Friday, July 01, 2011

Bumi Armada Today Is Different From Bumi Armada Yesteryear ...

I did not feel like making another posting on Bumi Armada or Barmada until I read that very last passage of Star Biz article on Barmada today: Bumi Armada plans to raise RM2.8bil from IPO

  • “Bumi Armada morphed from a small, domestically focused company with RM250mil revenues and RM50mil net profit company pre-2005, into a major international offshore service player with total revenues of RM1.2bil and net income of RM351mil last year,” said Hassan. For 2010, the company saw an earnings before interest, taxes, depreciation and amortisation (EBITDA) of RM714mil and has achieved a compounded annual growth rate of over 50% for its EBITDA since 2008.

Yes... Barmada today is different from Barmada yesteryear.

Barmada yesteryear had sales revenue of 444 million and earnings of 63 million. ( ahem.. i have no idea where he got the 250 mil revenue and 50 mil net profit from) (you can verify my data from the earnings reported back in 2003 here: Quarterly rpt on consolidated results for the financial period ended 31/12/2002 and for your info, Barmada was suspended from trading the following month on 21 March 2003)

Barmada currently is now different. Of course it is. As per Star article, Barmada had morphed into a major international offshore service player with total revenues of RM1.2bil and net income of RM351mil last year.

And the growth prospect according to the IPO prospectus is there too!

But here's something NOT MENTIONED!!

Back in 2003, Barmada too had an incredible growth prospect!!

How good a growth prospect?

Well... just a 25% growth per annum growth prospect.

So think about it.... if Barmada was not forcefully taken private back in 2003.... why shouldn't it continue to grow like how it had grown today?

What is there to stop Barmada from morphing from a small, domestically focused company into a major international offshore service player????

Not possible?

Remember it had a 25% per annum growth rate back then!

So if Barmada was not forcefully taken private back in 2003... won't these minority shareholder gotten their true compensation, their true reward for taking the investment risk in being a minority shareholder??

See the point here?

How do you want to quantify such lost of investment profit?

Yeah  How Will Previous Shareholders Feel About Bumi Armada's Re-Listing?

How would these minority shareholders feel?

I tell you how they would feel. I would assume that they would feel robbed!

That's my flawed opinion.

What's the point to being a minority shareholder if the minority shareholder cannot get their due rewards from their investments?

And yeah.. I still don't get it.

This is a new Barmada is being listed.

Barmada or Bumi Armada is different TODAY when compared to 2003. YES. Of course it's different. No doubt.

Bumi Armada's current future looks promising. It has an incredible growth prospect! YES. ( but don't forget.. the old Barmada too had a very promising future back in 2003 too! )

Bumi Armada should be treated as a new ipo - stop deluding yourself with the past. There's a very good chance that one can profit from the ipo. YES... ( key word 'good chance' hor... and you know very well.. in the stock market.. a chance is a chance. It's not 100%. )

Of course it's a new stock. It's a new IPO. It's a whole new day. It's a whole new ball game. TRUE!

And of course... there's a CHANCE that one can PROFIT from the IPO. YES! A new IPO. Chances is there to make money. Hey, don't let this posting or my past postings on Barmada stop you from buying the share. Don't let this posting deter your chance to make money. Hey your money, your decision. Nothing to do with me.

Don't blame me if you fail to make money!
Don't thank me if you make money too!

So............... there.

I have said my piece for today.

Time to go laze around.... :)


Verdict said...

To all bloggers in town,

Really ? bumi armada not worth to apply ? oic, so let see how she open once listed, all bloggers, u people got mad cow's massage ? he said dont buy bumi armada.

Yes ? mad cow ?

no ? then u must make it clear now wor ?

all bloggers , if mad cow does not make his stand clear before the listing, means he is saying "no" to bumi armada. keep this posting until then, yah ?

ha ha...

William Wang said...

Do you still trust these people who will only socialise when obvious danger is in the horizon & will privatise, when the windfall is there. My take is,the growth had already optimised and properly on the decline from now, unless there is another quantum change in our oil business. Not to forget, this field is very crowded now.

brotherlone said...

c'mon... give mr AK a break

bumi armada had to leverage up to more than 3.0 times D/E to acquire those assets.

what will investors if it goes up to 3.0 times, it will be sold down immediately.

a fast growing company needs to gear up.. and it needs patient capital