< Personal Opinion >

This stock got the potential to go up to RM0.250. As compared to Fast, Straits is what I am doing more often. Fast ventured into oil trading and bunkering services at the beginning of the year where it acquired 35% stake in CCK Petroleum with a profit guarantee of RM1.75mil per year and I am expecting the profit to go up in near term on global recovery.

Just recently, Straits announced a purchase of oil tanker. This leads me to think that this sector probably has got something inside for me. The purchase allows for the expansion of supply of low sulphur fuel oil to cater for the increasing demand. Maritime transport is always an essential sector to ensure critical supplies and global trade can continue to operate. As the global recovery and normalisation taking place, global trade resumption and the demand for oil products and bunkering services shall increase, which Straits and Fast are expected to benefit from it.

We have seen Harbour, Freight and Syscorp spike recently on better QR and acquisition deals. These are expected to still rely on petroleum and oil bunkering services.

I planned to do the following:

Execution plan (Long term):
Entry: RM0.180
TP: RM0.210 (near term), RM0.250 (mid term), RM0.330 and RM0.500 (long term)
CL: any price on announcement of a bad QR (meaning I am wrong on my view).

Potentially 16% upside near term, 40% upside in mid term and close to 100% upside in long term.

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