Update on NextNation again

Blogged on March 2008, Nextnation Again. Let me paste the whole posting here again.

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Blogged last year: Update on NextNation

I wrote the following:

First blogged on Nextnation on 31st May 2007. here

Two points mentioned then..

• 1.Net margins show some weakness but the growth is impressive!
• 2. The biggest concern for me is that NextNation has an issue with its receivables and because of this, one do not really see wealth being generated in the company's cash flows despite its very impressive earnings.
  

Nextnation announced its next earnings on June 29th. Quarterly rpt on consolidated results for the financial period ended 30/4/2007

Sales dropped on a q-q to 21.533 million.
Earnings dropped to a mere 480k.
Receivables is at 67.092 million
There goes the GROWTH stock status!

I wrote a simple posting. http://whereiszemoola.blogspot.com/2007/06/nextnation-ii.html

Well, from an investing perspective, it's pretty ugly.

Nextnation announced its next earnings on Sept 2007. Quarterly rpt on consolidated results for the financial period ended 31/7/2007

Sales dropped on a q-q to 17.797 million
Earnings improved slightly to 611k.
Receivables is at 61.702 million

Nextnation announced its earnings last night. Quarterly rpt on consolidated results for the financial period ended 31/10/2007

Sales were flat at 17.868 million.
Earnings dropped to a mere 145k!!!
Receivables is at 56.702 million.



I just saw that Nextnation reported its earnings on Friday. It was not pretty.

Sales were lower 15.636 million
Earnings - Nextnation reported losses of 1.913 million!
Receivables is at 49.290 million!

Nextnation is last traded at 0.085!!!

_________________________________________

Nextnation just announced its earnings on June 30th.

Sales revenue is now 13.246 million.
Earnings - NextNation announced a staggering loss of 8 million.
Receivables are still extremely high at 41.9 million!

Stock last traded 5 sen!!!

Company mentioned the following:

• The Group generated loss before taxation and loss after tax before minority interest of RM8.08 million and RM8.02 million respectively for the current quarter as compared to profit before taxation of RM1.65 million and profit after tax before minority interest of RM0.80 million respectively recorded in the previous quarter. The losses recorded were mainly due to lower revenue generated and higher operational cost for existing products and services.

Nextnation Again

Blogged last year: Update on NextNation

I wrote the following:

First blogged on Nextnation on 31st May 2007. here

Two points mentioned then..

• Net margins show some weakness but the growth is impressive!
• The biggest concern for me is that NextNation has an issue with its receivables and because of this, one do not really see wealth being generated in the company's cash flows despite its very impressive earnings.
  

Nextnation announced its next earnings on June 29th. Quarterly rpt on consolidated results for the financial period ended 30/4/2007

Sales dropped on a q-q to 21.533 million.
Earnings dropped to a mere 480k.
Receivables is at 67.092 million
There goes the GROWTH stock status!

I wrote a simple posting. http://whereiszemoola.blogspot.com/2007/06/nextnation-ii.html

Well, from an investing perspective, it's pretty ugly.

Nextnation announced its next earnings on Sept 2007. Quarterly rpt on consolidated results for the financial period ended 31/7/2007

Sales dropped on a q-q to 17.797 million
Earnings improved slightly to 611k.
Receivables is at 61.702 million

Nextnation announced its earnings last night. Quarterly rpt on consolidated results for the financial period ended 31/10/2007

Sales were flat at 17.868 million.
Earnings dropped to a mere 145k!!!
Receivables is at 56.702 million.

-------------------

I just saw that Nextnation reported its earnings on Friday. It was not pretty.

Sales were lower 15.636 million
Earnings - Nextnation reported losses of 1.913 million!
Receivables is at 49.290 million!

Nextnation is last traded at 0.085!!!

Update on NextNation

First blogged on Nextnation on 31st May 2007. here

Two points mentioned then..

1. Net margins show some weakness but the growth is impressive!
2. The biggest concern for me is that NextNation has an issue with its receivables and because of this, one do not really see wealth being generated in the company's cash flows despite its very impressive earnings.

Nextnation announced its next earnings on June 29th. Quarterly rpt on consolidated results for the financial period ended 30/4/2007

1. Sales dropped on a q-q to 21.533 million.
2. Earnings dropped to a mere 480k.
3. Receivables is at 67.092 million
4. There goes the GROWTH stock status!

I wrote a simple posting. http://whereiszemoola.blogspot.com/2007/06/nextnation-ii.html

• Well, from an investing perspective, it's pretty ugly.

Nextnation announced its next earnings on Sept 2007. Quarterly rpt on consolidated results for the financial period ended 31/7/2007

1. Sales dropped on a q-q to 17.797 million
2. Earnings improved slightly to 611k.
3. Receivables is at 61.702 million

Nextnation announced its earnings last night. Quarterly rpt on consolidated results for the financial period ended 31/10/2007

1. Sales were flat at 17.868 million.
2. Earnings dropped to a mere 145k!!!
3. Receivables is at 56.702 million.

How?

Here is how Nextnation has performed as a stock!

NextNation III

Blogged previously, NextNation II

NextNation just released its Q1 earnings. Quarterly rpt on consolidated results for the financial period ended 31/7/2007

Trade receivables did improve. It's now 61.702 million.

• Revenue
  The Group recorded a revenue of RM17.8 million in the current quarter as
  compared to a revenue of RM21.5 million reported in the previous quarter. The decrease of 17.4% was mainly attributed to the Group’s continuous internal restructuring and system upgrading schemes. As a result, business transactions and projects with partners had been delayed. The management is positive that the restructuring and upgrading will enable better resources reallocation for the upcoming expansion.
  
  Profit before taxation and net profit before minority interest
  The Group generated profit before tax and profit after tax before minority interest of RM0.5 million and RM0.3 million respectively for the current quarter as compared to loss before tax and loss after tax before minority interest of RM0.2 million each in the previous quarter. The increase of 299.2% and 217.1% respectively was mainly due to the absence of allowance for doubtful debts made in the previous quarter.

NextNation III

Posted previously: NextNation II

And of course their receivables concern again should not be discounted as mentioned earlier. Frankly I do not see what the receivables should be so high!

Flashback to what was written earlier ( NextNation )

• The biggest concern for me is that NextNation has an issue with its receivables and because of this, one do not really see wealth being generated in the company's cash flows despite its very impressive earnings.

On today's Star Business, there was a huge write on NextNation and its receivables: Nextnation receivables surge to RM67m

• Chief executive officer Tey Por Yee, however, says the amount is not alarming.
  
  “The large receivables are mainly due to long collection period, which is about 200 days.
  
  “We are trying to reduce it to below 200 days,” Tey told StarBiz.
  
  He said the growing receivables were not really a concern, given the company’s cash flow was not straggled by the slow payment.
  
  “It is actually a norm in the telco-related industry, which has a long collection period.
  
  “The industry average in the region is about nine months,” said Tey, who is also managing director

Here's my thinking.

How could the receivables not be a problem? The trade receivables is at 67 million. A year ago it was a mere 39.6 million.

Note the following sentence.

• Yesterday, the company announced to Bursa Malaysia its wholly-owned subsidiary, Nextnation Network Sdn Bhd, had accepted a credit facility of up to RM10mil granted by Malaysia Debt Ventures Bhd for overseas expansion.

And if the receivables is not a problem, why accept a credit facility of 10 million??

And if it's a norm that the teclo-related industry has such a terribly long collection period, then this looks like a rather rotten industry to be invested in!

Just my ramblings!

NextNation II

Here's an update to past blog posting, NextNation.

NextNation announced its quarterly earnings tonight. Quarterly rpt on consolidated results for the financial period ended 30/4/2007

Well, from an investing perspective, it's pretty ugly.

Compare the quarterly earnings posted versus the quarterly earnings done on the NextNation posting.



It's a worry.

And of course their receivables concern again should not be discounted as mentioned earlier. Frankly I do not see what the receivables should be so high!

Flashback to what was written earlier ( NextNation )

• The biggest concern for me is that NextNation has an issue with its receivables and because of this, one do not really see wealth being generated in the company's cash flows despite its very impressive earnings.

NextNation

My Dearest ywt06,



The above table shows what NextNation has done since listing. It's impressive no doubt.

Net margins show some weakness but the growth is impressive!

NextNation is in the mobile gaming industry and here are some latest news posted on its website.

• 2007-04-13 Nextnation signs agreement with Saudi Arabia’s Tawasul Telecom
• 2007-04-13 Mobileklub partners Buena Vista to offer free movie trailers for mobile phones
• 2007-04-02 Ozura Mobile Partners with Zingy Inc. on Mobile Games Distribution
• 2007-03-28 Nextnation Group Maintains Robust Double-Digit Growth
• 2007-03-14 Press Statement in Response to Article in The Edge Daily and The Sun
• 2007-02-28 Video Killed the Radio Star, and Now Aims for Mobile - Nextnation Partners Jinny to Deliver Video Ring Back Tones
• 2007-01-29 Ozura and ChinaByte Partner to Deploy China's First Mobile Gaming Community Supports Mobile Tournament Games
• 2007-01-26 Nextnation Wins 5-year Mobility Technology Contract with the Human Resource Development Foundation of Indonesia
• 2007-01-24 Bright and Positive Year
• 2007-01-11 Ozura Powers DiGi 2188 Space Wars Mobile Mame Tournament for Coca-Cola Ceriakan Peluang Campaign

However, if you do a quarterly table, there are signs of weakness.



* 2007 Q2 cash boosted by 9.272 million due to placement of new shares. *

The biggest concern for me is that NextNation has an issue with its receivables and because of this, one do not really see wealth being generated in the company's cash flows despite its very impressive earnings.

Some other notes.

NextNation did an interim dividend less than 2 months after listing. Interim Dividend

Difficulties in selling its placement shares. March 2006 it announced NEXTNATION COMMUNICATION BERHAD ("NEXTNATION" OR "COMPANY") PROPOSED PRIVATE PLACEMENT OF UP TO TEN PERCENT (10%) OF THE EXISTING ISSUED AND PAID-UP SHARE CAPITAL OF THE COMPANY ("PROPOSED PRIVATE PLACEMENT") and recently in May 2007, have a look at this announcement, NEXTNATION COMMUNICATION BERHAD ("NEXTNATION" OR "COMPANY") PROPOSED PRIVATE PLACEMENT OF UP TO TEN PERCENT (10%) OF THE EXISTING ISSUED AND PAID-UP CAPITAL OF THE COMPANY ("PROPOSED PRIVATE PLACEMENT"). What's happening? So difficult to sell a mere 10% placement? Why?

Lastly, it's long awaited Bonus Issue is finally here. (Bonus plan was announced almost a year ago!)

rgds