1) to build a LNG regas terminal in Pengerang, Johor as part of Petronas's rapid project;
2) to build a LNG regas terminal in Sabah to supply gas to a new gas-fired power plant to be built on the east coast of Sabah;
3) to build a LNG plant in Melaka (costing RM1.4 billion);
4) to refurbish Gas Processing Plants 1 & 2 (costing RM1 billion); and
5) to build a power plant under JV in Kimanis, Sabah (costing RM540 million).
These additional capex means that Petgas's future revenue stream should increase sharply. The big question is whether the increased top-line & bottom-line have been fully reflected in its share price. Looking at the monthly chart (plotted on log scale), Petgas could potentially hit the parallel line (at RM15.00) to the current uptrend line (both lines are in blue colour). Can it break above that resistance? Let's wait & see.
Chart: Petgas's monthly chart as at July 1, 2011_plotted on log scale (Source: Tradesignum)
2 comments:
I added position at 12.00. I hope that it will go up further as you forecasting.
Hi Alex:
Given the present of managerial personnels ,forcussed objectivity , there is no doubt that the increased of earnings will correlate with the extra spendings. When the management changes happen , it may wipe out whole or all the earnings as well . So the risk factors are there looking hard really!
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