(12-08-2013, 10:11 AM)dydx Wrote: This special Penguin has started to take off today! So can a penguin fly? Yes, this one seems to be able to!
I have no doubt that this little penguin can fly. In fact it flew so fast and so high today that I only managed to catch some at below $0.10c.
Luckily for me, I have started buying into this company since Sep-12 and so have accumulated a meaningful quantity at bargain price.
Q2 numbers were rock solid and way better than my expectation. The past few quarters’ performance plus the solid Q2 performance is a clear indication that the business uptrend for this company is real and intact.
As dydx has pointed out, there was a $1.25M impairment provision for three laid-up ferries included in Q2 numbers. Without which, the numbers would be even better. However, we need to ask ourselves why the company is not scrapping these ferries since there are no longer in operations?
Like what it did to one of the ferries last year. Surely, keeping these ferries means not only impairment loss, but also maintenance costs and admin fees. I can only conclude that the company thinks that by keeping these ferries for subsequent sales will make more financial sense. One ferry was sold in Q1 for about $1M, so I reckon that these three ferries could be sold for more than $3M in total. This will boost its already high cash level.
(12-08-2013, 08:46 PM)dydx Wrote: Today (12Aug13), an unprecedented high 14.94m shares changed hands. Penguin International touched an intra-day high of $0.112, and advanced $0.018 - a solid 19.6%! - to close at $0.11.
Quite obviously, the solid 2Q results released last Wed (7Aug13) have caught the attention of many new investors, who together have poured over $1.6m into this counter, presumably after doing their homework over the super-long weekend.
While today volume is very high, the total transacted value of $1.6M is considered low. I believe institutional investors are not involved yet. Once these big boys have their eyes on this company, it surely will take off!
The best days for this company have yet to come. This I gather from the comment make by the company in its Q2 result announcement, and I quote below:
"Barring unforeseen circumstances, the Group expects to
sell more crewboats built-for-stock,
secure more newbuild orders and
increase offshore charter revenue, while continuing to expand its fleet of crewboats and Fast Supply Intervention Vessels."
This little penguin has the attribute to become an emperor penguin in the not so distant future.