OIL & GAS stocks: Some rebound smartly

Collage Rexonic

SOME OIL & GAS stocks have been among the biggest gainers in the recent stock market rebound.

	30 Sept 2015 closing	16 Oct 2015 closing	% gain
AusGroup	11.3 c	15.6 c	38.1%
Baker Tech	18.9 c	20.5 c	8.5%
China Aviation Oil	62.5 c	71 c	13.6%
Ezra	11. 6 c	12.8 c	10.3%
Ezion	64.5 c	75.5 c	17.1%
GSS Energy	7.8 c	10.6 c	35.9%
IEV	4.2 c	6.4 c	52.4%
Kris Energy	35 c	35 c	--
Nam Cheong	15.9 c	17.7 c	11.3%
Pacc Offshore	32 c	38 c	18.8%
REX	8.3 c	15.1 c	81.9%
Swissco	23.5 c	27.5 c	17.0%

The oil situation is very complex and all sorts of data come out frequently, sending investor sentiment up and down.

To quote the Wall Street Journal of Oct 16 on a positive sign for higher oil prices: "...the number of working U.S. oil rigs had fallen by 10 to 595 in the latest week, the seventh consecutive week of declines.

"Some view this as a proxy for estimating what might happen to production, and a sharp fall in the rig count during the year’s collapse in oil prices has led many to speculate that production declines are on the way."

At least for now, there is a big relief rally for some oil-related stocks on the Singapore Exchange.

In our compilation, the biggest gainers since the start of this month (Oct) are REX International (81.9%) and IEV (52.4%).

Another stock, Baker Tech, rose 8.5%. Notably, the manufacturer and provider of specialised equipment and services for the oil & gas industry has a strong balance sheet as at end-June 2015, comprising S$172.9 million cash (no borrowings) and $8.3 million corporate bonds.

These two assets alone translate into 17.9 cents a share. In comparison, its stock traded recently at 20.5 cents, implying a sharp undervaluation of its operating business.

See: REX: US$96 m liquid assets but market cap only US$109 m

Counter Name	Last	Change
AEM Holdings	2.340	-0.090
Best World	2.480	-0.010
Boustead Singapore	0.950	0.005
Broadway Ind	0.133	-0.001
China Aviation Oil (S)	0.915	-0.010
China Sunsine	0.400	-0.005
ComfortDelGro	1.460	-0.010
Delfi Limited	0.905	-0.010
Food Empire	1.330	-
Fortress Minerals	0.310	-0.010
Geo Energy Res	0.320	0.005
Hong Leong Finance	2.490	-
Hongkong Land (USD)	2.910	-0.040
InnoTek	0.510	-0.010
ISDN Holdings	0.300	-
ISOTeam	0.040	-
IX Biopharma	0.046	-
KSH Holdings	0.250	-
Leader Env	0.048	-0.001
Ley Choon	0.042	-0.002
Marco Polo Marine	0.067	-0.001
Mermaid Maritime	0.142	-0.003
Nordic Group	0.315	-
Oxley Holdings	0.088	-0.001
REX International	0.143	-0.002
Riverstone	0.780	-0.025
Southern Alliance Mining	0.480	-0.005
Straco Corp.	0.495	-
Sunpower Group	0.220	0.005
The Trendlines	0.074	-
Totm Technologies	0.023	-0.001
Uni-Asia Group	0.830	-
Wilmar Intl	3.380	-0.110
Yangzijiang Shipbldg	1.800	0.020

Counter Name

Last

Change

AEM Holdings

2.340

-0.090

Best World

2.480

-0.010

Boustead Singapore

0.950

0.005