Archive for the ‘Otto Marine’ Category

Otto favourable risk reward

September 22, 2010 Leave a comment

@post trade: The black candle whack down at the closing. Think a flag formation will not be happening. Position my cutloss point at the most. Since I had a very low risk entry of 35.5c

This is the chart I’ve yet to post. Think I’ve forgotten about it. Entry at 35.5c while it is now at line resistance. Will this counter surprise us again? As of now it is have a dark cloud cover. I’m looking to enter more lots when the purple line breaks. The shallower the better to form a 5 star flag formation?


Good risk reward entry

StanChart says Otto Marine is a favourable risk-reward stock; fair value 52 cts

Analyst: Leong Mun Wai

* We think vessel-cancellation concerns are overblown, but acknowledge that the second Mosvold vessel is at risk.

* The JV with GC Rieber will probably be dissolved and an amicable win-win solution looks likely.

* Positive transformation underway as Otto builds new businesses with recurring income and higher margins.

* We see a favourable risk-reward trade as expectations are low and potential for positive surprises is rising.

* Maintain OUTPERFORM, but new S$0.52 fair value.


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Otto Marine finally moving

September 20, 2010 1 comment

Next few days will be very crucial if the downtrend line can be broken. Today the sentiment is very good with last hour of continuous buy up. Think 35.5c will hold as a support and also confirmed as a major support! Whew. But I will still put my stop loss at 34c if needed as it is still a downtrend so risk is definitely much higher playing counter trend.

My confidence is strengthened with the candlestick telling me the stories. The recent one black candle with tail telling me bear has problem pushing counter down and confirm 35.5c as support. The next few candles are doji telling me bear is almost giving up the battle with the bull. Today candle is a pivot telling us bull is trying to take over from the bear.

My profit target will be the recent high and I may add more position if 37-37.5c is reached using the Guppy grow up method. To reduce my risk, I will continue to build position in this counter if needed and selling stocks that is in the red.

Of cos this counter is not without scare as 1000 lots is sell down at 35.5c which I think he/she will be heart broken if 37.5 cents is broken to confirm the downtrend has ended. Well all this have still not happened so let the counter tell us the story. Overconfidence will only kill us! Do read the previous post on Otto.

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Otto Marine

September 15, 2010 1 comment

OTTO Marine

Downtrend using counter trend strategy
Entry 35.5c S 34c P 40c, 42c

Resting at strong classical support. Long tail signify strong support reduced the bearishness. MACD line and histogram divergence, Stochastic divergence.

If it bounce off from here and break the resistance, a double bottom might be formed giving this trade a 48% profit. If not, you can sell at immediate resistance with 18% returns.

However as it is a counter trend strategy, there is more risk involved. Keep your stop loss in place and risk will be capped.

Vested interest. Disclaimer applies.

Articles from NextInsight: 6aug10 28Jun10

2010Sep-OTTO MARINE LIMITED-dbl bottom

Possible double bottom in the making

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Otto in consolidation

OFFSHORE MARINE group, Otto Marine grew its 1H10 revenues 64.5% year-on-year to reach S$406.3 million, thanks to growth in revenue recognized for building high margin vessels, chartering and its new geophysical businesses.

The strong revenue growth was partially offset by reduced utilization rates in the chartering of anchor handling tugs and barges.

“We are targeting equal revenue contribution from our 3 segments,” said CFO Michael See during an analyst briefing yesterday.

He was refering to firstly, shipbuilding, repair and conversion; secondly, chartering and thirdly, special offshore services.

Otto builds high-spec anchor handling tug supply vessels, owns a fleet of 31 offshore support vessels and has 4 special vessels for seismic data collection and subsea work.



Trend: sideway
MACD histogram showing decreasing volatility
CCI, MACD, Stochastic trend up.
Strategy: wait for a breakout either on the up or down side


OTTO in consolidation

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