Scomies - Die Another Day

As market had unleashed the Western bulls recently by cracking the ceiling of debts, Malaysia had unleashed it's Malaysian's bulls as well. Waiting on the next big event in the nation of Malaysia will be the next upcoming Budget Malaysia 2014 which had been the limelight and focuses of all Malaysian in this coming Friday, 25 October 2013.

As bullish as the market can be, probably it will be the time to look on some bullish turning corporates that might be having a string of benefits in the link of the upcoming Budget Malaysia 2014 - Scomies

Let's have a quick look at the chart of Scomies or Scomi Energy Services Bhd

A quick outlook will probably suggest that the stock is just waiting upon the next pending volume will be lashed out in the coming days, or it might probably turn out to be one of the major player in the Malaysian Budget 2014 benefiting player.

Scomies quarterly result had been lying in the red for the previous year, however, we had seen some turnaround and overhauling in the management level which had seen Scomies had been repackaged for a better outlook for FYE 2014 with their quarterly bagging on the positive portion. Scomies had also been seen involving in quite some projects as strong demand for it's drilling fluids and waste management solution which came from Malaysia, Thailand, Turkmenistan and West Africa. We will be likely to see revenue flowing in from the major projects that will significantly affect Scomies next quarterly result.

While the group had been struggling on the Bursa requirement to balance out the public shareholding spread after being given an additional 6 months extension from the previous deadline of 30 September 2013, it will be a crucial 6 months for the group to :
i.) Inject 5% of total issued shares (around 117million shares) to the public
ii.) Garnering strong public supports and attention
iii.) Maintaining the share prices

In order to achieve this, the group will have to convince the public with a solid fundamental outlook on the group performance in which I believe is the major turnover and makeover for Scomies.

Scomies had been rallying up from a lowly 30 cents zone to a peak of RM 1.00 back on 5th of July 2013. However, it had since fallen apart for a period of 4 months which could be a period of consolidation on the volume and price. As fresh volume emerged, we are looking for Scomies to soar higher towards the 80 cents region, while challenging the RM 1.00 mark in the coming days. I strongly believe that Scomies will probably need to soar higher in order to make a comfortable cushion for it's distribution of 5% into the public market.


Buying your ticket for a ride this time again? You decide.

Bone's Short Term TP: RM 0.80