I am slightly vested cod of the low pe and debt free portion of the biz is really tempting
will try to wait the results for the first part and await the div
(17-03-2015, 10:38 PM)Aldar Wrote: [ -> ] (17-03-2015, 10:26 PM)kopihothot Wrote: [ -> ] (17-03-2015, 09:51 PM)NTL Wrote: [ -> ] (17-03-2015, 09:17 PM)CY09 Wrote: [ -> ]Penguin recognizes its revenue in about 6-9 months after receiving the orders. This mean any short term depreciation of SGD against the Euro/SGD has an effect on Penguin's profitability. Since Penguin hedges its foreign currency revenue, the profit margins of its boat order in a particular quarter will decrease/increase in tandem with the currency.
Why short term recognition of revenue is not good? At least they can adjust their prices far quicker than ,say, Keppel, where the contracts are only fulfill in 2-3yrs time. Keppel will need to hedge better against currency movement than Penguin, isn't it? Furthermore, isn't short term hedging cheaper than long term hedge?
To me, hedging is a double-edged sword, sometime it swing to your advantage, sometime the other way. So for some companies, like ASL, I don't think they even hedge.
Currency hedging is to reduce the likelihood of the result of an investment being affected by currency movement.
Basically when you signed the contract and the profit is $1, you hedge to make sure the final profit is kept as close to $1, no matter the currency rises/falls, provided the hedge was done correctly.
The hedge is to offset currency gain/loss and the final profit will still be about $1.
1. It depends on the % of the expected contractual revenue/ profits hedged; typically firms do not hedge 100% as hedging costs could be expensive
2. Final profit will not be $1 -> must also account for hedging costs
In the real world, if you hedge 6 months and do quarterly reporting, there will be PnL impact reported but like CF said, over 6 months it should be square.
Theoretically hedges don't have to be marked to market under IFRS, but in reality it can be difficult to attribute hedges to be exempted from MTM.
The bigger problem is of course structural. You can hedge currencies or input costs for next 6 months or more, but you cannot hedge business environment which is on-going beyond that. That's why management capability and track record is more important in long run rather than hedging policies.
Getting lower. Even if one wishes to average down, it is worthwhile to do it slowly.
Agree with your point, but sellers are not coming in large quantities , similar to the buyers. I am still optimistic of penguin being able to deliver in 1Q. The lower prices just provides opportunities to potential buyers trying to get a stake. Btw oil prices just bounced upwards after EIA stock reported that demand rose 5% admist increased in crude stock and FOMC stand on gradually and later interest rate hike
-Vested (slowly accumulating)-
(19-03-2015, 01:49 PM)Stephentoh Wrote: [ -> ]Agree with your point, but sellers are not coming in large quantities , similar to the buyers. I am still optimistic of penguin being able to deliver in 1Q. The lower prices just provides opportunities to potential buyers trying to get a stake. Btw oil prices just bounced upwards after EIA stock reported that demand rose 5% admist increased in crude stock and FOMC stand on gradually and later interest rate hike
-Vested (slowly accumulating)-
It's another sell the rebound day. Most of the O&M stocks open up and get sold down even lower. Traders and investors are just selling on any opportunity. The oil price rebound is purely technical due to USD weakness.
(19-03-2015, 02:41 PM)Tiggerbee Wrote: [ -> ] (19-03-2015, 01:49 PM)Stephentoh Wrote: [ -> ]Agree with your point, but sellers are not coming in large quantities , similar to the buyers. I am still optimistic of penguin being able to deliver in 1Q. The lower prices just provides opportunities to potential buyers trying to get a stake. Btw oil prices just bounced upwards after EIA stock reported that demand rose 5% admist increased in crude stock and FOMC stand on gradually and later interest rate hike
-Vested (slowly accumulating)-
It's another sell the rebound day. Most of the O&M stocks open up and get sold down even lower. Traders and investors are just selling on any opportunity. The oil price rebound is purely technical due to USD weakness.
P is now below its NTA. Company has been authorised to buy back its own share. Why it does not do it?
(19-03-2015, 09:26 PM)xlandjy Wrote: [ -> ] (19-03-2015, 02:41 PM)Tiggerbee Wrote: [ -> ] (19-03-2015, 01:49 PM)Stephentoh Wrote: [ -> ]Agree with your point, but sellers are not coming in large quantities , similar to the buyers. I am still optimistic of penguin being able to deliver in 1Q. The lower prices just provides opportunities to potential buyers trying to get a stake. Btw oil prices just bounced upwards after EIA stock reported that demand rose 5% admist increased in crude stock and FOMC stand on gradually and later interest rate hike
-Vested (slowly accumulating)-
It's another sell the rebound day. Most of the O&M stocks open up and get sold down even lower. Traders and investors are just selling on any opportunity. The oil price rebound is purely technical due to USD weakness.
P is now below its NTA. Company has been authorised to buy back its own share. Why it does not do it?
A simple possibility - company can but may not need to buy at today's price. If the selloff continues they can do a buyback at a lower price, and if it rebounds strongly they do not need to use their cash unnecessarily.
Unlike many of the other oil and gas counters, penguin may not see the need to counter traders and panic selldowns.
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(19-03-2015, 09:54 PM)thor666 Wrote: [ -> ] (19-03-2015, 09:26 PM)xlandjy Wrote: [ -> ] (19-03-2015, 02:41 PM)Tiggerbee Wrote: [ -> ] (19-03-2015, 01:49 PM)Stephentoh Wrote: [ -> ]Agree with your point, but sellers are not coming in large quantities , similar to the buyers. I am still optimistic of penguin being able to deliver in 1Q. The lower prices just provides opportunities to potential buyers trying to get a stake. Btw oil prices just bounced upwards after EIA stock reported that demand rose 5% admist increased in crude stock and FOMC stand on gradually and later interest rate hike
-Vested (slowly accumulating)-
It's another sell the rebound day. Most of the O&M stocks open up and get sold down even lower. Traders and investors are just selling on any opportunity. The oil price rebound is purely technical due to USD weakness.
P is now below its NTA. Company has been authorised to buy back its own share. Why it does not do it?
A simple possibility - company can but may not need to buy at today's price. If the selloff continues they can do a buyback at a lower price, and if it rebounds strongly they do not need to use their cash unnecessarily.
Unlike many of the other oil and gas counters, penguin may not see the need to counter traders and panic selldowns.
Sent from my D5503 using Tapatalk
I think market is playing the waiting game because oil is still dripping. But I think Penguin too may take a hit if oil remain low for sometime. I am vested at 26 cents.
In a nutshell, what is the issue? Oil?
Anybody knows when is the agm?