12-02-2011, 11:35 AM
(This post was last modified: 12-02-2011, 11:35 AM by mrEngineer.)
I am not an industry expert. But it should take some time to filter from upstream to downstream. Depleting order book in upstream may mean good prospects for downstream too as it means there are plenty of oil & gas that supports the current demand and supply situation that will need to be further processed.
Nonetheless, I am still considering divestment on Hiap Seng due to my fear on market crash although I am quite relieved to see that the company reported the magic key word "lower revenue recognition" in their reports. I believe Hiap Seng should outperform next year onwards but not sure I can wait till then or not... If you look at their earnings cycle you can see a pattern, understand their revenue recognition policies and take note that most of their projects are actually now in the Middle East as described in the Edge interview, meaning different biz environment.
dydx has yet to feedback me on his view of the big squeeze on oil companies though..
Nonetheless, I am still considering divestment on Hiap Seng due to my fear on market crash although I am quite relieved to see that the company reported the magic key word "lower revenue recognition" in their reports. I believe Hiap Seng should outperform next year onwards but not sure I can wait till then or not... If you look at their earnings cycle you can see a pattern, understand their revenue recognition policies and take note that most of their projects are actually now in the Middle East as described in the Edge interview, meaning different biz environment.
dydx has yet to feedback me on his view of the big squeeze on oil companies though..
