Penguin International

[dydx]

Penguin performance in terms of profitability and share price continued to slide after share consolidation.
To be honest, I had thought of cutting losses when oil and gas industry tanked. And just about when I thought of
averaging down, the news that the company invested in Marco Polo Marine put me off.

Nevertheless, I am happy with the recent performance of the share price. And looking to pare down my holding if it comes close to KayHian's target price. It has been a long wait.

You could have followed too closely on the fall of share price and not enough on the management-directed evolution of the business during the last O&G industry downturn - which was unprecedented, and those companies which over-extended themselves or over-borrowed are now mostly dead or near to that. Because Penguin has been conservatively managed from before the industry downturn until now, the company has survived and now emerged stronger than before. So not all companies would suffer in the same way in an industry downturn, and those who can identify the stronger players would stand to profit handsomely by buying into them for the cheap in the depth of an industry downturn.