Thursday, May 13, 2010

Oh Yeah, Green Packet Lost Less Money

How could I NOT write about Green Packet?

Green Packet announced its earnings tonight.

Fact. It lost some 44 million for the quarter.

Fact. This is the 9th consecutive quarter of losses. 27 month of losses,

Fact. Green Packet's total losses for last 27 months equals some 275 million!

Fact. Green Packet raised some 98 million via rights issue last Aug. 2009.

Fact, Jan 2010. Green Packet raised some 69.176 million from a share placement.

Fact. After the rights issue, the following quarter, November 2009, Green Packet said it had some 174 million cash and some 209 million in borrowings.

Fact. After tonight's earnings, or 6 months later, Green Packet said it had some 111.699 million cash and some 256.376 million in borrowings.

Fact, Nov 2009, Green Packet had 68,691 in trade payables. In Feb 2010, trade payables grew to 159.192 million. Today payables total some 188 million. (Why so much payables nowadays? Who is Green Packet not paying? )

So how?

Green Packet owes its bankers more money, yes? It's debts had increased.

It has less money, despite the rights issue and placement of shares.

So is less cash and more debt good?

At this rate, got enough cash ah?

Oh yeah, last quarter Green Packet has some 95 million in losses. Today's is much less. Yeah, now can I put a spin on Green Packet and say that things are getting better because Green Packet has lost less money. Buy ah?


Richard Cranium said...

Sell, sell, sell. Oh, wait. Cannot short this market. Why, then, do I bother with the Malaysian market? The fun's all in the US.

Moolah said...

Why sell, sell, sell?


Big Boss said... errr... errr... the following back in Nov 2009.

“The losses are ‘technical, planned’ losses,” group managing director and chief executive officer CC Puan told a media briefing yesterday.

“We are sacrificing short-term profits for long-term gains,” --

Feb 2010... Big Boss said...

They are... World's number 3 Wimax vendor ... "Our focus last year was on coverage rollout, while this year we will strive to be Ebitda-positive ....Only next year we are anticipating net profit after tax,"

Profit only come next year... so why you so bad say sell, sell, sell???


Moolah said...


Holy cow!

Green Packet actually repeated what they said!!!!!!!!!!

These are planned losses, as we need to invest heavily to roll out our broadband coverage. In the second quarter of 2010, we expect (Ebitda) losses to be narrower, and by the end of this year, we will break even,"

SqaureOne said...

Can you do some research on London Biscuit? There has been some recommendation earlier by S.Dali.

Too good to be true?

Moolah said...


I do not follow London Biscuits. Since it is Dali's recommendation, if you have any doubts, why don't you ask him nicely? I am sure he won't bite and I am very sure that he will explain to you fully. :D

Richard Cranium said...

Oh no, I beg to disagree. S Dali actually bites.

random said...

that's cause you did not ask nicely :P

solomon said...

Generally, I have to be Sir Alex and disagree with Wenger ie I doubt S Dali bites but his dog Darlie yes....semua orang cari makan unless it is make no sense statement.

For GP, I hope for the success of them if not the GP shareholders will suffer and the Research team will too.

Is it ethical for OSKVI to own the GP shares (not sure still now)?

Moolah said...

Solomon: "Is it ethical for OSKVI to own the GP shares (not sure still now)?"

There's nothing wrong with OSKVi owning GP shares. Seriously.

But the Research side should have known better than to write about it. And to make it worse, OSK Research gave it the very much questionable buy call.

Vested interest. How can the market expect a fair set of comments?