Icon Offshore , My Idol OOI TEK BEE 2020 Speculation!

Dear valued clients,

Background
ICON Offshore Berhad, an investment holding company, provides offshore support vessels to the oil and gas related industries in Malaysia, Brunei, and Thailand.

I believe it is very difficult to justify a buy on Icon-WA based on either TA and FA.
I recommend this stock is based on business sense.

Old Icon shareholders lost almost all their capitals
There is a capital reduction of 50,000 shares of Icon into 1,000 shares, hence all old capital was almost lost all.
There is a rights issue to raise new capital for existing business, the new shareholders are starting fresh from the existing business. The rights issue was oversubscribed by 20% which is a good news to me.
The new share issued is 2.642 billion shares, a market capital of 317 million if the share price of Icon is at 0.12.

My view on Icon

1. I believe over subscription of right is a good news here. It means many investors believed that Icon will do well after this rights issue.
2. If you believe this business sector is still good, right issue is a good move to help this company to turn to profitability.
3. I want to relate this restructuring to Perdana, how is the performance of Perdana share after restructuring ? Answer is good after restructuring.
4. Look at the share price of Perdana and Coastal, they are improving day after day. Business is growing in this sector.
5. I attended the meeting on Dayang 6 months ago, I was told there is not enough vessels to rent in the market. The rental price had increased nearly 20% in the last 6 months. 
6. Icon is ready to grasp this opportunity once the fund is there.
7. Icon does not need to start fresh, existing business is just nice in time.

All brokers are overweight on Oil and Gas sectors

A read-through of Petronas’ latest Activity Outlook 2020-2022 was mostly positive, as most upstream value chains are expected to see approximately maintained levels from 2019, while several of them anticipated to see a surge. Of which, they have identified the biggest winners to include:-
Maintenace players (e.g. Dayang and Carimin)
Marine vessel players (e.g. ALAM, ICON, PERDANA, COASTAL), with a huge surge in the number of anchor handling tug supply (AHTS) vessels. 

I am only interested in the following sub-sectors :-

1. Maintenance players - Dayang, Carimin and Penergy
2. Marine vessel players - Alam, Icon, Coastal and Perdana

Benchmarked with other competitors
If we benchmarked Icon with her competitors in the trade, they are trading at the following prices :-
Perdana Price: RM 0.48
Coastal Price: RM 1.29
Alam Price: RM 0.145 

Icon is backed by very strong shareholders. They will not let this ship sinks. They will make sure this will be a success stories.

My strategy

1. I recommend to buy Icon-WA at 0.05 or below. Buy and hold for at least 6 months.
2. I bought 2 million shares of Icon-WA in my 2020 portfolio at 0.045 on 18/2/2020.  
3. I believe the share price of Icon-WA will drop in the next few days, you can add position later.

Final decision to buy is always yours.
Thank you.
Ooi
寧可天下人負我, 休教我負天下人

Disclaimer :
Please be informed that the aforesaid stocks are solely for the purpose of education only ; it is neither a trading advice nor an invitation to trade. For trading advice, please speak to your remisier or dealer representative.
Final decision to buy is always yours.

https://klse.i3investor.com/blogs/sinapore2020/2020-02-25-story-h1483946276-ICON_My_Idol_OOI_TEK_BEE_2020_Speculation_JUST_HOOT_DON_T_ASK.jsp