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In the next 6 months, Hibiscus is a counter to watch: crude oil prices may spike towards the end of year or early next year as predicted by Goldman Sachs -- dwindling supplies and increasing demand particularly from China
Rate hike already priced in,tight supply driving the price up,US82 and beyond,Russia Ukraine war escalating,after Russia withdrew from UN brokered safe sea agreement for grain exports
Although oil prices have been heading north, the real profit will only trickle in, in the next 3 to 6 months. Hence be prepared for not so rosy 4Q results to be released in August.
Need a bit stamina to stay long position in Hibiscus. All the newly acquired oil concessions will take time to bear fruit . Those who are patient will probably enjoy the future benefits .
If the Brent price can consistently maintain at around USD85, Hibiscus will make good profits, if it moves beyond that, it will have bumper harvest; simple arithmetic
However, seeni, don't expect too much for the 4Q results to be released by end of this month. It covers the quarter when oil price was low. Hope management will announce a more generous dividend
Brent crude has hit 90; if this figure can be maintained for a prolonged period, Hibiscus will be laughing all the way to the bank, so will the shareholders!
Hibiscus is trying to balance dividend payouts and keeping funds for future acquisition; looks like management is more keen on buying new oil fields for production expansion and so dividend payments will continue to be low. It's not a bad thing but investors will have to be very patient.
Share consolidation may work to the benefits of Hibiscus: at the moment Hibiscus is a penny stock; many funds are not permitted by their own internal rules to buy these stocks although the fundamentals are good. Consolidated Hibiscus would hang around 2.5 to 3 RM, which might attract some big funds to invest in it. Hibiscus' potential and financial performance are good.
USD100 is within striking range and is a cause of big celebration for upstream oil explorers. But for Hibiscus, minority investors are not that enthusiastic to chase the stock. Reason: dividend payouts are too small-- a mere 2sen thus far, about 10% of earning. Investors are expecting a payout ratio of something like 50-60%!
Making consistent profit is more important than oil price , over the last 2 quarters, the company managed to make good profit when the price was below USD 80 … even the price went up to USD 95 last week , the share price did not go up to 1.2 , so why worried so its Q3 profit is a record making profit than Q2
