MTQ: Potential 24% Yield, 72% Upside In 12 Months?
Written by Brian Halim
Published: 11 February 2020
I decided to get vested in this company after they announced their Q3 results last Friday and I think there's further room to run for this stock in the next 12 months and beyond.
MTQ Corporation Limited (SGX: M05) is in the business of oilfield engineering and engine systems. A few of their main core services include OEM, drilling contractors, servicing, rig owning and others. Some of their main customers include Cameron, Halliburton, Seadrill, Total Oil, etc.
From 2015, they faced a huge challenge -- the company registered losses for the next 4 years from FY2016 to FY2019 due to oil prices plummeting and some poor M&A which didn't work out well.
In the latest Q3 results, we have seen a huge improvement in their organic business which further strengthens the thesis that the company could be a nice turnaround play for the next 12 months and beyond.
In any case, I have decided to put some money in this stock which to me seems fairly cheap and might reward investors with good decent upside in the next 12 months.
5 key reasons why I decided to get vested in this company.
1.) Turnaround in Core NOPAT in Q3
2.) Divestment of Non-Performing Neptune Segment
3.) Oil Price Has Been Suffering Trough YTD
4.) Valuation Is Attractive
5.) Dividends Reinstated & Potential For Special Dividend
More details in
https://www.nextinsight.net/story-archiv...-12-months
Specuvestor: Asset - Business - Structure.