The main business of Turbo-Mech is supplying spare parts to oil & gas and petrochemical industries. Since oil & gas is the good theme to play this year, so maybe Turbo is a good oil & gas stock to play.
1 Downside risk 8 sen but potential upside 80 sen
If you look back the share price of Turbo within this 5 years. The historical high at RM1.50 and the historical low at RM0.62. That means if your buying price is RM0.70, there is only 8 sen downside risk but 80 sen potential upside. It’s too good to be ignored, indeed.
2 Oil & Gas industry — Big theme play for this year
In this few years, whether in upstream or downstream industries, oil & gas companies were hit badly by low international crude oil price.
You may see that Turbo’s share price was dropped from RM1.50 to RM0.62. But now they are on the recovering path. And this Turbo has very good earnings ability with positive earnings straight for 9 years. So if Turbo back to RM1.50, you may earn more than 100%.
3 The latest quarterly result is very good
Normally people buying stocks are based on how good the latest quarterly result is. For example, Carimin Petroleum has recorded eps of 5 sen in a single quarter. As a result, its share price shot to RM0.90 in less than 3 months time.
Turbo also has a very good quarterly result with the latest eps of 2.5 sen. Maybe it’s a good price to enter since this counter still NOT on the radar of investors.
4 Good cash position. Nearly zero debt and RM20 million cash in hand
The total shares of Turbo 108 million only. And the group has very good cash position with merely RM50000, (yes, it’s RM50000 only) but RM19.6 million huge cash in hand.
Majority oil & gas upstream players have very bad cash position. But not for this Turbo, there is no chance to launch rights issues there. So it’s very safe to invest at such low price.
This is no-brainer buy. I just write down my opinion on Turbo-Mech. I think it's a very safe to buy at current price. Anyway, please buy at your own risk. Thank you.