Nam Cheong

[CityFarmer]

After my Jaya's nasty experience during the last GFC, I have been disillusioned with the offshore support sector.

It is a sector that is unique to SGX. While it may look attractive due to supposedly bright macro drivers, the truth is most of these companies are simply specialised vessel/equipment builders or operators.

In that aspect, the cycle of which is important. However, trying to understand the cycle and the underlying drivers are tough and lack transparency.

After looking at Ezra, Swiber, KS Energy experience alongside with that of Jaya, I can't help that they are stories that are "fabricated" to cater to that of market fads.

The few major "Godfathers" here are Tan Kim Seng, Pang Yoke Min. They are the smart cookies that cashed out of their former darlings at right prices and moved on to new vehicles. Anyway since the cycle is not quite predictable and with the ever "slashed and burn" type of approach, I won't try to hard find gems within the sector.

Too tough for me.

GG

Yes, Jaya is a good case study, especially it was following the same business strategy as Nam Cheong.

(not vested)