Giken Sakata FY14 Net Profit Up

From Dow Jones Newswires:

29 October 2014 Giken Sakata's FY14 net profit up, expects Indonesian oil business to start contributing

GIKEN Sakata posted on Wednesday higher net profits for the fiscal full year ended Aug 31, 2014, despite the discontinuation of a turn-key project in March. Net profit was S$2.1 million or 0.78 cents a share, up from S$445,000 or 0.34 cent a share a year ago.

Revenue slipped 45.5 per cent to S$69.02 million due to the discontinuation of the turn-key project.
The precision-engineering company said a change in product mix resulted in 23.8 per cent growth in gross profit to S$11.7 million for FY2014, up from S$9.5 million a year ago. As a result, its gross profit margin rose to 17 per cent for FY2014, from 7.5 per cent for FY2013.

The group utilised a net cash outflow of S$974,000 from its operating activities during the financial year, compared to the S$2.75 million generated a year ago. Net cash and cash equivalents position on Aug 31, 2014 stood at S$4.44 million.

On May 31, 2014, Giken Sakata entered into a sale-and-purchase agreement with Java Petral Energy Pte Ltd to buy 624,079 Cepu Sakti Energy's (CSE) shares, representing a 53.68 per cent stake, for S$48 million. The payment was satisfied by S$25.2 million in cash and S$22.8 million by the issue of 76 million new shares. The acquisition of the Indonesia-based oil-and-gas services business was completed on Sept 10, 2014.
Looking ahead, CSE is expected to start contributing to the group's earnings from the first quarter of FY2015.

Sydney Yeung, the group CEO, said: "As CSE already has oil producing in its oil fields, its first financial contribution to the group will be recorded in the first quarter of FY2015. Going forward, we will continue to increase our average daily oil production levels and build up our reserve portfolio."
As of Sept 2014, CSE was producing 880 barrels of crude oil per day from 15 oil wells located in two of its five oil fields. CSE has access to more than 300 oil wells under its portfolio of operating licences in Indonesia.

As at Aug 31, net cash and cash equivalents stood at $4.44 million.

Giken Sakata closed flat at 29 cents yesterday.

Long USDJPY

Chart-wise, I can only see it heading up to test 110 again.

Stop at 107.30, TP at 109.20.

2014 Dividend Accumulator XX

A nice little surprise!

01 Jan $197.14
10 Jan $1.55
05 Feb $7.47
01 Mar $75.00
04 Mar $7.11
01 Apr $23.01
02 Apr $34.97
21 Apr $182.00
30 Apr $105.84
02 May $65.31
18 May $150.00
21 May $500.00
26 May $13.62
24 Jun $38.65
17 Jul $83.33
27 Jul $57.52
20 Aug $76.00
25 Aug $83.85
29 Sep $78.33
17 Oct $213.36
24 Oct $79.76

Total Dividends for 2014: $2,060.20
Average per Month: $171.68

2014 Dividend Accumulator XIX

A small little bit....bit by bit...

01 Jan $197.14
10 Jan $1.55
05 Feb $7.47
01 Mar $75.00
04 Mar $7.11
01 Apr $23.01
02 Apr $34.97
21 Apr $182.00
30 Apr $105.84
02 May $65.31
18 May $150.00
21 May $500.00
26 May $13.62
24 Jun $38.65
17 Jul $83.33
27 Jul $57.52
20 Aug $76.00
25 Aug $83.85
29 Sep $78.33
17 Oct $213.36

Total Dividends for 2014: $1,980.44
Average per Month: $165.04

Ezion Holdings Selldown

Wow what a mega selldown today.

Ezion recently hoovered around 1.80 and in the last few days got sold down to as low at 1.57 today. I went to dwelve into the reasons for the selldown.

1) Sold off by a substatial shareholder
798,000 shares were sold by Franklin Resources that were declared to SGX. I don't think its very substantial, but I think they probably started the whole thing.

2) USD-denominated debt
This is the largest reason for the selldown apparently, from what I've read in the forums. However, I find it perplexing that even though there is obvious concern for a rising USD on their debt, their contracts wins and assets are denominated in USD too! So that should act as a natural hedge to a rising USD no?

3) Rising oil prices
This one is somewhat unclear, but the entire Oil & Gas industry has been beaten down the last few days because oil has dropped to USD90/barrel. How low will it go I have no idea, but I do know that the worl is consuming more and more oil at a faster pace than even before, so the downside for oil should be limited. Add to that the cost of producing oil has been rising, while resources have been dwindling (companies have to drill deeper and deeper for crude) so it won't make too much sense that oil continue to fall.

That said, these are just my own justifications and views.

I have picked up some at around 1.60. Consequently, my other fav stock has been dragged down to 2.9/3.0cts too. So sad.

Hopefully it will rebound back to its highs and continue upwards.

BTW Nomura has a very bullish Buy call with a TP of SGD2.67! Wow!

HUAT AH!

Charisma Energy Services Update II

This is perplexing.

From the last time I updated, the stock has only released good news. And yet, it's continued its slide and is now languishing at 3.1/3.2c. I really don't get it one bit.

Maybe it is the outstanding warrants which will dilute the overall float (10B to 11B approximately), yet it doesn't fully explain it since the enlarged float isn't as large, like just a 10% increment, translating into maybe a 10% lower than current valuation.

Given its current price, its market cap is approximately SGD 300mil, which is very low considering than it has won contracts double that amount already.

Highly perplexing.

I really hope there's nothing rotten going on behind the scenes man.