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 What is the meaning of Eversendai? In Japanese Sendai means live forever. Tan Sri AK Nathan cleverly added the word Ever to make the company to live ever forever.

On 19-22 March 2018, my assistant James Ong and I were among about 10 Analysts, Reporters and Banker invited to witness the launching of the US $ 102 million lifting vessel at RAK Maritime City in the UAE. It has 4 jack up legs and it has a 80 ton lift. It also has living accommodation for 200 workers.

We were impressed by its capabilities and its use in the repair and maintenance of oil rigs. Like all man-made things, oil rigs especially oil rigs in the open sea often need repair and maintenance.

The vessel is under going a number of sea trials and hopefully it will be certified fit for operation soon. The owner of the vessel is Tan Sri Nathan, Chairman/CEO of Eversendai. He has a bank to provide finance to pay for the US$ 102million for the vessel as soon as the vessel is certified fit for operation.



That will clear all the doubt of the huge amount of receivable in the company’s accounts which has been pushing down the price from Rm 1.40 to below 70 sen.

The company started operation in the UAE about 20 years ago. It went at the right time and at the right place. Abu Dhabi and Dubai have so much of money from oil that you can see huge and constant development between Abu Dhabi and Dubai.

I found out from Google that the UAE's proven oil reserves were 97.8 billion barrels as of 2015. Abu Dhabi holds 92.2 billion barrels, followed by Dubai with 4 billion barrels, Sharjah with 1.5 billion barrels and Ras al Khaimah with 500 million barrels.



It has 7 steel fabrication factories in the region and 15,000 workers. As you can see from its latest press release that the company is getting more and more contracts and expects to complete Rm 2 billion of work per year.

There are many ways to make money from the stock market. Mr Ooi Teik Bee always based of financial and technical analysis and he does not bother to look at what the company’s business and its future profit growth prospect.

Another famous expert K C Chong always wants to look at the company’s return on equities and its cash position. Where is the cash?

My method is different. I am not an accountant I am an experienced business man. I always look at the company’s business and its profit growth prospect. 

I have a proven track record using my method. Among all the various stock selection criteria such NTA, cash flow, return of equities, amount of receivable, debts, bank borrowings, healthy bank accounts etc, the most important consideration is that it is showing increasing profit every quarter in the last few quarters. Profit growth prospect is the most powerful catalyst to push up the share price.

With the exception of James and I, the rest of the invited guests were analysts, reporters and bankers. As you can see a few analysts have published articles on the lifting vessel and its use in servicing the oil rigs. As a result, the share price has been going up since the site visit.

I am obliged to tell you that I have more than 70 million shares and I must have been partially responsible for the price to go up in the last few days.

I am not asking you to buy but if you decide to buy you are doing at your own risk.

https://klse.i3investor.com/blogs/koonyewyinblog/152033.jsp
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