Wednesday, October 03, 2007

Megan: The Naked Truth Part II

Last time I did a blog posting on Megan called The Naked Truth in Megan.

I have decided to do an update on it this morning.

What I did was, I took the previous reported earnings that Megan reported back on March 2007. Those were rather peak figures in my opinion.

First here is the link to that quarterly earnings posted on March 2007:
Quarterly rpt on consolidated results for the financial period ended 31/1/2007

Now what I will do is take that earlier blog posting,
The Naked Truth in Megan , and add in the latest figures from Megan's quarterly earnings reported last week.

Point of this exercise?

As an investor, I believe it would be a fantastic learning exercise for us. Learn from Megan extreme fraudulent case.

Anway, here it goes, the current numbers will be mentioned first in
purple font.

1. Sales revenue. 11.542 million versus 306.150 million.
( So sales declined by as much as 290 million. So would one be wrong to say that the company faked as much as 290 million sales invoices? Danger in relying on non-issues like sales revenue growth?)

2. Property & plant. 83.099 million versus 588.601 million.
( Property and plant were grossly over valued by some 505.502 million!!! - So an investor trying to value a stock by trying to value the company's net worth, be warned. Property & plant could always be grossly over-stated!)

3. Investment in associate. Zero versus 67.502 million.

4. Inventories. 17.540 million versus 125.090 million.
(Inventories worth 107.550 million vanished into thin air!)

5. Trade receivables. 11.957 million versus 430.354 million.
(Trade receivables worth 418.397 million were over-stated. With fake sales invoices, you will have fake trade receivables!)

6. Other receivables,deposits and prepayments. 13.260 million versus 260.787 million.
(247.527 million were mistated here!)

7. Total assets. 138.497 million versus 1.511 billion!
( Ahem! 1.373 BILLION worth of ASSets has now vanished into thin air! Danger here in investing based on a company ASSets worth, yes?)

8. Accumulated losses of 1.108 billion versus retained earnings of 262.545 million.
( Accumulated LOSSES of 1.108 BILLION!!!!!!! )

9. Total Equity-(Deficit) of 864.155 million versus total equity of 506.963 million.

10. Net Asset per share of -4.25 versus Net Asset per share of 2.50.

Are you shocked by it all?

Can we pray that the wrong doers in Megan be brought to justice?

Can we?