The new contract win would bring YTD orders secured to more than NOK5.2b, about 41% of our FY14E expectation of NOK12.8b. If this momentum can be sustained, there is room for us to upgrade our order win assumptions. The vessels would be constructed in Vard?s Vietnam yard, which has been facing sub-optimal utilisation. This was due to the yard?s facility constraint in construction of larger vessels that are in demand. Vard has upgraded its yard with a new floating dock in 4Q13, allowing it to take on bigger projects. The new orders however are vessels that the Vietnam yard has constructed before, but it still helps in improving its utilisation while we expect more order wins for the yard.

Overall, things seem to be going swimmingly for Vard in terms of new order wins, in line with our thesis for a cyclical rebound in OSV demand. We remain positive that Vard would see a strong turnaround from FY14E. We think that market?s conservative margin forecasts underestimate the effects of operating leverage as the company recognises more revenue from a larger orderbook. Reiterate Buy, TP SGD1.07. (Read Report)

Vard Holdings ST: the RSI is overbought

Our preference: the upside prevails as long as 0.904 is support.

Our pivot point stands at 0.904.

Our preference: the upside prevails as long as 0.904 is support.

Alternative scenario: below 0.904, expect 0.859 and 0.832.

Comment: the RSI is trading above 70. This could mean that either the stock is in a lasting uptrend or just overbought and that therefore a correction could shape (look for bearish divergence in this case). The MACD is positive and above its signal line. The configuration is positive. Moreover, the stock is trading ab