Falcon Energy

Falcon Energy: We recently met up with the mgtm following its 2Q10 results which were released last wk. Key takeaways are
1) Further delay in the fleet explansion plans (6-8 vessels) to 1H FY11 in view of the soft charter mkt,
2) Expect earnings growth from its marine divsion to remain soft as 2 vessels that were dry-docked in 1H only resume operations this mth and
3) Looking to secure few oilfield projects in order to offset some of the weakness seem in other biz segments.

The stock currently trades at about 8x FY10 and 6.5x FY11 PER. KE still have a BUY rating with TP of $0.85, representating more than 50% upside from last price of $0.53.