Pintaras Jaya Announced Massive Losses In Their 'Investments'

I had mentioned the following before.

• I have always disliked seeing our local companies dabbling in the stock market and one of the most disturbing issue is that there is ZERO transparency. The companies do not let their shareholder knows the details of their so-called investment. For example, we do NOT even know what share they buy, at what price was the investment made and most important, why.

I wrote the following on Pintaras Jaya back last August 2008.

In which I had stated "So is their dabbling with market securities. I do not like it at all."

Back then one could clearly see that Pintaras had been induldging way too much into the share market. Let me reproduce the facts. ( source: Quarterly rpt on consolidated results for the financial period ended 30/6/2008 )

(a) Total purchases and disposals of marketable securities for the current financial year-to-date are as follows: -

Total Purchases 28.789 million
Total Disposals 29.099 million
Total Gain on Disposal 2.543 million

(b) Total investments in marketable securities as at 30 June 2008 are as follows:-

At cost 27.200 million
At carrying value/book value; and 24.709 million
At market value 25.921 million

Look at the amount purchased and disposed by the company back then. Yes, the company made a tidy 2.543 million in profits but if one look at section (b) one could see that Pintaras back then is already carrying 'paper losses'.

Yes the classical paper loss issue. Is Paper Loss Not A Loss?

Note: no mention was made from Pintaras Jaya on what it purchased and sold. All we know is 'marketable securities'!!!

3 months later, Pintaras Jaya made the following announcement. Quarterly rpt on consolidated results for the financial period ended 30/9/2008

(a) Total purchases and disposals of marketable securities for the current financial period-to-date are as follows: -

Total Purchases 8.656 million
Total Disposals 5.565 million
Total Loss on Disposal (0.464) million

(b) Total investments in marketable securities as at 30 September 2008 are as follows:-

At cost 29.929 million
At carrying value/book value; and 23.815 million
At market value 23.815 million

As at 30th September, Pintaras purchased 8.6 million and disposed some 5.56 million worth of marketable securities. Now that's rather too active at such terrible market conditions, yes?

And it made a loss of dispossal totalling 0.464 million.

However, look at the paper losses. Cost of those securities, WHICH IS NOT STATED, totals 29.929 million. The market value is only 23.815 million! Paper loss is now around 6.11 million!!!

And does Pintaras Jaya state what these marketable securities are?

No.

Last night Pintaras Jaya announced its earnings. It was terrible. A horror show.

Here is a screen capture of what it announced.

Look at the purchases and disposals again!!!!

Look at the loss on disposal! 6.863 million!

And why is Pintaras doing purchasing another 15.239 million in marketable securities again? What on earth is it doing?

And after the disposal, these marketable securities is only worth some 14.117 million. And with a cost of 18.912 million, this would mean that Pintaras Jaya is carrying some paper losses of 4.8 million!!!!!!!!!!!

Clearly Pintaras Jaya has no skills with it's dabbling in marketable securities!

So the question that bags to be asked is why is Pintaras Jaya still purchasing some 15.239 million worth of marketable securities for this reported quarter?

What did it purchased?

Why isn't Pintaras Jaya stating clearly what these investments are?

And don't you think Pintaras Jaya should stop what it is doing now?

And here is the sceen capture of what the management has to say.


How?

Do I have a point when I say the following?

• I have always disliked seeing our local companies dabbling in the stock market and one of the most disturbing issue is that there is ZERO transparency. The companies do not let their shareholder knows the details of their so-called investment. For example, we do NOT even know what share they buy, at what price was the investment made and most important, why.