Penguin International

[greengiraffe]

I suppose it is understandable that when the stock market is down and when the macro-geopolitical environment is full of bad news, shareholders/investors alike would start thinking, imagining and speculating for the worst. The fact is that we are doing all these very much based on only Penguin's 2 recent quarters of seemingly weaker financial numbers.

I suppose we can also reasonably expect Penguin's management team to work very hard to make the necessary adjustments to its businesses in the face of the fallen oil price and tougher operating environment. The company should have slowed down its boat building programme by now, while working with customers to take delivery of those completed boats and those still in production, backed by previously signed orders which usually should include a certain amount of advance payments/deposits taken from customers. At the same time, those new boats built for its own charter fleet backed by charter contracts would have gone out to work and bringing in rentals over time. Given some luck and enough time, some of boats from its own charter fleet would be sold - and likely still at a profit, as Penguin has built them at its own low costs - resulting in a fall in the overall PPE balance, and the related cash received and profits would strengthen Penguin's still strong and liquid B/S further.

Penguin has a proven, competent and responsible management team under the guidance of a well represented BOD. I am looking forward to review the coming 3Q and full-year results.

That's what investors thought when SIA Engineering, Super Group and Osim experienced 1 or 2 quarters of weak earnings. If one choose to ignore or underestimate the headwinds that the companies are facing, he might be heading for a big surprise when things get uglier. And the investor ends up taking profit or cutting loss too late.

I suggest buddies take good look of Penguin over at least a decade... the company appears to have come to life during the late stages of the O&G cycle IIRC.

Decade Long Odd Lots Vested