Oil and Gas Sector PE and PNAV

Yangzijiang

Wilmar

Yanlord --> A trade that is not for the weak heart.....

Technical Analysis Aspect

Yanlord had breakdown from its descending triangle[blue line] of a high of $2.89 on 5/08/2009 to a low of $1.55 05/02/2010. It then rebounded to 2.04 on 03/03/2010 and drop to 1.52 7/05/2010,which formed a double bottom pattern.The price is trading at a range of $1.52 and $1.68 and had tried to breakout from Fibo resistance and horizontal resistance of $1.68,but is unable to. MACD show a cross over , RSI and stochastic showing upward movement but not the price therefore i see these signals as bullish divergence.
However , at the same time it also form another descending triangle [red line] , so have to be careful.

Fundamental  Aspect

As everyone know , China had been firing bullets at property sector , implmenting policys , increasing bank reserve rates trying to stop the bubble forming and Yanlord is not being spared from it . Because of all these , SSE had been a correction mode.

Conclusion

I myself had no luck in this counter and is stuck at average $1.94 , only to blame myself for not following my principal of cutting loss fast. Anyway i might take small position tomorrow if it drop around 1.5X so as to reduce my loss if it RISE >.< . The reason is because of the bullish divergence and i think SSE might be bottoming out soon and Yanlord as a china-related counter will then also rebound.

Caveat emptor. This is not for the weak hearted.............................................

 

Otto MArine --> A bet on result

PEC --> A fundmental buy ??

About PEC  http://www.peceng.com/
We are a specialist engineering group servicing the oil and gas, petrochemical, oil and chemical terminal, and pharmaceutical industries. Our two core business activities are project works and maintenance services. Our project works are currently being carried out mainly in Singapore, Malaysia, Thailand, Indonesia, Vietnam, the PRC and the Middle East while our maintenance services are currently being carried out in Singapore and the PRC. To support our business activities, we have established fabrication facilities in Singapore, Malaysia, Indonesia, Thailand and the PRC.

• Project Works
• Maintenance Services
• Other Operations

Gross Profit

Trend of revenue is moving up , with cost maintaining at a pretty constant level , thus allowing it to achieve a higher gross profit margin.

EPS for Q3 2010 surged up to all time high and 9month 2010 EPS(14C) is already > FY 2009(12c).Assuming Q4 EPS to be the average of all EPS , FY2010 EPS will be 17.76.At current price of 77.5,PE ratio will be only 4.36 times.

As we can see the above table for the peer comparasion , PEC is the smallest company among market value , but in term of valuation , it is the cheapest in term of PE ratio and PNAV ratio. However , this analysis is based on pure earning power and i didn't look into nitty gritty in the financial report. I also didnt look in the BS too.

PIGS Problem

(taken from yahoo)

The PIGS are in a mess....Greece is just a tip of the iceberg. It looks like a crisis in the making. As the ECB rushed out a news of  1trillion eur bailout plan to cool the market,it's just committment. There are actually no actual details on how it is going to be implmented , sounds like NATO (No action talk only). Because of this , we see that eur had been losing ground. Will this problem be the start of the next crisis and the fall of eur currency ?
I shall not take unnecessssary long position, unless the company is fundmentally good.