Hi guys,
May 2019 Reporting Season Will Throw Up More disappointments than surprises
Why so?
Answer:
1) MOST CONSTRUCTION COMPANIES WILL FACE COMPRESSED MARGINS
Compressed Margins for most construction companies as PH Govt sqeeze margins. Of course there are fresh Job Awards from ECRL, Revived MRT & LRT Jobs & even Bandar Malaysia
But these Jobs will only bring in Real Profits for future quarters
2) CONSTRUCTION MATERIAL STOCKS WILL ALSO REPORT WEAK SALES
The recent spike of Lafarge Cement was due to ECRL Revival News & YTL privatisation offer of Rm3.75
But expect Lafarge's immediate result to be bad as well. So are other Cement companies like Tasek & all other Long Steel stocks
3) MOST PROPERTY STOCKS ALSO MEDIOCRE OR POOR
With stringent housing loan & glut this will also face bleak reporting
4) CONSUMER STOCKS IMPACTED BY HIGH IMPORT PRICES AS WELL AS SUGAR TAX
5) GLOVES, PLASTIC STOCKS, LOGISTIC & EVEN CLOTHES MANUFACTURING WILL GENERATE LESS PROFIT
This is due to high Crude Oil Price which means higher resin prices. As Gloves, Plastic & synthetic fibers for clothes are all made from Oil -- so all these will be impacted
Logistic & transport companies will also earn less due to higher petrol & diesel prices
6) PALM OIL STOCKS IMPACTED BY US-CHINA PRICE WAR ON SOYBEAN & GLUT
Although China promised to step up purchases of cpo from Malaysia = there will still be a time lag
SO HOW NOW?
There is One Exception = OIL & GAS STOCKS
1) OIL & GAS STOCKS DUE TO FRESH CAPITAL INJECTION FROM PETRONAS
PETRONAS' RAPID REFINERY NEEDS 54.7 MILLION BARRELS OF CRUDE OIL YEARLY AS THE RM100 BILLIONS MAMMOTH REFINERY IN PENGERANG IS READY SOON
SO PETRONAS HAS INCREASED SPENDING SINCE YEAR 2018 & EVEN MORE FOR YEAR 2019 (RM30 BILLIONS FOR UPSTREAM)
2) PH GOVT WANTS PETRONAS TO INCREASE REVENUE BY ADDING ANOTHER RM30 BILLIONS PAYOUT
SO PETRONAS WILL RAMP UP EXPLORATION AND EXTRACTION
3) JUST IN FOR GOOD TIME = BRENT CRUDE NOW REBOUNDED TO USD70 (ABOUT RM290) PER BARREL - MAKING IT VERY PROFITABLE TO STEP UP MORE OIL ACTIVITIES
AND THIS IS THE REASON WHY WE SHOULD BE BULLISH IN A BULL RUN TIME FOR OIL
EVEN WARREN BUFFET INVESTED IN OIL STOCK RECENTLY
SEE
Warren Buffett's $10 Billion Oil Investment: What You Need to Know
Berkshire Hathaway is putting some of its cash hoard to work in the oil industry.
Investors who are fed up with Berkshire Hathaway's (NYSE:BRK-A) (NYSE:BRK-B) ever-increasing cash stockpile just got a reason to smile.
Berkshire Hathaway is making a $10 billion investment in oil company Occidental Petroleum(NYSE:OXY) to help the company acquire Anadarko Petroleum (NYSE:APC).
This is the largest investment Berkshire Hathaway has made in some
time. However, this isn't just a common stock investment, so here's a
rundown of what investors need to know.
Some details on this investment offer
In exchange for the $10 billion, Berkshire is going to receive preferred stock that pays an annual dividend of 8%. So Berkshire is set to receive $800 million in annual income from the investment.
In addition, Berkshire will have warrants to buy as many as 80
million shares of Occidental for $62.50 per share. Some simple math
tells us that this essentially gives Buffett the option to convert half
($5 billion) of his investment into common stock at this predetermined
price.
The investment is contingent on the completion of Occidental's proposed acquisition of Anadarko. Occidental recently topped Chevron's (NYSE:CVX) bid
for Anadarko by offering $38 billion for the company -- a $5 billion
premium to Chevron's offer. Anadarko is still considering Occidental's
offer while its agreement with Chevron is in place. It's also possible
that Chevron could choose to increase its $33 billion bid.
In many ways, this investment is right up Berkshire's alley. The
company has no shortage of energy-related investments, both in its stock
portfolio and in its collection of wholly owned subsidiaries. And the
investment structure where Berkshire receives a combination of preferred
stock and warrants isn't anything new.
Read again
In many ways, this investment is right up Berkshire's alley. The company has no shortage of energy-related investments,
NOW I HAVE ALREADY MENTIONED THESE GREAT OIL AND GAS STOCKS =
CARIMIN, NAIM/DAYANG, PENERGY, AZRB, VELESTO, PANTECH, DIALOGUE, DESTINI
& T7 GLOBAL
WHY UZMA NOW?
THE ANSWERS ARE MANY
FIRST SEE WHAT i3 FORUM REPORTED
Business Background (extracted from Uzma page from i3 investor forum)
Uzma Bhd provides integrated solutions to the upstream sector across
the exploration, development and production operations and to the
facilities/plant construction, operations and maintenance of the
downstream sector. Uzma provides the full spectrum of the oil and gas
operational services and solutions. Uzma’s offering includes solutions
and services in the field of Geoscience and Petroleum Engineering
Services, Drilling and well Services and Production Optimization and
Operation Services.
And these are some salient facts
1) Uzma Bhd provides integrated solutions to the upstream sector
across the exploration, development and production operations and to
the facilities/plant construction, operations and maintenance of the downstream sector.
Uzma Bhd provides integrated solutions upstream sector & downstream sector.
2) Uzma provides the full spectrum of the oil and gas operational services and solutions
(((Please scroll down much further to read the rest)))
