Saturday, January 29, 2011

Update On MaeMode

Update to the posting: Reply To Comments On MaeMode

MaeMode announced its earnings last night.



At first look, the earnings looked interesting.

1. Sales. Improved.
2. Earnings Improved.

However, is the improvement good enough?

As stated in the previous blog posting, Reply To Comments On MaeMode

In 2007 it made 16.218 million.
In 2008 it made 20.418 million.
In 2009 it made 11.793 million.
In 2010 it made 6.940 million.
2011 Q1 it made 0.852 million.
2011 Q2 it made 1.965 million.

Remember back in 2008, it was making 20.4 million per year.

Now, its only making 2.817 million for the first half of current fiscal year. And net profit margins is a razor thin 1.28%.

Total loans to date stands at 324 million and the trade receivables increased to a dizzy 362 million!

3 comments:

Simon said...

consider good already...
at least he shown something improve..just like TDC..

Just look as what happen to NV Multi....

hng said...

I hope MAE earning could be picking up faster in next 2 quarters to match FY11 EPS >10sen.

About its growing receivable and borrowing, i'm opine that as long as there is no provision in its balance sheet and financial result show positive growth in EPS, and all account are audit according to good management/accounting practice, its still under my tolerable risk.

Nonetheless, investing in MAE is just short-term strategy, aiming for its upcoming 1 for 3 warrant, issue at 2sen each for 10yr. Many recent new warrant issue were trading at highly attractive premium such as Masteel-WA; Chuan-WB; PJdev-WC; Pantech-WA etc

Moolah said...

So why is receivable increasing every quarter?

Why is the receivable amount so huge?

Why is the borrowing increasing all the time?

Positive EPS growth? Where?

As it is...

In 2007 it made 16.218 million.
In 2008 it made 20.418 million.
In 2009 it made 11.793 million.
In 2010 it made 6.940 million.
2011 Q1 it made 0.852 million.
2011 Q2 it made 1.965 million

If you annualise 2011 earnings, there's a possibility MaeMode can't even better its 2010 earnings. So where's the growth?

Quote: and all account are audit according to good management/accounting practice,

Let's talk about good management. Receivables is the same as money. Collect it and it's cash. Now Maemode's borrowings have been increasing. Why can't the good management asks what a good management asks? Collect the receivables and then there's no need to borrow money from bank.