Technics Oil & Gas

News of TDR is able to push up a stock price, as can be seen with Super, YZJ, Oceanus.


Technics has been relatively low profile - who knows when their TDR is confirmed, the stock will fly.
There should be a good support for this unusual business - unusual to the Taiwanese and they will want exposure to this play on Oil & Gas in the region.

Just my 2 c worth.

88 cents now. Highest level in 3 years.
I prefer the warrants, since the exercise price is 40 cents while the warrant trading price is 37 cents.

total = 77 cents,
Discount to the mother

bUt a ) not entitled to dividend of 10.5 cents a share (god knows when they will announce book closure date. I believe they wont do so until closer to warrant expiry date in order to support warrant price to make it sensible for warrant holders to exercise the warrants.

anyway the warrant price is already deep in the money and near impossible for the mother share to sink from 88 cents to below 40 cents.

the dividend is also to support the mother price until TDR listing price is fixed.

I wonder about something: assume the book closure date for the 10.5 cent dividend is after the expiry of the warrants in November.

Will the converted warrants be entitled to the 10.5 cent dividend?

In other words for those who buy the warrants now, will they have a chance to get the dividend?

Even without dividend, the warrant price now is 0.365+0.105+0.4=S$0.87.  It is still cheaper than mother share price.  If company decides to xd after warrant is converted to share, warrant holder can earn extra S$0.105.
So bought more warrant at 0.35-0.365 these days.
 
 

Is Technics a bargain price? Hell no, not on a PE basis, I told my friends.
So what keeps the stock comfortably at the current 90-cent level? My friends argue that the 10.5-cent dividend is a reason. It will be paid probably in a few months time, or sooner. I am just guessing.

The dividend payout is good for those who currently hold the warrants and the mother share. The dividend payout will go some way to help pay for exercsing the warrants.

Dont forget another reason for the stock price support. The TDR is coming, and will cause the stock price here to chiong.

#3: Technics is doing well in its business and the PE valuation will go down as the company books higher profit and revenue.   

I think I hit bull's eye! Just minutes after posting something on Technics, I stumble on this fresh announcement by Technics on SGX:



Technics awarded S$35 million contract from Vietsovpetro for “Dragon” oilfield in offshore Vietnam
   
•  Contract for provisioning of topside equipments for wellhead satellite
platforms, RC-6 and RC-7 expected to commence in September 2010 and is
slated for completion by September 2011
•  Repeat order yet again affirms the established and strong working
relationship between Technics and Vietsovpetro.