Wednesday, September 4, 2019

Sold Armada

I have decided to sell Bumi Armada largely because I do not know how to value this company at the moment.

As mentioned before, the previous reaction towards the company was because of over-reaction on its balance sheet and projects difficulties faced.



This has never going to be a long term holding, though, hence the sale. Additionally, since WCE is coming on stream for its additional rights, this sale is to allow cash accumulation.

5 comments:

Chong said...

May i know why is there an upcoming rights issue for wce ?

felicity said...

Hi Chong, the company is raising funds for its final portion of the project. They need further equity portion. this is not unexpected.

Chong said...

Do you think this has been priced into the share price ? cos i think at this environment, its better for them to raise via debt instead of using equity

felicity said...

WCE needs to maintain a debt:equity ratio, hence it is not possible to just to debt

Unknown said...

Bad decision