Wednesday 2 October 2013

Yangzijiang bags US$871m contracts, KepFels clinches US$440m contracts, Vallianz orderbook boosted more than 27x

Opportunities  
Yangzijiang (BS6, $1.10) bags orders worth US$871m for 12 bulk carriers and five containerships. 
Comments: Positive news. Chart looks a bit overbought buy high may go higher. 
 
KepFels, an arm of KepCorp (BN4, $10.37) clinches US$440m deal from Clearwater affiliate. 
Comments: High Beta play that we can look at. 
 
Vallianz (545, $0.059) takes over Rawabi Swiber's existing contracts, thus allowing it to boost its order book by more than 27 times to US$334 million, with a contract to charter Anchor Handling Tug Supply (AHTS) vessels to a leading oil company in the Middle East. 
Comments: Stock is halted at the moment. Take note of it when it opens. 
 
Commentary  
Market seems to be having calm before the storm. As I have mentioned before, the next issue after the budget is the “debt ceiling”. This is a major problem as it not only affects whether the US government can function, it affects the amount of QE that can be done. Inability to increase debt may result in premature tapering.  
 
The news has been full of noise. Even if the shutdown is short lived, a sudden situation leading to 800,000 civil servants stopping work for the next few days is already chaos. Fund managers interviewed by various news agencies have had positive comments on the US stock market this morning. This has been inconsistent with the flow data on US stocks.  
 

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