Falcon Energy

[letsmakemoney]

Anyone looking at this co?


Extracted from Investingnote website:

Falcon Energy(5FL) owns 87% of CH Offshore.
It is one of several divisions owned by Falcon Energy.
Falcon's Market Cap at today's price is S$206m.

CH Offshore sits on undervalued, fully paid up ships assets (recorded at cost) and has low gearing.
Its latest market cap is already S$356m.
CH Offshore just won a protracted court case and will be paid US$60million.

Classic Undervaluation play?



Headwinds though include their high gearing and prolonged weaknesses in O&G

 

[Perisher]

Avoiding high gearing counters. Also need to look at how much cash on hand.

 

[letsmakemoney]

Thanks Perisher for the warning.

Gotta watch the gearing man.

 

[winorlose]

Filled 50k shares @ 0.225 today

For 3.5months since last post price stuck between 0.2 - 0.23

P/E: 2.x
P/B: 0.6

http://falconenergy.com.sg/attach/voyage research_falcon energy_15dec14.pdf

 

[winorlose]

Let's make some $$$$$

 

[starbuckslover]

Valuation good... but the fundamental seems mehhhhh

wwwDOTtheedgemarketsDOTcom/sg/AA/dashboard?0=5FL&exchange=SGX

 

[Shiny Things]

Extracted from Investingnote website:

Falcon Energy(5FL) owns 87% of CH Offshore.
It is one of several divisions owned by Falcon Energy.
Falcon's Market Cap at today's price is S$206m.

CH Offshore sits on undervalued, fully paid up ships assets (recorded at cost) and has low gearing.
Its latest market cap is already S$356m.
CH Offshore just won a protracted court case and will be paid US$60million.

Classic Undervaluation play?

Yeah, on the one hand that stub trade could potentially be a winner. Your risk, though, is that Falcon cocks up its cashflow and goes bankrupt and the lenders take the CH Offshore stake. That's the peril of stub-trade arbitrage, and that's the risk you need to balance out.

 

[winorlose]

Big trades are coming in to scoop up shares liao.. dont wait

 

[Indels]

Big trades are coming in to scoop up shares liao.. dont wait

wanted to hoot today morning at 0.225... but overslept...

now boat like moving off le...

 

[starbuckslover]

nvm wait for the next wave and hoot swee swee ! lol

 

[winorlose]

Today bought again at 235..

Closed 240

Oh yea

 

[strangerjun]

Tomorrow try buy..

 

[winorlose]

Falcon was trading between 270 & 300 during 1st half of the year..

Crude oil since then fell 1/2price but Falcon price remains pretty solid..

Supported by:

low p/nav
High Div yield
low p/e

 

[strangerjun]

0.23 can filled bo?

 

[winorlose]

Looks set to hit 250 today

 

[letsmakemoney]

Huge spike in price & Vol.

 

[winorlose]

HUAT AH!!!!!!

 

[winorlose]

clearly looks undervalued..

just weird why is mkt not pricing in CH Offshore into Falcon

 

[letsmakemoney]

I think as Shiny put it so well, the risk is :" Falcon cocks up its cashflow and goes bankrupt and the lenders take the CH Offshore stake."

The mkt is pricing this in plus a prolonged depression for oil.
Thus its low valuations.

 

[winorlose]

after hitting 265, retraced back to 240