Giken Sakata

Initiating converage on this stock. Something appears to be brewing from the movement of the stock price so I am slowly dipping my hands in and hoping to be in the thick of any positive action that comes.

A quick background on this company. Giken Sakata was established in 1979 and subsequently listed on the Singapore Stock Exchange in February 1993. They have manufacturing plants spanning Singapore, Indonesia and China. Since the 1980's, Giken has built a name for itself around the world as an integrated contract manufacturer. Can read more from it's official website here.

The first big piece of news came on March 11, 2014, when Miyoshi Precision sold it's entire stake at a hefty discount to the current share price. This obviously would have led many to think that the share price of Giken Sakata would plunge. However, the reverse happened. After a slight dip, its share price started a very, very steady climb.

Here was a stock that began it's placement at 3.25c, with NTA of not more than 5c, and it is currently trading at 32.5c at the time of this writing. So what gives?

Well one of the clues could come from the key news that on April 11, 2014, it announced an MOU in relation to the proposed acquisition of 51% of Cepu Sakti Energy Pte Ltd. PT Cepu is an Indonesian company which holds the rights to operate and produce oil from two oilfields in the Central Java region of Indonesia, with a total of 148 oil wells. As at the date of the MOU, the Oil Fields are producing a minimum of 300 barrels of crude oil per day. The company's website can be found here.

Since this announcement, there has been hardly any other announcements, but the share price has only been heading in one direction.

I do believe that PT Cepu is yielding something big, and the first signs of this success has not been reported, hence people in the know might be already accumulating the stock. I may wait for a pullback (hopefully), to accumulate more of this counter.

Hopefully this works out.

Huat ah!