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not suitable to trade for short term. if you are a long term investor and enjoy reading its financial performance, then, this is the counter that deserve some attention.
look at its last 10 years performance (pick the FA criteria that you like) and match it with crude oil trend. you will see some nice opportunity if you are long term investors.
Current share price has priced in the low book order in my opinion. any new contracts awarded to waseong will increase its book order. crude oil price will also play an important role here.
book value per share estimated at $1.26. hence, do keep an eye on its qtr report or announcement as higher book order will help to boost the sentiment on this counter
hi muniandy, if you are planning to hold it for some time, then yes. you can buy slowly. If you go through its q4'18 report pg20, infrastructure business contribute approx 5% to its book order. We need to see how the rights is converted to actual book order. definitely a good start.
there are 3 key business for waseong - the oil and gas, renewable energy and infrastructure. historically, infrastructure contributes approx. 10% to its total book order, o&g contributes approx. 70-75% and renewable energy approx 15-20%
there is a strong correlations between waseong and crude oil price. however, toward end of 2018 until ctd, there is a divergence between share price of waseong versus crude oil
this is understood as the book order of waseong as of q4'18 stood at 1.1billion. If waseong can continue to increase its book order from now until end of q4'19, it's a good sign
the other risk to watch is crude oil trends mainly bcos of divergence as well. higher crude oil driven by strong demand for oil in US and sanctions of venezuela, Iran. possible lower crude oil price driven by slowing Europe economy and China activities. something that needs to be monitored as it will impact the activities or services for waseong o&g business.
all in all, waseong has been in the business for more than 10 years and the mgmt capability has been tested throughout the cyclical nature of the business.
Market was red globally. Last week was spooked by the interest rates decision. this week was the economic indicators from germany and US - mfg activities. bond, yield curves making headlines too.
Lol. current euphoria of o&g is high and eventually fundamentals will kick in. Your entry has good margin of safety as well. just follow the development of waseong book order.
