Under such circumstances, the only thing to do is to dispose of the stock and move on.
Chart: MISC's weekly chart as at Aug 6, 2013_9.45am (Source: Quickcharts)
Note:
In addition to the disclaimer in the preamble to my blog, I hereby confirm that I do not have any relevant interest in, or any interest in the acquisition or disposal of, MISC.
Note:
In addition to the disclaimer in the preamble to my blog, I hereby confirm that I do not have any relevant interest in, or any interest in the acquisition or disposal of, MISC.
3 comments:
I guess that is one way of looking at it.
Wouldn't it be better if someone else builds the ships and MISC just operates and manages for fees?
Wouldn't it be prudent to wait and see if LNG shipping rates improve over the next 12 months.
In addition, if 5.50 didn't tickle anyones' fancy last time, us it possible that it would be lower than 5.50 on the next go-around?
yes,i dont think petronas will do that way, the president should look into misc future as well, since misc crew is still consider as Petronas staff,would it hurt the misc financial if petronas bypassing the misc..??
Hi Mujahid Ibrahim
If you owned a ship, the cost of transporting your goods (using the ship) is the cost of owning/operating the ship. If you chartered a ship, the cost of transporting your goods is the cost of leasing/operating the ship. The leasing cost should be higher than the cost of outright ownership.
By buying its owns ships, Petronas will firstly charter less ships from MISC. MISC's top-line and bottom-line will take a hit. Secondly, it may indirectly pressurize MISC to lower its charter rate otherwise Petronas may continue to substitute the chartered ship with their own ship. Finally, Petronas has stated that MISC's outlook will be challenging when it made its failed privatization attempt. Now, it likes to show everyone that that's the case. However, it seems not to be willing to let the nature takes its course. It may be taking steps to engineer a decline in MISC's profit!!
All in all, MISC's bottom-line has only one way to go: down!!
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