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no, didn't manage to catch it at 1.70 Sighzzzzz
nw 1 big hole in pocket
STX Pan Ocean - Major earnings cuts
Target S$1.45 (Long Term: Under Perform)
Although 1Q12 core earnings were below expectations, earnings should be healthier for the rest of 2012, as margins recover with management's keen focus on profitability. That said, we believe our earlier margin assumptions were too aggressive, and have adjusted them. Our FY12-14 earnings drop by 5-11% accordingly. We also switch our target to 8x CY13 P/E (5-year average) from 1.6x P/BV as earnings are recovering. Maintain Neutral.
Can it be affected by the above news?
did u sell this morning when hit $1.7?
wah1079 ( Date: 17-May-2012 14:18) Posted:
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Oh no......what happen?
Such drastic drop......
careful guys.. better dont do anything if not vested
not earning is better than losing
Sgshares ( Date: 17-May-2012 14:16) Posted:
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say bye
wah..bad news????
dropped to 1.63
touched 1.7 and dropped back down...sign of weakness...
congrats to those who bought at 1.4X and those who still held on after exdiv.. hohoho
oic tks for the explaination Ruth
1) if we know it is a delist case, then we only worried one thing, the price the bidder offer, simple.
2) if the Korean sells to the bidder n bidder does not delist, then it is different story.
in case 1, the bidder will offer a good price to ensure as many, if not all the shareholders to let go their holding which u can refer to historical high price, i.e. 1.8??
in case 2, the bidder just buy over from the major shareholders to acquire certain % of control. then the price maybe way below u expected i.e. $2
so all in all, it is still a gamble of guts to hold or to sell. if it Trade Halt, prior to release of final decision then it is just too late to response, though still can lar.
so ppl will still sell, where more still will buy.
Hi Ruth
care to explain more? Sorry im a newbie dun quite understand
when u see ppl selling instead of buying, dont think they r stupid..........
there is a big difference between " buy n delist" & " buy" .
so stay vigilant, esp u r buying above let say 1.65
wait for Trading Halt usually.
Any idea when will they release the result?
we don't need drink starbucks liao...let's go for redwine :D
yiming2000 ( Date: 16-May-2012 22:48) Posted:
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Wow! SGX 44 points down and STXOSV is still hanging in at 1.64. This shows lots of buying inspite of market weakness. New buyers must be rushing in for target price of $2.00 that they expect potential buyer will offer. 
Copy the comments and postings from our friends at the Kep Corp discussion group:
STX OSV to name preferred bidder soon. Quoting a South Korean business news
website (MK Business News), Upstream reported that STX Group will soon
reveal the preferred bidder for its 50.8% stake in STX OSV. Among the
potential candidates are a consortium consisting of Fincantieri, a
state-owned Italian shipbuilder, with US private-equity firm, Carlyle
Group, and Singapore’s Keppel Corp. Note that in January 2012, Both Keppel
Corp and SembCorp Marine clarified that they are ‘currently not making a
bid for a stake in STX OSV’.
STX OSV a strong value proposition to potential buyers.
To recap, STX is the largest builder of AHTS of > 20,000 BHP and PSVs of
> 4,500 DWT, with a global market share of 30.8% and 18.0% respectively. It
operates from a network of nine shipyards in Norway (5), Romania (2), and 1
each in Brazil and Vietnam. The group is building on its leading 45% market
share in Brazil with the development of a second yard, to commence
operations in 2013. Once in full operation, STX will be able to deliver 6-7
larger vessels a year, boosting its Brazilian capacity by 3.3-4x. With a
strong presence and expansion plan in Brazil, STX OSV is among the prime
beneficiaries of Petrobras plan to expand its offshore support vessel fleet
by 66% in the next 5 years. Maintain BUY on STX OSV, the stock has retraced
by 12% from recent highs. A confirmed bid will benefit minorities, as the
purchase is likely to trigger a takeover offer. Our target price of S$2.00
for STX OSV is pegged to 11x blended FY12/13F PE.
If true, acquisition likely to be positive for KEP. Given that KEP had
earlier indicated no interest in the bid, it is unlikely that KEP will have
a change of heart, unless it is a sweet deal. In the event KEP emerges as
the winner for the stake, we envisage several benefits for Keppel.
a) Moving UP the value chain. STX OSV will push it up the value chain for
large, advanced OSVs while strengthening KEP’s leading global positioning
in the offshore engineering space. It is now the king in jack-ups with an
estimated 40% market share and 20% market share in semi-submersibles.
b) Boost to group order book. STX OSV has been building up its order book,
now at NOK18.0bn (S$3.8bn), translating to a healthy book-to-bill ratio of
1.6x. With an orderbook of S$14bn (including LOIs), KEP's book-to-bill
ratio is already at a record 2.7x!
c) Likely to be an earnings accretive deal. The deal is likely to be
accretive, given that STX is trading at 8x PE vs. KEP's 11x. Assuming KEP
does not overpay for the STX deal, our back-of-the-envelope estimates
indicate the acquisition could be earnings accretive for KEP, adding c. S
$100m to FY13F, or ~5.8%. This assumes KEP acquires 100% of STX OSV at our
target price of $2/share, and funding this entirely with debt at 4%.
Maintain BUY on KEP, TP $13.20.
geforce ( Date: 16-May-2012 15:23) Posted:
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