MISC: All is Forgiven

Last week, MISC signed a novation agreement to acquire the five new LNG vessels that Petronas had ordered from Hyundai Heavy Industries for USD1.1bn as well as a time charter agreement (15+5 years) to charter out these vessels to Petronas LNG Sdn Bhd (PLSB). MISC is expected to take delivery of these vessels from Sep 2016 to Dec 2017. This marks the return to its previous relationship with Petronas, where MISC acts as the shipping arm for Petronas. See my earlier post on the disowning of MISC by Petronas (here).

With this, the market becomes bullish again on MISC. The stock rallied ahead and broken above the line connecting its recent highs. MISC may test its next horizontal resistant levels at RM9.00 or RM9.50. At these prices, MISC would be trading at PE of 18 or 19 times its rolling EPS of ~50 sen. These would be a good level to take profit on this stock.

Chart: MISC's weekly chart as at Feb 26, 2015_11.00am (Source: ShareInvestor.com)

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.