Saturday, March 02, 2013

Smartag Sinks Deeper

After posting on Masterskill yesterday, I remembered those postings on this stock called

Here are the past postings on the stock.

I wondered if Smartag is still reporting losses. My guess was yes.

Here's a screen shot.

As mentioned in the posting Since Listing, Smartag Had Reported Losses Every Quarter! , from the screen shot above we can see that on 13th April 2011, Smartag made two quarterly earnings report. But Smartag made its listing debut on 18th April 2011. Which means those 2 set of earnings was made before Smartag was listed.

Which means since listing Smartag has recorded losses for 7th consecutive quarters!!!!

And needless to say, the lack of sales revenue, since listing, is truly shocking. A sales revenue of 75 thousand for its latest quarterly earnings announced last month!

How could such a company be granted listing??

I then wondered if there was any disposals of shares by its shareholders.

So I checked Bursa Malaysia website.

The first link, 25 Jan 2013: Changes in Director's Interest (S135) - Lim Peng Keong. - The above disposal of 7,000,000 ordinary shares represents 0.44% of the issued ordinary shares of the Company at a price of RM0.14 per share.

That doesn't sound good at all because that's the CEO dumping his shares!

7,000,000 shares sold at 14 sen.

That should work out to some 98 thousand (not counting the normal stock transaction charges) which works out to be more than the company's sales revenue of 75 thousand for the current quarter!!!! Yes, that's how lacking Smartag sales revenue is!!

 Now the disposal of shares by the CEO was highlighted in the first posting, Is Smartag Worth A Bet?

I wrote the following:

  • then I saw the following announcements:

    Changes in Director's Interest (S135) - Lim Peng Keong

    Lim Peng Keong? That's the CEO and according to that announcement some 6,800,000 shares were disposed on 9th May.

    Macam mana ni? On the 19th April, Smartag was announced that it will be getting a slice of the ETP projects. On the 9th May, the CEO shows his confidence in his own company by selling a substantial chunk of his shares? Average price of disposal was 0.352.

    What lah!

    And then on the 20th June, there was another disposal of shares!

    Changes in Director's Interest (S135) - Lim Peng Keong

    Accordingly the CEO said that 'The disposals were transacted by Namnan Co. Ltd, which my spouse has controlling interest.'
    The wife's company also sold shares. Some 4,250,000 were disposed at a price of 32 sen. ( Just one sen above the ipo price of 31 sen).


    Project is supposed to be big.

    Big money is there to be made.
Oh yeah that big project.

I can still recall that 70 million statement made on the local business media, Business Times. (link for the Business Times article is now broken... )
  • KUALA LUMPUR: Smartag Solutions Bhd stands to make a minimum RM70 million a year once its Radio Frequency Identification (RFID) solution to track container movements is made compulsory.

    Smartag, together with the Royal Malaysian Customs Department, will undertake a trial run of the RFID system at the latter's checkpoints from June 1.

    Smartag chairman Datuk Abdul Hamed Sepawi said the pilot project will run for three months with major companies from the logistics and manufacturing sectors such as Western Digital, TNT, Federal Express Brokerage and Priority Cargo having signed up for the test run.

    Abdul Hamed said the company may charge around RM10 per trip/container for journeys within the country. Taking into this account, Smartag is set to make at least RM70 million a year once the RFID solution is made mandatory. However, this was just an indicative pricing for now, he added.....
Smartag last traded at 13.5 sen!!

This is how Smartag has traded since listing...