Buy: Technics Oil and Gas
As the name suggests, Technics Oil and Gas provides services to the Oil and Gas industry, though they are not directly involved in the drilling process.
Technics Oil and Gas has turn their years of loss to years of profit growth.
Revenue for FY 2006 increased 154% while gross profit for the years was up 361%. The company has stated that the good resut was cause of technics oil and gas's expansion programme reaping benefits.
Net margin in 2006 improved to 13.1% from 7.2%, due to economies of scale.
"Technics oil and gas has shown that they are able to keep cost down with expansion."
Technics Oil and Gas's liability to equity has remained significantly unchanged over the years.
"Expansion seemed to be well executed and well planned. Liability to equity seemed to be healthy."
YoY EPS has improved from 2005's 1.54 to 6.24. And another interesting characteristic of this company is the extremely small number of issued shares. Only 142,000,000 shares are issued, with 76.74% of that held by the top 20 shareholders. I estimate less than 25,000,000 shares are floating on the daily market.
"With less shares in the market, it doesn't take a big or important announcement to create a large price change."
However, there is much doubt to whether the earning (and eps) will continue to grow, or will 2007 show a eps and profit unchanged from 2006. The company only releases their reports 2 times a year. Therein lies the risk for this company. If 1H2007's results don't show any significant earning growth (i'm talking about 30% or more), than get out of this company, provided the 7-8% cut loss mark has not been met first.
"Always cut loss at -7to8%. This way, you can be right once, wrong twice, and still be profitable"
However, approaching the 1H 2007 announcement, watch out for any contracts that Technics Oil and Gas wins. This will give us an idea on how 2007 will be.
Buy Technics Oil and Gas, Target of $1.10
Vested at $0.88, 23 Jan 07 1700H
8 comments:
In hot soup now.... watching cut loss limit
Yup watching that limit. but i don't think i'll get there. Almost a market wide profit taking today. will be keeping an eye tmrw.
bought at 87cents, I have the holding power but do u think I should sell and buy other shares?
I definitely recommend selling underperforming shares for performing shares. But the thing about you predicting "performing" share, still pretty speculative.
I'm looking closely at TechOil&Gas. I might just exit this counter soon.
Many exciting counters out there to look at.
It getting closer to -7%.
Counting profit is much easier than cutting loss.
I am watching you.
No vicious intention.
Thanks for sharing.
From Redhot
haha it has never gone further away from -7% since i bought it.
Don't worry. Cut loss is my habit. In fact, i'm going to switch soon.
Should I buy in on the day you cut lost?
Btw, is there any fundamental change in the company or the business model/environment which warrant a shift?
Can I say that cut lost is solely base one price alone?
Thanks.
From Redhot
Hey red hot.
Maybe you should buy my units =)
There really isn't any fundamental change to the company. Switching cause there is going to be a better company to invest in.
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