Rebounding back up from a low of 1.80... recent high was above 2.40 !!! can try to get some at support level at 2.06 if it dips..
Cosco Corp. (F83.SG) is likely to rise after the China-based shipbuilder Friday said its unit signed a letter of intent with Sevan Drilling Rig to build two drilling units valued at US$525 million each, to be delivered in 4Q 2013 and 2Q 2014, respectively. Sevan also has an option to order two more units for US$525 million each. CIMB, which has an Outperform rating and a S$2.85 target price, says Cosco is the next best Chinese yard (after Dalian Shipbuilding) that could benefit from the offshore boom as Singapore yards get booked out." The house notes, the rig that Cosco delivered to Sevan Marine in 2009 has been able to command competitive market day rates; "Sevan Driller I, chartered to Petrobras, was 97% utilised in February 2011." It adds, "our recent yard visit to Qidong confirmed that international customers are generally satisfied with the work of Cosco''s Qidong yard and have been adding job scopes." Cosco shares were +3.1% at S$2.01 before being halted Friday; resistance is eyed at $2.05. (matthew.allen@dowjones.com)
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