Chart[32] - Offshore&Marine (Trend vs Valuation)

Bullish oil became the hot topic recently. Following counters saw heavy trading volume upon OPEC announcement of production cut. While market is showing strong interest into them, let's examine respective price trend vs valuation.

Keppel Co: It has been ranging bouncing between 5.1 and 5.48 in past four months. With strong buying volume on last Thursday, it broke few resistance prices in one shot. Immediate support and resistance could be 5.9 and 6.2 Based on latest financial results, 6.2 translates to 1.03x net tangible asset value and ~ 13x PE.

Sembco Ind: It has been slowly moving up in price since early November. Decisive break out with strong volume happened on last Thursday. Immediate support and resistance are 2.78 and 2.98 Although current price represents deep discount to book value, its weakening earning is concern. Above 2.78, it is actually trading beyond 17.4x PE based on annualized earning of FY2016.

Mermaid Maritime: Spikes in buying volume occurred ever since early October. The bullish trend is trying to test next resistance ~ 0.16 which translate to 0.47x PB. It is one of the few oil related counters which can enjoy low debt and profitable business year to date.