Wednesday, September 29, 2010

Quick Review Of Kencana's Earnings

Kencana reported its earnings tonight.

On 29th June 2010, I blogged Should I Be Optimistic On Kencna?


K C said...

Standard finance theory says that "We buy the future, not the past". Hence we have to base our valuation on future earnings. Finance text books also says that we have to base on analysts projections. This may be true because this is their rice bowl and they (suppose) have the best information. Alas, what Moolah pointed out about Kencana's rosy projections by ALL analysts which eventually do not materialized is a norm, rather than an exception. The poor predictions of most analysts was it due to their incompetency or some other reasons? Analysts and their principals face huge huge conflict of interest. No one protects the retail investor-not corporate officers, not brokers, not analysts, not the media, not even government agencies and elected officials whose job is to do so. An investor must use his own best judgement, all the information available (bearing in mind that publicly available information is never equivalent to insider information), and be very conservative.

Moolah said...

K C: I got the simplistic view. The higher the 'future projection' the sexier the stock.


peng01 said...

Year 2009 receivable/deposit/prepayment = 259,874

Year 2010 receivable/deposit/prepayment = 593,883


Moolah said...

peng01: Yes the jump in receivables WAS VERY GLARING!.

The previous Q3 earnings notes showed receivables at 227.928 million.

Why the 'sudden' jump?

However, I am glad that it was you that pointed this out.

If it was me.. LOL! ... my so-called fansi would jump the gun and accuse me being too obsessive and negative. You see they could easily argue that the receivables sum is still considered ok, given the size of Kencana revenue.