$REACH / 5256 (REACH ENERGY BERHAD)

Chapter 1: Truth Behind Abstract Art

Abstract can be hard to understand. Full complexities. It may take up to 1 Day 1 week 1 year 1 month 5 year 10 year timeframe perhaps more whole life to understand in which ever way you perceive.

Reach business actually making money. Why i said so?

1)Profit & Loss account can be creative but Statement Cash flows will the truth. especially in the operation.

2)Company heavily invest for growth - acquisition on plant and equipment

On 2023 annual report recorded large impairment figure, its believed that this coming quarter will report green. Clean slate policy.

Another catalyst, Reach got really big financial backed up from Super Racer Ltd who owns 48.5% and also own 40% Kazakhstan oil concession owner Emir oil through takeover from MIE Holdings making them direct and indirectly own 59.4%. They have major interest and experienced in oil and gas.

Emir Oil has oil reserves with book value of RM944 million or 86 sen per REB shares and REB would require significant funding commitment towards the development of the Emir Oil’s oil reserves before the value of the reserves can be realised. Since financial backed have come aboard, Reach future is believed to be promising.

Be advised that all of this above is just an opinion based on fact and analysis. Trade at your own risk.

Tuan Capital