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alexchia01 ( Date: 03-Nov-2010 13:30) Posted:
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FalconEne made a sudden Surge Today with 3 days of increasing volume.
Plus they just announced they are acquiring 2 HK companies, with activities in Coal and Oil Trading.
Price is low, MACD is slowly reversing Upwards and Stochastic also turning Up.
If price can breaks out of $0.50 within the next few days, this could be the turning point for FalconEne.
Although, this is a Buy Signal to me, but breaking $0.50 is a even better Bull Signal.
Good luck to all.
Falcon Energy Group Limited Announces Acquisition Of Companies In Hong Kong
5:34am EDT
Falcon Energy Group Limited announced that the Company is in the process of finalizing the acquisitions of the following companies registered in Hong Kong. Capital Guardian Limited with an issued and paid up share capital of HKD1.00, its principal activities are oil trading and other related activities. Radford Holdings Limited with an issued and paid up share capital of HKD1.00, its principal activities are coal trading, coal mining and other related activities. The abovementioned acquisitions will be funded by internal funds.
5:34am EDT
Falcon Energy Group Limited announced that the Company is in the process of finalizing the acquisitions of the following companies registered in Hong Kong. Capital Guardian Limited with an issued and paid up share capital of HKD1.00, its principal activities are oil trading and other related activities. Radford Holdings Limited with an issued and paid up share capital of HKD1.00, its principal activities are coal trading, coal mining and other related activities. The abovementioned acquisitions will be funded by internal funds.
Thanks friend.
Currently I have suscribed to shareinvestor to retrieve important fundamental data and also look into his cash flow, balance sheet and some others indicater. Just want to verify your strong analyze with my own.
Is OK thank you very much.. Good luck too.
Hi Zhixuen,
No offense but I pick and choose the companies which I would like to analyze further, based on personal interest and also my own time constraints. Currently, I have no interest in analyzing Gaoxian and am focusing on some other companies which are under my radar.
My advice to you is to dig through the financials on your own (Profit & Loss, Balance Sheet and Cash Flow Statement); this alone can reveal a lot of insights without even going into the business model and competitive analysis.
Remember that when buy a share of a company, you own a piece of the Company; hence treat ownership of shares as assets to generate cash flows for you as the business grows, and not as inventory to be traded to the next higher bidder. With the correct mindset, I am sure you will do very well in your investments.
Good luck!
No offense but I pick and choose the companies which I would like to analyze further, based on personal interest and also my own time constraints. Currently, I have no interest in analyzing Gaoxian and am focusing on some other companies which are under my radar.
My advice to you is to dig through the financials on your own (Profit & Loss, Balance Sheet and Cash Flow Statement); this alone can reveal a lot of insights without even going into the business model and competitive analysis.
Remember that when buy a share of a company, you own a piece of the Company; hence treat ownership of shares as assets to generate cash flows for you as the business grows, and not as inventory to be traded to the next higher bidder. With the correct mindset, I am sure you will do very well in your investments.
Good luck!
You are so professional in analysing the fundamental.
Can you do the same thing on ChinaGaoxian ? very thanks
http://www.sharejunction.com/sharejunction/listMessage.htm?topicId=7340&searchString=&msgbdName=ChinaGaoxian &topicTitle=ChinaGaoxian
I took a glance at the financials as at June 30, 2010....
1) Gross margin was 50.9% for 1H 2010 compared to 49.4% for 1H 2009. Obviously FEG is in a position to enjoy strong gross margins from their business. However, a quick look at finance costs shows that it is rapidly rising; up 489.5% to US$2.1 million for 1H 2010. This is about 5.7% of revenues. Admin costs also went up 40.7%, highe than the increase in gross profit of 37.6%; but this was offset by better contributions from share of profits of assoc.
2) High gross and net margins notwithstanding, the Balance Sheet appears to have deteriorated significantly in just 6 months. The most noticeable is the drop in cash and bank balances from US$48.3 million to US$17.6 million (-63.5%). Borrowings, on the other hand, have surged. ST borrowings rose from US$14.5 million to US$25.3 million, while LT borrowings rose from US$11.7 million to US$79.8 million (+582%). What this means, in simple language, is that FEG went from being in net cash of US$22.1 million as at 31/12/2009 to net debt of US$87.5 million as at 30/06/2010. I guess that explains the reason for the issuance of 162.8 million warrants at 10c each (exerciseable at 40c).
3) Return on Equity is about 17.5% annualized for FY 2010, against 14.0% for FY 2009 (annualized). However, much of the ROE was probably fuelled by debt, rather than internal cash flows.
4) For 6M 2010, FEG generated US$12.1 million of OCF but spent US$104.7 million on investment in associates; compared to 6M 2009 there was also no FCF as US$9.4 million was generated frmo OCF while US$17.1 million was spent on capex. One should note that proceeds from term loan constituted US$96.6 million of cash inflow, but this is interest-bearing debt and weighs on the Balance Sheet.
5) Basic EPS for 6M 2010 was US 1.98 cents, if annualized it is about US 4 cents or SGD 5.2 cents. At last done market price of 49.5 cents this represents a PER of about 9.5 times. This is not exactly cheap if you consider the capital structure of the Company, in which heavy asset investment is required to maintain a competitive edge and for growing top and bottom line.
It will be interesting to continue to monitor developments at FEG. But at the moment, this company has no merits for me in terms of investment as there are too many red flags. A high gross/net margin is only good for the Income Statement, while the Balance Sheet and Cash Flow Statement are weak.
1) Gross margin was 50.9% for 1H 2010 compared to 49.4% for 1H 2009. Obviously FEG is in a position to enjoy strong gross margins from their business. However, a quick look at finance costs shows that it is rapidly rising; up 489.5% to US$2.1 million for 1H 2010. This is about 5.7% of revenues. Admin costs also went up 40.7%, highe than the increase in gross profit of 37.6%; but this was offset by better contributions from share of profits of assoc.
2) High gross and net margins notwithstanding, the Balance Sheet appears to have deteriorated significantly in just 6 months. The most noticeable is the drop in cash and bank balances from US$48.3 million to US$17.6 million (-63.5%). Borrowings, on the other hand, have surged. ST borrowings rose from US$14.5 million to US$25.3 million, while LT borrowings rose from US$11.7 million to US$79.8 million (+582%). What this means, in simple language, is that FEG went from being in net cash of US$22.1 million as at 31/12/2009 to net debt of US$87.5 million as at 30/06/2010. I guess that explains the reason for the issuance of 162.8 million warrants at 10c each (exerciseable at 40c).
3) Return on Equity is about 17.5% annualized for FY 2010, against 14.0% for FY 2009 (annualized). However, much of the ROE was probably fuelled by debt, rather than internal cash flows.
4) For 6M 2010, FEG generated US$12.1 million of OCF but spent US$104.7 million on investment in associates; compared to 6M 2009 there was also no FCF as US$9.4 million was generated frmo OCF while US$17.1 million was spent on capex. One should note that proceeds from term loan constituted US$96.6 million of cash inflow, but this is interest-bearing debt and weighs on the Balance Sheet.
5) Basic EPS for 6M 2010 was US 1.98 cents, if annualized it is about US 4 cents or SGD 5.2 cents. At last done market price of 49.5 cents this represents a PER of about 9.5 times. This is not exactly cheap if you consider the capital structure of the Company, in which heavy asset investment is required to maintain a competitive edge and for growing top and bottom line.
It will be interesting to continue to monitor developments at FEG. But at the moment, this company has no merits for me in terms of investment as there are too many red flags. A high gross/net margin is only good for the Income Statement, while the Balance Sheet and Cash Flow Statement are weak.
Can I pay for my entitled rights and at the same time apply for excess rights at the ATM? last day is 27 oct?
They should after taking our $$ for the warrent....lol...anyway, i still consider if i wanna apply or not..did u apply?
That mean the company growing. Thanks Edwin.
if i not wrong is another form of business...they are doing trading business under Petrolink FZC which Falcon own 96% of their share.....Someone correct me if i'm in-correct...
mtgoat ( Date: 21-Oct-2010 22:00) Posted:
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Falcon Energy Group Limited's Subsidiary Announces Incorporation Of Wholly Owned Subsidiary
5:11am EDT
Falcon Energy Group Limited announced that the Company indirect subsidiary, Longzhu Oilfield Services (S) Pte Ltd, which is 51.75% owned by the Company's wholly owned subsidiary, Falcon Oilfield Services Pte Ltd had incorporated a 96% owned subsidiary in United Arab Emirates known as Petrolink FZC with an issued and paid up share capital of AED25,000. The principal activities of Petrolink FZC are those of import, export and trading in oil and gas field equipment and marine equipment and related accessories. The incorporation of Petrolink FZC was funded by internal funds.
Can someone explain what this news mean?
Good sharing. It helps to understand the leveraging part.
shplayer ( Date: 15-Oct-2010 22:36) Posted:
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Playing warrants is all about premium/discounts and gearing or leverageing.
Taking the closing price of Falcon & its warr rts.......49.5c and 4.5c.
The cost to the warr buyer to convert to mother share is 4.5+10+40 = 54.5c
His initial capital outlay for the warr is 4.5+10.0=14.5c
But, at today's closing, he is paying a premiun of 54.5/49.5= 10.1%...but of course he will have 3 years to decide on his next course of action....sell the warr of convert to mother share.
If we look at Aztech, who also issued warr end 2009. Today, Az mother share is 22.5c and warr is 5.5c. Conversion is 20c. Cost to warr holder to own mother share is 5.5+20=25.5c => The warr is trading at a premium of 25.5/22.5= 13.3%
So, under today's mkt condition, Falcon's premium of 10.1% is not unreasonable. So, if Falcon's price goes up to 55c,10.1% premium is 55x110.1=60.5c. Theoretical price of warr should be 60.5-40=20.5c
Thus the warr holder is sitting on a profit of 20.5/14.5=41.4% vs a mother share price rise of 55.49.5=11.1%
This is the 'leveraging part of it
Of course, leveraging is double edged and works against warr in a down mkt.
Also, warr are not entitled to dividents, until it is converted.
Caveat emptor and dyodd
wah lau...but 3 years..thats vvvvvvvveeeeeeeeeeeeerrrrrrrrrrrrryyyyyyyyyyyyy long...haiz...hope something good for this coming financial report...
beidou ( Date: 15-Oct-2010 12:06) Posted:
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Received the allotment letter yesterday. Those who have not but eager to find out can log on to the SGX-CDP on-line account (if they have one) to check. The allotments have been reflected few days ago.
Based on the current price of the mother shares (49.5cts), it does not make sense to subscribe to the warrants. Strange thing is the rights for the warrants seem attracting good support - currently 4.5cts. So some people may know something that we do not know and decided to take up the warrants. Another reason for subscribing to the warrants is that it is a cheaper way to play the mother shares. If the mother shares go up in the next 3 yrs, the warrants will probably trade above 10 cts too allowing investors to pocket the profit if they take it up now.
edwinteo ( Date: 15-Oct-2010 00:42) Posted:
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who are willing to get the warrent?
I have not received the notification letter 
operation_pesb ( Date: 08-Oct-2010 09:58) Posted:
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yap, hope it will run..but i afraid their hottest time is over. Remember when they move from catalist to the main board...that period is the best time to get it. I have purchase at 0.505 so the warrent don't really affect me that much...
beidou ( Date: 07-Oct-2010 11:12) Posted:
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Have anyone received a notice of your entitlement alr?