DVM: Part IV

Saw this article posted on theEdgeDaily.com

SC rejects DVM's placement
10 Aug 2006 8:37 PM
The Securities Commission (SC) has rejected DVM Technology Bhd's proposed placement of up to 35.2 million new shares of 10 sen each, representing up to 20% of its current paid-up capital

==> the SC rejected the exercise as "the SC is of the view that the proposed placement does not represent an adequate/comprehensive long-term solution to increase the company's operational profitability and liquidity".

Good job SC!!!

past blog postings on DVM:

DVM
DVM: Part II
DVM: Part III

DVM: Part III

DVM, a company whose expertise is in the broadband telephony and Internet Protocol mobile products, has a write-up in the Business Times today. ( see DVM banks on revenue from abroad )

Yes, this is the same DVM Technology that I have blog a couple of times before ( see DVM and DVM: Part II )

Firstly, it was nice to see the Business Times stating the financial performance right at the start of the article.

• In fiscal 2005, DVM made a net loss of RM8.9 million on RM11 million revenue. Net profit and revenue stood at RM848,000 and RM11.5 million respectively in 2004.

The last sentence of the write-up stands up.

• Chen, however, declined to comment on the company's financial performance for fiscal 2006, only expressing optimism on the group's prospects, fuelled by its business development efforts.

Perhaps Chen should have been reminded that as the executive director of a public listed company, he should understand the importance of explaining the extremely poor results of DVM to his minority shareholders. Recording a loss of rm8.9 million from a a paltry revenue of rm11 million is truly shocking to say the least. Hence, he should understand he has the duty to explain clearly to the investors who purchased shares in his company because they believed in the long term prospect of his company.

Expressing optimism on the group's prospects is simply not enough. How does he expect his shareholders to continue to share his optimism when the past results tells a horrific story?

So don't you agree that by declining comments on such issues, as why the company lost so much money, just shows the utter lack respect of the executive director to his shareholders.

ps.

DVM was sold to the investing public at an IPO price of 40 sen. DVM is now trading at a price of 11 sen. Another good example of the destruction of market wealth in our stock exchange!

DVM: Part II

Mobile products to contribute to DVM Technology revenue

DVM Technology Bhd is expected to reap some RM4 million in revenue from the export of its broadband telephony and Internet Protocol (IP) mobile products.

Internet-based broadband telephony uses broadband connections to deliver voice calls.

That was taken from today's Business Times news clip on DVM Technology.

What's the big deal?

4 million in revenue hor .. not the same as 4 million in net earnings hor...

I blogged about DVM before, a company listed on the Messdaq a year ago, Jan 2004, made a net LOSS of 8.9 million in its maiden listing fiscal year.

And how is the stock doing?

DVM previous closing price was 9 sen (Fiyoh! Sibeh geng or what??).

Now? The stock is up 1.5 sen or some 16.6% right now.

I wonder... how much did this article contributed to the stock rise right now?

Hmmm.... hmmmm.... you know?

DVM

I was kinda shocked to see the heavy promotion made by DVM Bhd on today's business press.

The Star had one piece on it: DVM’s broadband service to go international
The Business Times carried Bernama's write-up: DVM Tech to export Genico solution

So full of potential isn't it?

The Bername piece stated the following..

He said the company, which has four subsidiaries with activities in the areas of systems integration, outsourcing services, software research and development as well as technology solutions, has invested RM7 million in research and development of the products in 2002 to meet the requirements of the international telecommunications industry.

Invested rm7 million in R&D mah... so must be geng, tiok boh?

Soooooo i was wondering.... how was this company doing?

The Star had only this.

Listed on the Mesdaq market early last year, DVM, which specialises in developing and implementing strategic customer focus communications technology solutions for medium to large organisations, achieved RM11mil in turnover for its financial year ended Sept 30, 2005.

Achieved a sales turnover of rm11 million wor.

Err... make how much ar?

Net profit how much ar?

Why so shy? Why no say?

The Bernama article mentioned nothing. Zilch!

Hmmm.... sounds strange.... so i decided to click and there.... to 8 lah...

Found that DVM was listed Jan 2004.

The very first meaningful quarterly announcement...

Quarterly rpt on consolidated results for the financial period ended 31/3/2004

Here is what they wrote in their earning notes..


DVM was listed on the MESDAQ Market of Bursa Malaysia Securities Berhad (“Bursa Malaysia”) on 2 January 2004. Hence, no comparative figures were available for the previous financial period ended 31 March 2003.

TURNOVER AND PROFIT AFTER TAX (“PAT”)

For the second quarter ended 31 March 2004, the Group achieved a turnover of RM1.245 million, which was 70% lower compared to first quarter ended 31 December 2003. The Group recorded a net loss of RM0.497 million compared with the previous quarter’s net profit of RM0.105 million.

The deterioration in turnover was the result of slow revenue recognition from delayed project implementations and tendered projects were delayed in award. The decline in profits for second quarter compared to the first quarter was mainly attributable to higher operational overheads following increased staff costs and expenses of the annual general meeting and legal fees during the quarter.

Listed in Jan 2004... May 2004 announces they are losing money. Sibeh geng hor!

Now if that is not bad enough, comes Aug 2004, there was this posted on the daily Edge...

11-08-2004: DVM targets 20% annual growth

Let me reproduce some quotes.

Mesdaq-listed DVM Technology Bhd is aiming for a 20% annual growth in net profit over the next five years via new products development, features enhancement in existing products and new market ventures.

For the first six months to March 31, 2004, the company posted a net loss of RM392,000 on the back of RM5.48 million in revenue. The loss was due to lower revenue and higher operational costs.

Aiming for 20% growth wor!

What about the fact they lost money so soon after being listed?

And naturally they were querried: ARTICLE ENTITLED: "DVM TARGETS 20% ANNUAL GROWTH

Anyway a year later after making such bold promotions in the press, here is DVM quarterly earnings.

Quarterly rpt on consolidated results for the financial period ended 30/6/2005

Sales 1.271 million.
net LOSS 6.640 million!

Shocking?

Where was the "AIMED" 20% growth?

All the minority investors got was a shocking LOSS of rm6.640 million!!!

And on Nov 30th 2005, it announced its quarterly earnings again.

Sales 1.269 million.
Net LOSS 2.331 million.

Now... what do you think of such companies being listed on the MESSdaq?