Here are the comparison charts for Hibiscus, Sumatec and Reach.
Only three O&G companies in Bursa are upstream players. They are Hibiscus, Reach and Sumatec. Hibiscus and Sumatec already in the making. On uptrend now. But Reach still lagging behind though Brent Oil has reached USD70.
When oil prices (whether WTI or Brent Oil) still at $40. Reach recorded losses. And when oil prices standed at $60 few months ago, Reach recorded losses too.
A question here. "Why they still recorded losses and where does the money go?"
The board gave reason that the losses are due to unfavourable weather conditions and the revenue will be recognized in the corresponding quarter the crude oil is shipped.
We must think logically. It doesn't make any sense if higher oil prices have no impact on Reach since it's an upstream player, they benefited from good oil prices too.
Reach Energy's Emir Oil Field still new and young. It's a goldmine. If you want Reach to bear fruits, why don’t you just give Reach some time and win big later.
Substantial shareholders bought at $0.75 and they have no intention to sell their stakes. You should have more confidence on this counter.
One more thing. You think how much Reach could fall if oil prices drop heavily. I think max. 5 cents only since it has hovering around RM0.40 for few months. So it's a value buy stock I think.
Note:
As investor, you should fully research any security before making an investment decision. This is NOT a buy call. So do your own homework and buy at your own risk.
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http://klse.i3investor.com/blogs/ramada/143383.jsp
