LGo announced that its first well to be completed at the Goudron Sandstone, hab een free flowing naturally at 60 bopd for 60 days. This is indeed a good feat considering the fact that the Goudron sandstone is a much shallower reservoir.
With such a consistent flow, LGO will fast track their drilling to the Goudron Sandstone. At least 10 sites have been identified for this purpose which will be carried out by year end.
My disclosure: I own shares of LGO.
Sunday, September 27, 2015
Wednesday, September 23, 2015
LEG FY2015 RESULTS
Suffered a loss of 470,00 pounds from its investment vs a profit of 901,000 Pounds in FY2014.
Current Ratio 6.18
Debt to Equity Ratio 0.04
LEG investments into mining and resources based companies have taken a hit in the year due to lower commodity prices.
However there were some good news too, especially where Virtual stock is concerned. LEG has increased its holdings in Virtual Stock to 7.0%. Virtual Stock is moving into the non retail arena having signed a contract with the NHS.
Elsewhere, its investment into Bosques Energeticos is progressing well, having increased it total land from 11 hectares to 18 hectares.
If you can afford a 3 -5 year time line in your investment then this is the share to own. With a price of 0.0008 pence vs a director's option of 0.002 pence and above, the eventual listing of either Virtual Stock and Bosques Energeticos will provide the catalyst for multi-folds gain.
My disclosure: I own shares of LEG.
Current Ratio 6.18
Debt to Equity Ratio 0.04
LEG investments into mining and resources based companies have taken a hit in the year due to lower commodity prices.
However there were some good news too, especially where Virtual stock is concerned. LEG has increased its holdings in Virtual Stock to 7.0%. Virtual Stock is moving into the non retail arena having signed a contract with the NHS.
Elsewhere, its investment into Bosques Energeticos is progressing well, having increased it total land from 11 hectares to 18 hectares.
If you can afford a 3 -5 year time line in your investment then this is the share to own. With a price of 0.0008 pence vs a director's option of 0.002 pence and above, the eventual listing of either Virtual Stock and Bosques Energeticos will provide the catalyst for multi-folds gain.
My disclosure: I own shares of LEG.
REGAL REIT H12015 RESULTS
Revenue increased 4.6%
Business was somewhat affected by the Occupy Hong Kong movement and reduction from mainland Chinese tourists. As a result occupancy dropped to 83.0% during the period vs 92.9% last year.
Profit (including property value gains) -530.8%
Profit (excluding property value gains) 3.6%
You can see the huge difference between profit before and profit after adjustment for property value gains. Always remember that the CORE PROFIT from operations is the MOST important. Property value gains has no impact on the bottom line of the REIT unless it is sold.
Current Ratio 0.57
Gearing 0.36
Distribution of HK$0.0704 for H12015. If we take into consideration of the FY2014 distribution of HK$0.1620 and based on today's closing of HK$1.93, this represents a distribution yield of 8.4%.
However, as its current ratio is weak, I will recommend HOLD until it is improved.
My disclosure: I own shares of Regal REIT.
BOSSINI FY 2015 RESULTS
Revenue down 1.0%
Profit down 9.2%
Current Ratio 2.68
Debt to Equity Ratio 0.43
Cash and Equivalents HK$475M
FY Dividend HK$0.0708 or 10.9% based on current price of HK$0.65 per share
Revenue and Profit are down due to the reduction in visitorship form mainland China to Macau and Hong Kong. Revenue from other regions performed well, mitigating the shortfall in Macau and Hongkong
Nevertheless the company has continued to add on to its cash position, strengthening its overall balance sheet.
At HK$0.65 it is a BUY due to its dividend yield.
My disclosure: I do not own shares of Bossini.
Profit down 9.2%
Current Ratio 2.68
Debt to Equity Ratio 0.43
Cash and Equivalents HK$475M
FY Dividend HK$0.0708 or 10.9% based on current price of HK$0.65 per share
Revenue and Profit are down due to the reduction in visitorship form mainland China to Macau and Hong Kong. Revenue from other regions performed well, mitigating the shortfall in Macau and Hongkong
Nevertheless the company has continued to add on to its cash position, strengthening its overall balance sheet.
At HK$0.65 it is a BUY due to its dividend yield.
My disclosure: I do not own shares of Bossini.
Saturday, September 19, 2015
US OIL RIGS COUNT
Total number of oil rigs in the US declined by 8 to 644 rigs fr the week ending 18 September, 2015.
Oil price declined to US$44.68 per barrel, losing 4.73% on demand fears.
Oil price declined to US$44.68 per barrel, losing 4.73% on demand fears.
LGO UPDATE
In its H1 2015 report, LGO also announced that its application for a licence to drill another 30 wells has been approved. This means at LGO now has 45 well to drill in the Goudron Field.
Friday, September 18, 2015
LGO H1 2015 RESULTS
Revenue increased 105%. 6.610M Pounds in H1 2015 vs 3.230M Pounds in 2014.
Loss widened by 21.0%. 3.540M Pounds 2015 vs 2.925M Pounds in 2014.
Loss mainly due to:
1) Finance charges of 1.327M Pounds in H1 2015 vs 0.148M Pounds in H1 2014, of which 0.730M Pounds was due to the unrealised fair value loss pertaining to the BNP loan facility.
2) Forex loss of 0.848M Pounds in H1 2015 vs 0.406M Pounds in H1 2014.
Excluding these two amounts, Loss was 1.912M Pounds in H1 2015 vs 2.519M Pounds in H1 2014.
EPS of (0.09) Pence in H1 2015 vs (0.11) Pence in H1 2014. The lower loss per share was due to the dilution of shares which negate the impact of a wider Net Loss.
On the plus side, Admin Expenses fell 23.4% from 3.233M Pound sin H1 2014 to 2.475M Pounds in H1 2015. This may signify that LGO is cutting costs in view of the lower oil price.
Current Ratio 1.50. However its Trade Payables were more than its Trade Receivables by a ratio of 2.1 to 1.0. This could impact upon LGO's current cash position.
Debt to Equity Ratio 0.65
Gearing 0.20. I've added in Gearing to further gauge the extent of Borrowings vs the Total Assets.
Important notes:
1) In view of the low oil price environment management to ensure that an optimum management strategy is implemented based on the extensive well testing undertaken.
2) Medium term guidance of 1,500 bopd from 2,000 bopd due to the low oil price.
3) Company has no intention to further draw down the loan facility from BNP as it is not beneficial in a low oil price environment.
4) In Q3, submitted application to extend LGO's licence in the Ayoluengo Field to Spanish authorities.
5) Well GY678 encountered obstruction at 1,800 feet which prevented the well from being completed. Company will assess options to do a side track.
6) In order to provide data on the Goudron Sandstone Well GY672 has been recompleted at the Goudron Sandstone delivering 60 bopd.
7) 10 locations had been identified to commence drilling, targeting the Goudron Sandstone.
Key Targets for H2 201
Loss widened by 21.0%. 3.540M Pounds 2015 vs 2.925M Pounds in 2014.
Loss mainly due to:
1) Finance charges of 1.327M Pounds in H1 2015 vs 0.148M Pounds in H1 2014, of which 0.730M Pounds was due to the unrealised fair value loss pertaining to the BNP loan facility.
2) Forex loss of 0.848M Pounds in H1 2015 vs 0.406M Pounds in H1 2014.
Excluding these two amounts, Loss was 1.912M Pounds in H1 2015 vs 2.519M Pounds in H1 2014.
EPS of (0.09) Pence in H1 2015 vs (0.11) Pence in H1 2014. The lower loss per share was due to the dilution of shares which negate the impact of a wider Net Loss.
On the plus side, Admin Expenses fell 23.4% from 3.233M Pound sin H1 2014 to 2.475M Pounds in H1 2015. This may signify that LGO is cutting costs in view of the lower oil price.
Current Ratio 1.50. However its Trade Payables were more than its Trade Receivables by a ratio of 2.1 to 1.0. This could impact upon LGO's current cash position.
Debt to Equity Ratio 0.65
Gearing 0.20. I've added in Gearing to further gauge the extent of Borrowings vs the Total Assets.
Important notes:
1) In view of the low oil price environment management to ensure that an optimum management strategy is implemented based on the extensive well testing undertaken.
2) Medium term guidance of 1,500 bopd from 2,000 bopd due to the low oil price.
3) Company has no intention to further draw down the loan facility from BNP as it is not beneficial in a low oil price environment.
4) In Q3, submitted application to extend LGO's licence in the Ayoluengo Field to Spanish authorities.
5) Well GY678 encountered obstruction at 1,800 feet which prevented the well from being completed. Company will assess options to do a side track.
6) In order to provide data on the Goudron Sandstone Well GY672 has been recompleted at the Goudron Sandstone delivering 60 bopd.
7) 10 locations had been identified to commence drilling, targeting the Goudron Sandstone.
Key Targets for H2 201
1) Complete and bring on to production all seven 2015 C-sand wells at the Goudron Field.
2) Manage Goudron production for maximum long-term value, by preserving reservoir integrity and developing the necessary infrastructure to facilitate growth as needed.
3) Managing the business with low operating costs to provide a platform for economic growth despite continued low oil price.
4) Progress the Cedros Peninsular interests in Trinidad to ensure medium-term growth is maintained and long-term value is created
5) Maintain the Spanish assets for value in advance of the granting of the extension of the La Lora Concession
6) Seek further opportunities to expand the portfolio within the existing strategy, to provide longer-term diversified growth
LGO's share succumbed to heavy short selling upon the release of the H1 2015 results, mainly because of the obstruction encountered in GY678 where many had placed hope that it would boost production.
In the meantime, it is best to abstain from any purchase or averaging down as it would mean locking in your capital for a longer duration due to the low oil price environment.
My disclosure: I own shares of LGO.
Wednesday, September 16, 2015
US OIL RIGS COUNT FELL FOR THE SECOND CONSECUTIVE WEEK
US oil rigs count continue to fall for the second consecutive week to 652 on the week ending September 11, 2015.
Amidst a low oil price environment, and a looming credit line revision by major banks in the US, we can expect continued pressure on US shale oil companies. We could potentially see several more companies filing for bankruptcy protection.
While the US has overcome several major hurdles in supporting the Iran deal, hardliners in Iran are rallying against the deal.
Link: http://www.bloomberg.com/news/articles/2015-09-16/iran-nuke-feud-shifts-to-tehran-as-hardliners-push-to-sink-deal
Should the hardliners win, then that will throw a spanner in the works where the deal is concerned.
So where will oil be in the coming months?
I still see it in the sub US$50 in the immediate term.
Further support could come in the continued fall in US oil supply and projected decline in production. Production could take a hit in coming months due the following factors:
1) High depletion rate in wells coupled with slowdown in drilling activities (fall in rigs count) will put the brakes on production
2) Financial distress due to overwhelming debt among shale oil companies. Unable to fund further activities due to insufficient funding or bankruptcy
3) Low oil price will continue to discourage producers from expanding their capex. if fact, most have cut their capex for the next 12 months, and reduce their workforce
Despite the above, oil price is unlikely to return to more then US$80 per barrel in 2016 due to the likelihood of China entering into a recession. The next few months will provide indications whether China is heading towards that direction.
Taking all the above into consideration, I would say that oil could hover in the US$50 - US$60 per barrel towards year end.
Amidst a low oil price environment, and a looming credit line revision by major banks in the US, we can expect continued pressure on US shale oil companies. We could potentially see several more companies filing for bankruptcy protection.
While the US has overcome several major hurdles in supporting the Iran deal, hardliners in Iran are rallying against the deal.
Link: http://www.bloomberg.com/news/articles/2015-09-16/iran-nuke-feud-shifts-to-tehran-as-hardliners-push-to-sink-deal
Should the hardliners win, then that will throw a spanner in the works where the deal is concerned.
So where will oil be in the coming months?
I still see it in the sub US$50 in the immediate term.
Further support could come in the continued fall in US oil supply and projected decline in production. Production could take a hit in coming months due the following factors:
1) High depletion rate in wells coupled with slowdown in drilling activities (fall in rigs count) will put the brakes on production
2) Financial distress due to overwhelming debt among shale oil companies. Unable to fund further activities due to insufficient funding or bankruptcy
3) Low oil price will continue to discourage producers from expanding their capex. if fact, most have cut their capex for the next 12 months, and reduce their workforce
Despite the above, oil price is unlikely to return to more then US$80 per barrel in 2016 due to the likelihood of China entering into a recession. The next few months will provide indications whether China is heading towards that direction.
Taking all the above into consideration, I would say that oil could hover in the US$50 - US$60 per barrel towards year end.
WILL CHINA DEVALUE ITS YUAN?
CNBC reported that China could devalue ts Yuan by 15% - 20%. How will it impact on Asia's currencies? Will spark a currency war among Asian countries?
Read it here: http://www.cnbc.com/2015/09/16/why-chinas-yuan-may-be-set-for-15-devaluation.html
Read it here: http://www.cnbc.com/2015/09/16/why-chinas-yuan-may-be-set-for-15-devaluation.html
Thursday, September 10, 2015
PPHM Q1 FY2016 RESULTS
Revenue grew 76.0% vs Q1 FY2015
Loss widened by 6.7% vs Q1 FY2015
EPS stagnant at -US$0.08, same as Q1 FY2015
Current Ratio 2.03
Debt to Equity Ratio 0.40
Key takeaways from Conference Call:
1) Revenue achieved record high in Q1 FY2016.
2) US$42 million in manufacturing back log
3) New manufacturing facility has capacity to generate up to US$40 million in revenue
4) Recruitment for Sunrise Phase III Trial on track to complete by year end 2015
5) Possible first look in of Sunrise Phase III Trial in first half of 2016 and second lookin by mid year 2016
6) Breast Cancer Phase II/III Trial to begin by end of 2015
7) Lung Cancer Phase II Trial combining Bavituximab and BMY's Opdivo to begin by end of 2015
8) Design stage for the trial combining Bavituximab and AZN's Durvalumab
From the look of things, I believe the first few months of 2016 have a telling effect on the Share Price. Things will move very fast from there on.
My disclosure: I won shares of PPHM.
Loss widened by 6.7% vs Q1 FY2015
EPS stagnant at -US$0.08, same as Q1 FY2015
Current Ratio 2.03
Debt to Equity Ratio 0.40
Key takeaways from Conference Call:
1) Revenue achieved record high in Q1 FY2016.
2) US$42 million in manufacturing back log
3) New manufacturing facility has capacity to generate up to US$40 million in revenue
4) Recruitment for Sunrise Phase III Trial on track to complete by year end 2015
5) Possible first look in of Sunrise Phase III Trial in first half of 2016 and second lookin by mid year 2016
6) Breast Cancer Phase II/III Trial to begin by end of 2015
7) Lung Cancer Phase II Trial combining Bavituximab and BMY's Opdivo to begin by end of 2015
8) Design stage for the trial combining Bavituximab and AZN's Durvalumab
From the look of things, I believe the first few months of 2016 have a telling effect on the Share Price. Things will move very fast from there on.
My disclosure: I won shares of PPHM.
US COULD LOSE 500,000 BOPD BY YEAR END
An interesting article by Bloomberg.
This could provide some support to oil price.
http://www.bloomberg.com/news/articles/2015-09-09/u-s-oil-producers-may-lose-500-000-barrels-a-day-on-funding-gap
This could provide some support to oil price.
http://www.bloomberg.com/news/articles/2015-09-09/u-s-oil-producers-may-lose-500-000-barrels-a-day-on-funding-gap
WHAT MATTERS IS THE NET PROFIT PER BARREL OF OIL
We have read in many written article how US shale oil companies are revolutionising the extraction of tight oil plays. Despite the continuing slump in oil price, many of the major shale oil companies touted how they are improving the productivity per rig, the efficiency in drilling techniques which reduce the number of man days, and how technology improved the the overall cost structure.
But are these new found ways improving the net profit per barrel of oil? Are they cash flow positive or negative. Even when oil was trading at more than US$100 many of these companies were hardly generating positive cashflows. So how would they fare at today's oil price?
This article offers an insightful view of how shale oil companies could be in deeper trouble than what the analysts and oil barons say.
Link: http://oilprice.com/Energy/Crude-Oil/The-Biggest-Red-Herring-In-US-Shale.html
But are these new found ways improving the net profit per barrel of oil? Are they cash flow positive or negative. Even when oil was trading at more than US$100 many of these companies were hardly generating positive cashflows. So how would they fare at today's oil price?
This article offers an insightful view of how shale oil companies could be in deeper trouble than what the analysts and oil barons say.
Link: http://oilprice.com/Energy/Crude-Oil/The-Biggest-Red-Herring-In-US-Shale.html
Wednesday, September 9, 2015
LGO DRILLING UPDATE
LGO recently announced that the last of its 2015 development wells, GY678 has reached TD. A ttal of 679 feet of net oil pay was encountered, comprising of 199 feet at the Goudron Sandstones and another 480 feet at the C-Sands.
My disclosure: I own shares of LGO.
My disclosure: I own shares of LGO.
PPHM UPDATE
Recent clinical data by PPHM suggests that combined Bavituximab - Anti PDL-1 therapies enhance immune responses.
Tumour cells has a layer of protein called phosphatidylserine (PS) which masks the tumour cells and inhibits their recognition by the immune system. Bavituximab binds to the PS therefore blocking it along with its immunosuppressive action, thus enhancing anti-tumour immune responses.
Dr Jeff T Hutchins, Vice President of preclinical research at PPHM, presented results of Bavituximab's performance in several preclinical and clinical studies.
Tumours develop strategies to evade its detection by the immune system, creating an immunosuppresive microenvironment that allows them to survive and proliferate. Bavituximab acts to disrupt the tumours' immunosuppresive strategies while enhancing immune activity against tumours. Bavituximab induces an increase in tumour infiltrating CD8+ T cells (cytotoxic T cells) and cytokines, while decrease the levels of macrophages and myeloid cells that allows tumours to remain undetected by the immune system.
One of PPHM's studies showed that patients with low PD-L1 or PD-1 expression on infiltrating tumour immune cells exhibited enhanced immune activation after Bavituximab administration. Using animal models of of multiple tumour types, researchers found that combining Bavituximab with anti PD-1 antibodies allowed complete tumour regression in some cases.
This goes to show the importance of Bavituximab as an anti PS targeting agent and it is now wonder that MSK (Memorial Sloan Kettering ) and AZN (Astrazeneca) are now working in collaboration with PPHM.
On another front, Starpharma is developing an enhanced form of Docetexal known as DEP Docetaxel. In preclinical studies, DEP has shown to have substantially better afficacy and lower toxicity.
For the uninitiated, PPHM is undergoing a Phase III Sunrise Trial combining Bavituximab and Docetaxel and incidently, AZN has just signed a deal with Starpharma on the continued development of DEP.
AZN signing a deal with Starpharma and PPHM seems to suggest that AZN is pursuing on all angles in the treatment of tumours.
My disclosure: I own shares of PPHM
Tumour cells has a layer of protein called phosphatidylserine (PS) which masks the tumour cells and inhibits their recognition by the immune system. Bavituximab binds to the PS therefore blocking it along with its immunosuppressive action, thus enhancing anti-tumour immune responses.
Dr Jeff T Hutchins, Vice President of preclinical research at PPHM, presented results of Bavituximab's performance in several preclinical and clinical studies.
Tumours develop strategies to evade its detection by the immune system, creating an immunosuppresive microenvironment that allows them to survive and proliferate. Bavituximab acts to disrupt the tumours' immunosuppresive strategies while enhancing immune activity against tumours. Bavituximab induces an increase in tumour infiltrating CD8+ T cells (cytotoxic T cells) and cytokines, while decrease the levels of macrophages and myeloid cells that allows tumours to remain undetected by the immune system.
One of PPHM's studies showed that patients with low PD-L1 or PD-1 expression on infiltrating tumour immune cells exhibited enhanced immune activation after Bavituximab administration. Using animal models of of multiple tumour types, researchers found that combining Bavituximab with anti PD-1 antibodies allowed complete tumour regression in some cases.
This goes to show the importance of Bavituximab as an anti PS targeting agent and it is now wonder that MSK (Memorial Sloan Kettering ) and AZN (Astrazeneca) are now working in collaboration with PPHM.
On another front, Starpharma is developing an enhanced form of Docetexal known as DEP Docetaxel. In preclinical studies, DEP has shown to have substantially better afficacy and lower toxicity.
For the uninitiated, PPHM is undergoing a Phase III Sunrise Trial combining Bavituximab and Docetaxel and incidently, AZN has just signed a deal with Starpharma on the continued development of DEP.
AZN signing a deal with Starpharma and PPHM seems to suggest that AZN is pursuing on all angles in the treatment of tumours.
My disclosure: I own shares of PPHM
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