Barrock on Mutiara.

Being creative in one’s writings help sells books.

Being creative in a financial business article?

!!??

In the financial world, when the writer attempts to be creative, more often than not, the actual facts is simply distorted and twisted as per the writer’s whimps and fancy.

And the end result? We end up with business financial articles which do nothing but mislead investor(s) who uses the local news media as a source of information for their investing purposes.

So what chances does the investor(s) have if what they reads is badly twisted as per the writer’s own vested interest?

Got chance kah?

Think about it…

If the investor cannot trust what they read in our financial articles, then how does one rate their chances of making moola in the share market?

Sigh.

Take today’s Star Bizweek article written by JOSE BARROCK on Mutiara Goodyear

SINCE Mutiara Goodyear Development Bhd had taken over the listing status of MIT Holdings Bhd back in 2002, the company has deliberately kept a low key.

Hmm…what’s your impression on this opening line?

Mine? It gives me the impression that this is one low key stock which was listed back in 2002. Low key stock? Undiscovered? Interesting?

Well, first of all, how do you really define LOW KEY? Take a look here: Mutiara Goodyear. As seen, this company has been constantly in the news.

So how come the writer, Mr. Barrock, creatively writes that this company has "deliberately kept a low key?"

And worse still, Mutiara was a favourite punter stock since listing. A picture tells a thousand stories. Have a look: Click here . A glorious punter stock in 2003.

A low key company? I beg not.

Next, the article CREATIVELY stated the following:

• They boast of an impressive track record, and unknown to many, played a significant enough role in developing the sprawling Subang Jaya township, back in the early 1970s.

Impressive track record?

Well, how does one gauge a track record?

How about Show Me Ze Moola?

This is Mutiara’s performance since 2002.

          Sales      Net Profit
2003   116.208    17.060
2004   125.808    18.167
2005   123.622    7.388

Impressive?

Or perhaps should I say that fy 2005 was a very DISMAL year for Mutiara, in which net earnings slumped from 18.167 million in fy 2004 to 7.388 million in fy 2005.

And the following is even more interesting:

“We prefer to keep a low profile and concentrate on the business ... but this (our silence) does not mean we do not believe in the company’s prospects,” Yung tells BizWeek.

Having said that however, he admits that the general market outlook is rather weak. “The outlook of the property sector is not that encouraging now ... There is talk of a bubble about to burst and so forth. But since prospects are tied up with assets, we should not have any problem. All the assets are in place. Although our turnover in the past was not that good, we are optimistic of better things to come,” says Yung.

LOL!!! Doesn’t the above contradicts the part in which Mr.Barrock deems that Mutiara has an impressive track record?

“Our optimism is based on the fact that we have RM800mil worth of properties to be launched and sold next year. We will start realising gains soon, and these projects should last us for the next three to four years. These developments will see us through any soft spot in the property market,” Yung says.

Rm800 million worth of properties to be launched and sold next year.

Can believe onot?

Firstly, he admits that the general property market is rather weak and not that encouraging.

And then here he PROMOTES his company and his stock by boldly stating that his company has rm 800 million worth of properties to be launced and sold next year!!

And Mutiara’s last 3 fiscal year track record doesn’t seem to support his optimism, does it?

How? Company has never sold sooooooooo much properties during the last 3 fiscal years. And mind you, those last 3 fiscal years was pretty good for most property developers. As my junior ah kor says, business was bang-bang sound for those couple of years.

Moving on Mr.Barrock writes:

Cash reserves
With some RM58.6mil in cash and bank balances and trade eceivables of about RM23mil, Mutiara Goodyear may be keen to expand but that’s not top on its priority list.

LOL!!!

Like this write olso can ar?

Yes, it’s true that Mutiara has some rm58.6 million in their piggy bank…

But..but…butt….buttttttttttttt….

Err… Mutiara no bank borrowings meh?

LOL!!!

Gosh… and it surprises me not that when I checked on the quarterly earnings notes to discover that Mutiara total company borrowings totals rm 258.3 million.

A highly important fact not mentioned by Mr.Barrrock.

Isn't such reporting soooooooooooooooo blatant?

Dun you think so?

How?

Me find it soooooooooooo utterly appalling to read financial articles written in such a creative manner.