Ezion   

Niche services to the offshore sector

Ezion today opened with a gap up n closed at 74 cents with 4 cents gain , if this gap is not filled in the next few days, then from the gap we could get a minimum target of  86 cents . RSI has just gone into the overbought territory above 75 . DMIs are positively placed , ADX is at  41 n is still rising . All these tell us the trend is moving up with certainty n steadily .

 

Breaking above the high of 69.5 cents n had already stood few days above to confirm the valid breakout . Now this counter is heading north with very high volume to the next target of 86 cents .

Bintang      ( Date: 25-Jul-2009 09:36) Posted: Ezion has completed the flag formation n broke out yesterday . Since making a new high at 69.5 cents , it went into correction phase . It took eight weeks to form the flag formation , it tested the 53 cents strong support 5 times n rebounced to form a sloping trendline .eventually it broke this line yesterday with huge  volume n closed at almost its highest point at  65 cents . By measurement , we could get a minimum target of $1.00 if the hurdle  at 69.5 cents can be cleared . This represents a 53 % profit margin.

 

Fibo retracement 23.6% show a target as well as resistqance 0f 0.77 from now towards this target resistance is very week, there may be a mild resistance of 0.725 and then 0.755 given everything smooth, target achievable !!

Will wait till 4:30 there is always a critical time zone.

 

Before morning closing, it surged up to 0.71 so the trend advancing to 0.78 should be all the ways up with minor corrections. Anyway, will hold further. Hope tonight Dow performs well.  

 

agree, there's cluster of resistance at 0.7, if can break today surely ho sei, uptrend intact .... hope to break 0.7 today .....

this is sleeping beauty, need somemore to give a kiss then will wake up. but look at the huge trading vol for this week, bb sure will do sth  .....

believe it or not .... your choice

 

It looks good and surging up. today rouch 0.70 once it breaks up, from daily chart, it will advance to 0.78 Just hold, wait and see...

 

all the second liner stocks become super stars now, jaya, rotary ezion .......

yahoo .... huat arr .... congrats to those who vested .... tomolo one more round

 

Something wrong in the Lim & Tan's live chart, the 30 min cahart for Ezion, show a terrible drop to 0.44 what is it? Check the price yet 0.66... who has the story?

 

Hey remember they have won a large order in Australia? Anyone know whether they can start collecting money yet from their order? This one I keep till they finished their project.

 

Ooh... I see,  Thank you very much.

Will go to check the chart and place it up..

 

 

 

 

Hi Raymond , u must extend the sloping line backward to above the vertical distant of 35 cents , then do the measurement .

raymondho      ( Date: 25-Jul-2009 22:03) Posted: Thanks, Bintang, Open chart and try it out, but I couldn't find the extension of 0.74 along the slope, there is only high at 0.695, I menage to get the trendline breakout at 0.61 it is 5 days ago ass you mentioned.  If using 0.695 as high point minus 0.35 add up 0.61, I will get 0.955, do you think this has fallen into the flame of target calculation? Please enlighten is it the correct way of calculation.  Thanks

 

Thanks, Bintang,

Open chart and try it out, but I couldn't find the extension of 0.74 along the slope, there is only high at 0.695, I menage to get the trendline breakout at 0.61 it is 5 days ago ass you mentioned. 

If using 0.695 as high point minus 0.35 add up 0.61, I will get 0.955, do you think this has fallen into the flame of target calculation? Please enlighten is it the correct way of calculation.  Thanks

 

From 18/5 low of 35 cents measure to the extention of the sloping trendline of this flag formation , which is somewhere at 74 cents , so the distance is 39 cents , add to the breakout point at 61 cents , therefore u get $1.00 , the breakout is at 61 cents 5 days ago , but only to confirmed  yesterday after the heavy volume traded .

raymondho      ( Date: 25-Jul-2009 11:13) Posted: Check with the chart, MACD just crossover marginally, Stochastic at the meeting point and %K tentatively looks at moving up soon, DMI shows uptrend, the ceilling 0.64 is broken enter into buy zion, Monday should surge if no other bad news comes in. But I still don't know how to calculate the target price, as I really want to learn it up. Can you kind enough to enlighten me on this?  ..... Thanks

 

Check with the chart, MACD just crossover marginally, Stochastic at the meeting point and %K tentatively looks at moving up soon, DMI shows uptrend, the ceilling 0.64 is broken enter into buy zion, Monday should surge if no other bad news comes in. But I still don't know how to calculate the target price, as I really want to learn it up. Can you kind enough to enlighten me on this?  ..... Thanks  

 

Ezion has completed the flag formation n broke out yesterday . Since making a new high at 69.5 cents , it went into correction phase . It took eight weeks to form the flag formation , it tested the 53 cents strong support 5 times n rebounced to form a sloping trendline .eventually it broke this line yesterday with huge  volume n closed at almost its highest point at  65 cents . By measurement , we could get a minimum target of $1.00 if the hurdle  at 69.5 cents can be cleared . This represents a 53 % profit margin.

 

Report from KE.

Following a RTOof Nylect in Mar '07, the re-named Ezion specializes in providing niche services to the offshore sector. Ezion is run by Mr Chew Thiam Keng, former MD of KS Energy. It focuses on 1) ballastable vessels; 2) self-propelled jack-up support rigs (a.k.a liftboats); and 3) premium accommodation vessels. Ezion also has a strategic tie-up with Ezra for technical and operations support. Ezra is also a 15% shareholder.

Capitalising on untapped offshore segments. Currently, Ezion's revenue is almost entirely derived from its ballastable vessels. Ballastable vessels are used in the commissioning and decommissioning of offshore platforms.

Ezion will progressively receive its liftboats and accommodation vessels on order from Apr '09 onwards. Liftboats are used for offshore jobs such as oil well intervention, platform repairs, upgrading and maintenance and other operational support. Ezion sees strong potential for the demand for liftboats within the region, as there is a dearth of these vessels in these regions as compared to its high use in the Gulf of Mexico.

Similarly, Ezion's premium accommodation vessels look to fill a gap in the current market. It is pursuing this business as a joint venture with Nordic Maritime.

Earnings potential is massive. Our preliminary calculations suggest that Ezion will be able to almost double its net profit in the current financial year to around $8m. However, as Ezion begins to derive healthy earnings from its liftboats and accommodation vessels, we conservatively estimate earnings to exceed $25m in FY09. This is expected to be followed up by a further doubling of earnings going into FY10, which overall yields a 3-year CAGR of 159%.

Risks remain, but significant upside potential. Despite the current positive environment and a capable management, several risk factors are evident: vessel delay or non-delivery, lower investment and spending within the offshore sector, softening rates due to oversupply, and execution risks. These are valid issues, as investors are buying into Ezion's future growth potential.

Ezion is trading at 8.8x FY09 PER. This is a slight discount to peers which trade at around 9.7x. However, Ezion's PER drops to just 4.6x in FY10. We are of the opinion that the offshore sector has been oversold in the current market environment. A potential upward re-rating of the overall sector will also be positive to Ezion's share price.