SPC   

SPC

while choochoo bought a substantial amount of shares, koh ban heng sold a substantial amount of shares too. i personally do not choose to read too much into it.

on the share buyback mandate it is good that they choose to buy back shares, because they give out shares to employees in the performance plan. i was at the AGM not too long ago, and one of the fellow shareholders questioned the strength of the share buyback when they allowed SPC to fall to $4.04 while quoting OCBC's share buyback mandate. choochoo didnt clarify on that point but only quoted about $8mil spent on share buyback.

can anyone post the Merryl Lynch report please?

 

CKS, when can we see $6.00?...lol! I hope jkbk's forceast is right, May $5, June $6, July $7...lol

 

hi absolutely agreed with your well written post,  idesa168.  Merryl Lynch has on 24th May also reinterate a buy target of 6.00.

 

Hi Oil Madness...SPC doesn't sell crude oil. They buy crude oil and refine it to make by-products. Like 1402 mentioned, they are also gearing up for E&P which I think it's a good move. Shares buy back is a programme that the company is telling it's shareholders that they take care of them by reducing the number of shares in the float and hence bump up the EPS. It's definitely not as you had said that it's cheap and hence they buy back. Many a time, they will buy back at an appropriate time, knowing that the share price will go up at later stage. The best tell-tale sign is when the director/CEO buys it's share. This happened in May when Choo Chiau Beng (DIR) bought back 100 lots from the open mkt at $4.72 a pcs. He is the best person to know the health of the company. After his purchase, all piled up SPC and subsequently SPC shot above $5.00. We all have no doubts that this babe will go up to $6.00 in no time. The million dollar question here is WHEN? If you have a long term view for this babe, no worries then. Let's all HUAT ARH...!!!

 

assuming u bought at 4.04++, your dividend yield is a good 8%, not forgetting capital gains.

correction: it sells refined products and is involved in E&P.

yar, the upgrade was by goldman sachs, looking forward to more reports.

 

Hi 1402,

I don't have any price target for SPC. But with the rate it's going, I'm pretty happy with its performance,  though it is a bit below par compared to my other darling SembMarine.

 After reading its latest annual report, I have come to know more about SPC. It's not just a company that sells crude oil. It is quite a diversified energy company. With the upgrade by Goldman Sachs (or is it Morgan Stanley?), I believe it will catch the eyes of many overseas fund managers.  Moreover it has a share buyback program. This means that it is telling us that it's share price is cheap and that it is buying back its shares.

I hope that SPC's price will be high when I need some money.

 

5.20
5.15
5.10
5.05
5.00 coming

 

Wah...today no buyer no seller! All funds were pulled out in preparation for the long weekend ahead?

 

oil_madness, its a good thing that u have caught SPC at low $4, so what is your mid term price target, or do u have plans to at least hold on for years.

 

oil_madness,

Agree with your analysis about SPC stock price/crude oil price and Refining margins(RM).

From FA perspective, SPC's financial performance is dependant on its RM;  but its share price tracks oil price.

Despite your logical analysis, the market pegs the value of SPC against oil price.

I had this problem since tracking this counter in 2004....but have given up on it. Instead, I try to use it to my advantage...I stay out when oil price is high and RM is weak and buy in when oil price comes down (and stock price is down) and RM is still firm.

 

 

oil_madness, i'm sorry to say SPC is going to follow oil prices regardless of what u have said. well, SPC did record higher refinery margins during '05 katrina and '06 price hikes. dont ever say SPC has no co-relation to oil prices.

 

oil_madness, I share the same sentiment as you. There is some relation in petroleum price to crude price. If one goes up the other would usually follow. However it is the changes to each of these prices that is important as they affects the refining margin. Thus refining business cannot be simply measured by looking at crude. The recent surge in Brent crude seems to have reduced refining margin. While I noticed that refining margin has reduced, it is still healthy and above average. Bottomline is gasoline is still in demand and refining capacity while up is still not catching up too well. Refining margin should remain healthy unless we see a drastic change to the economy.  

 

bollies widening. MACD shows peaking. likely range bound btwn 5.15 to 5.4 for now. needs to break previous high of 5.45 for further upside. might otherwise dither around here for now.

for techies, pls note that SPC's daily trading range can be quite wide, so gotta be careful when reading longer term trend.

 

I'm not sure whether many people are wrong in relating price of crude oil with SPC. If price of crude goes down, it should help SPC refining margin.

Last year, when price of crude oil hit US$70, SPC hit $6 if I didn't remember wrongly. Early this year, when price of crude kept falling, shares of SPC also kept falling. Therefore if I'm not wrong, many people own SPC for the wrong reasons, including me initially.  I bought into SPC in January this year when SPC  was in the low $4 and price of crude when around $50 (which I believe would not go much lower).

Afeter reading SPC latest annual report, I then know what SPC is.

 

correction. sembmar and kepcorp both landed new contracts recently.

 

Oil prices sink by $1 after Nigerian strike ends

this is not going to help SPC's share price tomorrow.

 

kepcorp signed another contract, and ppl are probably expecting sembmar to get more contracts too, but SPC is just sitting there boringly.

 

Can we see $5.50 this week? Today SembMarine and Keppel took all the limelight. Hope SPC's turn comes soon.

 

check out article on msia's billion dollar pipeline today.

 

iPunter, have not heard your views on SPC, anything to add after lurking here for some time?