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Why did Marco Polo Marine start a shipyard in 2005?
CEO: The shipyard is a support business with ship repair, conversion and maintenance... As we continue to grow..., we require more vessels... hence the natural progression into shipbuilding.
... the shipyard will remain focused on ship repair and conversions... the ship repair business is one that is seasonal but non-cyclical. If you own a ship, you are required to conduct mandatory servicing and maintenance.
Keppel Corp and Sembcorp Marine focus on shipbuilding and ship repairing of the larger vessels. We on the other hand target the medium and smaller vessels that take up most of the population of the ships around this region.
What are the prospects for Marco Polo Marine's core business, tug and barge operations, in Indonesia?
CEO: Indonesia produces over 200 million tonnes of coal every year... 36 new plants are currently being built in Indonesia and they have the combined capacity to generate over 20,000 megawatt of electricity.
... there are over 100 independent power plants in Indonesia, 80 to 90 additional tons of coal will be needed domestically in the near future.
How are you going to move the coal to the power plants? We need more tugs and barges because large vessels cannot manoeuvre around the rivers of the Indonesian mine sites... the demand for Indonesian flagged vessels will remain strong at least for the next five to six years.
Source: Marine Money Offshore.
Related post:
Marco Polo Marine: The CEO speaks.
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20 comments:
Good post but no see price below 40cts. Will see how this correction turn out in the next few weeks.
Hi seefei,
I have a friend who thinks that its share price would not go lower than 40c. ;p
Nice! Thanks for the info on Marco Polo.......BUT
"80 to 90 additional tons of coal will be needed domestically in the near future.
"
Maybe it should read 80 to 90 million tons........ :)
Hi JCK,
Oops, thanks for spotting that. :)
Seefei: one way to get down the price is I finally give up to buy on the cheap at 39.5 and buy at current levels.. I'm sure the moment my order is filled the price starts falling.. ;-)
Jay. let us know when your buy order is filled. ^_^
Hahaha Kay I have this problem too. Price drop after I buy. MPM is the exception :)
Looking at the charts, it seem like MPM is going to correct. A head-and-shoulders is forming.
Hi Ray,
Technically, it has been looking tired for a while. So, some selling is expected.
I would be quite happy to see a correction. Much lower prices would be a great opportunity for me to buy more on the cheap. :)
Technically the chart look like it is running out of stream.... however there is not much liquidity in this counter and also the insider has been picking up stock which provides support around $0.410 and $0.43 level.
It may well be forming a base around $0.415 level before continuing its move up.
14 March - Lee Wan Ting buy 500,000 shares at $0.43
19 Feb - Lee Wan Ting buy 1,000,000 shares at $0.42
Hi Yee,
I share your sentiments although the glaring negative divergence in the chart tells us that a pull back in price would not be out of order.
Shareholders seem to be holding on to their shares really tightly. This could result in a sideway movement until the longer term moving averages catch up with share price.
Well, if the share price does not correct, I guess I would just have to be happy with what I already have. ;)
Hi Ak,
Notice any funny movement for Marco Polo? Always large block of shares to sell at 43 to 43.5 cents but share price has not dip below 42 cents since 18 March....
Still awaiting for 41.5 cents to increase my holding.
Regards
Yee
Hi Yee,
Could be a wall built by some BBs while they wait for weaker holders to sell down. ;p
i have been queueing at 0.42 everyday for quite a while and still not getting any. lol
support is very strong at 0.42
Hi Sanguine,
I don't know if support is strong at 42c but certainly selling has been rather weak. In fact, the CMF has formed a higher high which means more money is flowing in even as price moves sideway. ;)
It seem like a smoke screen has been setup.... large sales volume 415,000 selling at 0.43
Someone is collecting.....
Regards
Yee
Hi Yee,
Volatility is reducing and we could see a violent move in share price in either direction. Which direction? That is anyone's guess.
My guess? Same as yours. ;)
Compared to a year or two ago, the sentiment on the OSV market has
generally improved.
Average earned day rates in Asia Pacific are showing signs of an upturn, especially for AHTS vessels smaller than 6,000BHP in Indonesia and Malaysia.
Marco Polo Marine is one of the few companies with good exposure to the OSV sector in Indonesia.
Fair value: 56c.
IHS has revised its 2013-2014 oil price forecast upwards. It now expects Brent crude to average US$105/bbl in 2013 and US$93/bbl in 2014, sustaining capital expenditure in the sector.
OCBC Research, 28 March 2013.
Latest THE EDGE magazine reported that service providers instead rig builders are benefitting from the Booming O&M industry. MPM is in a sweet spot with its fleet of Indonesian flagged SV. Chairman latest buy from the market is on 14/3. Technically, MPM had reversed to uptrend with a higher low formation. A break above 44 cts next week will confirm this reversal. I am feeling excited about MPM again. If that happen, the breakout, I will look forward to an update on this blog on this gem. LOL
Hi seefei,
Marco Polo Marine is my largest investment at the moment. Larger than my investments in AIMS AMP Capital Industrial REIT and Sabana REIT. That is saying something about my level of confidence in the company. :)
The chairman bought 500,000 more shares in the middle of this month at 43c a share. It was the latest in a string of persistent buying.
Technically, there is immediate support at 42c with stronger support at 41c. How many are waiting to load up on this counter if a pull back should happen? I wonder. ;)
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