危还是机 -- Danger or opportunity ? Will Cosco's Billion Dollar Sevan Dream crash into the sea or be rescued by ' white knight ' ? or is Cosco having even bigger "competitive disadvantage" problems than just Sevan ?

Cosco's recent share price plunge was partly attributed to financial difficulties at one of its biggest client - Sevan Marine which is reportedly on verge of bankruptcy ..   In March this year , Cosco signed a letter of intent with Sevan drilling for EPC and installation contracts for two of its trademark cylindrical drilling units ( see photos below )  , worth around US$525 million each, with an option for two more rigs.

According to Upstreamonline latest report on  27 May 2011 14:24 GMT ,   " High-powered Norwegian investor Jens Ulltveit-Moe has reportedly acquired a stake in floundering floating production outfit Sevan Marine. "  ( see http://www.upstreamonline.com/live/article258825.ece for full article  entitled  'White knight' rides in for Sevan  ) . ********************************************************************************

Sevan in Happier Times  ...

Sevan Driller at Cosco Yard in celebrative mood , ready for tow-away

( pic from http://www.arabianoilandgas.com/article-6094-straight_out_of_shanghai__offshore_drilling_first/ )

Sevan Driller arrived in Rio de Janeiro, Brazil on Saturday March 27, 2010 on 6-year contract to PetroBras.( pic from http://www.offshore-mag.com/index/article-display.articles.offshore.vessels.latin-america.2010.03.sevan-driller_arrives.QP129867.dcmp=rss.page=1.html )

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Downward reaction to heavy supply - Perfume on European PIGS debt wears off and QE2 closure jitters - - expect a STI plunge to 3090 ,Cosco executed phase 1 of island reversal , may rest for a few days at 2.00-2.10 before resuming fall to 1.80, Kepcorp -$11 here we come ..

STI - Downward reaction  to heavy supply - Perfume on European PIGS debt wears off and QE2 closure jitters - expect a STI plunge to 3090

Cosco executed phase 1 of  island reversal (see earlier post  http://sgxswinger.blogspot.com/2011/04/cosco-classic-sign-of-island-reversal.html  ), may rest for a few days at 2.00-2.10 before resuming fall to 1.80

KepCorp - $11 here we come .. 

Election jitters and Post Election Rally

The current market is put on hold or depressed by Election uncertainties these few days - Friday could see the bottom of this election jitters  , we might get a short rally after Monday when ruling party returned to power ..