Ezra TP raise to $3.08

Hi ozone2002, this new research from CIMB rite? :)

Today I want to make 2-way profit... LOL

SIGNS of POOR GOVERNANCE....

May be just TIPs of ICEBERG....

VIETNAM is NOT an easy place for Foreign Investment....

RECALL PIONEER KEPPEL BANK did NOT make good....

musicwhiz5      ( Date: 15-Jan-2010 01:14) Posted: I was looking through its financials and numbers and noticed the same red flags; apparently these have not disappeared 2 months after I had divested the Company's shares! Revenues were down 40+% but vague reasons were given for this - in fact it would be good if Management could give more insight as to why revenues fell. Was it due to less fabrication and construction contracts undertaken by their Saigon Shipyard? Also, how has the mix of deepwater subsea projects affected revenue recognition? Offshore Support Services is supposed to expand its vessel fleet so revenues should be boosted at least from this aspect. A surprising thing though was the huge jump in gross margins for deepwater subsea from 14% to 40%! How could this happen in such a short time and why was this so? Perhaps Ezra's claim that specialized assets command premium rates holds some truth after all; and if they can keep this up then they should be able to increase overall gross margins over time. Balance Sheet has obviously deteriorated with the issuance of the CB, as total debt has jumped significantly. Some of the cash is being used to buy "distressed assets", but then such assets will need to complement even more assets to enable them to be put to functional use. This would imply more future funding through perhaps more debt, equity or perhaps even another sale-and-leaseback. The Cash Flow Statement gives a clear picture of where the cash is going, and operational cash inflows only amounted to about US$1 million, whereas most of the cash came from Financing Activities. So it seems Ezra continues to be a net voracious consumer of cash for aggressive expansion, yet it somehow managed to pay out a tiny 1.5 cent/share final dividend for FY 2009. I've never failed to find this strange - if the Group is so cash-hungry as to issue CB, then why bother to pay a dividend at all? Might as well hoard the cash as it is so precious, than to continue to gear up. Oh yes, and EOC has not improved on its Balance Sheet. Gearing remains incredibly high at 2.2x, down from an also high 2.3x. The Chim Sao Project means EOC may have to find ways to fund the capex, and their Balance Sheet looks to be strained for many more quarters to come. Note that the IMC Contract announced today had a value of just US$12 million, small for Ezra, and the duration was not specifically mentioned (it just said "long-term"), so the yearly revenue recognition cannot be quantified. Assuming a very generous 40% gross margin, that means gross profit of US$4.8 million to be added to Ezra's Financials from FY 2010 onwards. There is also no news of their Vung Tau Shipyard, though it probably remains a Greenfield Project at this stage. The lack of fabrication contracts implies Saigon Shipyard may be more busy building Ezra's own vessels such as Ice Maiden than doing work for external parties, but that is just a conjecture on my part. Just my 2-cents on Ezra. I am NOT vested. Cheers.

Great!   (",)

Date & Time of Broadcast 14-Jan-2010

Ezra secured US$12mln maiden Subsea Inspection, Maintenance and Repair (IMR) contract 

Under the Deepwater Subsea division’s maiden contract, Ezra will provide inspection,
maintenance and repair services to support subsea work on an existing production field of
a national oil company in the region. The long term charter expected to commence
immediately is worth up to US$12 million.

http://info.sgx.com/webcoranncatth.nsf/VwAttachments/Att_E7D008D05CCC43B9482576AB0030C160/$file/100114_Ezra_IMR_Contract.pdf?openelemen