Another company reporting losses was Masterskill Education Group. It reported losses of 1.57 million.
I wasn't expecting any good earnings result from Masterskill Education Group, given what had been blogged previously ( See And What About The Promise Made By Masterskill CEO? and How Now Masterskill? ) ( If you wonder how Masterskill fared during its listing day, see 18 May 2010: Masterskill listing day ) .
However.... what was written by Kenanga Research recently on 13th Feb was rather 'interesting' since Kenanga said it was expecting a flat result from Masterskill.
They made the following remarks...
- Expecting a flat 4Q11. We recently met with the management of Masterskill and gathered that since the unfolding news on the reduced PTPTN loan offered in August last year, the group had been experiencing a declining student intake. There were 17,600 active students in 2Q11 and this figure dropped to 14,200 students in 3Q11 on the back of lower student intake in the month of September, this being the last intake for the year. Hence, we are expecting a flat student count in 4Q11 – this also having the impact of pushing the group to reduce its fees in the second half of FY11. Apart from that, the increased minimum entry requirement for the enrolment of nursing programme by the government has further dampened its student growth. On that note, we are looking at a rather flat q-o-q earnings for 4Q11 of RM6.4m as compared to RM5.5m in 3Q11, which is still a marginal 16.3% growth on the back of a low base. We expect the impact to be more evident on a y-o-y basis (compared to RM26.8m in 4Q10), which will represent a 76.1% decline.
But Masterskill posted its first set of quarterly losses. Listed May 2010. Now Feb 2012, already posting losses. (Yet another quality listing on Bursa Malaysia? )
And those famous words made by the boss: ( see last Sept's posting And What About The Promise Made By Masterskill CEO? )
“Well, I need to wait and see. Perhaps, anything below RM2 doesn't justify keeping the company listed,” Edmund said when asked on the amount of shares he intended to purchase.
Last December, he told StarBiz that the share price then of RM2.22 was not “justifiable” for a firm that made about RM100mil in net profit annually.He said that the company was fundamentally sound and that its Kuching campus was already in operation.
“The current share price weakness presents a great buying opportunity for Edmund to accumulate its shares,” an analyst said, adding that Edmund's move to purchase more shares may be a practical thing to do.
So Edmund... do show us the money.... could you please take MEGB private?