IRPC (4.58) is my latest large cap selection.
IRPC (4.58) is my latest large cap selection. This company is as stock in the "SET 50" and I like it.
It will much benefit from any global oil price increases and the stock price just corrected a bit of late. On this correction, I view it as a solid buy as investors we need to have some exposure to higher oil prices which I view as very likely going into year 2011. The company has also reported poor 3rd Q. earnings of 329 mill. but this is very misleading and due to special factors, as the 4th Q. will likely soar to above 2.6 Bill!
You can see their web site at this link:
http://www.irpc.co.th/?page_id=1247&lang=en
The disappointing 3Q10 earnings will be followed by a strong bounce in the 4Q, 10. This will get attention and is not yet discounted by the market, in my view. IF oil prices incrase it will directly benefit them, and visa versa.
Given that IRPC has the longest production chain within Thai refining space, the expected crude price upturn could make for a spectacular upside profit gain on its crude inventory -and so forward earnings.
Furthermore, there is considerable scope for bottom-line gains from the firm’s “Phoenix Project investments, which are aimed at enabling IRPC to move further downstream to value-added specialty products and at optimizing the value of its underutilized assets. Those investments will start to bear fruit over the next year, particularly the commencement of the gas-fired power plant in 1Q11.
IRPC hence is so my quality large cap pick going forward on expected firmer global oil prices, along with a 4% dividend along the way, but I see room for this to increase. The company pays dividends twice a year, and the total for the past 12 months was 0.18 per share.
This bullish view on IRPC depends on the US economy not sinking back into recession but lately the economic numbers there look more promising -not least along with the US Fed which is pumping huge sums of stimulus into their economy. Today I am adding IRPC to my model portfolio at this mide mornings' price of 4.58.
Best Regards,
Paul Renaud.
