STX Plans IPOs for Cruise-Ship Builder, China Yard Amid Rebound

On Longer term prospect

STX OSV has turned out to be a GEM against skeptical since she launched its IPO at 0.79 cents.

 

it dependable on whether the oil prices, as oil rise to new high, hitting $99 per barrel, with hot money from QE2 following continue to flood into emerging market and, to encourage capital expenditure on oil exploration equipments (Petrobras’ E&P ambitions - Brazil) as well as whether the company is able to win new contracts for its highly specialized and commercial cruise vessels.

 

 However, in the near term, it’s holding its own on proven capabilities.

 

1)   STX OSV is a market leader, world class value add vessels builder in its own field.
2) Singapore Exchange (SGX) is the prefer choice, that's explains why they are listing it. From here, we can see that the Koreans from STX PO as big brother.

2) Why do they list in SG? Be’cos Korea's Daewood only command a PE of 15, while SG's YZJ and Cosco can command PE much higher. With its parent still holding on close to 70% of STX OSV, this PE rise will impact positively on their balance sheet.

3)   If we take a comparison with STX PO that is listed in SGX, one-self can realize that they had a history of pricing at lower end

4) Those BBs from GM.Sach, DMG, CIMB and C.Siusse gave mark up on PB, PE, Dividend yield, will realize that the numbers in not unreasonable, its PE still the lowest. teeth53 just sharing my thot and info. (No call for buy/sell or hold)