The company manufactures Coastal vessels for sale and rental. A few years ago, when the petroleum price was above USD 100 a barrel, its business was very good. But currently the oil price is less than USD 50 per barrel and its business is badly affected.
My purpose of writing this piece is because someone wanted me to buy and support the share price.
Among all the criteria for choosing shares, profit growth prospect is the most important and it is the most powerful catalyst to move share price. The table below shows that its profit and revenue are less than last year. The revenue is about 30% of previous year. That means the business is very bad and the future can be worse.
I also wish to point out the following:
1 You should not be tempted to buy when you see that the share price is selling less than 50% of its NTA.
2 You should not be tempted to buy because it is so cheap after it has been falling in the last 3 years, as shown on the above chart.
3 Always be careful when someone recommends you to buy any share. You must examine his track record.
4 I used to be a substantial shareholder a few years ago. I have visited its shipyard in Sabah and I know all about the company.