Bullish On COASTAL

Started in 1976, COASTAL Group offers a wide range of marine services and vessels to worldwide clients of different industries. The core business of Coastal Group are shipbuilding, ship chartering, repair & maintenance and trading of marine support vessels, and serving clientele from offshore Oil & Gas industry. Participating in such an everchanging industry, Coastal Group is always prepared to challenge the unchallenged. (Coastalcontracts.com)

Coastal is a profit making company involved in the oil and gas company . We Like Coastal because of its High Profit Margins. Net profit margin for the Last 3Q stands at 17.5% in FY 2017. We believe that this may be one of the reasons why the company has still been able to still generate profits despite the poor oil and gas environments. This company also has a Strong Positive Net Operarating Cash Flow for over 3 Years now. Fundamentally, this stock is strong as it has an NTA of RM 3.50 and EPS of 9.03 (Last 4Q). The 64% Increase in Net profit Q-o-Q of RM 26 Million shows that there is some improvement in earnings for this stock in the recent quarter. Therefore, If this stock shows continuous recovery in earnings, this stock has high potential upside. This stock is suitable for Mid to Long Term investments.

SPARK is Very Bullish on COASTAL In the Long Term

Chartwise, this stock Peaked in August 2014 at an approximate High of RM 5.11. Currently, this stock is trading at RM 1.34, representing a 73% drop from its high created in 2014. The 52 week low is at RM 1.24. The last time this stock was trading at this price vicinity was in 2010. Therefore, we feel that this stock may have hit the rock bottom at this price range in 2017. Should this stock breakout above the 200 MA with strong volume, first target for this stock is RM 1.60 followed by RM 2.00 There is a high reward to risk ratio for this stock. Remember that this stock is still a profit making company with high profit margins and strong operating cash flow position.

There are some Oil and Gas Companies which have also rebounded from their all time lows as they have seen some improvements in their earnings or prospects in recent months. These are some comparisons of Notable Price Swings Till Date :

ARMADA : RM 0.50 (Rebound Low) >>>>> RM 0.825 (Rebound High 2017) [+65%]

SENERGY : RM 1.28 (Rebound Low) >>>>> RM 2.10 (Rebound High 2017) [+64%]

WASEONG : RM 0.63 (Rebound Low) >>>>> RM 1.01 (Rebound High 2017) [+60.3%]

COASTAL :

RM 1.24 (Rebound Low) >>>>> RM -- (Rebound High) [High Potential Upside] Disclaimer: All information provided is for general sharing and educational purposes only. The author will not be held liable for any investment decisions made. The client is fully aware that all investments carry risk, in which may or may not result in returns. The author is not issuing any buy, hold or sell calls, but rather, this is an analysis provided for general information only. The final investment decision is always yours. This review is in no way promoting any related shares covered in Spark. This is not classified as investment advice, but rather, just a sharing of the author's views for general information. All information provided must not be distributed or shared to other third party users. Doing so would represent piracy, dishonest behaviour and should not be practiced.The author, members of SPARK, clients or any person reading this article may or may not have a stake or shareholding in stocks which are recommended. Members and authors of SPARK reserve the right to buy or sell any stock recommended like any other investor in financial markets. In this trading environment, the author will only feature a range of 0 to 3 charts daily to give the best for valued clients. Chasing or monitoring too many stocks may be detrimental for trading results as it is misleading to investor