares; the frantic buying today at higher prices is likely short-covering by short-sellers who shorted Coastal from RM 2.71 all the way down! Those lucky and daring ones who bought on dip bet. RM 2.34 to RM 2.39 yesterday can contra and take profit today! :cash:  :cash: :cash:

The short-sellers had covered some of their short positions early in this morning! The sell-off past 7 days was over-done with very light volume ( total volume < 5 millions shares done).




 

Offline tedbeh

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Re: Coastal
« Reply #77 on: July 20, 2011, 08:49:35 PM »
Can we put all our money into Coastal Warrant? Since the share is undervalue and PE of 6? It could be like Kulim Warrant, from 0.30 shoot up to 0.90! 200% gain.

Offline zuolun

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Re: Coastal
« Reply #78 on: July 21, 2011, 01:19:25 PM »
Can we put all our money into Coastal Warrant? Since the share is undervalue and PE of 6? It could be like Kulim Warrant, from 0.30 shoot up to 0.90! 200% gain.

Current volatile/weak market sentiment is good for trading; buy on weakness when price drops alot and sell on strength once the price rebounds. It's a trader's market.

No matter how bullish you are; it's not advisable to put ALL you money on a single counter.

Buying the warrants for mid or long term when it's cheap means you strongly believe that Coastal is truly undervalued and have the potential to grow value faster than its peers over the next 2 years, i.e. like those hard-core fundamentalists who bought Coastal when the share price collapsed to < RM 1.00 on Mar'09 and held onto the stock for a period of time until its price recovers.

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".

Once Coastal is able to clinch more orders (forecasted at RM300 - 400M) in the 2H11 to refill its orderbook and/or any of those potential catalysts materialised; the warrant price should perform better than the underlying share because of its limited quantity available on the open market.   
       

Note: The Kulim Warrant price hit high of RM 1.18 in Mar and currently trading around 90 sen could be due to strong demand Vs limited supply.

Offline tedbeh

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Re: Coastal
« Reply #79 on: July 21, 2011, 01:42:05 PM »
Thanks a lot for the advice.

Offline zuolun

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Re: Coastal
« Reply #80 on: July 21, 2011, 02:22:42 PM »
Oil price has been stubbornly high at > US$ 95 per barrel, which is beneficial to Coastal's business.

I believe Coastal is able secure more orders to refill its orderbook FY2011 at > RM 1 billion.   

1.  Total orders last reported = RM 760M.
2.  Last order received = RM 98M.
3.  Total orders = RM 858M (RM 760M + RM 98M). 
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 #81 on: July 21, 2011, 02:42:46 PM »
Malaysia Foreign Fund Flow - bucking the trend again

Tuesday, July 19, 2011

Stock market Snapshot

Asian markets actually performed better with a mixed outcome. Markets in China, Indonesia and the Philippines actually closed higher. The developed Asian markets actually felt the brunt of selling, with the Hang Seng the worst performing losing -3.7%, followed by Singapore’s STI at -2.1% and Taiwan’s Taiex at -2.0%. The KLCI closed the week lower by -1.1%, only the second weekly decline in 10 weeks.

MALAYSIA STOCKMARKET

• In the local market, foreign investors surprisingly remained net buyer last week. Foreigners have now been net buyer of Malaysian equity in 14 out of the last 17 weeks.

• The buying however eased last week. Net purchase of equity amounted to only RM171.5m compared with RM0.7b - RM1.2b a week in the preceding four weeks. Foreigners were net sellers on Mon-Tue, but turned buyers on Wed-Friday.

• The participation rate or gross trade (purchases + sales) of foreign investors dropped to RM4.1b, the lowest in five weeks.

• Retailers surprisingly turned net buyers, albeit marginally, after four consecutive weeks of selling. Local institutional investors remained net sellers last week, unloading RM3.7b and bought RM3.5b worth of equity last week. However their participation rate was still high at >RM7b.   

MALAYSIA EQUITY MARKET: WEEK AHEAD
 
• Despite weak sentiment last week, we expect the situation to improve this week in line with the mild rebound in U.S markets on Friday.

• There was positive development as Italy’s parliament on Friday passed a 48b-euro austerity budget aimed at slashing the public defi cit by 2014. However, it will still be a crunch week as Eurozone leaders will hold an emergency summit on July 21 try to agree a second international bailout for Greece. The EU and International Monetary Fund bailed out Greece in May 2010 with a package worth 110b euros (USD160b) in exchange for a series of drastic austerity measures to stabilise its public finances.

• Coincidentally, July 21 is also the listing of Bumi Armada IPO, Malaysia’s biggest IPO this year. We have a fair value of RM3.62, but the share price may trade closer to RM4 if global sentiment towards equity improved.

• The economic report card season for the second quarter kicked off last week. China’s 2Q11 GDP decelerated slightly to 9.5%yoy from 9.7%yoy in 1Q11, easing concerns over accelerating inflation. Singapore’s 2Q11 GDP decelerated sharply to only +0.5%yoy, from +9.3%yoy in 1Q11, warning the market to expect an ugly set of numbers for the rest of countries in the region.  We are looking at 4.0% growth for Malaysia in 2Q11. There is no official GDP release scheduled for this week in this region.

• Foreign shareholding on Bursa Malaysia shot up to 22% at the end of June, based on data released by Bursa last week. That was an increase from 21.4% at the end of March. During that period, an estimated RM7.5b of net foreign funds moved into listed Malaysia equity. That is in line with out estimate that a 1%-point increase in foreign shareholding is equivalent to an infl ow of about RM10b.

Research by MIDF Invetsment Research

Offline zuolun

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Re: Coastal
« Reply #82 on: July 21, 2011, 03:45:47 PM »
Thanks a lot for the advice.

I'm also interested to buy and hold Coastal warrants for mid term play (3 - 6 months). If you look at the Company's share structure, the underlying shares are tightly held by its major SSHs (70%) and these people are unlikely to dump the warrants cheaply. Based on my perception; the free float of the warrants (in % term) available on the open market is only 18,122,600 units or 30% of 60,408,667 units. So will existing retail shareholders dump their limited quantity of free warrants cheaply when they bought the underlying share at a high price with cum bonus issue?

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 #83 on: July 21, 2011, 05:50:01 PM »
Bumi Armada Soars in Debut Trade in Malaysia

By ANKUR RELIA
JULY 21, 2011, 5:07 A.M. ET

KUALA LUMPUR—Oil and gas-services provider Bumi Armada Bhd. made a strong trading debut on the Malaysian stock exchange Thursday as investors scrambled to buy into the country's growing oil and gas sector.

Bumi Armada, which raised 2.66 billion Malaysian ringgit ($890 million) from its initial public offering this year, opened 21% higher at 3.65 ringgit each, compared with an IPO price of 3.03 ringgit. By midday, the stock was up 32% at 3.99 ringgit on heavy trading volume of 201.9 million shares. In comparison, the broader market was flat.

"Our IPO received tremendous response and strong demand from both international and Malaysian investors," Chief Executive Hassan Assad Basma said in a statement.

At a time when many large Asian IPOs have often been downsized, delayed or called off, the strong debut of Bumi Armada highlights robust demand for resources companies in Malaysia.

To encourage more demand into Malaysia's growing oil sector, the government last year announced that it would give tax breaks to encourage the development of potential oil reserves in less-profitable fields, part of Prime Minister Najib Razak's plan to attract $444 billion in investments by 2020 to boost economic growth.

Analysts say that Bumi Armada offers a foothold into both the local and regional oil and gas industry. On the local front, they say the company stands to benefit from national oil company Petroliam Nasional Bhd's plan to spend 300 billion ringgit over the next five years to replace and refurbish production assets in Malaysia.

"This is one of the local upstream oil and gas companies that has a global reach. If you are looking to have exposure to Malaysia's oil and gas sector, this [Bumi Armada] is a must have in your portfolio," said Andy Ong, an analyst with Affin Investment.

He said the company deserves a premium valuation to its global peers such as Technip S.A. and McDermott International Inc. as it offers competitive services and because many other regional companies will not have access to local projects being done by Petronas.

Bumi Armada sold up to 878.5 million shares, which included 79.9 million shares to retail investors.

Cornerstone investors for its institutional offering included Great Eastern Life Assurance (Malaysia) Bhd., Permodalan Nasional Bhd., HwangDBS Investment Management Bhd., Prudential Fund Management Bhd., Hong Leong Assurance Bhd., Guoline Capital Ltd. and Asia Fountain Investment Company Ltd.

The institutional offering was oversubscribed by about 50 times, the company said.

CIMB Group Holdings, CLSA Asia-Pacific Markets, Credit Suisse Group, Malayan Banking Bhd., RHB Capital and UBS AG advised on the deal.

Offline zuolun

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Re: Coastal
« Reply #84 on: July 21, 2011, 06:21:54 PM »
AmResearch 'overweight' on oil, gas sector

Monday, July 18, 2011

Petronas Gas Bhd is likely to be a beneficiary of the evolving energy landscape towards natural gas, says Amresearch.

This will be supported by favourable news flow from several events such as heightened global concerns over nuclear power following Japan's Fukushima Daiichi nuclear meltdown, rising coal costs and the aborted attempts to revive the 1,600MW Bakun undersea cable project, which would likely turn intention back to gas-fired power plants, AmResearch in a research note today.

It also said that the government’s strategy to gradually remove natural gas subsidies by 2015, will lead to a more viable pricing mechanism for electricity generation.

AmResearch said ongoing projects such as the group’s 60 per cent-owned 300MW Kimanis gas-fired power plant expected to be completed by end-2013, and investment opportunities in the RM60 billion Refinery and Petrochemical Integrated Development in Pengerang, Johor, could ensure higher earnings for Petronas Gas.
 
Meanwhile, for the oil and gas sector, AmResearch remained convinced that domestic capital expenditure spending will accelerate, boosted by Petronas’ RM300 billion programme over the next five years.

This includes the development of 27 marginal fields and enhanced oil recovery projects.

It said the government’s Economic Transformation Programme also catalyses excitement in merger and acquisition news flow in the sector, with the push to create an oil field services hub in the country and consolidation of local operators into regional champions.

"Recent examples are the proposed Kencana-SapuraCrest merger and acquisition of Sime Darby’s fabrication yards by Marine & Heavy Engineering Holdings (MMHE) and its parent, Petronas," it added.

AmResearch has maintained a "buy" call on Petronas Gas with a higher sum-of-parts fair value of RM15.30 against RM13.60 previously.

It also maintained an "overweight" view on the oil and gas sector with the top pick being MMHE while among other "buy" recommendations are SapuraCrest Petroleum Bhd, Kencana Petroleum Bhd and Wah Seong Group. -- Bernama

Offline zuolun

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Re: Coastal
« Reply #85 on: July 21, 2011, 06:40:21 PM »
Looks like a tough second quarter for listed firms

By JAGDEV SINGH SIDHU
Wednesday July 20, 2011

KUALA LUMPUR: Corporate Malaysia is not expected to show a good earnings report card for the second quarter despite Bursa Malaysia Bhd kicking off the earnings season with a good start by meeting market expectations.

Analysts said the continuing trend of declining earnings over the last few quarters and a much weaker economy projected for the second quarter would work against listed companies bucking the trend.

“It looks like a tough quarter. The performance of most companies hinges on economic activity,” said Kenanga Investment Bank Bhd head of research Chan Ken Yew.

Global economic growth has slowed over the last few months from the shock from the earthquake in Japan and the continued sluggishness of the advanced economies of the United States and Europe.

Economic growth in Malaysia is expected to slow in the second quarter from a growth rate of 4.6% registered in the first quarter. Weaker industrial production and exports, which will affect exporters listed on the stock exchange, are expected to be a drag that even robust domestic demand cannot overcome for the period.

Chan expects stocks under Kenanga's coverage to register an earnings growth of 16% in 2011 and 10.4% in 2012. Kenanga cut earnings estimates by 1% after the reporting period for the first quarter.

OSK Research head Chris Eng expects disappointments in the earnings scorecard to be more pronounced among the smaller companies than the large blue-chip counters, a repeat of what transpired in the first quarter.

“The upgrade to downgrade ratio continues to deteriorate because of the smaller stocks,” he said.

In his wrap-up of the first quarter, Eng had earlier said first-quarter results were better than those seen in the fourth quarter of last year, with some 75% of the stocks under its coverage either meeting or exceeding expectations versus 68% in the previous quarter.

Small caps continued to disappoint although they had a better quarter than in the fourth quarter of last year, with 66% versus 62% either outperforming or meeting expectations.

Despite the better results in the first quarter from the fourth quarter of last year, OSK's upgrade to downgrade ratio worsened in the first quarter.

Eng feels the auto sector, technology stocks and the small oil and gas and construction stocks will disappoint the market when they report their second-quarter earnings.

He said the nature of big cap stocks, like large construction companies, would carry such stocks through during the current reporting season because of their diversified earnings.

Eng is expecting earnings growth of 18% in 2011 and 12% in 2012.

CIMB Investment Bank Bhd research head Terence Wong expressed hopes that the second quarter would not be as bad as in the first quarter, when earnings estimates were cut 3% after the conclusion of the first reporting season this year.

“I expect it to be mixed but hope the economic transformation programme (ETP) will gain traction and that will translate to better earnings in the third and fourth quarter,” he said.

Despite successive quarters of disappointment, the market rose in June and touched a record high earlier this month.

Wong attributed the surge to other factors and not to the earnings of companies.

He said Malaysia was seen as a low beta market and was favoured for its defensive nature.

“News flow on the ETP had piqued investor interest in Malaysian equities,” he added.

Wong has forecast earnings to grow by 9% in 2011 and 14% in 2012.

Offline zuolun

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Re: Coastal
« Reply #86 on: July 21, 2011, 08:33:12 PM »
Listing Circular
LISTING'S CIRCULAR NO. L/Q : 61935 OF 2011
 
Company Name: COASTAL CONTRACTS BHD
Stock Name:  COASTAL
Date Announced: 21/07/2011

Subject : COASTAL - Issuance of free warrants of 60,408,667 in COASTAL ("Warrants") on the basis of one (1) Warrant for every eight (8) shares held after the Bonus Issue ("Free Warrants Issue")
 
Contents : Kindly be advised that COASTAL's 60,408,667 Warrants issued pursuant to the Free Warrants Issue will be admitted to the Official List of the Exchange and the listing and quotation of the Warrants on the Main Market under the “Industrial Products” sector, on a “Ready” basis pursuant to the Rules of the Exchange, will be granted with effect from 9.00 a.m., Monday, 25 July 2011. 
 
The Stock Short Name, Stock Number and ISIN Code of the Warrants are “COASTAL-WA”, “5071WA” and "MYL5071WAQ77" respectively.

Offline zuolun

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Re: Coastal
« Reply #87 on: July 21, 2011, 08:37:36 PM »
The gameplay is the same as those Covered Warrants (CALL/PUT) issued by a market-maker (financial institution). The only difference is that Company warrants have a long life span (5 years), whereas Covered Warrants have a short life span (3 - 6 months). If more players gamble on the warrants and able to influence the warrant price movement positively; the underlying mother share price will theoretically move in tandem once the warrants are "in-the-money". 

OCBC Bank to issue maiden structured warrants on July 21

Wednesday, July 20, 2011

KUCHING: OCBC Bank (Malaysia) Bhd (OCBC Bank) will issue its maiden batch of structured warrants this Thursday (July 21, 2011) to meet the growing demand for sophisticated investment products, such as equity derivatives, from foreign banks.

Previously dominated by a handful of local banks, structured warrants will for the first time be developed by OCBC Bank, the only foreign bank to currently do so. OCBC Bank also becomes the first bank without a stockbroking arm to offer the instrument.

According to OCBC Bank head of global treasury Gan Kok Kim, the bank would be making two issuances of cash-settled European Call Warrants on MSM Malaysia Holdings Bhd (MSM) and Benalec Holdings Bhd (Benalec) with tenures of about 12 months and issue size of up to 100 million each. The issue price for each had been set at RM0.15.

OCBC Bank was bullish on the Malaysian equity market given that the FBM KLCI has become one of the best performers in the region year-to-date despite lingering concerns about the Europe debt crisis, slow US recovery and continued tightening measures imposed by China.

“On the local front, there is much to be positive about including the ongoing ETP (Economic Transformation Programme) initiatives by the government, further liberation of GLCs (government-link companies) that are priming them for potential listing exercises, the trimming of the government’s shareholdings in listed GLCs, active M&A (merger and acquisition) activities, and the strong demand for domestic IPOs (initial public offerings).

“As one of the active equity derivatives players in the market, we are now looking to extend our expertise in the area to structured warrants. We are excited to be the only foreign bank to offer structured warrants in the market and are looking forward to good take up from the public, especially given the increase in investors’ appetite for more sophisticated products,” Gan said.

MSM is the biggest sugar refiner in the country with about 57 per cent of the domestic market share. A subsidiary of Felda Group, it has a long history in Malaysia.  Although the sugar industry in Malaysia is highly regulated, the recent reduction of sugar subsidies, accompanied by sugar price increases, had demonstrated the government’s move towards liberalisation of the industry, which would greatly benefit MSM.

Marine construction specialist, Benalec, on the other hand, was listed only in January this year and had already attracted immense interest due to its niche play as one of the market leaders in the marine construction business.

Its areas of business ranged from land reclamation, dredging and beach nourishment to construction of marine structures, bridges and ports. It was believed to be one of the largest land manufacturers in Melaka and was looking to expand its landbank via joint ventures with other developers as well.

Recently, it announced a RM60 million capital expenditure over the next 12 months for expansion into new territories, believed to be in Penang and Johor.

“We are bullish on both MSM and Benalec and believe in their long-term potential. And we are confident investors will quickly warm up to our issuances this Thursday. The gearings for MSM and Benalec, which are 4.25 times and 4.80 times respectively, provide sophisticated investors who are bullish on either MSM or Benalec with viable alternative leveraged investment options,” Gan added.

Commenting on the issuance, OCBC Bank’s economist Selena Ling said the Malaysian economy was forecasted to enjoy robust gross domestic product (GDP) growth of 5.7 per cent year-on-year in 2011 and 5.4 per cent in 2012 and that both the sugar and marine construction industries should enjoy similarly healthy growth prospects.

“Sugar consumption should grow steadily in tandem with population and income growth.  The marine construction industry, which has been growing rapidly in recent years, should also benefit from the opportunities arising from the pipeline of key infrastructure projects within the Economic Transformation Programme as Malaysia targets to become a high-income economy,” she said.
 

Offline zuolun

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Re: Coastal
« Reply #88 on: July 21, 2011, 08:53:27 PM »
HSBC deems M’sia expensive, downgrades to ‘Underweight’

Ranjit Singh
07 July 2011

Malaysia has been downgraded to 'Underweight' by HSBC Global Research, which deemed Malaysia as "one of the most expensive markets" in Asia.

"It's a very defensive market and hence doesn't go with our strategy of raising beta. We therefore lower Malaysia from 'Overweight' to 'Underweight'," it said in its third-quarter outlook for Asia.

The report also said that the local analysts are, compared to HSBC's own history, "very optimistic" in their stock ratings.

"Malaysia has always been a low beta market or a defensive market as a result of local institutional funds flush with cash ready to rein in any sharp movements in the market," said a local fund manager.

Explaining its reasons for the move, the report said food inflation has never been much of an issue in Malaysia as it is in neighbouring Indonesia, and arguably the central bank has been more proactive when it comes to taming price increases.....



Offline zuolun

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Re: Coastal
« Reply #89 on: July 21, 2011, 09:05:54 PM »
AmBank issues 5 new structured warrants

July 13, 2011

KUALA LUMPUR: AmBank (M) Bhd is issuing five new European style cash-settled structured warrants to meet investors demand for trading opportunities in the current bullish market.

There will be three call warrants (CWs) over the ordinary shares of MSM Malaysia Holdings Bhd, Ann Joo Resources Bhd and Benalec Holdings Bhd.

There will also be a pair of a put warrant (PWs) and a call warrant over the ordinary shares of KNM Group Bhd.

The structured warrants on MSM, Ann Joo, Benalec and KNM will have tenures of eight months and will be listed on July 14 this year with issue size of up to 100 million each.
 
The new CWs and PWs have gearings ranging between 3.13 and 4.80 and are targeted at investors who want leveraged exposure to the underlying on both the upside and downside.

Offline zuolun

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Re: Coastal
« Reply #90 on: July 21, 2011, 09:31:25 PM »
DDI can be a timely buffer during global economic uncertainties

July 21, 2011

KUALA LUMPUR: The government’s policy to encourage more domestic direct investment (DDI) is timely as it can be a buffer for generating economic growth, especially in times of global economic uncertainties.

Malaysian Investment Development Authority’s chairman, Tan Sri Sulaiman Mahbob, said currently, the DDI ratio versus the foreign direct investment (FDI) was 40 per cent and 60 per cent respectively and the government aimed to balance it.

“We got to nurture domestic investors beyond just construction, plantation and small and medium industries and move towards services and manufacturing,” he said.

He said this to reporters after the launch of the book, ‘Musings of a Financial Economist’, a collection of articles on key economic issues by Malaysian Rating Corp Bhd’s chief economist, Nor Zahidi Alias, here yesterday.

Hence, local entreprenuers should look into revamping their business models and take advantage of the incentives provided for key areas that the government was focusing such as services under the Economic Transformation Programme (ETP).

The government had earmarked 12 national key economic areas among others, namely, financial services, oil, gas and energy, education, tourism, wholesale and retail, electronics and electrical, healthcare and palm oil.

Echoing Sulaiman, Nor Zahidi also felt that the government was pushing for DDI under the ETP to safeguard the country’s interest in investment flow.

“If anything happens (global economic downturn) that will effect FDI, we will at least have the DDI to support the country’s economy,” he said.

However, he cautioned that there were possibilities of DDI being affected in case of a double deep in US due to Malaysia’s exposure to the market.

“We are keeping an eye on August 2 (the deadline for the US to increase its debt ceiling).

My personal opinion is that it will increase the debt ceiling simply because it can’t afford to have another 1937 incident,” he said.

The American economy experienced recession in 1937-38.

During global recessions, it was highly likely for even the DDI to decline as companies would take a cautious stance during such situation, he warned.

On the positive note, he said, despite the prevailing uncertainties, especially in the US and Europe, Malaysian consumption level was still good.

“The good thing is that our consumption is still high and our monetary policy is still accommodative to spur private consumption, which will in turn boost the country’s economy,” he said. — Bernama

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Re: Coastal
« Reply #91 on: July 21, 2011, 09:51:15 PM »
Lundin Petroleum Discovers Gas in Its First Malaysian Exploration Well

July 12, 2011

Lundin Petroleum AB (Lundin Petroleum) is pleased to announce that it has discovered gas in the Tarap-1 well that was drilled in Block SB303, offshore Sabah, East Malaysia.[/b]

Tarap-1 was drilled with the Offshore Courageous rig in a water depth of approximately 70 meters. The well was directionally drilled to a measured depth of 2,675 metres.

The Tarap discovery is a stratigrahic trap and the well encountered gas in each of the 5 independently sealed stacked Miocene sands targeted. Gross total vertical pay thickness for the sands encountered is approximately 150 metres. An extensive data acquisition program was completed including pressure measurements, sampling and a mini flow test in selected zones.

The data recovered from the well will be analysed further in order to determine a range of resource estimates.

Ashley Heppenstall, President and CEO of Lundin Petroleum comments: "This is an encouraging start to the drilling campaign in Malaysia and provides strong support for our strategy in South East Asia of pursuing organic growth and value creation in focused core areas. With a large number of prospects and leads already identified within SB303, I'm confident that we can continue grow our resource base in this area in the coming years.

Sabah currently has two gas demand centres located in Kota Kinabalu and Labuan Island that are supplied from existing offshore infrastructure. The addition of a third demand centre with the construction of the Sabah Oil and Gas Terminal at Kimanis and the Sabah-Sarawak gas pipeline gives us a broad range of options to explore for gas monetisation in the area."

The rig will now move to drill the Cempulut prospect, also in SB303, the second well in Lundin Petroleum's five well drilling campaign in Malaysia in 2011.

Lundin Petroleum holds a 75 percent interest in SB303 through its subsidiary Lundin Malaysia BV. Lundin Malaysia BV's partner is PETRONAS Carigali Sdn Bhd with a 25 percent interest.

Lundin Petroleum is a Swedish independent oil and gas exploration and production company with a well balanced portfolio of world-class assets in Europe, South East Asia, Russia and Africa. The Company is listed at the NASDAQ OMX, Stockholm (ticker "LUPE") and at the Toronto Stock Exchange (TSX) (ticker “LUP”). Lundin Petroleum has proven and probable reserves of 187 million barrels of oil equivalent (MMboe).

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Re: Coastal
« Reply #92 on: July 21, 2011, 10:41:49 PM »
Largely Unnoticed, The Offshore Market Works Its Way Out Of The Trough

The offshore sector is on the verge of a material increase in utilization for contractors across most sector niches.

Richard Mason
Jul 1, 2011

It’s beginning to sound like anchors aweigh in the offshore market.

Buoyed by strong commodity pricing, indications of stirring demand for offshore units internationally, and renewed optimism in the Gulf of Mexico, the offshore sector is on the verge of a material increase in utilization for contractors across most sector niches, implying pricing improvements won’t be far behind.

And that makes the 2011-2013 period prone to good news, in marked contrast to the Macondo-shrouded doldrums of 2010.

According to Morgan Stanley Research, the offshore drillers took the biggest hit in the post-2008 energy market retrenchment with stocks down an aggregate 29% for the group. Now, discussion in financial markets employs terms such as “inflection point” when discussing the offshore sector.

For sure, this year started off with a bang when offshore contractors placed orders for 12 jack ups and 14 floaters within the first 60 days. Orders for another seven floaters and seven jack ups followed during the ensuing 60 days, putting 2011 on pace to be the biggest year in new offshore rig construction since 1980.

That momentum carried into June with Rowan’s announcement of two additional ultra deepwater drillships.

The current offshore fabrication tally is 137 units, including 49 drillships, 63 jack ups, and 24 semi-submersibles in an order book that seems to expand monthly. However, only 51 of the newbuilds were contracted as of May. And, of the 73 floaters on order (49 drillships and 24 semis), only half have contracts upon delivery. This is not an issue when delivery is scheduled for 2013 or 2014, but a couple are imminent in the next few months, just as existing contracts for working floaters roll off, making the sector worth watching from a sustainability standpoint.

Clearly the industry is betting higher oil prices will expand activity in West Africa and the Middle East, and underwrite new activity in Brazil. As always, the issue with spec rig building is whether too many units come online too quickly, prompting a price war between new and legacy units, or whether new, higher spec rigs will gain market share in long-term contracts, forcing legacy units currently under contract back into the spot market as those contracts expire.

Still, prospects look good to absorb new supply, particularly when that new supply is higher spec. Outside the higher spec niche, recent news items are promising. In the jack up market, PEMEX has discussed plans to increase offshore rig count from 21 jack ups currently to 40, despite industry skepticism about whether Mexico can obtain that many units.  Several would have to be imported from global markets.

Speculation is that Saudi Aramco interest in additional offshore units could layer in another 11 jack ups in the Middle East while incremental demand for jack ups is expected to rise by 11 rigs in the North Sea. Add it up and offshore contractors in the jack up space may find an opportunity to move rates off the bottom as an oversupplied market experiences modest gains in global utilization.

Those pricing increases aren’t there yet. Rowan won three fixtures for high-spec jack ups from Saudi Aramco at rates in the high $120k per day in May, although analysts had expected those rates to top $140k.

Pricing aside, the underlying narrative remains positive. The international jack up count is up 29 units, or 10%, since the January 2011 bottom, and grew 13 units sequentially in May to 320 active, the biggest gain since the international offshore jack up count rolled over in October 2008. Worldwide jack up utilization is 79%--when subtracting out the U.S. Gulf of Mexico, where fleet utilization is slightly above 50%.

Meanwhile the jack up market has its own internal dynamics with Ensco and Transocean looking to sell off legacy jack ups and Hercules Offshore getting the green light on purchasing 20 Seahawk jack ups out of bankruptcy.

If You Build It, They Will Come

So what’s driving the resurgence in offshore newbuilds? Oil prices are one facet, though it is worth noting that a majority of newbuild announcements during the last seven months occurred before oil prices responded to events in the Middle East last February. Sustained pricing for oil will accelerate improving trends offshore.

Secondly, it depends on the niche. The long-oversupplied jack up market is showing the earliest signs of improvement while the tightly subscribed ultra deepwater drillship market appears destined for utilization rates well above 90% for the next half decade.

Thirdly, future demand seems robust. For example, Brazil’s Merchant Marine Fund approved funding for Acu Superport Industrial Complex, the $1.7-billion joint venture involving South Korea’s Hyundai Heavy Industries and new start up, OSX Brazil SA. The 5th generation shipbuilding facility would be the largest in the western hemisphere and could expand to fabricate as many as 11 floating production storage and offloading (FPSO) vessels. Current plans call for five FPSOs and three shallow water wellhead platforms for a total order book of $4.8 billion as part of a process where Brazil seeks to double oil production by 2020.

Fourth, Macondo has had an impact as regulatory agencies boost standards following the 2010 well blow out. Newbuild units are designed to meet those standards.

Certainly, the drillship construction market remains vibrant. High-spec jack up king Rowan Companies, Inc. announced two newbuild drillships in early June at a cost of $605 million each for units capable of drilling to 40,000 feet in water up to 12,000 feet. The drillships will be delivered in the 2013-14 time frame.

Utilization remains high for ultra-deepwater drillships (UDWs) with operators looking to expand development work on a string of global discoveries dating back to late 2008. Recent UDW drill ship day rates under three-year term contracts have ranged from $400k per day to $475K per day, which is off from the peak of $650k per day in mid-2008. Recent spot market rates range between $490K and $550K for terms of one year or less with two fixtures at $495K under five-year contracts in the Far East.

The bottom line is that the tightest niches offshore, such as ultra deepwater, will remain tight going forward while the most difficult niches, such as the oversupplied jack up sector, appear to be rebounding off the bottom.



Offline zuolun

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Re: Coastal
« Reply #93 on: July 22, 2011, 10:47:01 AM »
Analyst Interviews: Oil & Natural Gas Stock Outlook

Crude Oil

The improving economic scene – both here in the U.S. as well as worldwide – and the continued unrest in producing countries had been the main driver of the oil rally, which saw the commodity zoom past the $110 per barrel level earlier this year.

However, apprehensions about high U.S. crude stocks, the release of emergency oil supplies from government-held strategic reserves into the world market, and uncertainty over oil supply disruptions in the Middle East have been weighing on investor sentiment, weakening oil prices to less than $100 a barrel.

But far too many factors weigh on oil prices to definitively size up each one of them for their respective impact on prices. Some of those factors include OPEC decisions, geostrategic tensions the value of the U.S. dollar and seasonal variables, etc.

As per the latest release by the Energy Information Administration (EIA), crude supplies are higher than the year-earlier level and are above the upper limit of the average for this time of the year. This has led to domestic demand concerns against a backdrop of persistently slow job growth. At the same time, global oil consumption is expected to grow at a healthy rate this year, buoyed by the continued strength in the major emerging market economies.

As such, crude oil’s near-term fundamentals remain patchy to say the least. The long-term outlook for oil, however, remains favorable, given the commodity’s constrained supply picture.

According to the EIA, world crude consumption grew by an estimated 2.2 million barrels per day in 2010 to 86.6 million barrels per day, which more than made up for the losses of the previous 2 years and surpassed the 2007 level of 86.3 million barrels per day (reached prior to the economic downturn). One might note that global demand for 2009 was below the 2008 level, which itself was below the 2007 level – the first time since the early 1980s of two back-to-back negative growth years.

The agency added that average global consumption growth over the next 2 years is likely to return to rates seen before the onset of the global downturn in 2008. The EIA, in its Short-Term Energy Outlook, said that it expects the current economic recovery to contribute towards global oil demand growth of 1.4 million barrels per day in 2011 and 1.6 million barrels per day in 2012. However, the EIA’s most recent demand growth forecast for 2011 is 270,000 barrels per day, lower than in the earlier version, as the agency sees world economic growth lagging expectations.

Recently, the Organization of Petroleum Exporting Countries (OPEC) – the oil cartel that supplies around 40% of the world’s crude – also trimmed its 2011 world oil demand outlook, citing the unsteady global economy that has added risks to the forecast. OPEC predicts that global oil demand will increase by 1.36 million barrels per day annually, reaching 88.18 million barrels a day in 2011 from last year’s 86.82 million barrels a day. The organization’s current estimate for 2011 is lower by a marginal 20,000 barrels a day from its last report, issued in June 2011. In 2012, OPEC expects global oil demand to grow at a slightly lower 1.32 million barrels per day.

However, the third major energy consultative body, the Paris-based International Energy Agency (IEA), forecasted marginally stronger-than-previously-anticipated global oil demand in 2011. In its latest ‘Oil Market Report’, the IEA, an energy-monitoring body of 28 industrialized countries, said it expects world oil demand to grow by 1.2 million barrels per day in 2011, reflecting an upward revision of 200,000 barrels a day over the previous assessment, mainly driven by the non-OECD (Organization for Economic Cooperation and Development) economies. The agency – in its first 2012 forecast in a monthly report – added that global oil demand next year is expected to rise by 1.5 million barrels per day year-over-year to a hefty 91.0 million barrels per day.

We expect crude oil to trade in the $100-$110 per barrel range in the near future, supported by the continued tightening of world oil markets. But this does not mean that we will not see any short-term pullbacks. On the whole, we expect oil prices in 2011 to be higher than 2010 levels, but remain significantly below 2008 peak levels.

Natural Gas

A supply glut pressured natural gas futures for much of 2010, as production from dense rock formations (shale) remain robust, thereby overwhelming demand.

As per the U.S. Energy Department, domestic gas output increased significantly in 2010 by an estimated 2.4 billion cubic feet per day, or 4.1%, as production declines in Alaska and the Gulf of Mexico were offset by a healthy increase in lower-48 onshore volumes. Storage amounts hit a record high of 3.840 trillion cubic feet in November, while gas prices during the year fell 21%.

However, stocks of the commodity slid approximately 2.261 trillion cubic feet (Tcf) during the five-month period (November 5, 2010 to April 1, 2011) on the back of a colder-than-normal end to this past winter, production freeze-offs in January/February and the steadily declining rig count. These factors cut into the U.S. supply overhang, thereby creating a deficit in natural gas inventories after erasing the hefty surplus over last year’s inventory level and the five-year average level.

But with the end of the winter’s peak in heating demand, natural gas prices continue to be under pressure against the backdrop of sustained strong production. Producers are now hoping that the gap between supply and demand will further narrow in the coming months as they bet on a hotter-than-expected summer and an active hurricane season.

Looking forward, the EIA expects average total production to rise by 5.8% in 2011 and by 0.9% in 2012, while total natural gas consumption is anticipated to grow by 2.0% this year and decline slightly (by 0.2%) during the next year.

We believe these supply/demand dynamics – the projected lower production growth and almost flat consumption – will lead to the strengthening of natural gas prices in 2012.

But until then the weak fundamentals are going to continue to weigh on natural gas prices, translating into limited upside for natural gas-weighted companies and related support plays.

OPPORTUNITIES

In this current turbulent market environment, we advocate the relatively low-risk energy conglomerate business structures of the large-cap integrateds, with their fortress-like balance sheets, ample free cash flows even in a low oil price environment and growing dividends. Our preferred name in this group remains Royal Dutch Shell plc (RDS.A).

The current oil price environment should also benefit producers, particularly those international players having attractive growth opportunities in their home markets. One such standout name is China’s CNOOC Ltd. (NYSE:CEO), which remains well-placed to benefit from the country’s growing appetite for energy and the turnaround in commodity prices. CNOOC enjoys a monopoly on exploration activities in China’s very prospective offshore region in addition to having a growing presence in the country’s natural gas and LNG infrastructure.

Within the oilfield services group, we like Core Laboratories N.V. (NYSE:CLB). We are a fan of Core Labs’ leadership position in the reservoir optimization niche, along with its global footprint and deep portfolio of proprietary products and services. Furthermore, the company’s low asset intensive operations and limited capex needs allow it to generate substantial free cash flows.

Halliburton Co. (NYSE:HAL), the world’s second-largest oil services firm after Schlumberger Ltd. (NYSE:SLB), is also a top pick. We like Halliburton’s leading position in the global oilfield services market, along with its broad and technologically-complex product and service offerings, and its robust financial profile. Since the last few quarters, the company has been benefiting from increased activity in the unconventional oil and gas shale plays in North America, which have more than made up for the drop in deepwater Gulf of Mexico activity.

We are also positive on Canada’s biggest energy firm and the largest oil sands outfit Suncor Energy Inc. (NYSE:SU), reflecting the company’s impressive portfolio of growth opportunities, unique asset base and high return potential in the long run. Suncor has a significant oil sands and conventional production platform, huge long-lived oil-sands reserves and a robust downstream portfolio. The company’s asset base includes substantial conventional reserves and production at offshore Eastern Canada and in the North Sea, which generate strong margins and should provide free cash flow to fund future oil sands expansion.

Another company we like is independent energy exploration and production firm Cabot Oil and Gas (NYSE:COG). Notwithstanding its high natural gas exposure, the growth momentum from the company’s drilling efforts should help generate steady volume increases going forward. We also like Cabot’s relatively low risk profile and longer reserve life asset base. Following last year’s capital infusion of over $200 million and strong operating results, we believe that the outlook at Cabot has improved significantly.

Onshore contract driller Patterson-UTI Energy Inc. (NASDAQ:PTEN) is also worth a look. The company, which had a heavy spot market exposure, was hit badly by the financial crisis with operators tending to release land rigs to preserve cash. However, Patterson-UTI Energy has recovered almost all its lost market share, benefiting from its growing premium land rig fleet and the current boom in pressure pumping services (an umbrella term used to describe a number of vital services performed on new and existing wells).

Buoyed by the favorable trends in the refining sector, we are more optimistic on the industry than we were 12 months ago. An uptick in economic activity overseas (mainly in China and India) and prospects for higher fuel demand in the U.S. are likely to push 2011 industry margins higher than last year’s levels. Against this backdrop, we are particularly bullish on Valero Energy Corp. (NYSE:VLO), Tesoro Corp. (NYSE:TSO), and Western Refining Inc. (NYSE:WNR).

WEAKNESSES

We are bearish on South African petrochemicals group Sasol Ltd. (NYSE:SSL), concerned by the group’s unfavorable operating environment – characterized by a strong domestic currency and weaker refining margins – and its expensive growth strategy, which will stretch Sasol’s medium-term returns significantly.

Engineering and construction firm McDermott International (NYSE:MDR) is another company we would like to avoid for the time being, mainly due to the tentative commodity price scenario and the company’s clouded post-split outlook. Near-term bookings remain lumpy at McDermott, as the current uncertain environment has adversely affected the economics of building new oil and gas infrastructure.

We are also skeptical on integrated energy firm Marathon Oil Corporation (NYSE:MRO), following its recent split into two separate entities, by separating its downstream business into an independent company. We believe that transfer of the downstream assets (post-split) will leave Marathon with a less diversified business. As a result, the business risk profile of the reorganized Marathon will be weaker than that of the pre-spin-off company. The recent decision by ConocoPhillips (COP) to follow Marathon’s lead has effectively raised question marks about the entire business model. But it may be a too soon to write off the integrated oil company model.

Lastly, we expect shares of independent oil and gas company Forest Oil Corporation (NYSE:FST) to be under pressure in the near future. Though the Granite Wash play continues to perform well with an increasing acreage position, we are concerned with the company’s debt-heavy balance sheet, as well as its weak reserves growth profile. Additionally, with natural gas accounting for approximately 77% of total production (as of March 31, 2011), Forest Oil is exposed to the tentative outlook of the North American natural gas market.


By Zacks Investment Research, July 19, 2011

Offline tedbeh

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Re: Coastal
« Reply #94 on: July 22, 2011, 12:47:52 PM »
Kindly be advised that COASTAL's 60,408,667 Warrants issued pursuant to the Free Warrants Issue will be admitted to the Official List of the Exchange and the listing and quotation of the Warrants on the Main Market under the “Industrial Products” sector, on a “Ready” basis pursuant to the Rules of the Exchange, will be granted with effect from 9.00 a.m., Monday, 25 July 2011.
The Stock Short Name, Stock Number and ISIN Code of the Warrants are “COASTAL-WA”, “5071WA” and "MYL5071WAQ77" respectively

Offline jollybee

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Re: Coastal
« Reply #95 on: July 22, 2011, 01:08:43 PM »
I don understand.

Does it mean that I must buy 8 Coastal mother share to get 1 free warrant???????
- CP fund price - OCT 2014
CP Master fund    134.46
CP Income fund    fixed 8% 1yr or 30% 3 yrs
CP Global Alpha fund 110.99
CP Multi Strategy fund  88.98

Offline zuolun

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Re: Coastal
« Reply #96 on: July 22, 2011, 01:56:04 PM »
The price-action today confirms escapekl's analysis of the current scenario is correct! :thumbsup:  :thumbsup:  :thumbsup:

Coastal hit low of RM 2.49 and high of RM 2.54; morning closing at RM 2.53 (+0.05, +2.02%) with volume done at 292,900 shares. Margin and T+3 contra players who succumbed to the intense fear created by market manipulators are the big losers; especially those who dumped at the lowest price at RM 2.34 on Tuesday, 19 July 2011. The light volume sell-off of < 5 million shares after ex-all since 14 July 2011 was just 1.03% of the total 483.2 million shares after bonus issue.

Yes i agree also with your thoughts. However, the current weakness in the share price could be due to the following factors, cos it really does not make sense for this excellent company to be sold down having just announced new contract orders and with upcoming good news just around the corner. Here are the factors I think are contributing to the current price weakness:-

1) Bonus issue exercise just completed. Now after the bonus issue there will be free warrants to be issued on a 1 for 8 basis.

2) It is actually in the best interest of the market manipulators to have a weakened share price as when listed, the warrant initial price will be very low as they will be technically "out of the money" as the exercise price has already been set at RM3.18.

3) Therefore once the warrants are listed and the price is still cheap, market manipulators will wallup up a lot of these warrants cos they know they are sitting on a gold mine as they will definitely know that current share price is way undervalued

4) When more good news (Contracts, even M&A possibility for larger fabrication works) is released, the mother share will recover and should easily go past RM3 in the near future. Just imagine the % gains from those warrants picked up a low price for those market manipulators. Remember, this is the 1st ever time Coastal issue Warrants and definitely the market manipulators will not want to let go this golden opportunity to reap fantastic gains from the warrant appreciation which in % terms will be much higher than the mother share.

The above is just my own analysis of the current scenario.

NOTE: Market manipulators refer to big players who have the financial muscles to push the share price up and down every now and then to make profits from weak retail investors who sucumb to greed and fear.

Offline zuolun

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Re: Coastal
« Reply #97 on: July 22, 2011, 04:45:21 PM »
I don understand.

Does it mean that I must buy 8 Coastal mother share to get 1 free warrant???????

1-for-3 bonus share; 1-for-8 free warrant means if you buy 6 Coastal mother share you'll get 2 bonus share (6+2 = 8 ) and after ex-bonus you'll get 1 free warrant.

Offline zuolun

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Re: Coastal
« Reply #98 on: July 22, 2011, 05:02:15 PM »
1-for-3 bonus share; 1-for-8 free warrant means if you buy 6 Coastal mother share you'll get 2 bonus share (6+2 = 8 ) and after ex-bonus you'll get 1 free warrant.

Based on the last traded price of Coastal at RM 3.62 cum bonus, the price was adjusted to RM 2.71 on ex-all. For the warrant to be "in-the-money" the underlying share needs to rise 65 sen from current price at RM 2.53. If the price remains weak at RM 2.50++, the company may activate the share-buy-back program (upto 54,367,800 shares) to support its share price in order to entice warrant holders to subscribe for its share at RM 3.18 per share.



Offline jollybee

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Re: Coastal
« Reply #99 on: July 22, 2011, 10:32:10 PM »
Based on the last traded price of Coastal at RM 3.62 cum bonus, the price was adjusted to RM 2.71 on ex-all. For the warrant to be "in-the-money" the underlying share needs to rise 65 sen from current price at RM 2.53. If the price remains weak at RM 2.50++, the company may activate the share-buy-back program (upto 54,367,800 shares) to support its share price in order to entice warrant holders to subscribe for its share at RM 3.18 per share.

But if the company decided to do the share-buy-back-program, will they announce to the public prior to that?
- CP fund price - OCT 2014
CP Master fund    134.46
CP Income fund    fixed 8% 1yr or 30% 3 yrs
CP Global Alpha fund 110.99
CP Multi Strategy fund  88.98