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Ezion Holdings Limited, provides offshore marine logistics and support services to the offshore oil and gas industries.
The liftboat builder’s share price has fallen by 22% in just one month so what’s going on apparently, the sharp decline in Ezion’s share price is a painful case of mistaken identity. According to Maybank Kim Eng, Ezion has suffered for its association with offshore drillers, when it is in fact a liftboat builder.
Ezion earns income almost exclusively in USD, and net effect is actually positive, with the strong currency benefitting near-term earnings in SGD terms and the potentially weaker long-term charter rates being offset by the operational fleet doubling in size. Capital loss potential over the next 12 months is low.
Looking at key resistance line at 1.1 for the next few days.TA chart looks promising. RSI was oversold at one point , MACD is showing bullish crossover. Price gain on high volume, short sellers seems to be absent. The year end fundamental would be stronger and at the current price, it is undervalued. Market was ignoring the strong delivered earnings growth due to the news and any contract win potential, with industry resources indicating that there are at least two in check. I would maintain a BUY on this and keep it in check in the mean time. . If it moves above 1.12 or 1.18, i would say it’ll be good long calls . confirmed to be on a bullish run from FA.
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