MTQ Corporation

[greengiraffe]

MTQ IMHO will survive the downturn.

On the broader macro perspective, many of the so call O&G players listed on SGX are support industry players.

In a prolonged massive downturn that we are witnessing, survivalship is critical as the massive over capacity in various segment of the global O&G industry is massive. Many of these players will not survive.

The way that I am positioned for a recovery at least in the initial stages will be on healthy upstream O&G exploration and production companies. Those with healthy balance sheet and dividend payout history. Preferably, those that have been endorsed by Godfathers since Godfathers probably have a team of experts that have conducted extensive stress tests before taking a strategic positions in such O&G explorers and producers.

Unfortunately if one is to fish in SGX for such companies, there is practically none as these companies are only listed on resource rich bourses such as ASX and Canada.

Closer home on ASX, WPL is the bluechip while BPT is a special situation.

For buddies with higher risks tolerance, oil futures will be the easiest alternatives.

Vested
BPT

[lilvestor]

Now that the price is languishing at around 74 cents, would you say that the MOS from $1.30 that Quah bought in at, has all but evaporated? Undoubtedly, MTQ is a strong player in this business, but what I'm surprised is that despite the oil price rising back to around USD $60 per barrel, the damage on industry players' bottom line is so devastating. One investor in another forum is waiting for this counter to go down to 60 cents before going in. Any views from forummers? (vested)

The number of active rig counts in the US has fallen back to 09 levels, it has more than halved from last year's peak, thats nothing short of carnage for the industry, a small bounce to $60 per barrel isn't going to change much.

I think the speculators are positioned for a bounce in oil prices because they expect oil production to be reduced drastically following such a large drop in rig counts...

[Tiggerbee]

The only time one should invest in a cyclical industry is when you see blood on the street. The stock has yet to capitulate.

[peter lee]

MTQ IMHO will survive the downturn.

On the broader macro perspective, many of the so call O&G players listed on SGX are support industry players.

In a prolonged massive downturn that we are witnessing, survivalship is critical as the massive over capacity in various segment of the global O&G industry is massive. Many of these players will not survive.

The way that I am positioned for a recovery at least in the initial stages will be on healthy upstream O&G exploration and production companies. Those with healthy balance sheet and dividend payout history. Preferably, those that have been endorsed by Godfathers since Godfathers probably have a team of experts that have conducted extensive stress tests before taking a strategic positions in such O&G explorers and producers.

Unfortunately if one is to fish in SGX for such companies, there is practically none as these companies are only listed on resource rich bourses such as ASX and Canada.

Closer home on ASX, WPL is the bluechip while BPT is a special situation.

For buddies with higher risks tolerance, oil futures will be the easiest alternatives.

Vested
BPT

thank you for sharing.

[Kelvin]

Keep dropping

[CityFarmer]

The market remains challenging for MTQ...

(not vested)

MTQ Corp sinks into the red in 1Q with $2.3 mil net loss

SINGAPORE (July 28): MTQ Corp ( Financial Dashboard) has announced a net loss of $2.3 million in the first quarter ended June 30, 2015 from earnings of $4.1 million in the previous corresponding quarter.

This came on lower revenue and weaker margins amid softer customer demand, the engineering, maintenance and subsea services group says in a statement to the stock exchange.

MTQ’s revenue declined 22% to $60.01 million from $76.69 million a year ago.

Gross profit margin narrowed to 26.0% from 34.0 previously.

But operating expenses and staff costs have shrunk following cost rationalisation efforts, MTQ says.

MTQ foresees the market environment will remain challenging as competition has led to lower margins.

It assures the group remains “financially strong” as it looks to tap “market opportunities” while continuing to reduce overheads and improve utilisation.

Shares of MTQ ended lower at 69 cents, down 3.5 cents or 4.8%.
http://www.theedgemarkets.com/sg/article...l-net-loss

[greengiraffe]

I have changed my views on MTQ.

After reviewing the latest financial statements, I think MTQ's fate will be dependent on that of bankers with a prolonged drought in the global O&G sector.

MTQ's cost base has been substantially lifted with its add-on inorganic purchase in middle east and australia towards the tail end of the O&G boom.

The decline in revenue is significant as MTQ has in my opinion yet to see the worst of the decline in revenue.

Operating cashflow has trickled to a drip at the just reported stage and can only be worst going forward.

This is just one example of how precarious the situation is facing SGX listed O&G support industry players.

I think not many investors locally has seen the deep impact.

On ASX, there are many mining services companies with darling status that are struggling on knife edges.

Not Vested
GG

The market remains challenging for MTQ...

(not vested)

MTQ Corp sinks into the red in 1Q with $2.3 mil net loss

SINGAPORE (July 28): MTQ Corp ( Financial Dashboard) has announced a net loss of $2.3 million in the first quarter ended June 30, 2015 from earnings of $4.1 million in the previous corresponding quarter.

This came on lower revenue and weaker margins amid softer customer demand, the engineering, maintenance and subsea services group says in a statement to the stock exchange.

MTQ’s revenue declined 22% to $60.01 million from $76.69 million a year ago.

Gross profit margin narrowed to 26.0% from 34.0 previously.

But operating expenses and staff costs have shrunk following cost rationalisation efforts, MTQ says.

MTQ foresees the market environment will remain challenging as competition has led to lower margins.

It assures the group remains “financially strong” as it looks to tap “market opportunities” while continuing to reduce overheads and improve utilisation.

Shares of MTQ ended lower at 69 cents, down 3.5 cents or 4.8%.
http://www.theedgemarkets.com/sg/article...l-net-loss

[lilvestor]

Lucky to have sold this last week, only managed to get out with a tiny gain after holding this for years, would have been hella lot more had I sold at the peak but well hindsight is always 20/20.

Not going to touch any more of these highly cyclical businesses with a 10 ft pole, the stomach churning boom and bust cycles are too much for me, even a small 5 figure investment in these companies would make me uncomfortable now.

[CityFarmer]

Lucky to have sold this last week, only managed to get out with a tiny gain after holding this for years, would have been hella lot more had I sold at the peak but well hindsight is always 20/20.

Not going to touch any more of these highly cyclical businesses with a 10 ft pole, the stomach churning boom and bust cycles are too much for me, even a small 5 figure investment in these companies would make me uncomfortable now.

I am not sure the conclusion is right. The company has started to look very interesting...

(not vested, but monitoring closely)

[ngcheeki]

Write up from nextinsight on interview with ceo after Q1FY2016 result.

http://www.nextinsight.biz/index.php/sto...preciation